By Mohit Malhotra, CEO of Dabur India
In Bollywood blockbuster Dhurandhar, strength doesn’t come from noise or spectacle… it comes from staying the course. That same sensibility runs through Finance Minister Nirmala Sitharaman’s Union Budget 2026-27. There are no dramatic flourishes or disruptive pivots; instead the Budget is grounded in continuity, institution-building and a quiet self-assurance, placing its faith in long-term resilience rather than short-term drama. In that sense, it is clearly a Budget with staying power.
The big positives I see are continued emphasis on manufacturing and infrastructure building, greater push for ayurveda and sharper focus on enhancing farmer income, promoting fisheries, and high-value crops. The proposed increase in securities transaction tax (STT) on the futures and options transactions is intended to discourage speculative tendencies for trading.
There is firm emphasis on public investment as a growth engine, reinforcing infrastructure as the backbone for long-term competitiveness. A higher capex allocation signals that public investment will continue to be the primary engine to support growth, job creation and private sector confidence.
Strengthening the Hinterland
Equally important is the expanding role of Tier-II and Tier-III cities, not just as consumption markets, but as emerging centres of talent, services and global integration. The government’s recognition of GCCs as a growth opportunity signals a clear intent to broaden India’s services footprint beyond metros, unlocking employment, skills, and global value chains in the hinterland.
For companies like Dabur, with a sizeable rural presence, this policy mix is clearly supportive and will create a strong foundation for scalable, long-term growth. The push to deploy AI-driven technologies across agriculture is expected to further strengthen farm incomes and productivity, reinforcing the resilience of the rural economy.
These measures, I am sure, will help drive deeper penetration of branded consumer products by improving access, logistics efficiency and income resilience across Bharat.
Perhaps the most strategically significant announcement is the systematic strengthening of India’s traditional medicine ecosystem. A major highlight of the budget is the plan to train 1.5 lakh caregivers in yoga and ayurveda services, reflecting the growing demand for traditional and preventive healthcare in India and abroad. For Dabur, whose legacy and future are deeply intertwined with ayurveda and rural India, this policy direction is profoundly encouraging.
In a consumption-driven economy, the absence of sharper, near-term demand stimulus, particularly for middle-income households, is noticeable. These segments anchor FMCG and discretionary consumption, and incremental confidence boosters could have supported demand momentum more visibly.
Fiscal Prudence and the IT Boost
The government’s decision to bring IT services under a single category with a uniform 15.5% safe harbour margin is a big positive for the IT industry. By simplifying the rulebook and trusting the sector’s maturity, the government has sent a strong signal that it sees Indian IT not just as a revenue generator, but as a core engine of growth.
A reassuring undercurrent through this Budget is its continued commitment to fiscal discipline, with the fiscal deficit for 2026-27 pegged at 4.3% of GDP. In an uncertain global environment, this balance between growth support and fiscal prudence matters deeply for business confidence. It signals policy credibility, macroeconomic stability and a predictable operating environment, conditions essential for sustained private investment, long-term planning and responsible capital allocation.
Like the central character in Dhurandhar, this Budget trusts preparation over power play, process over provocation, and consistency over confrontation. In uncertain global times, that restraint may not just be prudent, it is precisely the strength India needs.