Reacting to the Union Budget 2026, Shekhar Bhandari, President – SME, Kotak Mahindra Bank, said the Budget strikes a careful balance between growth aspirations and fiscal discipline while laying the foundation for long-term economic expansion. Bhandari noted that the fiscal deficit being contained at 4.4 per cent for the current year and projected to moderate further to 4.3 per cent next year provides much-needed macroeconomic stability as India moves towards its Vision 2047 goals. He said this fiscal clarity would help strengthen investor confidence and support sustained economic momentum.
Highlighting the focus on capacity creation, Bhandari welcomed the proposed revival of 2,000 industry clusters and the allocation of ₹10,000 crore towards an MSME Growth Fund. He said these measures reaffirm the central role of small and medium enterprises and manufacturing in driving durable and inclusive growth.
Bhandari also underlined a significant policy shift towards nurturing “Champion MSMEs”. He said the three-pronged approach—equity support, improved liquidity through the Trade Receivables Discounting System (TReDS), and professional handholding via Corporate Mitras—would be especially impactful for enterprises in Tier-II and Tier-III towns. According to him, the Budget’s emphasis on structured support for MSMEs would help scale competitive businesses, strengthen local economies, and contribute meaningfully to India’s long-term development trajectory.