Welcomes Union Budget 2026-27; Highlights Focus On Growth & Regional Connectivity

Kolkata1 February 2026 : The Confederation of Indian Industry (CII) has welcomed the Union Budget 2026-27, noting that it presents a forward-looking and confidence-building roadmap, underscoring the Government’s commitment to next-generation reforms, sustained high growth, and macroeconomic stability amid global uncertainty. The Budget sends a strong signal of continuity, credibility and long-term vision for India’s development. CII welcomes the emphasis on fiscal prudence alongside growth support, with the fiscal deficit target of 4.3 percent of GDP for FY27 aligned with the recommended glide path and reinforcing confidence in macroeconomic management, while also reflecting a clear strategic intent to strengthen India’s manufacturing ecosystem.

CII has welcomed the Budget’s focus on MSME growth through the proposed ₹10,000 crore SME Growth Fund, expanded Self-Reliant India Fund, and liquidity measures such as mandatory TReDS, enhanced credit guarantees, GeM-linked financing and receivables securitisation. The announcement of three chemical parks, Biopharma Shakti with an outlay of ₹10,000 crore, and ₹20,000 crore for Carbon Capture Utilisation and Storage technologies is seen as strengthening domestic manufacturing and sustainability. CII also welcomed initiatives to improve sustainable logistics, the integrated textiles programme, and the push towards the Orange Economy through expanded AVGC skilling and infrastructure.

Notably, the allocation of ₹2.81 lakh crore for the railways sector reflects the Government’s strong focus on strengthening railway infrastructure, capacity expansion and passenger safety. The seven proposed high-speed rail corridors will significantly enhance national connectivity and logistics efficiency. In particular, the Varanasi–Siliguri corridor will be transformative for West Bengal and the Eastern Region by improving regional linkages, boosting trade and tourism, and supporting more balanced economic development.

In a significant push towards building resilient infrastructure and self-reliant logistics ecosystems, the proposed container manufacturing scheme with an outlay of ₹10,000 crore over five years will strengthen supply chains and boost domestic manufacturing capacity.

To boost regional trade and infrastructure, the enhanced allocation of ₹5,164.8 crore for ports, shipping and waterways reflects a strong push for maritime-led growth, while the proposed Dedicated Freight Corridor from Dankuni to Surat will promote sustainable cargo movement, strengthen national logistics, and support industrial development in the Eastern Region.

Mr Shashwat Goenka, Chairman, CII Eastern Region and Vice Chairman, RP - Sanjiv Goenka Group, said, “CII welcomes the consistency and policy stability reaffirmed in Union Budget 2026, which provides long-term visibility and confidence to businesses. The strong focus on balanced regional development, particularly the Purvodaya states and the Northeast, is encouraging. MSMEs form the backbone of the eastern region’s economy. The three-pronged approach outlined by the Hon’ble FM - focusing on liquidity, equity, and professional support, combined with measures to ease doing business, will play a crucial role in creating champion MSMEs.”

“The proposed East Coast Industrial Corridor starting from Durgapur will strengthen India’s eastern growth engine, while the addition of 4,000 e-buses for industrial corridors will enhance regional connectivity and support sustainable mobility. We also welcome the emphasis on inclusive healthcare. The establishment of NIMHANS II institutions in Ranchi and Tezpur,along with Regional Apex Emergency and Trauma Care Institutes, will significantly improve access to quality mental health and emergency services in underserved regions,” said MrGoenka.

Mr Goenka further added, “The focus on developing Buddhist heritage sites across the Northeast will help preserve cultural legacy while positioning the region as a global spiritual and cultural tourism destination.”

Mr Mehul Mohanka, Deputy Chairman, CII Eastern Region and Group CEO & Managing Director, Tega Industries Ltd. said, “CII welcomes the emphasis on rare earth permanent magnets to support mineral rich states such as Odisha, Kerala and Andhra Pradesh. The announcement on creating rare earth corridors will go a long way in promoting mining and research. The high-speed rail corridor from Varanasi to Siliguri, along with the dedicated freight corridor connecting Dankuni and Surat, will be game changers for the Eastern Region.”