ARTHSHASTRA 2026

The Management Committee at the Symbiosis Centre for Management and Human Resource Development (SCMHRD) successfully conducted Arthshastra – The Post Budget Panel Discussion on 16 February 2026, bringing together regulation, industry, and academia for a holistic decoding of the Union Budget. Anchored by a thoughtfully curated question set from Dr. Dipasha Sharma (Faculty, SCMHRD), the session moved well beyond headline commentary to examine the sustainability of fiscal consolidation, the outlook for India’s ~7% growth trajectory, and whether elevated public capex can meaningfully crowd in private investment. Panelists broadly acknowledged the government’s growth-first stance, highlighting the strong 2–3x multiplier effect of infrastructure spending, while also cautioning that consumption recovery and global stability will be key to unlocking the next phase of private capex.

The discussion then transitioned into manufacturing and strategic priorities, where the panel evaluated India’s push toward semiconductor self-reliance, electronics value addition, and rare earth security. Speakers noted that while policy intent is clearly aligned with long-term competitiveness, execution capability, ecosystem depth, and sustained foreign investment will determine outcomes. On the healthcare front, the ₹10,000 crore Biopharma SHAKTI initiative was seen as directionally positive but modest relative to India’s global ambitions. Complementing the macro view, the panel also reflected on export promotion, supply chain resilience, and whether current structural reforms are sufficient   to   support   India’s   manufacturing-led   growth   aspirations.

A substantial portion of the dialogue guided by Dr. Sharma’s focused questions centred on MSMEs and SME capitalisation, given their roughly 40–45% contribution to GDP. Panelists explored whether capital markets could increasingly complement bank lending and how SEBI can further strengthen SME listing platforms. The SME IPO journey was described as a valuable governance “learning curve” that helps technocrat promoters adopt transparency and independent decision-making, reinforcing the idea that promoters act as trustees of shareholder capital. However, the conversation remained grounded in reality, highlighting persistent challenges such as high listing costs (often 7– 10%), the need for meaningful scale (around ₹7 crore and above), liquidity constraints, and the limited participation of large investment banks raising the question of whether the ecosystem is fully serving its intended purpose.

The session also examined the depth of India’s financial markets through discussions on corporate bonds, municipal bonds, Total Return Swaps, and the muted response to credit default swaps. Panellist’s pointed to structural frictions such as low retail awareness, inflation sensitivity, and regulatory complexity that continue to discourage

corporate bond participation. From a market microstructure standpoint, the increase in STT on derivatives was debated for its potential impact on retail activity and liquidity. The conversation concluded with a balanced macro perspective covering GDP growth, fiscal deficit discipline, leverage trends, and the role of MSME-focused policy support. Overall, Arthshastra 2026 reinforced that while the Budget lays a constructive roadmap for growth and financial deepening, sustained private sector participation, stronger market depth, and continued regulatory trust will be crucial to translating policy intent into durable economic momentum.