Budget 2026 Expectations Highlights: Income tax relief, customs changes, exports push in focus for FM Sitharaman’s ninth Budget

Budget 2026 Expectations Live: Reduce gold import duty to 3%

“India’s gems and jewellery sector is navigating the dual pressure of elevated gold and silver prices and slowing volume growth, making the Union Budget a timely opportunity to restore momentum through pragmatic reforms. My recommendations in an unbiased productive manner are- First, a reduction in gold import duty to 3 percent which would immediately ease cost pressures on an essential product consumed across income segments, while reviving livelihoods across the value chain from goldsmiths to manufacturers. And second, offering a greater transparency through the publication of gold bar numbers on accessible customs department portals, enabling verification of duty-paid imports and strengthening formal compliance. Another important area in these turbulent lower sales turnovers for the jewellery industry is permitting more beneficial inventory management as current high gold & silver rates have in many cases inflated inventory values thereby mandating income tax on notional values. Unprecedented world events are impacting many small & medium jewellery businesses (manufacturing & distribution) making higher capital requirements, interest costs, lower income thus adversely impacting manufacturing activity,” says Dr. C Vinod Hayagriv, Managing Director & Director, C. Krishniah Chetty Group Of Jewellers.

Budget 2026 Expectations Live: Strengthen shared and low-speed electric mobility

“As India grapples with rising air pollution and urban congestion, Budget 2026 is an important opportunity to strengthen shared and low-speed electric mobility as a core pillar of clean transport. While EV policy support has largely favoured personal vehicle ownership, low-speed electric vehicles that power last-mile connectivity and urban deliveries remain outside key incentive frameworks, despite their proven impact. The sector also continues to face structural challenges under GST. While EVs purchased with fixed batteries attract 5% GST, battery-as-a-service models are taxed at 18%, with no refund on input tax credits, leading to significant capital blockages. Rationalising GST, including LSEVs within subsidy and fleet-conversion mandates, and incentivising shared mobility can meaningfully reduce congestion, lower emissions, and make clean mobility more accessible at scale.” RK Misra, Co-founder and President-Ecosystem Partnerships, Yulu.

Budget 2026 Expectations Live: Empower India's energy independence

“Smart meters are catalysts for India's digital transformation journey towards the $5 trillion economy. Advanced Metering Infrastructure (AMI), therefore, deserves a formal recognition under the Harmonized Master List of Infrastructure. Being one of the largest digital infrastructure projects in the country with about USD 30 Billion project outlay, smart meter AMI is no longer an auxiliary component of electricity distribution; it is the digital backbone that enables loss reduction, seamless renewable integration, optimises demand-side management and delivers consumer-centric services that modern India demands.

This inclusion will unlock transformative benefits such as long-term, low-cost capital through priority sector lending, infrastructure bonds, InVITs, and global institutional investors, while providing critical regulatory clarity for lenders and developers navigating this evolving landscape.

Additionally, it will eliminate existing ambiguities, accelerate the Revamped Distribution Sector Scheme (RDSS) implementation, and reinforce India's transition toward a resilient, data-driven and sustainable power ecosystem. This is not just about infrastructure classification; it's about empowering India's energy independence and securing our digital future,” says Anil Rawal, MD & CEO, IntelliSmart Infrastructure.

Budget 2026 Expectations Live: Labour Codes & Compliance Modernisation

“With India’s new labour codes now a reality, the real test in the coming Budget will be whether policy moves from legislation to execution. Employers need clarity, digital readiness and compliance continuity — not just new rules. A strong Budget will be one that funds enforcement infrastructure, digitisation and transition support so businesses can implement the codes without operational shocks,” says Subramanyam S, CEO, AscentHR Technologies.

Finance minister Nirmala Sitharaman on Tuesday, January 27, participated in the traditional Halwa Ceremony, marking the start of the final phase of preparations for the Union Budget 2026–27, scheduled to be presented on February 1.

The ceremony was held at the Budget Press in North Block, New Delhi.

The Halwa Ceremony precedes the mandatory 'lock-in' period for officials involved in Budget preparation. During this phase, officers remain confined to North Block without access to mobile phones or external communication to ensure confidentiality and prevent any leaks ahead of the Budget presentation.

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Budget 2026 Expectations Live: Restore tax parity for debt mutual funds

"When we approach budget 2026, one reform that can meaningfully strengthen the Indian capital market could be to restore tax parity for debt mutual funds and extend the same equity-like tax treatment to AIF. When the indexation benefit for debt mutual funds was removed in March 2023, there was an immediate impact.

