CA Abhay Bhutada’s Perspective on the Union Budget 2026-27 and India’s Path to Growth

The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, outlines a comprehensive roadmap for India’s economic transformation. As the country moves towards sustained growth, CA Abhay Bhutada, an entrepreneur, philanthropist, and Chairman of the Abhay Bhutada Foundation, shared his views on the budget’s priorities. Bhutada’s analysis focuses on key reforms in banking, MSMEs, taxation, and technology, all of which are aimed at fostering inclusive growth, financial stability, and global competitiveness.

Economic Growth and Inclusivity

TL;DR: The Union Budget 2026-27 focuses on three core objectives: accelerating economic growth, building human capacity, and ensuring inclusive access to opportunities. These goals align with the national vision of Sabka Sath, Sabka Vikas -“Together for Growth, Together for Development.” Bhutada praised the budget’s focus on fostering inclusive growth, asserting that economic development should benefit every section of society, particularly those who have historically been excluded from the economic mainstream.

Bhutada emphasised that real growth goes beyond economic figures and should be measured by the extent to which it benefits all citizens. He praised the government’s efforts to ensure equitable access to opportunities for marginalised communities, aligning with the Abhay Bhutada Foundation’s mission of uplifting underserved areas.

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Reforms in Banking and NBFCs

Bhutada highlighted the importance of the proposed High-Level Committee on Banking for Viksit Bharat (Developed India), which will assess the preparedness of India’s banking sector for future growth. Bhutada sees this initiative as timely and crucial for modernising India’s banking system, ensuring it can meet the demands of a rapidly growing economy.

In addition, Bhutada lauded the restructuring of Power Finance Corporation and Rural Electrification Corporation. These initiatives aim to improve the operational efficiency of public sector NBFCs, which play an essential role in financing large-scale infrastructure projects. Bhutada emphasised that ensuring stability and protecting consumers are vital for fostering trust and confidence in India’s financial systems, especially as the demand for credit continues to rise.

Tax Simplification and Enhancing Compliance

The budget also proposes sweeping reforms in the tax system, including a new Income Tax Act that will come into effect in April 2026. Bhutada fully supports these changes, particularly the simplification of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) provisions. These reforms will ease the tax compliance process for businesses and individuals, reducing the administrative burden and making the system more transparent and efficient.

CA Abhay Bhutada pointed out that the extended timelines for revising tax returns will give taxpayers greater flexibility and reduce friction in the compliance process. He believes these reforms will improve India’s ease of doing business, encouraging investment and driving long-term economic growth.

Supporting MSMEs for Long-Term Growth

A key highlight of the budget is the INR 10,000 crore SME Growth Fund, designed to provide growth-stage capital to micro, small, and medium enterprises (MSMEs). Bhutada believes this initiative is vital for supporting India’s entrepreneurial ecosystem. MSMEs are the backbone of the economy, and this funding will enable them to compete on a global scale.

Additionally, the INR 2,000 crore allocation to the Self-Reliant India Fund will continue to provide financial support to micro-enterprises. Bhutada also highlighted the importance of professional bodies like ICAI, ICSI, and ICMAI in enhancing the governance and financial discipline of small businesses. Through initiatives led by the Abhay Bhutada Foundation, Bhutada has focused on improving compliance and fostering sustainable growth in MSMEs, particularly in smaller towns.

Technology and India’s Position on the Global Stage

The Union Budget 2026-27 sets a strong foundation for India’s future as a global hub for digital services. Bhutada fully supports the provisions that offer tax holidays for foreign cloud service providers using Indian data centres. He believes these incentives will attract investment and bolster India’s growing digital infrastructure.

Bhutada also highlighted the introduction of rationalized safe harbour norms and automated approvals for IT services. These measures will provide greater clarity and certainty to investors, making India a more attractive destination for technology investments. Bhutada is confident that India’s digital economy will continue to expand, positioning the country as a leader in global technology.

Also Read: How The Abhay Bhutada Foundation Embodies the Spirit of ESG

Conclusion

CA Abhay Bhutada’s reflections on the Union Budget 2026-27 emphasize the importance of a balanced and inclusive approach to economic growth. The reforms outlined in the budget address key areas such as banking, taxation, MSME support, and technology, all of which are crucial for building a sustainable and globally competitive economy. With continued leadership from figures like Bhutada and the initiatives of the Abhay Bhutada Foundation, India is on the path to achieving its vision of becoming a developed and inclusive nation.

FAQs

1. What is CA Abhay Bhutada’s Role in Shaping India’s Financial Landscape?

CA Abhay Bhutada is a key entrepreneur and philanthropist, leading the Abhay Bhutada Foundation. He advocates for banking reforms, MSME support, and inclusive economic growth, aiming for a more stable and transparent financial ecosystem in India.

2. How Does the Abhay Bhutada Foundation Contribute to the Development of Underserved Areas?

The Abhay Bhutada Foundation focuses on empowering underserved areas by providing financial literacy, skill development, and access to essential resources. It supports small businesses and local communities, particularly in Tier II and III towns, to help them grow sustainably.

3. What Are CA Abhay Bhutada’s Views on the Future of Technology in India’s Economic Development?

CA Abhay Bhutada views technology as a critical factor in India’s economic growth. He supports the budget’s focus on developing India as a global hub for digital services and believes that tax incentives and infrastructure improvements will attract investment and boost India’s tech sector.