Budget strengthens supply chains and manufacturing base, say auto industry executives

Tarun Garg, MD and CEO of Hyundai Motor India, rated the Budget highly and said it supports long-term growth and reforms. He said, “Budget is definitely a nine for me.” He added that the policy direction supports manufacturing expansion, structural reforms, and fiscal discipline.Garg said the Budget should be viewed along with goods and services tax (GST) reforms and recent industrial growth trends. He said the policy framework can help position India as a global manufacturing base and support long-term gross domestic product (GDP) growth.
He also said the government’s decision to maintain fiscal deficit discipline supports sustainable growth. He said, “fiscal discipline… gave me a lot of hope.”
On sector-specific impact, Garg said supply chain stability and electronics manufacturing push are important for the automobile sector. He said focus on electronics manufacturing and rare earth supply chains can support auto manufacturing over the next few years and added that improvements in ease of doing business, taxation systems, and citizen income growth support consumption demand. He said the auto industry could return to about 7–8% growth levels in the near term.Also Read | BSE MD & CEO says STT hike not for the first time, a move towards long-term investing

Anish Shah, Group CEO and MD of Mahindra Group, also supported the policy direction. He said, “It’s an excellent Budget.” He added that manufacturing must play a central role if India aims for long-term growth targets and global competitiveness.

Shah said infrastructure expansion, manufacturing incentives, and supply chain localisation support long-term industrial growth. He also pointed to policy focus on self-reliance, small businesses, farmers, youth, and workforce skill development as important for broad-based economic growth.

He added that stronger manufacturing and infrastructure policies can help India attract global companies and support export-led growth. He said sectors such as logistics, hospitality, and manufacturing supply chains could benefit from policy continuity.

For the full interview, watch the accompanying video

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