The recent Union Budget 2026 has been broadly welcomed by India’s business community as a balanced and confidence-inspiring document, though concerns linger over the relative lack of focus on the defense sector. Speaking in an interview featured in the Economic Times article titled “Budget 2026 builds confidence but defence misses spotlight: Anant Goenka, President FICCI,” Anant Goenka, President of the Federation of Indian Chambers of Commerce & Industry (FICCI), highlighted both the strengths and the gaps in the government’s latest fiscal plan.
Goenka characterized the budget as one that promotes fiscal discipline while maintaining momentum in key infrastructure development. He praised the continuation of capital expenditure commitments, which he said should support long-term growth prospects and bolster investor confidence. The industry body sees this as a prudent move, especially in the current global economic environment, where fiscal stability is increasingly under scrutiny.
Capital expenditure has remained the cornerstone of the government’s growth strategy, with allocations rising steadily over recent budget cycles. In Budget 2026, the continuation of high public investment in roads, railways, digital infrastructure, and green energy is viewed as a strong signal of the government’s developmental priorities. FICCI recommended that this momentum be sustained in order to create multiplier effects across sectors and catalyze private investment.
However, Goenka noted that the budget’s relative silence on defense spending was a notable omission. He emphasized that while fiscal prudence is essential, a modern and well-funded defense apparatus remains critical, particularly in the context of India’s evolving geopolitical environment. The absence of major announcements or a significant increase in the defense budget could be seen as a missed opportunity to further strengthen the country’s strategic preparedness and indigenous defense manufacturing capabilities, which are areas of growing national interest.
FICCI’s position reflects a broader sentiment that balancing fiscal consolidation with sectoral investments requires even attention across domains—including those not immediately visible in headline allocations. In this light, industry leaders like Goenka are calling for a more integrated approach to future policy-making that includes defense as a central element of economic and national security planning.
Despite these reservations, the overall reaction from India’s business sector has been positive. The budget’s commitments to infrastructure, sustained tax stability, and a long-term policy vision have led to a generally optimistic outlook among industry stakeholders. With state and general elections approaching in the near term, Budget 2026 is being viewed as a fiscally responsible document that avoids populist measures, thereby reinforcing investor confidence and underscoring continuity in economic policymaking.
As India navigates complex domestic and global challenges, the execution of budgetary provisions and the government’s responsiveness to feedback from industries such as defense will be key indicators of how effectively the stated objectives are realized.