Thus, it clearly shows how sensitive long-term capital is to tax policy. After the announcement of March 2023, long-term investors stepped back, leading to weakening inflows. The attractiveness for debt has reduced at a time when India needs stable long-term funding. Hence, restoring tax parity will not only bring household and HNI capital back into debt funds, but it'll also deepen the bond market liquidity and provide critical financing for corporate, for private trade, as well as infrastructure.

If the same logic is applied to AIF, AIF today manages approximately 13 lakh crores, and they fund sectors, where traditional capital often doesn't reach. So, giving them equity-like tax treatment will unlock more domestic and patient capital and strengthen India's private market. Now, the government has already moved in this direction by aligning equity-oriented Specialized Investment Funds (SIF) with equity taxation. Extending this framework to debt mutual funds and AIF would be a logical next step,” says Rahul Bhutoria, Director and Co-Founder, Valtrust (a multifamily office).

Budget 2026 Expectations Live: Rupee level today

"Rupee traded stronger at 91.70, gaining around 0.16 paise, as optimism around a potential trade understanding with Europe supported sentiment. Short covering in the second half of the capital market session further lifted expectations of steadier capital flows. With the Fed’s policy decision due late Wednesday, the rupee is likely to track global cues closely. Near-term range is seen between 91.35 and 92.15,” says Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Budget 2026 Expectations Live: Insurance sector wants this

“If the objective is Insurance for All by 2047, regulation must now enable scale. A move to perpetual licensing for insurance brokers, green-channel approvals for routine governance changes, and rationalised brokerage across banca and motor channels aligned with EOM guidelines will materially ease doing business. These reforms will allow intermediaries to focus on penetration, quality advice, and claims outcomes—critical to building a resilient and inclusive insurance market,” says Rahul Meena Mishra , Director, Hudson Insurance brokers.

Budget 2026 Expectations Live: Drone infrastructure support needed

“As India approaches Union Budget 2026, this is a critical opportunity to move from drone pilots to drone-led national infrastructure, especially in logistics and essential deliveries. Drones have proven their ability to improve efficiency across e-commerce, healthcare, disaster response, and remote connectivity, as seen in global markets like the US, China, Australia, and Rwanda.

We expect clear and predictable regulations, particularly for BVLOS operations. A single-window digital clearance system integrating DGCA, MoCA, state authorities, and UTM providers can unlock commercial scale while ensuring safety. On the economic side, a rational GST framework and expanded PLI incentives covering drone services, infrastructure, and indigenous components will be vital.

Support for local manufacturing, faster customs clearances, skilling, and national UTM and drone infrastructure can help shift drones from policy promise to economic backbone, positioning India as a global leader in drone-led logistics,” says Ankit Kumar, CEO & Founder, Skye Air Mobility.

Budget 2026 Expectations Live: Securing India’s financial future

“The GST waiver has made life insurance more affordable and accessible. We’re hopeful that this year’s Budget will continue that momentum. Better tax benefits for protection and health plans—under both tax regimes—can help more families get covered. We also hope to see stronger support for pension products and an increase in the premium cap for ULIPs to Rs. 5 Lakh, similar to traditional plans. Simple, inclusive reforms can go a long way in securing India’s financial future and accelerate progress towards ‘Insurance for All by 2047.’,” says Satishwar B, MD & CEO, Bandhan Life.

Budget 2026 Expectations Live: What education sector wants

“Indian education system has seen a sea amount of change as far as making learning based on 21st century focussing more on NEP skills, improved digital infrastructure, and assessment reforms aligned with NEP 2020. Rapid changes in technology, teaching methodologies, assessment patterns have resulted in inclusion of various modern based amenities and methodologies that require both knowledge, awareness and access to content specific to STEM labs, AI based tools, Robotics and Data science-based exposure.

With all these inclusions education sector looks forward to a strong and student-oriented investment that will always benefit in building the holistic student development. The Budget will help in building a future-ready generation by providing students with early career awareness, practical skills, industrial experience to make the future generation ready for Jobs and increase their employability rate.

We also expect inclusion of budget to provide impactful and effective technical as well as competency-based training to the educators. Budgetary support will also ensure meaningful, on-ground implementation that supports student mental well-being and overall development.

Education sector is hopeful and optimistic that 2026 Budget will prioritise school education through increased funding for both educators and learners,” says Praneet Mungali, an educationist and Trustee at the Sanskriti Group of Schools, Pune.

