Industry bodies, economists, chartered accountants and members of the general public have hailed the Union Budget presented for the ninth time in a row by Finance Minister Nirmala Sitharaman on Sunday, terming it a growth-oriented Budget that accelerates economic momentum and provides a strong push to infrastructure development.
The Karnataka Chamber of Commerce and Industry (KCCI) said that the Budget will accelerate economic growth, foster an industry-friendly environment and promote infrastructure development.
KCCI president G.K. Adappagoudar described it as a Yuva Shakti Budget, stating that it enhances competitiveness and builds resilience against global uncertainties.
From an industrial growth perspective, the Budget emphasises the creation of champion MSMEs, provides strong stimulus for infrastructure development, ensures long-term stability and focuses on developing urban economic regions.
“Being a Yuva Shakti Budget, it enhances competitiveness and builds resilience against global uncertainties”G.K. Adappagoudar, KCCI president
The Central government’s proposal to develop seven high-speed rail corridors — Mumbai-Pune, Hyderabad-Pune, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi and Varanasi-Siliguri — has been welcomed as a major growth connector initiative.
In the technology sector, the India Semiconductor Mission 2.0, with an outlay of ₹40,000 crore, will focus on industry-led research and training centres. This initiative is expected to significantly reduce India’s dependence on other countries in this critical sector, Mr. Adappagoudar said.
With a focus on increasing farmers income, special attention has been given to small farmers. Measures such as supporting animal husbandry through credit-linked subsidy programmes, promoting livestock-based Farmer Producer Organisations (FPOs) and enhancing competitiveness in coconut production have been described as farmer-friendly initiatives.
“We thank the Finance Minister and the Modi government at the Centre for containing the fiscal deficit at 4.4% of GDP for 2025-26 and proposing to reduce it further to 4.3% in 2026-27,” he added.
While welcoming the proposal to establish three new All India Institutes of Ayurveda, KCCI has strongly recommended setting up one such institute in North Karnataka.
However, it expressed disappointment over the absence of specific proposals for large industries in the region, lack of progress on the Kalasa-Banduri Nala project, delays in the Belagavi-Kittur railway line and the absence of commitments for road improvement and flyover projects.
Indian Railways Infrastructure Providers Association vice-president V.S.V. Prasad said that the exemption of customs duty on 17 essential medicines used in cancer treatment will greatly benefit poor and needy patients.
He also welcomed the announcement of a â‚ą10,000 crore SME Growth Fund to scale high-potential firms and a â‚ą2,000 crore top-up to the Self Reliant India Fund to support micro enterprises which will encourage manufacturing growth and job creation.
Chairman of the Department of Economics at Karnatak University B.H. Nagoor said that the sustained push for infrastructure development is commendable. He noted that capital expenditure has been maintained at around â‚ą10 lakh crore-â‚ą11 lakh crore over the past five years, achieved within fiscal discipline without placing undue burden on the economy.
Reacting to allocations for higher education, Mr. Nagoor said the the education sector has been allotted â‚ą1,39,285 crore for 2026-27, marking a 5.8% increase over the previous year.
The proposal to establish five new universities in industrial towns in line with National Education Policy (NEP) 2020 is a positive step, he said and expressed the hope that one of them will be set up in Karnataka.
He also welcomed the announcement of at least one girls hostel in every district to improve access to higher education for women. However, he observed that given the current condition of State universities, dedicated funding for research grants should have been announced.
The Institute of Chartered Accountants of India (ICAI) said that the Budget emphasises industry- and technology-led growth through initiatives such as the India Semiconductor Mission 2.0 and the BioPharma Shakti programme.
It also noted increased allocations for healthcare, education, skill development, environmental sustainability, inland waterways and green transport solutions.
Overall, the Union Budget 2026-27 aims to promote inclusive and long-term economic growth while strengthening India’s infrastructure, industrial capacity and human capital.
Chartered accountant Y.M. Khatavkar pointed out that no changes have been proposed in income tax rates and that expectations of an increase in standard deduction have not been met, possibly because substantial tax relief was granted last year.
However, he welcomed the removal of provisions imposing hefty penalties and criminal prosecution for minor errors under the Income Tax Act.
The move towards decriminalisation with nominal fees and the proposal to extend the deadline for filing revised income tax returns until March 31 every year are beneficial for taxpayers, he said.
Published – February 01, 2026 07:51 pm IST
