Andhra Pradesh Industry Leaders Applaud Union Budget 2026 as Pragmatic and Growth-Focused
Industry bodies across Andhra Pradesh have responded positively to the Union Budget 2026, describing it as growth-oriented, pragmatic, and supportive of key economic sectors. However, they have simultaneously highlighted specific gaps in allocations for state-specific priorities that could have further strengthened Andhra Pradesh's economic trajectory.
Balanced Approach Amid Global Uncertainties
AP Chambers of Commerce president Potluri Bhaskar Rao characterized the budget as balanced and pragmatic, particularly considering the backdrop of global economic uncertainties stemming from geopolitical tensions and trade disruptions. He welcomed the Centre's emphasis on fiscal consolidation and structural reforms, extending congratulations to Finance Minister Nirmala Sitharaman for presenting her ninth consecutive budget.
Bhaskar Rao specifically praised several key announcements:
- The establishment of a ₹10,000-crore SME Growth Fund
- A ₹4,000-crore top-up to the Self-Reliant India Fund for 2026-27
- The proposal to revive 200 legacy industrial clusters
He noted that these measures would provide substantial support to MSMEs facing liquidity constraints, despite existing credit guarantee mechanisms, and offer much-needed relief to micro enterprises struggling with capital access.
Manufacturing and Infrastructure Boost
The industry leader also lauded the government's focus on manufacturing and technology, highlighting several significant initiatives:
- Launch of ISM 2.0
- Enhancement of the Electronics Components Manufacturing Scheme outlay to ₹40,000 crore
- Support for rare-earth mineral corridors, including one in Andhra Pradesh
"These initiatives will strengthen domestic supply chains and reduce import dependence," Bhaskar Rao observed.
Additional welcomed measures included the increase in capital expenditure to ₹12.2 lakh crore for FY 2027, announcement of mega textile parks with emphasis on value-added and technical textiles, seven high-speed rail corridors, and a dedicated east-west freight corridor from Dankuni to Surat.
State-Specific Concerns and Missed Opportunities
Despite the overall positive reception, AP Chambers expressed disappointment over what they termed missed opportunities in the budget. Specifically, they noted the absence of adequate budgetary allocation for two critical state projects:
- The Polavaram Irrigation Project
- Amaravati's development
The industry body emphasized that targeted support for these priorities would have significantly strengthened Andhra Pradesh's economic momentum and enhanced investor confidence in the state.
CII's Enthusiastic Endorsement
Meanwhile, Confederation of Indian Industry (CII) Andhra Pradesh vice chairman Saravanan Narendra Kumar hailed the budget as "excellent" and designed to drive growth across all sectors. He particularly praised the tax exemptions granted to foreign investors for data centre development until 2047, stating this measure would stimulate allied industries and generate vast employment opportunities for India's youth.
Narendra Kumar highlighted several state-specific benefits:
- Development of ecologically sustainable mountain trains in Araku Valley
- Bird-watching trails at Pulicat Lake to boost tourism
- Proposed high-speed rail corridors—Hyderabad–Chennai, Hyderabad–Bangalore, and Chennai–Bangalore—likely to pass through Andhra Pradesh districts, enabling industrial development along these routes
Fiscal Management and Sector-Specific Benefits
The CII leader also commended the government's fiscal deficit management, with the figure maintained at 4.3% in the current budget compared to 4.4% previously. He welcomed the government's target to reduce the debt-to-GDP ratio to 50% by 2031 from the current 55%.
CII Vijayawada chapter vice president V Naga Lakshmi noted that the budget paves the way for a Self-Reliant India (Atma Nirbhar Bharat), particularly amid geopolitical tensions affecting neighbouring economies. She welcomed import duty relief on 17 essential drugs, including cancer medicines, as a significant healthcare benefit.
MSME Sector Perspectives
Industrialist Movva Ramakrishna, representing the MSME sector, expressed optimism about the ₹10,000 crore SME Growth Fund, anticipating increased credit support for small and medium enterprises. He noted the sector's substantial export potential and expressed hope that the fund would enable greater exports from India.
The budget discussions were attended by several industry leaders, including CII AP past chairman M Lakshmi Prasad and other prominent figures from Andhra Pradesh's business community.
