Lucknow: The Indian Industries Association (IIA) organised a Union Budget 2026–27 viewing and discussion session at the IIA Bhawan, which witnessed the participation of a large number of IIA office-bearers, industrialists, and domain experts. The session focused on analysing the budget’s impact on manufacturing, MSMEs, and overall industrial growth.
The Union Budget 2026–27 outlines major initiatives aimed at boosting manufacturing across seven key sectors, along with renewed emphasis on infrastructure development. Key announcements include positioning India as a global pharmaceutical manufacturing hub, allocation of ₹100 billion for biopharma over five years, an additional ₹400 billion to promote semiconductor manufacturing, development of seven high-speed rail corridors, ₹200 billion for carbon emission reduction programmes, and the establishment of a ₹100 billion growth fund to support small businesses.
IIA National President Dinesh Goyal said the budget announcements reflect a strong commitment to the growth of the Indian economy and MSMEs across sectors. Describing the budget as “future-oriented and growth-driven,” he said that significant allocations for biopharma, semiconductor manufacturing, and high-speed rail infrastructure, along with the proposed growth fund for micro industries, would collectively strengthen India’s manufacturing ecosystem and directly benefit the MSME sector.
He welcomed the government’s focus on equity support, SME growth fund allocation, recognition of TReDS receivables as asset-backed securities, emphasis on Tier II and Tier III cities, the Corporate Mitra initiative, and sector-specific structural support.
However, Goyal noted that IIA had expected a positive announcement on an exit policy for MSMEs, as proposed in its pre-budget submission. Such a policy, he said, would have enabled better utilisation of industrial investments and strengthened security for CGTMSE and other bank loans. He also stressed the need for stronger measures to accelerate import substitution of machinery and equipment, particularly in the medical and food processing sectors, where significant foreign exchange outflow continues. Overall, he termed the budget non-populist but growth-oriented.
IIA National Treasurer Avadhesh Agarwal welcomed the announcement to establish high-tech tool rooms for high-precision components, creation of champion MSMEs, and renewed focus on rare earth magnets. He said these measures would significantly enhance domestic capabilities in advanced manufacturing. He also appreciated the proposal to develop 22 new waterways over the next five years and establish facilities for container manufacturing in India.
Former IIA President V.K. Agarwal expressed concern that the budget does not provide the required level of immediate support to the MSME sector, noting that many announcements are long-term in nature. He said the budget should have included more short-term, one-year measures to address the current challenges faced by MSMEs.
IIA Banking Committee Chairman K.K. Agarwal welcomed the announcement to integrate the Government e-Marketplace (GeM) with TReDS, calling it a significant reform. He said this integration would ease liquidity challenges for MSMEs and bring more government organisations and PSUs under the TReDS framework, ensuring faster payment cycles for small businesses.
IIA GST Committee Chairman Kapil Vaishya highlighted that the decision to reduce customs duty on components rather than finished goods aligns with the recently announced FTA with the European Union. He said this approach would strengthen indigenisation efforts and promote domestic value addition in the long run.
Commenting on the budget, Shashank Shekhar Gupta, Chairman – International Trade Policies, Finance and Taxation, IIA, said the government’s emphasis on industrial growth and manufacturing is clearly reflected in its focus on developing champion MSMEs, which will play a crucial role in boosting domestic manufacturing and industrial competitiveness.
Welcoming the focus on women-led enterprises, CA Reena Bhargava said initiatives such as promoting SHE Marts and encouraging women entrepreneurship through self-help groups are positive and empowering steps. CA Ashok Seth emphasised the liquidity benefits for businesses, noting that reductions in TDS and TCS would leave more funds in the hands of entrepreneurs, helping them manage cash flows and expand operations.
The budget viewing and discussion session was attended by IIA National Secretary Pramit Kumar Singh, Divisional Chairman Ayodhya Captain Rajesh Kumar Tiwari, Lucknow Chapter Chairman Vikas Khanna, S.K. Gupta, Aviral Kumar, Akshay Kumar, and several other office-bearers and industrialists.
