“India’s Growth with Fiscal Discipline”: Aditya Birla Group Chairman Comments on Budget 2026

The Union Budget 2026 has drawn attention to economic growth, sectoral priorities, and the potential impact on India’s development. Kumar Mangalam Birla, Chairman of the Aditya Birla Group, shared his insights on the budget and its implications for the country.

Focus on Economic Growth
Despite global conflicts and heightened economic uncertainties, India’s growth remains robust, and the economy appears resilient. The budget anticipates that the pace of economic progress will continue strongly in the upcoming financial year.

Financial Discipline Maintained
Managing fiscal discipline while promoting economic growth is never easy, yet Finance Minister Nirmala Sitharaman has achieved this balance effectively. Presenting her ninth budget, she emphasized both stability and growth, ensuring that fiscal prudence accompanies measures to sustain economic expansion.

Reduction in Deficit
The government aims to transform India into a developed economy by 2047, targeting higher per capita income to rank among the world’s affluent nations. Considering global trade uncertainties, there could have been a temptation to ease fiscal discipline. However, the budget successfully keeps the fiscal deficit under control, signaling continued commitment toward financial stability.

Boosting Investor Confidence
By maintaining fiscal discipline and reducing debt-to-GDP ratio, India’s credibility among credit rating agencies and global investors is expected to rise. The government’s post-pandemic steps to manage fiscal health remain on track, further enhancing India’s appeal as an investment destination.

Continued Reforms and Ease of Compliance
The budget also underscores regular economic reforms and simplification of rules to reduce compliance burdens. Unlike sporadic policy measures, the government has institutionalized reform processes, creating a structured framework for consistent progress.

CapEx and Infrastructure Development
A highlight of the budget, according to Birla, is the increase in capital expenditure (CapEx) without compromising fiscal discipline. Investments in freight corridors, waterways, and high-speed rail connectivity are expected to accelerate economic growth. If private CapEx also ramps up, growth could receive an additional boost.

Urban and Regional Development
The budget emphasizes “city economic regions,” recognizing the vital role of cities in modern economies. Alongside metropolitan centers, development in Tier 2 and Tier 3 cities is crucial to ensure broad-based growth.

Support for MSMEs and Services
Several measures have been introduced to benefit entrepreneurs and small businesses, fostering youth participation in nation-building. Announcements in strategic sectors, including tourism, aim to generate employment opportunities. The “Champion MSME” initiative is expected to strengthen India’s manufacturing mid-segment and enhance skills and capabilities, essential for global competitiveness.

Focus on Sunrise Industries
The budget also provides easier credit, reduced compliance, and professional support for traditional industries, while giving special attention to sunrise sectors such as semiconductors, critical minerals, and new energy. Initiatives in data and advanced pharmaceuticals are expected to further India’s role in global value chains.

Conclusion
Overall, Kumar Mangalam Birla believes the Union Budget 2026 balances fiscal discipline with robust growth, strengthens India’s economic foundation, and enhances its global credibility.

(Kumar Mangalam Birla is the Chairman of Aditya Birla Group.)