Union Budget 2026-27: A Masterstroke for Manufacturing and Eastern India, says RSB Global’s S.K. Behera

Jamshedpur | February 1, 2026 – Following the presentation of the Union Budget 2026-27 by Finance Minister Nirmala Sitharaman, Mr. S. K. Behera, Vice Chairman of RSB Global and Former Chairman of CII Eastern Zone, has hailed the fiscal roadmap as a “transformative blueprint” that will pivot India from being a global participant to a dominant force in manufacturing.
Terming it a “reform-heavy” budget, Mr. Behera noted that the record capital expenditure of ₹12.2 lakh crore serves as a powerful engine for industrial competitiveness, specifically targeting the three pillars of connectivity, technology, and liquidity.
A Shot in the Arm for the Auto Sector
Mr. Behera, representing one of India’s leading automotive component manufacturers, highlighted that the budget places India at the forefront of the global EV transition.
“The full exemption of Basic Customs Duty on 25 critical minerals, including Lithium and Cobalt, is a massive boost,” Mr. Behera stated. “By coupling this with duty exemptions on capital goods for battery manufacturing, the government is ensuring that ‘Made in India’ batteries become a global reality.”
He also lauded the ₹10,000-crore SME Growth Fund, noting that MSMEs are the backbone of the automotive supply chain. The doubling of the electronic component manufacturing scheme (ECMS) outlay to ₹40,000 crore will provide the “risk capital” necessary for smaller players to upgrade to global standards.
Unlocking the ‘Industrial Soul’ of the East
Speaking on the regional impact, the former CII Eastern Zone chief expressed strong optimism regarding the Purvodaya initiative. He emphasized that the focus on Eastern India would finally unlock the latent potential of the nation’s “mineral and industrial soul.”
Key regional highlights identified by Mr. Behera include:
* Industrial Corridors: The development of the East Coast Industrial Corridor, with a primary node at Durgapur, to integrate Jharkhand and Odisha with global markets.
* The Rare Earth Move: The establishment of a dedicated processing corridor for rare earth elements across Odisha.
* Logistics Revolution: The announcement of a new Dedicated Freight Corridor (DFC) linking Dankuni (West Bengal) to Surat (Gujarat) and the operationalization of National Waterway-5.
Towards a Sustainable Future
The RSB Global Vice Chairman also pointed toward the “visionary” steps taken for energy transition, specifically the phased blending of Compressed Bio-Gas (CBG) in CNG for transport.
“Budget 2026-27 empowers the Eastern region to lead the industrial charge while giving the automotive sector the tools to navigate the green transition,” Mr. Behera concluded. “At RSB Global, these measures align perfectly with our vision of high-tech, sustainable manufacturing.”