Budget 2026 Expectations Highlights: FM Sitharaman’s Budget in focus amidst Trump’s tariff threats; more income tax relief coming?

Budget 2026 Expectations Live: Indian agriculture must be positioned as a strategic growth engine

"As Budget 2026 approaches, Indian agriculture must be positioned as a strategic growth engine, not merely a welfare priority. Amid rising climate uncertainty, strengthening farmer income security through predictable markets, higher productivity, affordable credit and effective crop insurance-supported by investments in climate-smart, technology-led agriculture- is essential. A simplified, nationally harmonised regulatory framework for agricultural inputs will accelerate innovation and ensure timely access to high-quality, science-based solutions, enabling modern crop nutrition, better agronomy and digital advisory to enhance productivity, profitability and resource use efficiency for farmers,” said Sanjiv Kanwar, MD, Yara South Asia.

Budget 2026 Expectations Live: What needs to be done to insulate against global risks?

Dipti Deshpande, Principal Economist, Crisil Limited tells TOI, “So far, the Indian economy has navigated global uncertainties by leveraging its macro strengths –broad-based growth driven by consumption, government and household investment, low inflation and interest rates, and a policy set-up aimed at sustaining growth momentum beyond the near term.”

“However, the coming fiscal will retest the economy’s resilience as global headwinds intensify. In this environment, reinforcing domestic growth drivers remains India’s most reliable strategy. The macro tailwinds from the current fiscal year are likely to stay supportive for some more time.”

Continued government capex will also remain a growth driver next year. That said, policy support must increasingly move beyond direct budgetary support toward rapidly enabling measures that improve the business environment and attract private capex.
On the trade front, the government has already taken steps to cushion export-oriented sectors, particularly in the light of the current impasse in the India-US trade negotiations. These include accelerating the signing of foreign trade agreements (FTA) with key partners, as well as approving export promotion and credit guarantee schemes to support exporters.”

“While these are positive, sustained measures that help improve export competitiveness -especially through lower power and logistics costs and further easing of regulatory constraints. Given the significant role of MSMEs in export-intensive sectors such as textiles, leather, and plastics which have been disproportionately affected, the budget could be expected to announce more targeted support to the MSME segment.”

Sensex Down 5.25% From Lifetime High Hit In Nov 2025

Budget 2026 Expectations Live: What is the job market expecting from Union Budget ?

"The 2026 budget has the opportunity to turn technology, especially AI, into a force multiplier to coach every young Indian, regardless of where they come from. By embedding intelligent enablers into our skilling missions, the government can ensure that high-quality career guidance is no longer a luxury, but a tool available at everyone's fingertips. This isn't just about learning; it’s about enhancing employability at scale, giving students from less privileged backgrounds the real-world confidence to move from 'qualified' to 'hired.' By making AI a sovereign leveler, we can shorten the bridge between preparation and sustainable employment, creating a national framework for 'Inclusion through Intelligence.' It is time to turn AI into a force for social mobility that ensures the dignity of work is accessible to every citizen across Bharat," Kartik Narayan, CEO- Jobs Marketplace, Apna.co, told TOI.

Budget 2026 Expectations Live: How can Union Budget help startups?

Yuvraj Shidhaye, Founder and Director, TreadBinary, told TOI, “The Indian startup ecosystem has shown strong resilience and maturity over the past few years, supported by proactive government policies. In the upcoming budget, a key expectation is to further strengthen this momentum by making inward foreign direct investment more accessible while maintaining necessary safeguards. Simplifying compliance, filing, and auditing processes, especially for early-stage startups, would significantly improve ease of doing business. Additionally, expanding subsidies and incentives beyond Tier 1 cities to Tier 2 and Tier 3 regions can unlock untapped entrepreneurial potential and promote balanced growth. With the right policy support, startups, particularly in emerging technologies like blockchain and fintech, can play a critical role in building globally relevant platforms from India.”

Budget 2026 Expectations Live: Union Budget should focus on 'future-ready talent pipeline'

“From an education and technology standpoint, the upcoming Union Budget should focus on building a future-ready talent pipeline that is closely aligned with industry needs. As emerging technologies like AI, blockchain, cybersecurity, and data engineering reshape global demand, India must invest in tech-enabled education models that emphasise practical, job-ready skills rather than purely theoretical learning. Strengthening industry-academia collaboration, expanding digital skilling platforms, and incentivising edtech-led certifications in partnership with enterprises can significantly improve employability. Additionally, targeted support for upskilling returning global talent and integrating them into India’s innovation ecosystem would help bridge critical skill gaps. Strategic investments in digital education infrastructure, especially beyond Tier 1 cities, can ensure India remains competitive as a global technology and talent hub,” Darshil Shah, founder and director, TreadBinary, told TOI.

