With an increased capital expenditure target, a boost to consumption, and a bonanza for middle-income taxpayers, Mahindra Group Chief Executive Officer, Anish Shah, said that this budget will go a long way to ensure that the cost of manufacturing becomes lower and India becomes more competitive in the world.
“All in all, this is a budget that has balanced various factors very well. It continues to drive the strong fundamentals of the economy and hopefully takes us out of some of the speed bumps seen in the recent past,” Shah, also the managing director of the group, said in an exclusive interaction with NDTV Profit.
Shah identified three major themes in the budget, namely, demand stimulus, relief for taxpayers, and announcements on inclusive development. These are essential for an economy that has to grow by multiples in the coming years, the top executive said.
The auto sector still has significant growth potential, he said, adding that the focus on EVs is very positive right now. The government's steps have helped three-wheeler penetration in EVs go from 0% to 25%, and it will go to 100% in the next 3–5 years, Shah remarked.
For four wheelers, we have started the journey; we are still at 1.5-2% right now, he said. Measures the government has taken will help increase this penetration to 30% or higher. “The government's steps to help us manufacture in India for the world are of greater impact because we are in a position to do that now."
In the budget announcement on Saturday, Finance Minister Nirmala Sitharaman raised the capital expenditure target by 10% to Rs 11.21 lakh crore for FY26.
10% is good as long as it is actually delivered. Increased consumption will enable a lot more private sector capex as well. Consumption, capex, and fiscal discipline—the budget delivers well on all three grounds.Anish Shah, CEO & MD, Mahindra Group
A budget is not a magic wand, Shah noted. He said that a budget is one that has to build upon various actions taken over years. “This is one that builds upon those actions well. It's a very well-thought-out budget, which will be a big positive step for the economy.”
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