Budget 2026 Expectations Live: Why Congress is hitting out at the government

The Congress on Tuesday criticised the government, accusing it of not sharing its proposed legislative programme ahead of the Budget session of Parliament. Senior party leader K Suresh told reporters that during the all-party meeting held here, opposition members raised concerns over the absence of a detailed agenda specifying the Bills the government plans to introduce.

Union ministers present at the meeting, however, maintained that the legislative schedule would be circulated at a later stage. They informed participants that the opening phase of the session would primarily be devoted to the Motion of Thanks on the President’s address and deliberations on the Union Budget.

The first segment of the session is set to commence on Wednesday with President Droupadi Murmu addressing a joint sitting of the Lok Sabha and the Rajya Sabha, while the Union Budget will be presented on February 1, which falls on a Sunday. This phase will run until February 13, during which the Motion of Thanks will be debated and adopted, along with discussions on the Budget.

Following a recess, Parliament will meet again on March 9, with the session scheduled to wrap up on April 2. The customary all-party meeting ahead of the session is being chaired by Defence Minister Rajnath Singh.

Budget 2026 Expectations Live: India’s journey to be a global manufacturing hub

“Further strengthen India’s manufacturing ecosystem. Continued focus on infrastructure development, water conservation, and incentives for sustainable and energy-efficient manufacturing will help global companies like ours deepen Domestic production, enhance supply-chain resilience, and create long-term skilled employment. Policy support that encourages innovation, green technologies, and ease of doing business will be critical in accelerating India’s journey towards becoming a global manufacturing hub and further aligning with the ‘Make in India’ push,” says Shiozawa Kazuyuki, Managing Director, TOTO India of Japanese Luxuryware brand, TOTO Global.

Budget 2026 Expectations Live: Customs overhaul, TDS rationalisation & more

With the simplified Income Tax Act, 2025 slated to come into force from April 1, industry stakeholders are looking to the Budget for clarity through well-defined transition provisions, operational rules and FAQs. The Budget is also expected to introduce further incentives — such as an increase in the standard deduction — to nudge taxpayers towards the new income tax regime, which offers lower rates but removes exemptions, away from the older, deduction-heavy system.

Key expectations also include streamlining TDS categories into fewer slabs and rates, along with a comprehensive overhaul of the customs framework. This could involve reduced duty rates, simpler procedures and a potential amnesty scheme to resolve disputes worth ₹1.53 lakh crore, aimed at enhancing ease of doing business.

On the fiscal side, the government may outline measures to bring down the debt-to-GDP ratio beginning FY27, while raising defence allocations in response to heightened geopolitical risks.

The Budget could also provide allocations for the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) scheme, jointly funded by the Centre and states in a 60:40 ratio, make provisions for the 8th Pay Commission expected to be rolled out from January 1, 2026, and ensure tax devolution to states in line with the 16th Finance Commission’s recommendations.

Budget 2026 Expectations Live: Industry's wishlist from FM Sitharaman

Ahead of the Union Budget, private space sector has called on the government to classify space assets as critical infrastructure and earmark funds to buy products and services from domestic companies. “Being a big anchor customer, I think government support has to be around,” Awais Ahmed, founder and CEO of Pixxel Space, told PTI.

Ahmed said the government has taken positive steps by introducing a research, development and innovation fund, along with a deep-tech fund, but added that capital must now start flowing into capex-heavy businesses with the potential to make India a leader in the space and artificial intelligence sectors.

The Indian Space Association (ISpA) and consultancy firm Deloitte have also recommended recognising space assets as critical infrastructure to enable access to low-cost, long-term financing. “Recognising space infrastructure as a distinct infrastructure sub-sector is essential to unlock scale, private investment, and global competitiveness,” ISpA, which represents the space industry, said.

While the country's private firms have developed proven capabilities across satellites, launch systems, earth observation data and ground infrastructure, ISpA noted that the lack of assured government demand continues to limit their ability to scale.

Budget 2026 Expectations Live: How to boost India's AI ambition?

As India pushes ahead with its ambition to develop sovereign artificial intelligence, the release of government-held data will be critical in shaping models that reflect the country’s own realities, according to EY India’s Rajnish Gupta.