Budget 2026 Expectations Live: What is BFSI segment expecting?

"BFSI contributed to the overall expansion of formal employment through large banks and fintech platforms, with lending growth at mid-to-high single-digit levels in 2025. However, underlying asset-quality pressures exist: NPAs in unsecured personal and auto loans are rising, reflecting weak overall economic growth and earlier increases in interest rates. Most new BFSI jobs concentrate on customer-facing roles (like retail banking), back-office operations, and compliance. High-skill roles in investment banking and wealth management are limited. Employment is formally structured, but wage growth has lagged inflation, compressing real wages for junior staff.

Credit remains a bottleneck. Despite government schemes, MSMEs remain credit-starved. SME lending continues to grow slowly. Housing finance remains strong, and insurance penetration in semi-urban/rural areas is rising, but these gains mask underlying caution in bank lending decisions.

The sector expects the government to:

1. Enhance credit guarantee mechanisms for MSMEs with higher coverage, longer tenors, and simplified KYC norms for small loans
2. Deploy co-lending schemes where the government shares risk with banks to improve MSME access
3. Support digital financial inclusion: backing for UPI, BHIM, digital lending platforms, and a “FinTech Bill” clarifying regulatory sandboxes
4. Incentivise pension and insurance adoption: matching government contributions for NPS enrollments to expand savings base and retirement security
5. Provide regulatory relief for regional rural banks and small finance banks through tax breaks and reduced compliance burden to improve profitability and expand rural credit," Balasubramanian A, Senior Vice President, TeamLease Services told TOI.

Budget 2026 Expectations Live: Experts call for developing AI infra, strengthening enforcement institutions & more

“The 2025 Budget clearly signalled the Government’s intent to build institutional and technological capacity through the IndiaAI Mission, enhanced cyber resilience via CERT-In, and the establishment of responsible data governance mechanisms. Importantly, this has not remained on paper. Over the past year, we have already seen tangible progress under IndiaAI, including initiatives such as AI Kosh and early steps to expand access to compute for India’s growing startup and research community.

Against this backdrop, the 2026 Budget is likely to focus on building on these initiatives by deepening India’s AI infrastructure, operationalising and strengthening enforcement institutions such as the Data Protection Board, and embedding cybersecurity capabilities across sectors. Consistent with India’s technology-forward approach, we may also see calibrated investments in strategic and frontier technologies, including quantum computing, aimed at sustaining global competitiveness while de-risking critical dependencies. The underlying emphasis is likely to remain on meaningful, real-world deployments—where innovation is measured not just by scale, but by impact, trust, and economic returns,” said Supratim Chakraborty, Partner at Khaitan & Co.

Budget 2026 Expectations Live: Tax break on annuity & its benefits

“With about 160 million people above the age of 60, India is home to the second largest elderly population in the world. This number is likely to increase to 230 million in 2036, about 15% of the total population, according to government estimates. Add to this the fact that the average life expectancy in India has increased about 14 years between 1990 and 2025.”

“This vast ageing population underlines the burgeoning pension and annuity market in India. Annuity caters to the key dilemma of a pensioner, for a life-long pension at a steady, guaranteed rate and exposes the investors to a reinvestment rate risk especially in a volatile interest rate scenario. Annuities are the only solution, which provide complete protection from the perspective of living longer (i.e. outliving one’s corpus), by providing a regular flow of income throughout one’s lifetime. Currently, an annuity is completely taxed in the hands of the customer. Hence, a tax break on annuity could further encourage Indians to opt for these instruments, providing the much-needed social security to many during their golden years. Further, this will help insurance companies invest in long rated bonds and channelize long-term savings into capital intensive sectors,” says Subhrajit Mukhopadhyay, Deputy CEO and ED, Edelweiss Life Insurance.

