Mumbai — L&T Chief Economist Sachchidanand Shukla has described the Union Budget 2026 as a well-crafted and forward-looking budget, particularly from a medium-term perspective, emphasizing that it focuses on strengthening India’s economic foundations rather than short-term gains.
Reacting to the budget announcements, Shukla said that several important steps have been taken to enhance the self-reliance and strategic resilience of India’s economic system. According to him, the budget reflects a clear intent to prepare the country to face global uncertainties while building robust domestic capabilities.
“It’s a very good budget from a medium-term perspective,” Shukla said, adding that the government has made significant efforts to strengthen sectors that are critical for long-term growth. He pointed out that focused measures have been introduced to boost infrastructure development, manufacturing capacity, and the rare earth elements sector — areas that are increasingly important for economic security and technological advancement.
Shukla also welcomed the simplification of the income tax system, noting that the budget should not be narrowly analysed only on the basis of immediate tax benefits to individuals. “It should not be analysed from the perspective of what one got in terms of income tax,” he remarked, reminding that the government had already provided substantial income tax relief in the previous year, amounting to nearly Rs 1 lakh crore.
He further highlighted that the budget includes several reductions in customs duties, which are expected to support domestic manufacturing, reduce input costs, and improve competitiveness across sectors. These measures, he said, align well with the government’s broader vision of making India a global manufacturing hub.
Another key aspect praised by Shukla was the exemption granted on cancer-related drugs. He noted that such medicines are often extremely expensive, and the exemption would bring much-needed relief to patients and families while strengthening India’s healthcare ecosystem.
Overall, Shukla emphasized that Union Budget 2026 should be viewed as a strategic document aimed at building long-term economic strength, resilience, and inclusivity. With its focus on infrastructure, industrial capability, healthcare affordability, and tax reforms, the budget, he said, lays a solid foundation for sustainable growth and positions India more strongly in an increasingly competitive global economy.