Speaking ahead of the Union Budget, Gupta called on the Centre to open up large volumes of public data for domestic developers, arguing that this would help ensure India builds AI systems rooted in its own cultural and linguistic context rather than relying on western perspectives. Gupta, Partner, Tax and Economic Policy Group at EY India, cautioned that the world’s most widely used Large Language Models (LLMs) are inherently skewed, as they are trained largely on data from the United States and Europe. This, he said, limits their ability to accurately understand or represent India’s social and cultural landscape.

He stressed that if India is to develop the next generation of AI that is culturally and linguistically relevant, the government must play a central role as a data provider. According to Gupta, the country’s diverse languages, cultural nuances and religious complexities are often misinterpreted or overlooked by existing global models.

“One of the big things which we could do a little more in India is make a lot of data available publicly. (Most of) the answers that you get are very western. They're very much from a US or a European standpoint.

“...We have our own culture. We have our own languages, our own nuances… A lot of this data can be generated by the government and made available to the people who are developing LLMs,” he said in an interview with PTI.

Budget 2026 Expectations Live: Strengthen innovation ecosystems

“India is now the world’s third-largest startup ecosystem, but the next phase of high-value jobs and economic growth will depend on deep-tech innovation and how well research translates into enterprises and jobs. Budget 2026 should strengthen innovation ecosystems that move ideas from labs to markets, through translation support, including entrepreneurs' training of researchers, applied research, and clear commercialization pathways, so that innovation in AI and emerging technologies drives new ventures, productivity, and high-value employment,” says Dr Ajay Kela, CEO & Board Member, Wadhwani Foundation.

Budget 2026 Expectations Live: What FM can do for GCCs

“For India to convert its strong GCC momentum into sustainable, long-term global investments, the Union Budget must address predictability, competitiveness, and talent enablement. Key policy priorities should include a clear, nationwide tax incentive framework for GCCs, with extended and standardised benefits for IP creation, R&D, and high-end services delivered out of India similar to regimes in Singapore and Ireland to help reverse the trend of incremental offshoring to low-tax jurisdictions.

Additionally, greater GST clarity on cross-border services through a definitive, uniform framework for inter-company global service transactions would eliminate ambiguity that currently adds to compliance costs and slows scaling. Budget allocations for targeted workforce upskilling and reskilling programmes aligned to GCC demand, particularly in AI, software engineering, data sciences, and cloud, will help build a strong talent pipeline for the 2+ million professionals already employed in India’s GCC landscape.

Further, capital expenditure support for scaling GCC centres, including matching support for technology infrastructure and real estate, can accelerate growth in Tier-2 and Tier-3 locations. Collectively, these measures would strengthen India’s value proposition and send a clear signal to global CEOs that the country is committed to being the preferred GCC destination for next-generation capability building,” says Lalit Ahuja, Founder & CEO, ANSR.

Budget 2026 Expectations Live: What can be done for childcare services

“Inadequate compensation for crèche workers and helpers is not attracting and retaining qualified staff under Palna scheme. There are only 3,045 operational creches of the 17000 approved creches under Palna scheme. (1,761 Anganwadi cum Crèches (AWCCs) and 1,284 Standalone Crèches). Low honorarium for creche workers and helpers is impacting the quality of workers recruited. Setting up and running a single set of creche requires an allocation of not less than 7-8 Lakh rupees per annum which includes honorarium for the workers.

The estimated Union Government annual expenditure on ECD is:
▪ approximately 0.7% of the annual Union Government Budgets
▪ approximately 0.1% of its Gross Domestic Product (GDP)
What is required is 2% of India’s GDP to care services which has the potential to create 11 million new jobs—70% of them for women.

According to the World Economic Forum’s Global Gender Gap Index, Indian women earn only ₹40 for every ₹100 earned by men (i.e., about 60% lower).Besides this, childcare workers including AWW, Creche workers, ASHA workers hailed as the frontline workers of the country are dependent on meagre honorarium. Haryana creche policy sets the trend which provide state minimum wages to creche workers and helpers. This requires replication across all states in India,” says Chirashree Ghosh, National Coordinator, Forum for Crèche and Child Care Services.

Budget 2026 Expectations Live: What startups and VCs want

“The last year has shown meaningful intent from both the Centre and the states to strengthen India’s startup engine. The ₹1 lakh crore RDI Fund has been a much-needed catalyst, finally bridging the gap between research and commercialisation and giving deeptech and science-led startups the confidence to build for scale. Delhi’s draft Startup Policy, anchored by a ₹200 crore VC fund, signals a strong commitment to early-stage founders, while Karnataka’s Startup Policy 2025–2030 brings a clear focus on deeptech, regional inclusion and expanding innovation beyond major hubs. The recent GST cuts are equally important, especially for consumer-facing ventures, as they improve purchasing power in semi-urban and rural markets and support India’s value-driven economy.

