Budget 2026: How politicians, industrialists and investors reacted

Union Finance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026-27 in the Lok Sabha. She announced several measures to boost manufacturing, MSMEs, and infrastructure sectors.

In Budget 2026, the target for capex was raised to ₹12.2 lakh crore for FY27, up from ₹11.2 lakh crore in the current fiscal year.

Prime Minister Narendra Modi hailed the Union Budget 2026-27, calling it a "strong foundation" for India's journey towards Viksit Bharat 2047.

He also said it would provide fresh energy and speed to the “reform express” on which the country is riding.

Opposition leaders criticised the Budget as bereft of ideas and failing to address economic problems, while industry gave a mixed reaction.

What do Opposition leaders say?

Rahul Gandhi, the Leader of Opposition in the Lok Sabha, said the Budget 2026-27 is "blind to India's real crises", and highlighted how the youth are without jobs, manufacturing is falling, and farmers are in distress.

"Youth without jobs. Falling manufacturing. Investors pulling out capital. Household savings plummeting. Farmers in distress. Looming global shocks - all ignored," the Congress leader said.

Congress MPs Shashi Tharoor and KC Venugopal expressed disappointment, saying that "nothing concrete" was allocated for poll-bound Kerala in the Union Budget.

TMC supremo and West Bengal Chief Minister Mamata Banerjee accused the Centre of not releasing funds for the state.

She slammed the Centre over the goods and services tax (GST), and said: "They announced three corridors, we have already announced six. What they said about the three corridors is absolutely garbage (full) of lies. Blatant lies. It is already in process, and we have started working there. In the Jangalmahal Jangal Sundari project in Purulia, for this economic corridor, ₹72,000 Crores are going to be invested. They have not given a single paisa to Bengal. Only one tax is there, GST."

TMC MP Shatrughan Sinha criticised the Budget, calling it a "phenku and lapetu" budget.

Sinha said: "This is a 'phenku and lapetu' budget...This Budget is not for Viksit Bharat. It doesn't address employment or the country's current debt. The Union govt owes money to many states. Which scheme was brought for the farmers' welfare? This budget doesn't deserve to be given a rating."

Samajwadi Party chief and MP Akhilesh Yadav also criticised the Budget, saying it ignores the poor and villagers.

"This Budget is beyond the understanding of the poor and those who live in the villages. No jobs or employment have been given in this Budget. BJP's budget is only for 5% of the people in the country," Yadav told ANI.

What is Industry's reaction?

Realtors' body says Budget 2026 offers nothing concrete on affordable housing

The realtors' association CREDAI, which represents around 15,000 real estate developers across the country, has expressed disappointment that the Union Budget did not provide any incentives to boost the demand and supply of affordable housing.

CREDAI National President Shekhar Patel said the association is "deeply disappointed that the Budget offers nothing concrete for affordable housing."

However, the association welcomed the government's focus on infrastructure development, which would benefit the realty sector.

CII lauds Budget 2026

The Confederation of Indian Industry (CII) lauded the government's ability to balance aggressive growth with financial stability.

Chandrajit Banerjee, Director General of CII, said the fiscal deficit target of 4.3% of GDP for FY27 is "well aligned with the glide path recommended by CII and reinforces confidence in India's macroeconomic management."

He emphasised that the industry appreciates the clear "adherence to the debt-to-GDP glide path to reach 50% of GDP by FY31."

How did Stock Market react?

Major stock indices slumped sharply by nearly 2% on Sunday after Sitharaman proposed a hike in the Securities Transaction Tax (STT) on derivatives.

The finance minister announced a hike in STT on futures contracts to 0.05% from the current 0.02%.

The 30-share BSE Sensex tumbled by 2,370.36 points, or 2.88% to fall below the 80,000-mark in afternoon trade. It closed at 80,722.94, down 1,546.84 points, or 1.88%.

The 50-share NSE Nifty plunged 495.20 points, or 1.96%, to end at 24,825.45. During the day, it tumbled 748.9 points or 2.95% to 24,571.75.