Kanpur Experts Provide Mixed Reactions to Union Budget 2026-27
Financial experts and industry leaders in Kanpur have offered a nuanced assessment of the Union Budget for 2026-27, characterizing it as a budget with significant long-term policy implications while highlighting specific areas of concern for various segments of the economy.
Focus on Capital Expenditure and Structural Reforms
Chartered accountant RC Bajpai described the budget as fundamentally good for the future of the country, emphasizing its strategic orientation towards strengthening domestic production ecosystems. He pointed to initiatives in organic farming and the development of textile clusters as positive steps. Furthermore, he welcomed the proposal to establish at least one girls' hostel in every district, viewing it as a progressive move for women's education and safety.
In a panel discussion held at the Allenhouse Institute of Management, CA Govind Maheshwari elaborated on the budget's long-term vision. He stated that the budget would be instrumental in promoting economic stability and investment over the coming years. Maheshwari highlighted specific fiscal measures, including the reduction of the Minimum Alternate Tax (MAT) rate from 15% to 14%, and changes to capital gains tax on buybacks, where ordinary investors are now included while promoters face higher taxation.
Disappointment for the Middle Class and Leather Industry
Despite the positive long-term outlook, a significant point of criticism emerged regarding the middle-income group. RC Bajpai expressed clear disappointment, noting that the expectations of the middle class remained unmet. He clarified that there were no changes to the income tax slabs or exemptions, leaving this demographic without immediate financial relief.
The budget also drew a lukewarm response from Kanpur's pivotal leather industry. Mukhatrul Amin, Chairman of the Superhouse Group and former Chairman of the Council for Leather Exports, voiced disappointment over the lack of significant relief for leather traders. He specifically noted the absence of any mention regarding the implementation of a Rs 20,000-crore package announced in the previous year's budget. We are still waiting for its implementation, he remarked, adding that while some concessions were announced, they were limited in scope and did not address core industry challenges.
Key Features and Expert Observations
RC Bajpai identified the Foreign Assets/Income Disclosure Scheme as an attractive feature of the budget. This scheme introduces a one-time, 6-month compliance window for the disclosure of undisclosed foreign assets and income. The applicable tax rate is set at 30%, plus an additional levy, with the benefit of immunity from prosecution for those who comply.
However, experts collectively observed a gap in the budget's approach. While the long-term vision for India's development by 2047 was appreciated, the panel at Allenhouse Institute stressed that the budget had a limited direct focus on generating immediate employment opportunities for the youth. They emphasized the ongoing need for more concrete and actionable steps to address current socio-economic challenges, balancing future aspirations with present-day necessities.
The overall sentiment from Kanpur suggests a budget that is strategically ambitious for the nation's future infrastructure and policy framework but falls short in delivering immediate, tangible benefits to certain key sections of society and industry.