These developments reflect a maturing policy environment that recognises what founders truly need which are stability, market access and the freedom to build responsibly. As we look toward the upcoming Budget, the expectation is for deeper support through simpler compliance, clearer tax frameworks, enabling dual listings and creating stronger incentives for domestic capital to participate at the earliest stages. These steps can help convert today’s policy intent into durable, long-term outcomes.

India has laid a strong foundation. With continued, thoughtful reforms, we have the opportunity to become one of the most resilient and inclusive startup ecosystems globally,” says Archana Jahagirdar, Founder & Managing Partner of Rukam Capital.

Budget 2026 Expectations Live: Need for startup-friendly tax policies

Nasscom has asked for explicit clarification on hosting or co-location services from Indian data centre operators and does not create a permanent establishment for foreign cloud providers. The group argues that arm’s-length payments to Indian operators fully cover India-based functions, and foreign providers neither control premises nor conduct business locally. Read full article:

Budget 2026 Expectations Live: What investors want

Ideally, the government should unleash private capital for startups. The recent SEBI regulations for angel investing have increased the accreditation. Earlier, any individual/HUFs/Family Trusts/Sole proprietorships with net worth greater than Rs 2 crore (excluding the value of their primary residence) could be angel investors. Read full article:

Budget 2026 Expectations Live: UPI has emerged as a core pillar of everyday finance

“We are looking forward to a Budget that builds on the strong foundations laid over the last year. Further steps to rationalise TDS and TCS provisions, expand safe-harbour thresholds for transfer pricing, and enable the direct listing of Indian-origin startups incorporated abroad can strengthen long-term confidence and ease of doing business. Creating a government-sponsored fund focused on life sciences, deep tech, and defence startups can further support innovation in strategic sectors.

UPI has emerged as a core pillar of everyday finance, with deeper adoption across Tier 2 and Tier 3 cities and expanding use cases beyond peer-to-peer payments. Continued support through merchant enablement infrastructure in non-metro regions, scaling credit on UPI, and advancing account-to-account payment interoperability under the National Payments Corporation of India can help deepen usage and formalise cash-light behaviour at scale. Extending the hybrid working model for SEZs can further accelerate fintech innovation.

The India AI Mission and announced AI Centres of Excellence have set a clear direction. Rolling out agentic AI use cases in fraud detection and credit underwriting, supported by a dedicated DeepTech Fund of Funds and streamlined ESOP taxation for DPIIT-recognised startups, can drive real impact with responsible safeguards in place,” says Sarvjeet Virk, Co-founder & MD, Finvasia.

Budget 2026 Expectations Live: What’s the outlook for stock market this week?

Going forward, the upcoming earnings from major index heavyweights are expected to act as the primary catalyst for Nifty’s next directional move. On the upside, the 20day EMA zone of 25900–25950 will serve as a key barrier. A sustained move above 25950 could trigger a swift rebound toward 26200, with further potential to test 26500 in the short term. Conversely, the 25500–25450 range remains a critical support zone, and a decisive break below 25450 may accelerate the ongoing correction. Read full article:

Budget 2026 Expectations Live: India can define the future of the global diamond industry

“India has a once-in-a-generation opportunity to lead the global shift towards ethical, lab-grown diamonds. The government’s decision to recognise lab-grown diamonds as a sunrise sector under Make in India has already delivered strong momentum, and the removal of customs duty on diamond seeds has improved industry margins by 5–8%, allowing faster domestic manufacturing and innovation.

In the upcoming Budget, continued policy stability, expanded R&D incentives and easier access to financing for manufacturers will be critical to helping India become the world’s largest hub for sustainable diamond production. With indigenous technology — including initiatives such as the IIT Madras seed programme — India could reduce production costs by 20–30% over the next two years, making lab-grown diamonds more affordable globally while strengthening exports and job creation.

Ethical luxury is no longer niche. With the right Budget support, India can define the future of the global diamond industry — not just as a volume leader, but as the world’s most trusted source of sustainable, high-quality diamonds,” says Ricky Vasandani, CEO & Co- founder, Solitario.

Budget 2026 Expectations Live: Create an environment where Indian D2C brands can build and scale

“The 2025 Union Budget supported consumer sentiment by reinforcing purchasing power. With ‘GST 2.0’ moving toward rate rationalisation and simpler slabs, the market received a clearer, more predictable tax environment. That combination helped brands pass on efficiencies more confidently, making everyday spending feel lighter and driving steadier consumption.

