Anish Shah: Budget 2026 an 'Excellent' Plan for Manufacturing Growth

Introduction

Anish Shah, the Group CEO and Managing Director of the Mahindra Group, has endorsed the Union Budget 2026, describing it as an "excellent" and "outstanding" fiscal plan. In his assessment, the budget provides a robust framework that strongly supports India's long-term economic expansion by placing a critical focus on manufacturing, infrastructure, and inclusive growth.

An 'Excellent' Budget for Growth

Speaking after the budget announcement, Shah lauded the finance minister's approach, stating that the fiscal plan successfully delivers on the aspirations for growth. He emphasized that the budget introduces several foundational elements and building blocks necessary for sustained economic momentum. By prioritizing capital expenditure and infrastructure development, the government is setting the stage for a more competitive industrial ecosystem. This focus, according to Shah, is not a short-term stimulus but a strategic step towards positioning India as a global economic powerhouse.

Manufacturing at the Core of 'Viksit Bharat'

Shah directly linked the budget's provisions to the national 'Viksit Bharat' vision, which aims to transform India into a developed economy. A central pillar of this vision is to increase the manufacturing sector's contribution to 25% of the nation's GDP. Achieving this ambitious target requires the manufacturing sector to grow approximately 16 times over the next 22 years. Shah noted that the budget lays down the necessary details and infrastructure support to provide a "huge boost" to the sector, making this long-term goal more attainable. He believes that a globally competitive manufacturing base is essential for India's future.

Emphasis on Self-Reliance and Inclusion

A key theme praised by Shah was the budget's commitment to 'Atma Nirbharata' or self-reliance. In a volatile global environment, building domestic capabilities is crucial for economic stability. He specifically highlighted the proposed rare earth corridor as a "great step in that direction," as it would secure supply chains for critical materials used in electronics and advanced manufacturing. Furthermore, Shah commended the budget's deep focus on inclusion. He pointed out that empowering SMEs, MSMEs, small and marginal farmers, youth, and women is integral to ensuring that economic growth is broad-based and sustainable.

Impact on Mahindra Group's Strategy

The policies outlined in the budget align well with the Mahindra Group's strategic objectives. Shah stated that the fiscal plan helps the conglomerate remain on its "very rapid growth path." As the budget enhances India's overall manufacturing competitiveness, it directly supports the group's 'make in India for the world' strategy. A stronger domestic ecosystem not only helps Indian companies export but also attracts more foreign investment and manufacturing to the country. Shah concluded that several sectors where the Mahindra Group has a strong presence, particularly hospitality and logistics, are well-placed to benefit from the new policies.

Broader Industry Perspective

The positive sentiment was echoed by other industry leaders. Tarun Garg, MD and CEO of Hyundai Motor India, also rated the budget highly, noting its support for long-term growth, structural reforms, and fiscal discipline. He emphasized that the focus on stabilizing supply chains and promoting electronics manufacturing is particularly important for the automotive sector. This shared perspective underscores a broader industry consensus that the budget's direction is favorable for industrial expansion.

Key Budget Themes for Industry

Attracting Global Investment

Both Shah and Garg highlighted that the policy framework strengthens India's appeal as a global investment destination. By improving the ease of doing business, investing in infrastructure, and ensuring policy stability, the government is creating an environment where both domestic and international companies can thrive. This helps attract global firms to set up manufacturing plants in India, which in turn boosts employment, technology transfer, and export capabilities for the entire economy.

Conclusion

In summary, the Union Budget 2026 has been received positively by key leaders in the automotive and manufacturing sectors. Anish Shah's endorsement highlights the budget's strategic alignment with the long-term goals of making India a self-reliant and competitive manufacturing hub. The focus on infrastructure, inclusion, and fiscal prudence is seen as a well-rounded approach to building a resilient and rapidly growing economy. The industry now looks for consistent implementation of these policies to translate the vision into tangible results on the ground.