AP Chambers welcomes growth-oriented Union Budget 2026

Vijayawada: The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) on Sunday welcomed the growth-oriented and reform-driven Union Budget 2026, while flagging key concerns specific to Andhra Pradesh.

Addressing the media, AP Chambers president Potluri Bhaskara Rao congratulated Union Finance Minister Nirmala Sitharaman on presenting the Union Budget for a record ninth time. He said the Budget reflected a balanced and pragmatic approach amid global economic uncertainties caused by geopolitical tensions and trade disruptions. The government’s focus on fiscal consolidation and structural reforms was encouraging, he noted.

He welcomed the announcement of a Rs 10,000-crore MSME Growth Fund and a Rs 4,000-crore top-up to the Self-Reliant India Fund for 2026–27, stating that these measures would provide critical support to MSMEs facing liquidity challenges despite existing credit guarantee mechanisms. The proposal to revive 200 legacy industrial clusters was described as a timely relief for micro enterprises struggling with access to capital.

Bhaskara Rao also lauded the government’s thrust on manufacturing and technology, including launch of ISM 2.0, enhancement of the Electronics Components Manufacturing Scheme outlay to Rs 40,000 crore, and support for rare-earth mineral corridors, including one in Andhra Pradesh. The increase in capital expenditure to Rs 12.2 lakh crore, the announcement of mega textile parks with a focus on value-added and technical textiles, seven high-speed rail corridors, and a dedicated east-west freight corridor from Dankuni to Surat also welcomed, as they are expected to improve logistics efficiency and stimulate economic growth.

The proposal to introduce a cadre of ‘corporate mitras’ in Tier-2 and Tier-3 cities in order to assist MSMEs with compliance at affordable costs is termed a timely and practical intervention. However, AP Chambers expressed disappointment over the lack of adequate budgetary allocation for Polavaram Irrigation Project, which it said is crucial for irrigation, drinking water security, and regional development, and requires assured funding to enable completion by 2027. The federation also flagged the absence of sufficient allocations for Amaravati development, the capital city of Andhra Pradesh, calling it a missed opportunity.