To keep this momentum going, the emphasis now should be on creating an environment where Indian D2C brands can build and scale from within the country with confidence. Consistent tax policies, simpler GST compliance, and better access to working capital, along with extending PLI incentives to a wider set of consumer and wellness categories, can encourage brands to invest deeper in local manufacturing, product quality, and supply chains,” says Ganesh Sonawane, Co-founder and CEO of Frido.

Budget 2026 Expectations Live: Simpler KYC framework and stronger incentives for secure digital flows needed

“As the economy moves into an important transition, this budget arrives at a moment when India needs to reinforce the digital plumbing that holds its financial and transactional systems together. We have reached a point where the conversation cannot be about marginal fixes. The country needs long-lasting frameworks that give institutions the confidence to operate at scale and give consumers the assurance that every transaction is secure, compliant, and seamless. From a policy standpoint, what would help the most is a budget that acknowledges the importance of precision in regulated, high-volume digital businesses. A simpler KYC framework, clearer risk rules, and stronger incentives for secure digital flows would make a meaningful difference on the ground. Equally important is continued investment in digital public infrastructure, which has already changed how businesses operate and how citizens interact with the economy. India’s long-term trajectory is intact. With thoughtful policy support, the next phase of growth can be broader, more durable, and anchored in digital trust. For companies like ours, which operate at the core of essential, transaction-heavy systems, that stability is not a luxury; it is fundamental to how we deliver value,” says Dr. Vikas Garg, Chairman, Ebix Group.

Budget 2026 Expectations Live: Digital payments & cybersecurity road ahead

"From a Budget expectation standpoint, continued emphasis on digital payments, cybersecurity, and financial infrastructure would go a long way in strengthening trust across the ecosystem. These are foundational areas that directly impact how confidently consumers and businesses adopt digital credit.

We would also expect a sustained push toward technology investments, particularly in secure payment platforms, cybersecurity, virtual and tokenised cards, and UPI-first credit products. These are critical enablers as consumer behaviour shifts toward real-time, digital-first transactions.

Equally, policy support for alternative credit assessment models can meaningfully expand access to formal credit. Enabling the use of transaction and cash-flow data will help bring more first-time and underserved consumers into the system, while ensuring credit growth remains responsible and sustainable,” says Ravindra Rai, Managing Director, and CEO of Bobcard Limited.

Budget 2026 Expectations Live: Challenges for e-commerce & MSMEs

"As we approach the Union Budget 2026, there is a clear opportunity to strengthen the financial foundations supporting India's e-commerce ecosystem. Digital commerce has become a meaningful contributor to MSME participation, exports, and brand creation, yet scaling is increasingly shaped by execution constraints rather than demand.

Working capital pressure remains one of the most persistent challenges for MSME sellers and D2C brands. Delayed input credit settlements, tax deductions, and multi-layered marketplace and logistics settlements stretch cash cycles when businesses need liquidity to expand inventory, test new markets, or absorb returns. This forces companies to choose between aggressive growth and financial discipline, often slowing expansion even when demand is strong.

When cash flow becomes uncertain, businesses pull back on experimentation, narrow their product mix, and optimize for safety rather than scale. A Budget that improves the speed and predictability of credit flows would restore confidence in unit economics and encourage long-term planning.

If capital efficiency improves through clearer refund timelines and better alignment between tax and settlement systems, e-commerce can grow with greater stability. That predictability would allow digital trade to expand as a durable economic engine rather than one constantly adjusting for liquidity shocks,” says Somdutta Singh, Serial Entrepreneur, Founder and CEO Assiduus Global.

Budget 2026 Expectations Live: Solidify its standing as global manufacturing powerhouse

“The upcoming Union Budget represents a pivotal opportunity to address critical expectations that could decisively empower the manufacturing sector. By implementing pragmatic reforms across labour regulations, AI and automation skill development, financing, infrastructure, core technologies, and R&D, India could solidify its standing as a global manufacturing powerhouse. These measures promise not only to enhance industrial productivity but also to encourage sustainable economic growth, advancing India’s aspiration to become a leading manufacturing hub on the world stage.,” says Vinod Kumar, Partner and Leader, Manufacturing, PwC India.