Budget 2026 Expectations Live: Give clearer tax treatment for software and AI-led services

“The Indian IT and tech startup sector has seen meaningful policy movement over the last year, especially around digital public infrastructure and the early groundwork for AI through initiatives announced in the previous Budget. Programs such as Startup India have played an important role in creating scale, credibility, and access for young technology companies. As we look to Budget 2026, there is an opportunity to extend this momentum more sharply towards B2B SaaS and globally focused IT services firms. Clearer tax treatment for software and AI-led services, simpler compliance for cross-border revenues, and targeted support for global market expansion would directly help Indian SaaS companies compete at scale. For businesses building enterprise AI products, support that improves predictability around costs, hiring, and international operations will be critical in moving from steady growth to global leadership,” says Ankit Sarawagi, Chief Financial Officer, Verloop.

Budget 2026 Expectations Live: Rationalise the tax treatment across international spending instruments

“The government’s decision to raise the LRS TCS threshold to ₹10 lakh has meaningfully reduced the upfront tax burden on outbound remittances. However, there remains a need to rationalise the tax treatment across international spending instruments. Forex cards, which are purpose-built for overseas travel and offer transparent, pre-loaded exchange rates, continue to attract TCS beyond the threshold, while international credit card spends remain outside the TCS ambit. This creates an uneven playing field between instruments used for the same purpose and often nudges consumers towards opaque pricing structures with hidden markups.

While TCS is adjustable at the time of filing returns, the upfront cash outflow continues to impact travellers’ liquidity. As outbound travel from India continues to grow, a harmonised and clearly defined TCS framework across international payment instruments would promote transparency, simplify compliance, and ensure fair treatment for Indian travellers,” says Gagan Malhotra, Chief Operating Officer, BookMyForex.

Budget 2026 Expectations Live: Construct new, modern sports facilities

“The coming Union Budget 2026 is a crucial moment for the sports and fitness ecosystem of India to be accelerated in terms of growth. The projected growth of the sports and activewear market to USD 21.25 billion by 2033 at a nearly 5.5% CAGR indicates that the sector is turning into an important brick in the wall of India's fashion and lifestyle economy.”

“By 2030, sportswear is likely to form a major portion of the overall fashion retail landscape, driven by rising fitness awareness and youth participation. With the budget for FY 26-27 we expect an emphasis on the construction of new, modern sports facilities mainly in Tier II and Tier III cities which already have a large number of people interested in sports. National initiatives such as Fit India and Khelo India can still attract young talents from the very beginning and will also be instrumental in the formation of a strong fitness culture. We additionally expect incentives to be given to the manufacturers who are operating within the country, in the form of tax allowances and reduced regulation, initiating a process through which Indian companies could responsibly expand their business operations and deliver high-quality sportswear products at low prices,” says Arjun Gupta , Founder & CEO, KragBuzz Sports.

Budget 2026 Expectations Live: What telecom sector wants

“As India looks ahead to the Union Budget 2026–27, sustained government investment in digital infrastructure, particularly telecom, will remain a cornerstone of the country’s digital growth. The next phase of expansion calls for complementing public capex with innovative public–private partnership models that enable citizens and local entrepreneurs to co-own and operate last-mile telecom infrastructure. By leveraging on-chain orchestration to ensure transparent coordination between the state, private operators, and community stakeholders, telecom networks can be deployed faster, at lower cost, and with stronger local accountability. A forward-looking Budget 2026–27 framework that formally recognizes and supports community-powered telecom infrastructure can help scale inclusive, resilient, and financially sustainable connectivity across India, says Shubhendu Sharma, COO, Dabba Network.

Budget 2026 Expectations Live: Strengthen ‘Make in India’ ecosystem

“As India prepares for the upcoming Union Budget, it is important that fiscal policy supports both demand and supply dynamics across the consumer and retail ecosystem. Measures that enhance disposable income can help stimulate consumption, which remains central to retail growth. At the same time, affordable financing and targeted support for retailers, including easier access to credit and relief on operating costs, can strengthen the broader retail framework and encourage expansion across geographies. We also look forward to continued policy focus on strengthening the ‘Make in India’ ecosystem, enabling Indian manufacturers and home-grown brands to compete more effectively and scale sustainably. Balanced, growth-oriented policies that boost consumption while improving ease of doing business will be vital in sustaining the momentum of the organised retail industry in the year ahead,” says Anupam Bansal, Executive Director, Liberty Shoes.

Budget 2026 Expectations Live: India Inc expects prioritising job creation, exports support

India Inc has has laid out its expectations from the Union Budget 2026. According to a FICCI survey, the sector is urging Centre to prioritise job creation and step up support for exports amid rising global trade frictions.

