CICU Calls Union Budget 2026 Purposeful, Not Populist; Green Manufacturing Gets Push
February 3, 2026
etnews / Ludhiana
The Chamber of Industrial & Commercial Undertakings (CICU) held a high-level press conference in Ludhiana on Monday to analyze the Union Budget 2026-27, characterizing the fiscal roadmap as a "measured boost" for Punjab’s manufacturing core. Industry leaders and tax experts gathered to dissect the implications of Finance Minister Nirmala Sitharaman’s latest proposals, which prioritize structural efficiency and export competitiveness over direct tax concessions for the Micro, Small, and Medium Enterprises (MSME) sector.
CICU President Upkar Singh Ahuja described the budget as "purposeful" rather than "populist," noting that it aligns with long-term goals for manufacturing-led growth. He emphasized that the budget seeks to reduce production costs through strategic customs duty rationalization and targeted incentives for green energy, even as it introduces stricter tax treatments for certain financial market transactions that could impact promoter liquidity.
The manufacturing sector welcomed the expansion of duty-free inputs for textiles, garments, leather, and synthetic footwear. For the export-heavy clusters in Ludhiana and Jalandhar, the extension of the export obligation period from six months to one year provides a significant operational buffer. Furthermore, an increase in the duty-free input allowance for seafood exports—rising from 1% to 3%—is expected to sharpen India’s competitive edge in the global market.
A major pillar of the budget involves a shift toward green technology and electric vehicles (EV). The removal of customs duties on lithium-ion battery storage inputs and solar glass components offers a clear path for Ludhiana’s engineering and auto-part units to diversify. CICU leadership highlighted that these measures empower Punjab to transition from traditional manufacturing toward future-ready, sustainable industrial clusters.
However, the chamber expressed concerns regarding the increase in Securities Transaction Tax (STT) on futures and options, alongside new tax treatments for share buybacks. These moves may limit flexibility for MSME owners who utilize capital markets for restructuring. Additionally, the withdrawal of customs duty exemptions on certain minerals and scrap materials could raise raw material costs for metal and chemical units by up to 7.5%.
General Secretary Honey Sethi urged both the Central and State governments to support these policy signals with better infrastructure and easier access to finance. He noted that while the budget provides the "green shoots" for growth, the true revival of Punjab’s industry will depend on the ground-level execution of technology adoption and innovation.
Union Budget 2026 CICU Ludhiana Punjab MSMEs Manufacturing Growth Export Incentives Green Energy EV Policy Customs Duty Relief
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