Budget Sustains Reform Momentum Through People-Centric Approach: KPMG In India CEO

(MENAFN- IANS) New Delhi, Feb 2 (IANS) The Union Budget 2026-27 sustains reform momentum through a people-centric approach focused on stability, inclusivity, and long-term value creation, Yezdi Nagporewalla, CEO, KPMG in India, said on Monday.

The Budget presents a clear and confident vision of the Government's commitment to building a developed India, one that effectively balances fiscal responsibility with ongoing investment in growth, resilience, and inclusion.

“Adhering to the fiscal deficit glide path, even amidst global trade and supply-chain challenges, underscores the robustness of India's macroeconomic fundamentals and policy credibility,” he said in a statement.

Moreover, the emphasis on advancing strategic and emerging sectors, such as ISM 2.0 for semiconductors, a long-term strategy for rare earth ecosystems and tax break for hyperscalers investment in India, reflects a deliberate effort to transform potential into tangible outcomes through resilient, high-value domestic capabilities, Nagporewalla mentioned.

These steps are essential for decreasing import dependence and bolstering India's role in global value chains, he noted.

Furthermore, the focus on developing 'Champion MSMEs' through equity infusions, liquidity support, and professional assistance is highly promising.

The SME growth fund, along with targeted compliance and skill development measures, is poised to help enterprises key to employment generation and regional economic progress-realise their aspirations, he mentioned.

Incentives like the tax holiday for global cloud and data centre services further strengthen India's position as a reliable digital and technology hub.

Sunil Badala, National Head of Tax, KPMG in India, said the Budget delivers a strong, forward‐looking push for the BFSI sector, indicating the government's commitment to financial stability, deeper capital markets, and simplified tax administration.

“The proposal to set up a High‐Level Committee on Banking for Viksit Bharat marks a major structural reform, aimed at strengthening governance, enhancing financial resilience, and better aligning credit delivery and inclusion with India's next phase of economic growth,” Badala added.

Overall, Budget 2026 strengthens governance, deepens markets, and reduces compliance burden-positioning India's BFSI sector for a more competitive, globally aligned future, he said.

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