Industry participants have pressed for higher allocations under the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme in the upcoming Budget to enhance export competitiveness. They also expect announcements on SEZ policy reforms and further streamlining of customs tariffs. Furthermore, espondents have asked for initiatives to ease direct tax compliance, deepen digitisation and ensure greater policy certainty. They also highlighted the need for quicker dispute resolution and more efficient management of tax-related litigation.

The survey identified three clear macroeconomic focus areas for the Union Budget 2026-27, boosting job creation, maintaining momentum in infrastructure development, and extending stronger support to exports.

Budget 2026 Expectations Live: What is the real estate sector expecting?

Realtors’ body NAREDCO has urged the government to raise the tax deduction limit on home loan interest to Rs 5 lakh from the current Rs 2 lakh in the upcoming Budget, while also pitching for industry status for the real estate sector to boost growth. The association also called for a revision in the definition of affordable housing, suggesting that homes priced up to Rs 75-80 lakh should qualify as affordable, compared with the existing cap of Rs 45 lakh.

Addressing a press conference here, NAREDCO chairman Niranjan Hiranandani said that the Centre has taken several steps to support the sector, but stressed that more focus is needed on the affordable housing segment. “We need to ensure Housing For All. Housing should get equal importance like any other infrastructure sector,” he said.

Hiranandani also proposed that in the upcoming budget, government should use its own land to develop affordable and mid-income housing projects.

Echoing the demand, NAREDCO President Parveen Jain said the home loan interest deduction limit for self-occupied property should be increased to Rs 5 lakh from the current Rs 2 lakh.

Budget 2026 Expectations Live: FM might refrain from further fiscal consolidation, likely to maintain FY27 fiscal deficit at 4.4%

According to a report by Nuvama, the finance minister might pause further fiscal consolidation in the Union Budget 2026, indicating a steady approach to finance managements. The report highlights that though the economy is showing signs of stabilisation, growth momentum remains weak. Tax cuts introduced in 2025 have provided a boost to select areas of consumption, but broader benefits could be limited as the government aims to meet the FY26 gross fiscal deficit (GFD) target of 4.4 per cent of GDP through planned spending cuts.

Nuvama noted, "For FY27, monetary easing done so far must be complemented with fiscal support to enhance its effectiveness. Hence, while fiscal expansion is unlikely, we forecast the FM would refrain from further consolidation in FY27."

The report emphasises that while monetary policy measures have provided some relief, their impact could be strengthened if paired with supportive fiscal measures. However, a major fiscal expansion is not anticipated. Instead, the finance minister is expected to maintain the fiscal deficit at 4.4 per cent of GDP, the same level as FY26, avoiding additional consolidation pressures.

Fiscal consolidation refers to the government’s efforts to improve its financial health by reducing budget deficits and managing public debt. This involves a combination of raising revenue, such as through taxes, and cutting non-essential spending, including subsidies, to promote sustainable economic growth and maintain investor confidence.

Budget 2026 Expectations Live: How budget can scale gold loans for Tier-2 & Tier-3 economies

Credit penetration in rural India remains low, particularly among shopkeepers and MSMEs—estimated at nearly six million nationwide. Many continue to lack access to formal finance, even as they need working capital to upgrade infrastructure, manage inventory, and expand offerings. Gold loans are ideally suited to meet these short-term needs. Read full article here:

Budget 2026 Expectations Live: Strengthen India’s ambition to be global hub for original design manufacturing

“We expect the Union Budget 2026–27 to strengthen India’s ambition to become a global hub for original design manufacturing and electronics innovation, not just assembly-led production. For companies building products from concept to scale in India, the priority must be design-linked incentives, deeper component localisation, and easier access to working capital. Expanding and refining PLI support for ODM-led manufacturing, alongside targeted incentives for batteries, power electronics, IoT hardware, and semiconductor-linked supply chains, will significantly improve global competitiveness. The Budget should also focus on lowering the cost of manufacturing through stable GST structures, faster input tax credits, and infrastructure support for automated factories. This will enable Indian manufacturers to move up the value chain, create IP-driven products for global markets, and position India as a trusted source of world-class, innovation-led electronics manufacturing,” says Shishir Gupta, Co-founder & CEO of Oakter.

