Post 2026 Budget reactions from PwC Leadership

Gayathri Parthasarathy, Partner and Leader - Financial Services, PwC India:

"The banking system was described as healthier and more resilient—with improved asset quality, stronger balance sheets, and rising profitability. A high-level committee on banking has been proposed to align the sector with India’s next growth phase and help in achieving Viksit Bharat goals. This committee will undertake a comprehensive review of the banking sector’s structure, governance, and future readiness to meet India’s expanding credit needs, while safeguarding stability and consumer interests. Public sector banks are set to see further governance and technology-driven reforms aimed at improving efficiency and competitiveness. The Budget also includes the restructuring of Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), alongside a comprehensive review of the Foreign Exchange Management (FEMA) (non-debt instruments) Rules. Additionally, the Budget underscores the growing role of non-banking financial companies (NBFCs) in expanding credit access and calls for deeper insurance penetration. Together, these measures point to a reform-led push to build a stronger, more inclusive financial ecosystem."

Mohammad Athar Saif, Partner and Leader CP&I and Industrial Development, PwC India:

"Cities continue to be positioned as key growth engines, with a proposed scheme which will provide funding support of INR 5,000 crore per city as per their economic regions for all cities with populations above 5 lakh, and a strong emphasis on urban mobility through seven new high-speed connectivity corridors which could collectively strengthen the economic aspirations of urban India.  On the manufacturing front, the announcement of Semiconductor Mission 2.0, enhanced support for the electronics components scheme, plans to revitalise 200 industrial clusters, and a focused push on critical minerals could significantly strengthen India’s manufacturing ecosystem, and accelerating the country’s transition into a competitive global destination."

Sujay Shetty, Managing Director (ESDM & Semiconductor), PwC India:

"As someone who is deeply invested in India’s tech ecosystem, I warmly welcome the Union Budget 2026–27’s visionary and strategic advancements for the electronics and semiconductor sector. The launch of ISM 2.0 represents a transformative step forward, prioritising domestic production of equipment and materials, full-stack design capabilities, development of Indian IP, resilient supply chain fortification, intensified industry-led R&D, and a robust skilled workforce through dedicated training initiatives. This comprehensive framework could significantly elevate India’s role in the global semiconductor value chain.  Complementing these efforts, the additional INR 40,000 crore outlay for the Electronics Components Manufacturing Scheme (ECMS) could catalyse substantial investments, enhance domestic value addition, generate high-quality employment, and solidify India’s emergence as a global leader in electronics manufacturing and innovation."

Manish Sharma, Sector Leader - Infrastructure, Transport and Logistics, PwC India:

"After more than 30% increase in capex between FY23 and FY25, the budget has now settled down to a modest growth of around 11% in FY26 and now to 9% for FY27. The emphasis is now shifting towards enabling better execution. Launch of initiatives like partial credit guarantee mechanism is one such intervention, where large number of new project developers are entering into PPP opportunities, with likelihood of user charge-based PPP projects like toll roads gaining traction, this could increase the risk profile for lenders and impact financial closures. Therefore, credit guarantee mechanisms should address the concerns of lenders, however, these mechanisms need to work before the default and not after a default has occurred. Setting up seven new high speed rail corridors and DFCs is another welcome step, however, launching these developments need to be tied down to iron clad, irrevocable state government commitments on aspects like land, first and last mile access arrangements, and security to ensure timebound execution."

Shashi Kant Singh, Partner  -Agriculture - Food – Agribusiness, PwC India:

"Budget 2026-27 underscores India’s commitment to enhancing agricultural innovation, improving export competitiveness, and promoting women’s empowerment in agriculture—key pillars of the Viksit Bharat strategy. Focused support for high-value crops, along with special incentives for the fisheries and dairy sector, aims to augment farm incomes while strengthening India’s global agricultural competitiveness and boosting exports."

Sujay Shetty, Partner and Leader – Health Industries, PwC India:

"Union Budget 2026–27 sends across a powerful statement of intent for India’s biopharma sector. The focus on supporting both patient and industry needs through key pillars strengthening biomanufacturing, expanding skills development via additional NIPERs, and accelerating approval timelines—signals a clear commitment towards improving ease of doing business through regulatory capacity building and faster decision-making. Another significant aspect of this year’s Budget is the strong emphasis on medical tourism. By positioning India as a trusted global destination for high-quality, affordable care, the Budget reinforces the sector’s potential both as a growth engine as well as a contributor to India’s global healthcare leadership. Equally encouraging is the much-needed focus on Ayurveda and wellness. By providing targeted support to help the sector build scale and global competitiveness the government recognises India’s unique strengths in the pharma sector and opens new opportunities for innovation, exports, and job creation. Taken together—across biopharma, medical tourism, Ayurveda, wellness, and skills building—these proposals make this a truly forward-looking Budget that will take India well on its way to achieving the goals of a Viksit Bharat."