Elaborating on his budget exceptions, he notes that he does not anticipate the government to bear the entire burden but instead proposes a few measures that could help stimulate the economy.
The Union Budget for 2026-27 will be unveiled on Sunday (February 1, 2026) by India’s Finance Minister, Nirmala Sitharaman. This will be Sitharaman’s ninth budget address, and all Indian citizens from various segments of society are eagerly anticipating the budget. Notable industrial leaders from Punjab have shared their insights on the budget expectations, particularly from an industrial perspective.
Restoration of Micro Industries
Ashwani Kumar, the MD of Victor Tools, states that being a border state, Punjab has much at risk when discussing this matter. Discussing his budget anticipations, he notes that it is essential at this moment to rejuvenate the micro industry sector in the area. He states that the Micro, Small, and Medium Enterprises (MSME) sector is significant in the Indian economy and needs greater focus.
He highlights how this industry has been declining since India experienced the COVID-19 pandemic. He emphasizes that the resurgence of MSMEs will be a vital factor in the long term. A significant portion of the Indian economy relies on these MSMEs, so Ashwani Kumar suggests they should be prioritized.
The role of MSMEs in the Indian economy is crucial for several reasons. It serves as a significant source of employment, particularly in economically disadvantaged regions, contributing to poverty alleviation and inclusive growth.
Elaborating on his budget exceptions, he notes that he does not anticipate the government to bear the entire burden but instead proposes a few measures that could help stimulate the economy. He indicates that the PSIC funds, primarily associated with the Punjab Small Industries Corporation (PSIC), can offer significant advantages. He further notes the establishment of a distinct committee to oversee the industrial demands, ensuring all requirements can be met appropriately.
Single District Single Product (SDSP) Strategy
The MD of Victor Tools emphasizes that the One District One Product (ODOP) strategy can be advantageous for the industry as well. He explains how the One District One Product (ODOP) approach would reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products. This initiative aims to boost balanced regional development by selecting, branding, and promoting at least one unique product, often GI-tagged, agricultural, or craft-based, from each of the country’s 700 plus districts.
The Government should Prioritize Trade Agreements
Gaurav Sud, a partner at Prime Banox, states that enhancing export policies is essential for stimulating economic growth. He explains that the budget does not greatly influence businesses; instead, it is the trade agreements that primarily mold the economy and provide a boost.
He shares how the India-EU Free Trade Agreement is a decisive move that would help the Indian economy grow. Reportedly, after nearly two decades of on-and-off negotiations, India and the European Union announced the conclusion of the India–EU Free Trade Agreement at the 16th India–EU Summit on January 27, 2026.
Gaurav Sud emphasizes the importance of the government maintaining its focus and securing additional trade agreements moving forward.
He also clarifies that certain initiatives intended for public improvement fail because of insufficient funding and do not yield the anticipated benefits. He expresses his worries regarding the declining law and order conditions in Punjab, which ultimately impacts the state’s economy negatively.
He evaluates Punjab against UP, stating that at present, UP is outperforming Punjab regarding safety. He describes how the workers from UP are now opting to remain near their homes instead of seeking opportunities in Punjab. He stresses that the necessity to redirect attention to international trade agreements will ultimately be the game changer.
