Key Insights from CA Abhay Bhutada on the Union Budget 2026-27 and Economic Progress

The Union Budget for 2026-27, presented by Finance Minister Nirmala Sitharaman, marks a significant milestone in India's journey towards sustainable economic growth and inclusive development. CA Abhay Bhutada, an influential entrepreneur, philanthropist, and Chairman of the Abhay Bhutada Foundation, has offered his valuable insights on the budget's key provisions.

Fostering Growth Through Banking and NBFC Reforms

TL;DR: One of the standout aspects of the Union Budget is the proposal to establish a High-Level Committee on Banking for Viksit Bharat, a reform aimed at reviewing the banking sector’s readiness to meet the demands of a growing economy. According to CA Abhay Bhutada, this reform is particularly timely, as the country seeks to expand its financial infrastructure and manage rising credit demand. The review will help identify gaps in the sector’s scalability and efficiency, and explore ways to ensure it can contribute more effectively to national growth.

Another major reform announced in the budget was the restructuring of public sector NBFCs, including Power Finance Corporation and Rural Electrification Corporation. This step is aimed at improving the long-term financing options for key infrastructure sectors and enhancing their operational efficiency. Bhutada highlighted that strengthening public sector NBFCs would improve their capacity to finance infrastructure projects at a larger scale, which is essential for maintaining steady growth in the coming years.

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Simplified Taxation for Ease of Doing Business

The introduction of a new Income Tax Act, effective from April 2026, was also a significant highlight of the budget. Bhutada emphasised how the updated tax framework, along with streamlined provisions for TDS and TCS, will significantly reduce the compliance burden for businesses and individuals alike. The revised framework is designed to facilitate smoother tax filing processes, encourage businesses to grow, and reduce the frequency of disputes or litigation. This initiative is expected to improve the ease of doing business across the country, aligning with the government's broader goal of simplifying administrative processes.

The extension of timelines for return revisions is another notable change that will help businesses and taxpayers navigate their tax obligations with greater flexibility. Bhutada pointed out that these changes could have a profound impact on small and medium-sized enterprises (MSMEs), which are often overwhelmed by complex tax compliance issues.

Support for MSMEs and Access to Capital

Micro, small, and medium-sized enterprises (MSMEs) form the backbone of India’s economy. In his comments, Abhay Bhutada highlighted several provisions in the Union Budget aimed at supporting MSMEs, which are crucial for job creation and overall economic development. The creation of a INR 10,000 crore SME Growth Fund is a targeted initiative to help MSMEs scale and become competitive on a global level.

CA Abhay Bhutada commended this initiative, noting that the fund would be used to provide risk capital to growth-stage SMEs. By offering funding linked to performance criteria, the scheme aims to create “Champion SMEs” that can fuel India’s economic progress. Additionally, Bhutada highlighted the INR 2,000 crore allocation to the Self-Reliant India Fund, designed to support micro enterprises with risk capital.

Further, Bhutada acknowledged the important role of professional bodies such as ICAI, ICSI, and ICMAI in providing practical financial programs for businesses in Tier II and Tier III cities. These programs aim to improve financial discipline, governance, and compliance among small businesses, which will be essential for their long-term success and growth.

Advancing Technology and Data Centres

India’s technology and digital service sectors are poised for substantial growth under the current Union Budget. One of the key budget proposals, which Bhutada lauded, is the provision of tax holidays for foreign cloud service providers using Indian data centres. This provision will encourage global companies to invest in Indian infrastructure, which will ultimately enhance India’s standing as a global data and digital services hub.

Additionally, the rationalisation of safe harbour norms and the introduction of automated approvals for IT services will provide greater certainty for long-term investments in the sector. Bhutada sees these measures as a strategic move to further India’s digital transformation, offering attractive opportunities for foreign investors in the tech and digital services sectors.

He also pointed out that the incentives for cloud providers could potentially reduce the cost of digital infrastructure and encourage greater innovation within India’s growing digital ecosystem. This initiative aligns with India’s ambition to strengthen its position in the global technology space and expand its digital exports.

Strategic Investment and Global Partnerships

CA Abhay Bhutada emphasised that the successful implementation of the Union Budget 2026-27 requires disciplined execution of regulatory reforms and effective capital allocation. He believes that the strategic alignment of India’s financial and technological frameworks will provide a solid foundation for the nation to grow in line with the “Viksit Bharat” (Developed India) vision.

Bhutada noted that the budget’s provisions for improving the ease of doing business, providing targeted capital support for MSMEs, and expanding India’s role as a global technology hub, if implemented effectively, could help the country achieve sustainable and inclusive growth. He also mentioned that India’s success in becoming a global leader in digital services would depend on the successful execution of these policy reforms and the continued attraction of foreign investment.

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Conclusion

CA Abhay Bhutada’s perspective on the Union Budget 2026-27 emphasizes a comprehensive approach to sustainable economic growth, financial stability, and inclusive opportunities. With key reforms in banking, MSMEs, taxation, and technology, the budget provides a solid blueprint for India's continued advancement. The effective execution of these initiatives will be crucial in driving long-term growth and ensuring that the benefits of development reach all sectors of society. You can click here to know more about the Abhay Bhutada Foundation.

FAQs

1. What is CA Abhay Bhutada’s contribution to India's business growth?

CA Abhay Bhutada plays a pivotal role in driving economic growth through his leadership at the Abhay Bhutada Foundation and his involvement in key business reforms.

2. How does the Abhay Bhutada Foundation impact social development?

The Abhay Bhutada Foundation focuses on education, healthcare, and financial empowerment, helping underprivileged communities access opportunities for growth.

3. What Initiatives Does the Abhay Bhutada Foundation Focus on?

The Abhay Bhutada Foundation supports education, healthcare, and financial empowerment initiatives, working to uplift underprivileged communities across India.