Budget 2026 Expectations Live: Need for incentives for scrapping old trucks

The government should consider introducing incentives for scrapping old trucks in the upcoming Budget to encourage fleet owners to replace ageing vehicles, boost fresh demand and reduce air pollution, Ashok Leyland Managing Director and CEO Shenu Agarwal has said.

Agarwal said truck owners recognise that newer vehicles offer higher productivity but often require initial financial support to make the transition. “GST 2.0 has already provided one such trigger by boosting consumption-led freight demand. Another could be a well-designed scrappage incentive scheme,” Agarwal told reporters here.

He emphasised that any scrappage programme should remain voluntary rather than compulsory, and suggested that government-backed incentives linked to vehicle tonnage could accelerate fleet modernisation. “Smaller trucks could attract smaller incentives, while larger tonnage vehicles could get bigger support. This would benefit both customers and the industry,” Agarwal said.

Budget 2026 Expectations Live: Will stock markets be open?

India’s two leading stock exchanges, NSE and BSE, on Friday announced that they will hold a live trading session on Sunday, February 1, on the day of the presentation of the Union Budget by Finance Minister Nirmala Sitharaman.

In a circular to investors, the NSE said it will conduct trading on February 1 as per normal market hours “on account of the presentation of the Union Budget”. The exchange clarified that the pre-open session will run from 9 am to 9.08 am, followed by regular trading between 9.15 am and 3.30 pm.

The BSE issued a similar notification, informing market participants that February 1 has been declared a “special trading day by the exchange” and that markets will remain open during standard trading hours.

Both exchanges have previously followed this practice to allow real-time market participation during the Budget announcement.

Budget 2026 Expectations Live: When Will India Become A $5 Trillion Economy?

Budget 2026 Expectations Live: Restore foreign investor confidence

“As India prepares for Union Budget 2026, thoughtful reforms are needed to strengthen capital markets and support long-term investors. Aligning FII taxation with global practices by removing the 12.5% long-term capital gains tax can help restore foreign investor confidence and improve market liquidity. Introducing a separate very long-term capital gains category for investments held over 10 years would encourage patient capital and provide stable funding to Indian businesses. Additionally, enhancing the tax-free equity withdrawal limit for senior citizens would support retirement income needs while promoting sustained participation in equity markets,” says Madhur Kukreja, Managing Director of Happy FinServ.

Budget 2026 Expectations Live: What FM can do for tourism sector

“Beyond its steady growth, the hospitality and tourism industry has emerged as a key contributor to India’s economic development, accounting for approximately 7–8% of GDP. Over the past few years, the sector has witnessed expansion across multiple segments, including experiential and domestic travel, religious tourism, destination weddings, MICE, and medical tourism. This positive momentum presents an opportunity to further strengthen the sector through continued policy facilitation, including infrastructure status, tax rationalisation, and capital investment support.

As travel demand continues to rise, affordability and accessibility remain important considerations for sustaining growth. Air connectivity and last-mile transportation play a vital role in enabling tourism flows, particularly during peak travel periods. Measures aimed at fare rationalisation, review of ATF taxation, and greater consistency in local transport pricing would help enhance destination accessibility and support overall demand across tourism and hospitality markets.

The industry also sees strong potential in accelerated development of tier-2 and tier-3 cities. Enhanced regional connectivity and targeted infrastructure investments in these markets can unlock new tourism circuits and broaden economic participation. Continued support in areas such as capital investment incentives, interest support mechanisms, technology adoption, and sustainable practices would further reinforce the sector’s growth trajectory and its contribution to employment and economic expansion,” says Rahul Deb Banerjee, Chief Operating Officer at The Clarks Hotels & Resorts.

Budget 2026 Expectations Live: Reduce customs duty on imported machinery

“The year 2025 was significant in India's journey to achieve Net Zero carbon emissions by 2070 while fostering sustainable and inclusive development. This year, we took some active measures to make India a Green Hydrogen hub and accelerate the transition to renewable energy. From the upcoming budget, we expect to strengthen these efforts through targeted support for research and development, skilling of the workforce, and incentives for domestic manufacturing.

India has an estimated compressed biogas (CBG) potential of approximately 62 MMT per annum, derived from a wide range of biomass feedstocks. However, as of late 2025, installed CBG production capacity stood at only about 0.8 million kg per day (roughly 315,000 tonnes per year). This significant gap is attributable to multiple constraints, including inefficiencies in biomass aggregation and logistics, high capital and financing costs, limited adoption of mature technologies, and underdeveloped gas distribution infrastructure. The upcoming Union Budget should look at addressing this gap.

