Union Budget focuses on capacity building and long-term growth: Chocko Valliappa

Chennai : The Union Budget 2026–27 is designed to build long-term economic capacity rather than fuel short-term consumption, said Chocko Valliappa, Founder and Managing Director of Vee Technologies and Vice Chairman of Sona Group of Education Institutions.

Sharing his perspective on the Budget, Valliappa stated that the government has adopted a clear and structured approach aimed at aligning talent with industry needs, strengthening advanced manufacturing and reducing operational hurdles for technology-led services.

“This Budget is about building depth, improving execution and allowing productivity to compound over time. The direction is clear and practical,” he observed.

A key highlight, according to him, is the renewed focus on education. The Budget treats education as an economic engine rather than merely a social sector expenditure. By linking universities to industrial corridors and employment opportunities, the government has acknowledged that skills, research and jobs must grow together for meaningful development.

On the manufacturing front, Valliappa welcomed the emphasis on electronics, semiconductors, rare earths, chemicals and aerospace. He said this signals India’s intent to move up the global value chain and build strong domestic ecosystems that support strategic autonomy and competitiveness.

He also praised the initiatives aimed at Micro, Small and Medium Enterprises (MSMEs). Strengthening receivables financing and platforms like TReDS will help address long-standing working capital challenges. “Improving cash-flow reliability for MSMEs is one of the most effective ways to boost output and job creation without putting pressure on the fiscal system,” he noted.

For the IT services sector, he termed the Budget a positive step due to greater predictability and stability. Simplified transfer pricing norms, higher safe-harbour thresholds and faster dispute resolution mechanisms will reduce uncertainty, especially as the sector transitions toward AI-enabled, high-value services.

Regarding emerging technologies, Valliappa appreciated the realistic approach toward Artificial Intelligence. The Budget recognises AI as a productivity enhancer in governance and industry without making exaggerated claims.

However, he cautioned that successful implementation will be crucial. “The intent is strong, but outcomes will depend on how effectively policies translate into real results such as better placements, higher factory output and research commercialisation,” he added.

Overall, he described the Budget as structurally sound and reform-oriented. “It may not be flashy, but it strengthens the foundations for sustainable, technology-driven growth,” Valliappa concluded.