Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27, emphasizing execution over ambition in a Yuva Shakti-driven framework aimed at realizing Viksit Bharat by 2047. With capital expenditure sustained at ₹12.2 lakh crore and the fiscal deficit targeted at 4.3% of GDP, the budget reinforces fiscal prudence while channeling resources toward manufacturing localization, critical minerals security, sustainable energy transitions, and connectivity-led growth.
Key sectoral initiatives include expanding the Electronics Components Manufacturing Scheme (ECMS) outlay to ₹40,000 crore, launching India Semiconductor Mission 2.0 for deeper supply-chain resilience, allocating ₹20,000 crore over five years for Carbon Capture, Utilisation and Storage (CCUS), mandating compressed biogas blending, and strengthening tourism and hospitality through enhanced connectivity and skilling.
Industry leaders have welcomed the measures as pragmatic steps toward self-reliance, job creation, and environmental responsibility, though effective implementation remains critical for translating policy intent into tangible outcomes.
Electronics Manufacturing: Scaling Localization and Competitiveness
The budget’s sharp increase in ECMS funding and ISM 2.0 signals a decisive push to position India as a global electronics hub.
Mr. Sanjeev Agarwal, Executive Director & Chief Manufacturing Officer, Lava International Limited, noted:
“The expansion of the Electronics Components Manufacturing Scheme to ₹40,000 crore is an encouraging move to strengthen India’s electronics manufacturing ecosystem. For ECMS to deliver its intended impact, it will be important to ensure that the necessary infrastructural enablers are set up, along with timely and effective implementation. This will be key to translating the policy intent into outcomes.”
Mr. Rajesh Sethi, Group Chief Financial Officer, Lava International Limited, added:
“The Union Budget 2026–27 reflects a continued focus on building India’s manufacturing strength and capabilities, with electronics positioned as a key pillar of economic growth. By fostering a supportive policy environment for domestic production and scale, the Budget lays the groundwork for sustained job creation, stronger industrial capabilities and deeper integration into global value chains. Over time, these measures can contribute meaningfully to India’s economic resilience and long-term competitiveness.”
Arijeet Talapatra, CEO, itel India, highlighted the broader ecosystem benefits:
“The Union Budget 2026 delivers a clear and reassuring message for brands investing in India’s electronics ecosystem, laying a strong framework towards establishing India as a global hub for manufacturing electronics. The increased outlay of the Electronics Component Manufacturing Scheme will help deepen localisation, strengthen the value chains, and improve the cost competitiveness of consumer electronics goods. The announcement of the India Semiconductor Mission 2.0 is a welcome move that will bolster India’s journey towards becoming Atmanirbhar — critical for ensuring uninterrupted access to crucial technologies. The government’s focus on infrastructure development in Tier-2 and Tier-3 cities will further drive consumer-led growth by improving access, distribution efficiency, and last-mile connectivity. For itel, these initiatives resonate deeply with our commitment of democratizing access to durable, reliable, and affordable technology — empowering millions of consumers across Bharat.”
Energy Transition: Natural Gas, Biogas Blending, and Carbon Capture
The budget advances India’s net-zero ambitions through practical, transitional measures.
Abhilesh Gupta, MD and CEO, THINK Gas, praised the green energy focus:
“Budget 2026 reinforces the role of natural gas as a practical transition fuel that supports both growth and sustainability. Mandating the blending of compressed biogas (CBG) with CNG and PNG is a visionary step toward a greener India and energy security. The 20,000 crore outlay for Carbon Capture and the focus on ‘net-zero’ by 2070 show that the government is serious about environmental responsibility. This budget provides the structural reforms needed to transition India into a gas-based economy while ensuring that clean energy remains affordable and accessible for all.”
Vasudha Madhavan, Founder and CEO, Ostara Advisors, emphasized decarbonization strategy:
“This Budget reflects a shift from aspiration to execution. The creation of rare earth corridors in mineral-rich states addresses a critical supply-chain vulnerability by anchoring domestic manufacturing capabilities. Importantly, the ₹20,000 crore commitment to carbon capture and storage establishes a credible foundation for decarbonising hard-to-abate sectors such as power, steel, and cement, where alternatives remain limited at scale. The government’s phased, programmatic approach to CCUS enables industrial emissions reduction without disrupting growth, strengthens energy security, and advances India’s net-zero pathway in a pragmatic, economically aligned manner.”
Tourism and Hospitality: Connectivity and Destination Development
The budget bolsters travel, tourism, and hospitality as engines of employment and local economies.
Mr. Aditya Pande, Group Chief Executive Officer, InterGlobe Enterprises, said:
“The Union Budget outlines a strong, forward-looking roadmap toward a Viksit Bharat by 2047. We welcome the government’s continued focus on strengthening India’s travel, tourism, and hospitality ecosystem through improved connectivity, accessibility, and destination infrastructure. The emphasis on skill development, heritage, and ecotourism reflects a deep understanding of the sector’s economic potential. These measures will boost demand, support local economies, and strengthen India’s position as a global hub for high-quality hospitality and travel.”
The Union Budget 2026-27 presents a balanced, reform-oriented vision: deepening manufacturing depth in electronics and semiconductors, accelerating clean energy transitions via CCUS and biogas, and enhancing sectoral ecosystems like tourism. With fiscal consolidation intact and capex momentum sustained, success will hinge on swift execution, infrastructural readiness, and stakeholder coordination to convert these announcements into broad-based growth and competitiveness.
Last Updated on: Wednesday, February 4, 2026 11:09 pm by News Proton Team | Published by: News Proton Team on Wednesday, February 4, 2026 11:09 pm | News Categories: India, News