Industry bodies, economists, chartered accountants and the general public have welcomed the Union Budget presented by Finance Minister Nirmala Sitharaman for the ninth time in a row on Sunday, terming it a growth-oriented budget that accelerates economic dynamism and provides a strong push for infrastructure development.
The Karnataka Chamber of Commerce and Industry (KCCI) said the budget will accelerate economic growth, promote an industry-friendly environment and promote infrastructure development.
KCCI president GK Adappagoudar described it as a Yuva Shakti budget, saying it enhances competitiveness and builds resilience against global uncertainties.
In terms of industrial growth, the budget emphasizes the creation of SME champions, provides a strong stimulus for infrastructure development, ensures long-term stability and focuses on the development of urban economic regions.
“Being a Yuva Shakti Budget Increases Competitiveness and Builds Resilience to Global Uncertainties”GK Adappagoudar, president of KCCI
The central government’s proposal to build seven high-speed rail corridors — Mumbai-Pune, Hyderabad-Pune, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi and Varanasi-Siliguri — has been hailed as a major growth initiative.
In the technology sector, the ₹40,000 crore India Semiconductor Mission 2.0 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’ incomes, special attention was paid to small farmers. Measures such as the promotion of animal husbandry through credit subsidy schemes, the promotion of Farmers’ Organizations (FPOs) focusing on livestock and increasing the competitiveness of coconut production have been described as farmer-friendly initiatives.
“We thank the Finance Minister and the Modi government at the Center for maintaining the fiscal deficit at 4.4% of GDP in 2025-26 and proposing to further reduce it to 4.3% in 2026-27,” he added.
While KCCI welcomes the proposal to set up three new All India Institutes of Ayurveda, it strongly recommends setting up one such institute in North Karnataka.
However, she expressed disappointment over the absence of concrete proposals for large-scale industries in the region, lack of progress on the Kalasa-Banduri Nala project, delays on the Belagavi-Kittur railway line and the absence of commitments for road improvement and flyover projects.
Indian Railways Infrastructure Providers Association Vice President VSV Prasad said the duty exemption on 17 essential drugs used in cancer treatment will greatly benefit the poor and needy patients.
He also welcomed the announcement of setting up a ₹10,000 crore SME Growth Fund to scale up high-potential enterprises and an increase of ₹2,000 crore to the Self Reliant India Fund to support micro-enterprises to boost manufacturing growth and job creation.
Karnatak University Economics Department Chairman BH Nagoor said the sustained push for infrastructure development is laudable. He noted that capital expenditure has remained at around ₹10 crore-₹11 crore over the past five years, which has been achieved within fiscal discipline without putting undue strain on the economy.
Responding to the higher education allocations, Mr. Nagoor said that the education sector has been allocated ₹1,39,285 crore for 2026-27, which is a 5.8% increase over the previous year.
The proposal to set up five new universities in industrial cities in line with the National Education Policy (NEP) 2020 is a positive step, he said, expressing hope that one of them would be set up in Karnataka.
He also welcomed the announcement to set up at least one girls’ hostel in each district to improve women’s access to higher education. However, he noted that given the current state of state universities, dedicated research grant funding should be tendered.
The Institute of Chartered Accountants of India (ICAI) said the budget emphasizes industry and technology-led growth through initiatives such as the India Semiconductor Mission 2.0 and the BioPharma Shakti programme.
It also saw increased allocations for healthcare, education, skills development, environmental sustainability, inland waterways and green transport solutions.
Overall, the Union Budget 2026-2027 aims to promote inclusive and long-term economic growth while strengthening India’s infrastructure, industrial capacity and human capital.
Chartered Accountant YM Khatavkar pointed out that no changes in income tax rates have been proposed and expectations of an increase in standard deduction have not been met, possibly because significant tax concessions were given last year.
However, he welcomed the removal of provisions on heavy penalties and prosecution for minor offenses under the Income Tax Act.
The move towards decriminalization with nominal fees and the proposal to extend the deadline for filing revised tax returns to March 31 every year are beneficial for taxpayers, he said.
Published – 01 Feb 2026 19:51 IST