Budget 2026-27:  Defence emerges as key pillar with focus on modernisation and self-reliance: Baba Kalyani

Baba Kalyani, CMD of Bharat Forge Ltd | Photo Credit: ANINDITO MUKHERJEE

Baba Kalyani, CMD of Bharat Forge Ltd, said the Budget reflects current geo-strategic realities by positioning defence as a key pillar. With defence receiving the second-highest allocation and a nearly 25 per cent increase in the modernisation budget, the focus is on upgrading platforms, systems and technologies, while improving procurement efficiency. He said the message to industry is clear. “Deepen long-term capabilities, strengthen technology development and advance Aatmanirbharta, or self-reliance,” he added.

“The Union Budget 2026 reflects the hallmark of Prime Minister Narendra Modi’s stable, strong and visionary leadership, anchored in policy continuity, fiscal discipline and a clear focus on building long-term national capabilities” he said.

Congratulating Finance Minister on her ninth successive Budget, Kalyani added that  the Budget strikes a careful balance between macroeconomic stability and sustained investment-led growth. The articulation of a multi-pronged growth framework and the three kartavyas reinforces the commitment to building a competitive, inclusive and future-ready economy, he said.

“At a time of heightened geopolitical and supply-chain uncertainty, these measures are bound to strengthen India’s economic resilience and global positioning, sending a strong signal to both Global and Indian investors” said Kalyani.

He added that through this budget, the government’s bet on manufacturing is reinforced; special emphasis on modern infrastructure, high-speed rail corridors, healthcare and cities as engines of growth, is timely and strategic.

“The progression of the semiconductor programme to ISM 2.0 through ecosystem development, alongside the announcement of rare-earth corridors across eastern and southern India, will significantly strengthen domestic supply chains. Equally important is the focus on green competitiveness, with meaningful allocations for carbon capture and decarbonisation, aligning sustainability with industrial performance” said Kalyani.

Kalyani lauded Finance Minister’s special thrust on Information Technology Services for companies setting-up Data Centers and Cloud Services from India; the 22 year tax holiday for such investments is a well-thought initiative aimed at Global leadership in this segment.

He added that the focus on university-industry clusters and AI-led productivity will help India fully leverage its demographic dividend. “Overall, the Budget provides industry the confidence to invest, innovate and partner in building a globally competitive Indian economy” said Kalyani.

Published on February 1, 2026