Budget 2026 Expectations Live: Focus on measures that support premium consumption

“As India prepares for the Union Budget 2026, the premium bathroom and home solutions sector is witnessing robust demand driven by evolving consumer preferences for personalised luxury, wellness-oriented spaces, and high-quality, aspirational living experiences. Affluent buyers and urban professionals increasingly view bathrooms as private retreats, prioritizing exclusivity, superior design, and seamless integration of smart, premium features that enhance everyday comfort and lifestyle elevation.

To further accelerate this momentum, the Budget should focus on measures that support premium consumption and investment in high-end real estate. Key priorities include easing capital gains reinvestment limits under Sections 54 and 54F- particularly raising the ₹10 crore cap- to facilitate smoother transactions in ultra-premium properties and attract greater NRI and institutional capital. Rationalization of transaction costs, streamlined TDS norms for NRI sellers, and stable policies to mitigate rupee volatility would also help control input pricing pressures in imported premium components.

Continued emphasis on world-class urban infrastructure and connectivity will enhance the appeal of luxury developments in key markets, including emerging Tier-2 cities where aspirational demand is rising. These targeted reforms can empower the premium segment to deliver world-class, personalised living solutions, stimulate high-value consumption, foster skilled employment in design and manufacturing, and align with India's journey toward global lifestyle leadership and Viksit Bharat,” says Priya Rustogi, Leader (Managing Director), India, LIXIL IMEA.

Budget 2026 Expectations Live: What should be done for Indian Railways

Railway Budget: It is important that the budget drives a transformative agenda for capital recycling models and private sector investments both in capital creation and operations. In addition, it should introduce industry-friendly tariff structures, incentivise rail-linked industries, and provide a robust framework for the introduction of an institutional structure which promotes investments in assets, competition, efficiency, and innovation in services supported by human capital development. Read full article

Budget 2026 Expectations Live: What India’s construction and manufacturing sectors want

“As India accelerates investment in infrastructure and urban development, the true measure of Budget 2026 will lie not just in the scale of allocation, but also in the reliability of execution and the longevity of assets being created. Infrastructure build for roads, housing, water, and logistics networks ultimately depends on consistent access to quality construction materials, efficient supply chains and a stable policy environment that enables manufacturers to plan capacity with confidence.

As the sector moves into its next phase of growth, equal emphasis must be placed on how this infrastructure is built. Encouraging the adoption of resource-efficient materials, circular manufacturing practices and lower-emission construction solutions will help ensure that growth remains sustainable over the long term. Continued support for technology upgradation, domestic manufacturing, skilling and logistics efficiency will strengthen the industry’s ability to deliver at scale while maintaining quality and cost discipline.

A sustained focus on climate and water concerns, urban infrastructure and regional development will further enhance productivity and resilience across the economy. A balanced Budget that combines infrastructure investment with a clear sustainability direction can help create durable national assets and long-term value for Indias construction and manufacturing ecosystem.

As public investment in infrastructure and urban development continues to expand, Budget 2026 presents an opportunity to strengthen not only asset creation but also the systems that support it. The effectiveness of infrastructure spending is closely linked to the availability of reliable construction materials, robust manufacturing capacity and policy stability that supports long-term planning across the value chain.

As infrastructure development scales up, the focus must increasingly shift towards responsible construction. Policy measures that promote resource efficiency, circular manufacturing and lower-carbon material adoption can help align infrastructure growth with sustainability and climate objectives. Support for technology modernisation, domestic manufacturing, skilling and efficient logistics will be essential to improving productivity while maintaining quality standards.

Continued emphasis on climate and water concerns, urban infrastructure and regional development will contribute to economic resilience and improved quality of life. A policy framework that integrates infrastructure investment with sustainability-led incentives can strengthen India’s construction and manufacturing sectors while ensuring that public spending delivers long-term national value,” says Akshat Seth, Managing Director and CEO at BirlaNu.

Budget 2026 Expectations Live: Rail-led mobility has the potential to transform how people and goods move across the country

“As we approach the Union Budget 2026, we have a strong expectation that mobility and freight transport will remain at the centre of the country’s growth agenda. Continued investments in rail modernisation, high-capacity corridors, and multimodal integration are critical to improving connectivity, reducing logistics costs, and enabling sustainable urbanisation.

Rail-led mobility has the potential to transform how people and goods move across the country, driving productivity while significantly lowering the carbon footprint of transport. From a broader perspective, a focused push on technology adoption and public-private partnerships can accelerate large-scale implementation and delivery. Strengthening multimodal transport planning across urban and intercity networks can unlock inclusive growth, support regional development, and enhance quality of life across cities. A forward-looking Budget that prioritises future-ready mobility infrastructure will be key to positioning India as a globally competitive and sustainable economy,” says Hari Somalraju, SYSTRA Group India.

