'FY27 Budget should focus on consumption demand, boosting income'

Budget 2026-27 must focus on improving consumption demand and give a legup to micro, small and medium enterprises (MSMEs), especially to tide over global uncertainties, Nirmal K Minda, Assocham president and executive chairman of UNO Minda, tells Ruchika Chitravanshi in an interview in New Delhi.

- Ruchika Chitravanshi

Minda says wages under the new labour Codes need to increase in a gradual manner to ensure India does not lose its competitive advantage. Edited excerpts:

What more reforms should the government undertake in the upcoming Budget after the recent goods and service tax (GST) rationalisation?

Both GST and income tax (IT) reforms have improved spending. Today, people are spending a lot on health and education out of their own pockets. The government should increase its spending in these two sectors to put more money in the hands of consumers. Improving consumption demand, strengthening income has to be a focus area for the coming Budget. This would improve the market and economic growth. Job security is also an area of concern. There is no doubt that India is a bright spot in the world economy, but ease of doing business, simplification of processes, especially for the MSME sector, is essential.

What are your suggestions to boost the MSME sector?