Union Budget evokes mixed reactions from TG trade, industry bodies

Union Budget 2026-27, presented on Sunday by Finance Minister Nirmala Sitharaman, evoked varied reactions from trade and industry bodies in Telangana.

While hailing it as futuristic for the measures that they expect will boost the economy in long run, the trade and industry leaders felt that beyond the proposed high speed rail corridors to Hyderabad, more could have been done for Telangana.

CII Telangana Chairman R. Sivaprasad Reddy said that it is a futuristic budget and the measures for MSMEs are both timely and practical. “We welcome the strong focus on MSMEs… initiatives such as the ₹10,000 crore SME Growth Fund, enhanced credit support through TReDS, linking of GeM with TReDS, and simplified compliance mechanisms, will improve access to finance, encourage formalisation and boost the competitiveness of smaller enterprises.”

The focus on logistics, freight corridors, inland waterways and high-speed rail is expected to improve productivity and lower the cost of doing business, vice-chairman M. Goutham Reddy said.

Immediate Past Chairman C. Shekar Reddy expressed disappointment at no mention of support for affordable housing. Specific to Telangana, there were expectations on Budget announcements on various projects, including the proposed radial roads.

No major surprises

The Federation of Telangana Chambers of Commerce and Industry (FTCCI) leaders, led by its president R. Ravi Kumar, termed the Budget as progressive with no major surprises.

FTCCI president R. Ravi Kumar speaking on the Budget.
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“The Budget reflects a strong emphasis on economic stability, continuity and resilience, especially in the context of prevailing global geopolitical uncertainties,” Mr.Ravi Kumar said, pointing out that the government has struck a balance between growth and fiscal prudence.

Vice President Srinivas Garimella said the Finance Minister has laid strong emphasis on economic stability. The Budget, however, fell short on TDS rationalisation, where the industry had expected consolidation into 5–6 rate structures. Similarly, expectations that 3–4 additional sectors would be added to the PLI scheme, over and above the existing 14 sectors, were not met, he said in a release.

The increase in securities transaction tax (STT) on futures and options risks curbs capital market optimism at a time when sentiment was turning positive, Senior V-P K.K. Maheshwari said.

Challenges abound

Welcoming the Budget’s intent to accelerate economic growth and strengthen infrastructure, Telangana State Federation of Chambers of Commerce & Trade (TSFCCT) president Ammanabolu Prakash said “critical ground-level challenges faced by traders have not been adequately addressed.”

TSFCCT president Ammanabolu Prakash (centre) at the Budget meeting organised by the Federation in Hyderabad on Sunday.
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Though traders play a pivotal role in terms of job generation, GST revenue and supply-chain efficiency, they continue to remain under represented in policy focus and consultations. Frequent notices, return mismatches, fear of penalties and delay in input tax credit refunds severely impact their working capital. Simplified compliance norms for traders with smaller turnovers are urgently required, he said.

The thrust on ‘Made in India’ and domestic manufacturing as well as the launch of the Biopharma Shakti initiative, with an outlay of ₹10,000 crore over five years, to bolster the biopharma ecosystem was hailed by industry leaders.

Amplify Telangana’s efforts

Telangana Life Sciences CEO Shakthi M. Nagappan said the State’s Life Sciences Policy 2026–30 prioritises advanced and complex manufacturing, deep innovation and research and development and creation of a strong, globally integrated clinical research and clinical trial network. The Union Budget’s focus on these areas will amplify the momentum, “accelerating our goal of attracting $25 billion in investments and generating 500,000 jobs while reinforcing Hyderabad’s position as a global life sciences innovation hub.”

Heritage Foods Executive Director Brahmani Nara hailed the Budget proposals on veterinary infrastructure expansion and enhancing credit-linked subsidies for Indian farmers.