Ludhiana: The Union Budget 2026-27 has elicited a measured response from Micro, Small, and Medium Enterprises (MSMEs) in Punjab, with industry representatives acknowledging its focus on long-term structural growth rather than immediate populist measures. According to the Chamber of Industrial and Commercial Undertakings (CICU), while the budget may not offer significant short-term relief for Punjab's MSME sector, it strikes a crucial balance between fiscal discipline and sustainable economic expansion.
Balanced Approach Over Populist Giveaways
Upkar Singh Ahuja, President of CICU, emphasized that the budget's approach prioritizes checks and balances, especially at a time when citizens indirectly bear the burden of mounting loans taken by both central and state governments. He noted that previous MSME-focused budgets had limited impact at the ground level in Punjab, but expressed hope that the current allocation could prove beneficial if implemented effectively.
Rs 10,000 Crore MSME Allocation: A Focus on Capacity-Building
Reacting to the proposed Rs 10,000 crore allocation for the MSME sector, Ahuja stated that the funds must be directed toward capacity-building initiatives rather than short-term relief. "If investments in infrastructure, logistics, and emerging sectors are pursued in a focused manner, their impact will be felt over the coming years," he said, underscoring that such structural support holds more importance than immediate sops.
Defence Allocation: A Significant Opportunity for MSMEs
Ahuja drew attention to the increased defence allocation in the Union Budget, describing it as a significant opportunity for domestic industry. With defence spending rising steadily and capital procurement forming a major component, he called for concrete steps to ensure greater MSME participation in defence procurement. "Defence manufacturing cannot rely only on large corporations. MSMEs must be integrated into the supply chain. For that, MSMEs must be strengthened with research and development along with technology," he asserted.
He added that targeted policies encouraging defence purchases from MSMEs would not only strengthen self-reliance but also foster skilled employment and innovation ecosystems.
FIEO Hails Budget as Bold and Reform-Oriented
Meanwhile, the Federation of Indian Export Organisations (FIEO) praised the budget as bold, forward-looking, and reform-oriented. SC Ralhan, FIEO President, stated, "The Union Budget 2026–27 clearly demonstrates the government's resolve to translate India's economic potential into tangible performance. The strong thrust on manufacturing, MSMEs, infrastructure, and services, backed by meaningful tax and customs reforms, will enable Indian exporters to integrate more deeply and competitively with global value chains."
Ralhan added that the proposed revival of 200 legacy industrial clusters, along with multiple sector-specific initiatives, is expected to enhance scale, productivity, technology adoption, and export preparedness.
Cautious Optimism Amid Fiscal Prudence
While welcoming the overall growth-oriented approach, Ahuja cautioned against unrealistic expectations from the budget. "All budgets cannot be populist," he reiterated, emphasizing that fiscal prudence remains essential given current debt levels. He noted that the government's emphasis on capital expenditure and infrastructure development could yield dividends for industry in the long run, provided implementation is effective and focused.
In summary, the Union Budget 2026-27 is viewed by Punjab's industry leaders as a step toward sustainable growth, with its success hinging on effective execution and a shift from short-term relief to long-term capacity-building for MSMEs.