Further reduction in customs duty on imported machinery would help lower overall project costs and accelerate the deployment of advanced technologies that support the transition to lower carbon emissions across the sector. In addition, establishing a single-window clearance framework for the installation of gensets, by integrating applicable environmental, electrical, and local authority approvals, would significantly reduce project lead times and compliance burdens for investors,” says Surbhi Puri, Director, Green Power International.

Budget 2026 Expectations Live: How to insulate India’s growth from Trump’s tariffs?

An India-US trade deal is still stuck in negotiations - the US wants India to stop buying crude oil from Russia, and it wants India to open up its agriculture and dairy sectors to American products. On both demands, India has maintained a firm stance - decisions on which country to procure crude from is about economics and strategic autonomy, and agriculture and dairy sectors have never been opened for access as part of trade deals.

In this backdrop, Budget 2026 assumes significance - how will the Modi government insulate the Indian economy from the impact of Trump’s trade tariffs? Read full article:

Budget 2026 Expectations Live: GST reforms important to reduce the financial burden on seniors

"India is entering a longevity era where older adults are reshaping how we understand ageing. In the next decade, seniors will form nearly 20 percent of our population, yet only a very small share of public spending is directed toward their needs. Seniors today want autonomy, dignity, connection and meaningful engagement, not just basic care.

Seniors value simple and intuitive technology that supports their safety, health monitoring and connection with family. However, many older adults struggle when essential services rely on complex or forced digital processes. Tasks such as insurance claims or KYC updates can become difficult to navigate. Reducing these digital barriers and making systems senior-friendly is essential for true inclusion.

While initiatives like the National Programme for Health Care of the Elderly are encouraging, the pace of demographic change requires clearer and stronger policy frameworks. Assisted living, retirement living and rehabilitation care are increasingly becoming a necessity rather than a luxury, and these services need to be covered under insurance. GST reforms are also important to reduce the financial burden on seniors who choose organised community living.

It is equally important to strengthen geriatric care in rural and semi-urban areas, increase investment in senior-safe public spaces, improve public transport design, and create more age-friendly employment opportunities that keep seniors engaged and included.

India is on the brink of a longevity revolution. With thoughtful policies, accessible systems and investment in senior-focused infrastructure, we can build a future where every older adult lives with dignity, independence and purpose,” says Shreya Anand, Director, Vedaanta Senior Living.

Budget 2026 Expectations Live: Industry’s next phase of growth will hinge on targeted skilling initiatives

“India’s economy continues to demonstrate robust resilience, with domestic consumption serving as its strongest growth driver. As Union Budget 2026 approaches, it is imperative that policy measures reinforce household purchasing power and sustain steady demand, particularly with private consumption now accounting for nearly 60% of GDP. For the HVAC and consumer durables sector, maintaining consumer confidence remains critical amid global uncertainty.
The rollout of GST 2.0 — focused on rate rationalisation and the expedited correction of inverted duty structures — has already enhanced affordability and supported demand for advanced HVAC solutions and essential electronics. The transition toward a simplified dual-rate GST structure (5% and 18%), coupled with reduced rates on key consumer durables, has boosted disposable incomes and strengthened retail sentiment. We urge the government to build on this momentum by accelerating digital integration, streamlining compliance, and ensuring the GST framework remains agile to support India’s ambitions as a manufacturing and export hub.”

“The industry’s next phase of growth will hinge on targeted skilling initiatives, particularly in advanced HVAC technologies, smart controls, and energy-efficient systems. Tailored reforms that incentivise upskilling and foster industry-academia collaboration will be vital to address the acute shortage of trained technicians and engineers. Furthermore, strategic tax reforms and policies that enhance financial inclusion will unlock new growth avenues and reinforce a sustainable, consumption-led economic cycle. With the right policy support in Budget 2026, the HVAC and consumer durables industry is poised to drive innovation, generate high-quality employment, and deliver world-class, energy-efficient solutions to Indian consumers,” says Sanjay Sudhakaran, Managing Director, Bosch Home Comfort Group.

