The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, emphasizes infrastructure-led growth, domestic manufacturing, MSME support, and long-term economic resilience under the vision of Viksit Bharat. With public capital expenditure raised to ₹12.2 lakh crore (a 9% increase), the Budget prioritizes high-speed rail corridors, rare earth corridors, chemical parks, enhanced TReDS for MSMEs, and urban development through City Economic Regions (CERs) and REITs.
Industry leaders across key sectors have welcomed these measures for fostering self-reliance, improving liquidity, and unlocking sustained demand.
Boost for EV and Manufacturing Ecosystem
Aravind Mani, CEO & Co-Founder of River Mobility, highlighted the strategic focus on critical minerals and chemicals:
“The Budget reinforces India’s steady progress towards Viksit Bharat by putting long-term manufacturing strength and supply chain resilience at the centre of economic policy. We welcome the government’s focus on developing rare earth corridors across mineral-rich states, as access to critical minerals and domestic processing is essential for building a self-reliant EV ecosystem. The proposed cluster-based chemical parks are also a positive step, as stronger domestic chemical manufacturing will directly support batteries, components and advanced materials. Together, these measures reduce import dependence, support large-scale EV manufacturing and signal India’s intent to emerge as a global hub for next-generation mobility.”
These initiatives align with announcements supporting rare earth corridors in states like Odisha, Kerala, Andhra Pradesh, and Tamil Nadu, alongside cluster-based chemical parks to strengthen supply chains for EVs and advanced materials.
Strong Support for MSMEs
The Budget’s dedicated ₹10,000-crore fund for MSMEs, along with TReDS reforms including mandates for CPSE purchases, GeM linkage, and credit guarantees addresses payment delays and cash-flow challenges.
Akshay Jain from CRENOVATE shared a comment from Ashok Mittal, MD & CEO of BillMart Fintech:
“Overall, this is a good and balanced Budget, with a clear focus on strengthening the MSME sector, which contributes nearly 30% to India’s GDP. The announcement of a dedicated ₹10,000-crore fund for MSMEs is a strong step and will support faster growth for small and medium enterprises. The measures proposed to strengthen the Trade Receivables Discounting System (TReDS) are equally encouraging, as they address long payment cycles that often stretch to 60–90 days for MSMEs. Mandating TReDS for CPSE purchases, linking GeM with TReDS, and introducing credit guarantees for invoice discounting will help improve cash-flow visibility and ease working-capital pressure. Together, these initiatives will give MSME entrepreneurs greater confidence to focus on scaling their businesses.”
Real Estate Sector’s Durable Growth Momentum
The Budget’s infrastructure thrust including seven high-speed rail corridors, 20 new national waterways, an Infrastructure Risk Guarantee Fund, and ₹5,000 crore annual allocation for City Economic Regions aims to decentralize urban growth, boost Tier-2/Tier-3 markets, and enhance funding via REITs and municipal bonds.
Leaders in real estate echoed this shift toward resilient, end-user-driven development:
Navin Dhanuka, Director, ArisUnitern:
“The Union Budget 2026 marks a clear shift from short-term cyclical support to building a durable growth backbone for Indian real estate. The emphasis on infrastructure, City Economic Regions and industrial corridors creates a virtuous loop between jobs, housing and urban expansion. By widening the geographical footprint of cities, the Budget enables housing growth beyond saturated urban cores into well-connected peripheral and Tier-2 markets. Equally important is the focus on deepening capital markets through REITs and municipal bonds, which improves long-term funding visibility. Together, these measures reduce execution risk, strengthen buyer confidence and support a more resilient, end-user-driven real estate cycle.”
Bhavesh Kothari, Founder & CEO, Property First Realty:
“The Union Budget 2026 signals a decisive shift from incremental stimulus to building durable growth capacity across the economy. The government has raised public capital expenditure to ₹12.2 lakh crore in FY27, up 9% year-on-year, underlining infrastructure as the primary growth lever. Enhanced connectivity through seven proposed high-speed rail corridors, 20 new national waterways over the next five years and the introduction of an Infrastructure Risk Guarantee Fund should accelerate execution while improving private sector participation. Urban policy emerges as a parallel pillar. A committed ₹5,000 crore annual allocation for City Economic Regions and continued emphasis on Tier-2 and Tier-3 cities are likely to reshape development patterns, easing pressure on metros and unlocking housing demand in new corridors. Financial market reforms add further momentum, with faster recycling of CPSE real estate assets via REITs and continued support for InvITs improving liquidity and investor confidence. Meanwhile, income tax reforms that raise disposable incomes and simplify compliance provide a measured but meaningful tailwind to consumption and housing demand.”
Monty Joshi, Co-Founder, Sarvam Properties:
“The Union Budget 2026-27 marks a turning point for India’s real estate sector, setting the groundwork for sustained growth rather than short-term corrections. The strong thrust on infrastructure, city economic regions and decentralised industrial development is expanding housing demand beyond metro cores into emerging Tier-2 and Tier-3 markets. For developers, capital access via REITs/municipal bonds, Infrastructure Risk Guarantee Fund, GST simplification and faster approvals cut execution risks and costs. The growing emphasis on sustainable, green urbanisation closely aligns with our focus on affordable future-ready homes. As housing demand becomes more end-user driven and geographically diverse, we believe this cycle offers durable value creation for our shareholders.”
Overall, the Union Budget 2026-27 positions India for long-term, inclusive growth by prioritizing infrastructure, manufacturing self-reliance, MSME liquidity, and balanced urban expansion. Industry reactions underscore optimism that these reforms will drive sustainable development and position India as a global economic powerhouse.