Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 yesterday, delivering a capex-heavy yet fiscally prudent roadmap that sustains capital expenditure at ₹12.2 lakh crore while targeting a fiscal deficit of 4.3% of GDP. The budget positions MSMEs as ‘Champion Enterprises’, doubles down on biopharma and vaccine leadership through the ₹10,000 crore BioPharma Shakti initiative, strengthens research and innovation ecosystems, and emphasises inclusive entrepreneurship through women-led SHE-Marts and decentralised manufacturing in Tier-II/III cities.
Industry leaders have broadly welcomed the budget as progressive, outcome-oriented, and aligned with long-term national priorities in infrastructure, health security, scientific advancement, and enterprise formalisation.
Infrastructure & Capital Formation: Long-Term Visibility
The sustained emphasis on productive capital spending and outcome monitoring has been praised for providing policy stability to energy transition and grid modernisation players.
Mr. Sharan Bansal, Director, Skipper Limited, highlighted the infrastructure thrust:
“The Union Budget 2026 gives renewed focus on the government having capital-led growth and developing long-term national infrastructure. The Budget raises capital expenditure to ₹12.2 trillion for FY2026-27, up from ₹11.2 trillion in the previous year, reinforcing infrastructure investment as a key growth driver. The unambiguous difference between revenue spending and capital expenditure, as well as long-term commitments to the development of assets, gives infrastructure developers and manufacturers long-term visibility. The Budget focuses on the capital formation, monitoring of outcomes and medium-term fiscal planning, which provides a stable policy environment in the energy transition in India. The fiscal deficit is targeted at 4.3 % of GDP for FY2026-27, underscoring continued fiscal stability alongside investment push. The emphasis to productive capital spending and accountability will facilitate grid modernisation, a field that is well aligned with the ability of Skipper to supply power equipment, grid enabling systems and advanced engineering solutions.”
Research & Innovation: From Discovery to Application
The budget’s continued support for the Anusandhan National Research Fund, biopharma clinical trials network, regional medical hubs, AYUSH research expansion, astronomical infrastructure upgrades, and ₹20,000 crore carbon capture allocation have been lauded as transformative for India’s scientific leadership and inclusive innovation.
Vikram Aditya Sahoo, Director – Research and Innovation, SAI International Education Group, said:
“The Union Budget 2026-27 is a strong and welcome signal that research and innovation are at the heart of India’s future growth and leadership. The continued support for the Anusandhan National Research Fund, and the emphasis on industry-academia collaboration, signal a shift towards a research environment where knowledge development is more closely attuned to application. This is essential to ensure that research leads to scalable solutions, technological autonomy, and economic outcomes. The emphasis on medical and health research is especially important. A countrywide biopharma clinical trials network, together with the creation of regional medical hubs that integrate education, research, and healthcare, can help consolidate India’s leadership role in the world in healthcare and life sciences. The emphasis on the expansion of AYUSH research, including the WHO Global Traditional Medicine Centre at Jamnagar and the establishment of new All India Institutes of Ayurveda, is a strong signal that evidence-based integration of traditional knowledge with modern science is a priority. Another area of equal importance is the investment in basic scientific infrastructure. Upgradation of facilities like the National Large Solar Telescope, National Large Optical-Infrared Telescope, Himalayan Chandra Telescope, and COSMOS-2 Planetarium will promote innovative research, experiential learning, and scientific inquiry. For the education sector, these investments are transformative as they strengthen research-led teaching, expose students to cutting-edge scientific environments, and encourage a culture of inquiry, interdisciplinary learning, and innovation across institutions. The allocation of ₹20,000 crores for carbon capture, utilization, and storage research indicates a commitment to the future of sustainability, and the emphasis on assistive technology R&D indicates how innovation can be used to directly improve accessibility, independence, and quality of life ensuring that education and research remain inclusive, socially relevant, and aligned with national priorities.”
Entrepreneurship & MSMEs: From Survival to Scale
The ₹10,000 crore SME Growth Fund, risk capital support, TReDS reforms, ‘Corporate Mitras’, SHE-Marts, and tourism-led employment generation have been described as inclusive steps toward sustainable enterprise building.
Dr Sunil Shukla, Director General, Entrepreneurship Development Institute of India (EDII), noted:
“The Union Budget 2026 rightly recognises MSMEs as ‘Champion Enterprises’ central to India’s growth, with a strong focus on equity, liquidity and professional support to help them scale sustainably. The emphasis on women-led enterprises through initiatives like SHE-Marts is particularly encouraging, enabling a shift from livelihoods to true enterprise ownership. The focus on tourism as a local employment generator aligns with EDII’s experience of building sustainable enterprises in the sector, while the education-to-entrepreneurship push signals a timely move from job-seeking to job-creation. Overall, this is a progressive and inclusive Budget that strengthens India’s entrepreneurship ecosystem.”
Dr. Irfan Khan, Chairman of EBG Group, added:
“The ₹10,000 crore SME Growth Fund and the ₹2,000 crore top-up to the Self-Reliant India Fund clearly signal the government’s intent to push MSME growth beyond the metros. Measures such as TReDS reforms, invoice discounting and new credit-guarantee support for MSME receivables will be especially helpful for manufacturers in Tier-II and Tier-III towns, where access to timely working capital remains a major issue. The introduction of ‘Corporate Mitras’ will ease compliance and accelerate formalisation for small units that are strong in operations but weak in paperwork. Along with the revival of industrial clusters and a sharper focus on emerging cities, this decentralised approach strengthens local manufacturing ecosystems and job creation. Overall, the Budget enables MSMEs in these regions to scale sustainably rather than stay dependent on metro-led growth.”
Biopharma & Vaccines: From Volume to Innovation Leadership
The ₹10,000 crore BioPharma Shakti initiative has been hailed as a pivotal step to elevate India from a volume supplier to an innovation-driven global biopharma hub.
Dr. K. Anand Kumar, MD, Indian Immunologicals Ltd., said:
“As India moves forward with the INR 10,000 Cr BioPharma Shakti initiative, the Union Budget presented a defining moment to strengthen the country’s position as a global vaccine and biologics manufacturing hub. India already supplies nearly 60% of the world’s vaccines, and this initiative has the potential to accelerate our transition from being a volume-driven supplier to an innovation-led biopharma leader. Targeted investments in advanced manufacturing infrastructure, high-containment facilities, and indigenous production of key raw materials such as culture media, adjuvants, and single-use systems will significantly improve supply chain resilience. Overall, the Budget lays a strong foundation for India to evolve from the ‘pharmacy of the world’ to a trusted global hub for affordable vaccines, biologics, and health security.”
The Union Budget 2026-27 presents a coherent, multi-pronged strategy: sustaining infrastructure-led growth, empowering MSMEs and women entrepreneurs, accelerating biopharma innovation, and embedding research at the core of national progress. With fiscal stability maintained and implementation now the defining test, stakeholders view the budget as a solid foundation for inclusive, innovation-driven advancement toward Viksit Bharat by 2047.
Last Updated on: Thursday, February 5, 2026 10:19 am by Digital Herald Team | Published by: Digital Herald Team on Thursday, February 5, 2026 10:19 am | News Categories: India