Trendline: India's Fiscal Deficit As a Percentage of GDP

Budget 2026 Expectations Live: What FM should do for education sector

“As India prepares for the forthcoming Union Budget, education and skilling must remain central to long-term growth. Increased investment in research and development can help universities convert ideas into industry-ready solutions. Fiscal support for apprenticeships, flexible learning options for drop-outs, improved Gross Enrolment Ratio, inclusive AI adoption, teacher training, and access to technology will be critical to improving both the quality and reach of education,” says Kuldip Sarma, Pro-Chancellor & Co-Founder, Medhavi Skills University.

Budget 2026 Expectations Live: Rationalise TDS and TCS provisions

“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: Introducw lower income tax slabs for small businesses

Rajneesh Chopra, Managing Director, Amway India says, “The 2025 GST rationalization was a gamechanger for India's nutraceutical sector, delivering simplified tax structures and providing significant relief to consumers, and we commend the government for this bold reform. As India advances towards Atmanirbhar Bharat, Budget 2026 presents a timely opportunity to further strengthen the overall health and wellbeing ecosystem. We recommend formally recognising food and dietary supplements as an integral part of overall wellness, with the potential to improve health outcomes while unlocking significant economic value. The budget should focus on simplifying custom duty structure by rationalising customs duty slabs on imported supplements, ingredients used in nutraceutical, beauty and personal care, and select consumer durables. Such measures would enhance India’s trade competitiveness, boost local manufacturing and exports aligning with the “Make in India” initiative. This should be complemented by Production-Linked Incentive (PLI) schemes, targeted tax benefits, and export-linked incentives to support global expansion.”

“To enable grassroots entrepreneurship, the Budget should consider introducing lower income tax slabs for small businesses like direct sellers/ distributors, sole proprietors, similar to the fiscal support extended to start-ups through deferred taxation, thereby enabling millions, including women and those in smaller towns, to participate meaningfully in the formal economic growth and drive more inclusive development. Finally, dedicated budgetary support for clinical research and evidence-based nutrition will be crucial to strengthening consumer trust and enhancing the global credibility of Indian-made supplements, firmly positioning India as a trusted, science-led hub for preventive health and long-term well-being.”

Budget 2026 Expectations Live: Strengthen farm resilience and market efficiency

“Ahead of the Union Budget, we expect a strong focus on strengthening farm resilience and market efficiency. Higher allocations for agricultural R&D, particularly for high-yield, climate-resilient seeds, are critical to improve productivity amid climate risks. On the markets side, rationalising or removing the Commodity Transaction Tax and providing clarity on GST for commodity derivatives will improve hedging viability for farmers and FPOs. Enabling wider participation by banks, insurers and pension funds, and linking agri-credit and KCC programmes with formal hedging support, can deepen markets and strengthen price risk management. Strengthening rural entrepreneurship through targeted skill-building initiatives will help arrest rural migration and provide gainful employment to rural youth by integrating them into industrial and agri-value chains, while investments in WDRA-notified warehousing will further support a transparent and efficient agri-market ecosystem,” says Dr. Arun Raste, MD & CEO, NCDEX.

Budget 2026 Expectations Live: Education and skilling must be backed by targeted financial allocations

“As the Union Budget approaches, education and skilling must be backed by targeted financial allocations that convert intent into impact. While the Economic Survey 2024–25 highlights a rise in higher education institutions and an increase in Gross Enrolment Ratio, budgetary spending should now focus on improving access, quality and outcomes. Increased funding for academic and digital infrastructure can strengthen apprenticeship ecosystems, flexible learning pathways, recognition of prior learning, faculty upskilling, responsible AI integration, and digital platforms such as DIKSHA and SWAYAM,” says Pravesh Dudani, Founder & Chancellor, Medhavi Skills University

Budget 2026 Expectations Live: Carbon Market Infrastructure as Strategic Infrastructure

"As India moves from voluntary carbon credit frameworks to a compliance-driven carbon market under the Carbon Credit Trading Scheme, the focus must shift from credit volumes to market integrity. Registries, MRV and dMRV systems, and digital trust layers are no longer back-end utilities; they are core climate-financial infrastructure. Recognising and supporting these systems at a policy level is essential to ensure transparent issuance, traceability, and credible retirement of carbon credits. Without this foundation, India risks building scale without trust, which would limit integration with global compliance mechanisms under Article 6 and constrain premium demand for Indian credits,” says Yashodhan Ramteke, Chief Executive Officer & Director, EcoGuard Global.

