Budget focused on long-term returns, says industrial body

Ludhiana: There is not much immediate in the Union Budget for MSME's for Punjab, but it attempts to strike a balance between fiscal discipline and long-term growth rather than offering populist giveaways, according to Chamber of Industrial and Commercial Undertakings (CICU).

Reacting to the proposed Rs 10,000 crore allocation for the MSME sector, CICU president Upkar Singh Ahuja said the allocation could prove beneficial, if implemented effectively and directed towards capacity-building rather than short-term relief. He said though previous MSME-focused budget did not translate much at the ground-level for Punjab, he hoped that this budget would benefit the industry.


Ahuja underlined that budgets must maintain checks and balances, especially at a time when every citizen was indirectly carrying the burden of mounting loans taken by both the Centre and the states.

He noted that the government's emphasis on capital expenditure and infrastructure development could yield dividends for industry in the long run. "If investments in infrastructure, logistics and emerging sectors are pursued in a focused manner, their impact will be felt over the coming years," he said, adding that such structural support was more important than immediate sops.

Ahuja also drew attention to the increased defence allocation in the Union Budget, calling it a significant opportunity for domestic industry. With defence spending rising steadily and capital procurement forming a major component, he said concrete steps should be taken to ensure greater participation of MSMEs in defence procurement.

"Defence manufacturing cannot rely only on large corporations. MSMEs must be integrated into the supply chain. For that MSME's must be strengthened with research and development along with technology," he said.

According to him, targeted policies encouraging defence purchases from MSMEs would not only strengthen self-reliance, but also create skilled employment and innovation ecosystems.

While welcoming the overall growth-oriented approach, Ahuja cautioned against unrealistic expectations from the Budget. "All budgets cannot be populist," he said, reiterating that fiscal prudence was essential given the debt levels of governments.

Meanwhile, Federation of Indian Export Organisations (FIEO) called the Budget as bold, forward-looking, and reform-oriented budget. SC Ralhan, FIEO president, stated, "The Union Budget 2026–27 clearly demonstrates the government's resolve to translate India's economic potential into tangible performance. The strong thrust on manufacturing, MSMEs, infrastructure and services, backed by meaningful tax and customs reforms, will enable Indian exporters to integrate more deeply and competitively with global value chains."

He added that the proposed revival of 200 legacy industrial clusters, along with multiple sector-specific initiatives, was expected to improve scale, productivity, technology adoption and export preparedness.