Gandhinagar, Feb 1 (IANS) The Confederation of Indian Industry (CII) Gujarat on Sunday said the Union Budget 2026 provides a strong and positive framework for accelerating economic growth, strengthening manufacturing competitiveness and improving ease of living.

Following a live budget viewing session held in Gandhinagar, CII Gujarat stated that the budget balances immediate economic stimulus with long-term capacity building, guided by the central theme of ‘Sankalp’ and the three stated priorities of economic growth, aspirations and equitable access.

Industry leaders participating in the session highlighted higher public investment, structural reforms and targeted sectoral initiatives as key enablers of sustainable growth.

Premraj Keshyep, Chairman of the CII Gujarat State Council for 2025–26 and Founder and Managing Director of Conmat Heavy Industries Pvt Ltd, said the sharp increase in public capital expenditure to Rs 12.2 lakh crore would have a multiplier effect across infrastructure and heavy industries.

“The focus on capital goods, the new scheme for construction and infrastructure equipment and the establishment of hi-tech tool rooms will significantly reduce import dependence,” he said, adding that the proposed development of seven high-speed rail corridors, including the Mumbai-Pune route, would enhance industrial connectivity.

Achal Bakeri, Vice Chairman of the CII Gujarat State Council and Chairman and Managing Director of Symphony Ltd, welcomed the budget’s urbanisation measures.

He said the City Economic Regions initiative, with an allocation of Rs 5,000 crore per region, recognises cities as engines of growth and would help unlock the economic potential of urban agglomerations.

He also noted that the reduction in tariff rates on goods imported for personal use and the rationalisation of customs duties would support ease of living and stimulate consumer demand.

Vinod Agrawal, Convenor of the CII Gujarat Panel for Policy Advocacy and CMD of Arunaya Organics Ltd, said Gujarat stands to benefit from the proposed support for states to establish three dedicated chemical parks.

He added that initiatives such as India Semiconductor Mission 2.0 and the Biopharma SHAKTI programme underline efforts to strengthen domestic manufacturing and global supply chain participation.

Tax and compliance reforms were also highlighted during the session. CA Karan Shah, Co-Convenor of the policy advocacy panel and Partner at Dhiren Shah & Co, said the proposed new Income Tax Act, 2025, effective from April 2026, signals a move towards a simplified tax framework.

He cited lower TCS rates, staggered timelines for filing returns, changes to baggage rules and a foreign asset disclosure window as measures aimed at easing compliance and encouraging voluntary disclosure.

Industry representatives further welcomed support for MSMEs, startups and manufacturing clusters, including the proposed Rs 10,000 crore SME Growth Fund, revival of legacy industrial clusters, investment in carbon capture technologies and measures to ease courier exports, saying the budget strengthens productivity and competitiveness across sectors.

–IANS

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