FIEO applauds Union Budget 2026–27; Thanks Government for a Strong Export-Enabling, Industry-Friendly and MSME-Centric Budget: S C Ralhan, President, FIEO
New Delhi, February 1, 2026: The Federation
of Indian Export Organisations (FIEO) warmly welcomes the Union Budget 2026–27
and compliments the Government for presenting a bold, forward-looking, and
reform-oriented Budget that significantly strengthens India’s growth trajectory
while decisively enhancing the global competitiveness of Indian exports,
manufacturing and MSMEs.
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S C Ralhan, President, FIEO
Commenting on the Budget, Mr S C
Ralhan, President, FIEO, expressed his appreciation to the Hon’ble Finance
Minister and the Government for their continued commitment to sustained
economic growth, fiscal prudence, infrastructure expansion and trust-based
governance. He noted that these measures will further energise the trade and
investment ecosystem and provide exporters with a stable and predictable policy
environment.
“The Union Budget 2026–27 clearly
demonstrates the Government’s resolve to translate India’s economic potential
into tangible performance. The strong thrust on manufacturing, MSMEs,
infrastructure and services—backed by meaningful tax and customs reforms—will
enable Indian exporters to integrate more deeply and competitively with global
value chains,” Mr Ralhan said.
FIEO particularly appreciates the
Government’s focused approach towards strengthening domestic manufacturing in
high-value and strategic sectors such as electronics, semiconductors,
biopharma, textiles, chemicals, aircraft components, construction equipment and
rare earth magnets. The proposed revival of 200 legacy industrial clusters,
along with multiple sector-specific initiatives, is expected to improve scale,
productivity, technology adoption and export preparedness. Industry, Mr Ralhan
said, stands ready to actively leverage these initiatives to expand India’s
export footprint.
Welcoming the trade facilitation measures, Mr Ralhan noted that duty exemptions
on key inputs, extension of export timelines, recognition of trusted exporters
and clearance of export cargo from factory premises will significantly reduce
transaction costs, improve ease of doing business and enhance supply-chain
efficiency. “These reforms will directly strengthen exporter confidence and
competitiveness,” he added.
The FIEO President also lauded the
Government’s strong and well-calibrated support for MSMEs through a
three-pronged approach encompassing the ₹10,000 crore SME Growth Fund, enhancement
of the Self-Reliant India Fund, mandatory onboarding of CPSEs on TReDS, and
credit guarantee support for invoice discounting. “MSMEs are the backbone of
India’s export ecosystem. The Budget’s focus on liquidity support, equity
infusion and professional capacity-building will empower MSMEs to scale up,
innovate and evolve into global champions,” Mr Ralhan said.
FIEO further welcomed the renewed
emphasis on the services sector—including IT, medical value tourism, education,
design, sports and the care economy—supported by safe harbour provisions and
greater tax certainty. These measures, coupled with continued public capital
expenditure on logistics corridors, waterways and energy security, will reduce
logistics costs and further strengthen India’s position as a global services
and manufacturing hub.
Expressing confidence in the Budget’s direction, Mr Ralhan said that the Union
Budget 2026–27 lays a robust foundation for achieving the vision of Viksit
Bharat, balancing growth, inclusion and fiscal discipline. “The Budget sends a
strong and positive signal to global markets and reinforces India’s credibility
as a reliable, resilient and attractive trade and investment destination.
Indian industry and exporters are fully committed to partnering with the Government
in maximising the benefits of these initiatives and accelerating export-led
growth,”
