How India Inc employers are reading Union Budget 2026’s long-term growth bet

The Union Budget 2026 has landed with a clear signal to India Inc: the next phase of growth will be slower to headline, harder to execute, and far more structural in intent. From capital markets and infrastructure to skills, services, and workforce formalisation, the government has placed long-term capability over short-term stimulus.

What stands out is not a single flagship announcement, but a coherent thread running through the budget—a deliberate pivot towards services-led growth, deep capital formation, and job creation anchored in skills rather than scale alone.

Services move from support act to centre stage

If infrastructure provides the skeleton, services provide the muscle of Budget 2026. Multiple industry leaders point to a decisive shift in how the government views employment creation—away from volume hiring and towards productivity, skills, and formalisation.

Mr. Neelabh Shukla, Chief Business Officer, Careernet, calls it a turning point for the services economy:

“Budget 2026 clearly makes the services sector the next driver of job creation and ambition-based growth, particularly in a technology-based economy. The renewed emphasis on emerging technologies, including AI and missions in quantum or research-based innovation, recognises that the future of job creation will be increasingly skill-based rather than volume-based.”

He also highlights long-sought regulatory clarity for employment services:

“Regarding recruitment and manpower services, the Budget also offers a welcome breath of relief with much-needed regulatory clarity, as it explicitly addresses manpower supply under contractor TDS, eliminating uncertainties and compliance burdens.”

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