Budget 2026 Expectations Live: Middle class eyes fresh tax relief on Feb 1

Over the years, the new income tax regime has seen several changes, and the tax liability under it has progressively come down at various salary levels, and it has become increasingly more attractive compared to the old regime. Read full story here

Budget 2026 Expectations Live: PLI infusion of Rs 10,000 crore needed for medical devices

“The self-reliance of India in pharmaceuticals and medtech must be accelerated by Budget 2026 with a PLI infusion of ₹10,000 crore for medical devices, which would cover oncology, imaging, and implants, thereby making a reduction of the 70% import dependence possible and at the same time creating a domestic production amounting to ₹1.2 lakh crore by 2030. Overall, a 95% increase in PM-ABHIM funding for rural health infrastructure and zero customs duties on essential APIs will assure the safeguarding of supply chains in the face of climate risks. The extension of Ayushman Bharat to 50 crore more citizens (including gig workers) and R&D credits (up to 200% for the biotech sector) will provide affordable care and turn India into the world’s pharmacy with a market size of $130 billion at the end of the decade,” says Jeevan Kasara,Chairman, Steris Healthcare.

Budget 2026 Expectations Live: Defining moment for India’s green energy ambitions

“The Union Budget 2026 can be a defining moment for India’s green energy ambitions. It must transcend traditional fiscal measures and craft an innovative, integrative approach that embeds sustainability across economic, social, and environmental dimensions. By enhancing financial incentives, investing in infrastructure, fostering innovation, promoting sustainable finance, and ensuring inclusive energy access, the budget can energise India’s transition to a low-carbon economy. Such a budget would not only align with India’s climate commitments but also unlock unprecedented opportunities for economic growth, job creation, and global leadership in clean energy,” says Sambitosh Mahopatra, Partner and Leader, Climate and Energy, PwC India.

Budget 2026 Expectations Live: What homebuyers want

“Budget 2026 is a crucial chance to make the homeownership situation in NCR and other high-growth areas much better by giving incentives to buyers, developers and lenders in a more unified way. The mid-income housing projects have a major share of users who are above the ₹45 lakh affordable cap and, as a result, are not getting the benefit of the 1% GST and the tax incentives. If the limit is raised to around ₹90 lakh, the revival of the first-time buyer additional interest deduction like 80EEA, and easing of credit for developers, then there will be a significant reduction in the acquisition cost as well as the EMI burden. When sustained investment in metro, expressway, and urban infrastructure is added to these measures, the demand for housing in the peripheral corridors will be met with faster sales and the sector will enjoy a stable, long-term growth,” says Aman Gupta, Director, RPS Group.

Budget 2026 Expectations Live: Build guardrails for digital trust

"India successfully built the rails for digital payments, but we haven't yet built the guardrails for digital trust. In 2026, it is dangerous for Bank A to be learning about a fraudster that Bank B identified yesterday. Avenues like digital lending will only scale if we stop treating fraud detection as a private compliance cost and start treating it as critical infrastructure. The 2026 Budget must recognize and explicitly incentivize AI-driven defense to counter AI-driven fraud,” says Kedar Kulkarni, Co-founder & CEO, HyperVerge.

Budget 2026 Expectations Live: What the maritime sector wants

Dhruv Gadh, Partner- Transport, Logistics and Infrastructure PwC India lists the top expectations for maritime sector:

This budget presents an opportunity to transform the maritime sector by focusing on three key areas:

1. Capital allocation for Maritime Amrit Kaal Vision
Align investments to support the long-term Maritime Amrit Kaal Vision by scaling up the Sagarmala Programme. Develop trunk infrastructure in ports, establishing alternate fuel hubs, and promoting port-led industries to attract private participation. Additionally, prioritise next-generation initiatives such as greening, smart port technologies, and broader coastal community development.

2. Advancing Atmanirbhar Bharat
Drive self-reliance through an outcome-oriented programme for container manufacturing, supported by incentives linked to large-scale capacity creation. Establish an indigenous container shipping line to strengthen India’s global trade competitiveness.

3. Trade facilitation and digitisation
Implement measures to enable EXIM growth and enhance digitisation, including improvements in port processes and expansion of the Maritime Single Window for seamless documentation and compliance.