Budget 2026 Expectations Live: Align GST at 5% across EVs

“The intent behind India’s EV policy is clear, but parts of the current GST framework are misaligned with that ambition. While electric vehicles are taxed at 5%, batteries continue to attract an 18% rate. This differential complicates pricing and weakens the viability of models such as Battery-as-a-Service and battery swapping, which are critical to lowering upfront costs for commercial users. Aligning GST at 5% across EVs and core components would create clarity, reduce total cost of ownership, and remove a structural friction that is holding back adoption in the very segments where scale matters most,” says Kunal Mundra, Founder and CEO, Astranova Mobility.

Budget 2026 Expectations Live: Introduce separate tax deduction for pure term insurance

“As India moves into its next phase of economic growth, strengthening household financial security must become a central priority of the Union Budget FY27. Enhancing affordability through simpler, higher, and inflation-aligned tax incentives under Sections 80C, 80CCC, and 80CCD can play a critical role in reviving long-term savings and insurance adoption. Equally important is the introduction of a separate tax deduction for pure term insurance, outside the existing 80C framework, to meaningfully address India’s persistent protection gap and reinforce life insurance as a foundational pillar of a resilient, sustainable, and future-ready $5 trillion-plus economy,” says Sumit Madan, Managing Director and Chief Executive Officer, Axis Max Life Insurance Limited.

Budget 2026 Expectations Live: Give Priority Sector Lending to NBFCs

“As we approach the Union Budget 2026, we are hopeful that the government will continue to prioritise measures that deepen formal credit access for first-time and underserved borrowers. Affordable, secured lending plays a critical role in promoting financial inclusion, especially for households and micro-entrepreneurs who often lack access to traditional banking products.”

“Recognising the role of gold loan NBFCs through measures such as Priority Sector Lending status would help create a more level playing field, reduce the cost of funds and enable wider outreach in semi-urban and rural India. For many households, small traders and micro-entrepreneurs, a gold loan is frequently their first interaction with institutional finance.”

Further, enabling digital innovations such as gold-linked credit lines through UPI can provide first-time borrowers with instant, need-based liquidity at significantly lower costs than unsecured alternatives, while helping them build a formal credit history. Such forward-looking reforms can support near-term consumption and entrepreneurship, while strengthening long-term financial inclusion and resilience among India’s first-time borrowers,” says George Alexander Muthoot, MD, Muthoot Finance.

Budget 2026 Expectations Live: Focus should be on growth-oriented budget

“As we look ahead to the Union Budget 2026–27, we hope it builds further momentum towards the vision of Viksit Bharat by strengthening the most important engine of growth – manufacturing. Continued policy support for initiatives such as the PLI schemes, the National Manufacturing Mission, and improved access to credit for MSMEs will be critical to sustaining India’s manufacturing competitiveness.

Equally important will be measures that enable India to emerge as a globally trusted modern manufacturing hub—through deeper supply chain integration, improved logistics and infrastructure and the encouragement of technology-enabled as well as sustainably responsible manufacturing. Policies that support adoption of Industry 4.0 technologies and ensure skill development at scale will help enhance productivity and resilience across the value chain.

Finally, and most importantly, a growth-oriented budget must also stimulate domestic demand. Simplified taxation structures and easier access to credit can play a meaningful role in creating a virtuous cycle of increased consumption, capacity utilization, investment, and employment – we, as a nation, must benefit from the effect of a strong ‘manufacturing multiplier’, “ says Anil G. Verma, ED & CEO, Godrej Enterprises Group.

Budget 2026 Expectations Live: Strengthen education-linked employment pathways

Budget 2026 should recognise that education outcomes are inseparable from household economics and employment realities. When teachers face tax pressures and young graduates struggle to repay education loans after layoffs, it signals deeper stress points. The upcoming Budget must ease middle-class tax burdens, strengthen education-linked employment pathways, and ensure that skilling and higher education translate into stable livelihoods, says Dr. Ashok Kumar Mittal, Member of Parliament, Rajya Sabha & Founder-Chancellor, Lovely Professional University.

Budget 2026 Expectations Live: Rationalising TDS and TCS in the GST era

The industry’s suggestion to waive TDS/TCS on transactions already subject to GST is well-intentioned and addresses genuine compliance challenges arising from multiple rates and frequent mismatches. Since GST provides a robust, centralised trail of transactions, some degree of duplication in reporting and tracking can indeed be reduced. However, TDS and TCS also serve as critical advance tax collection and information-gathering tools for the exchequer. A blanket withdrawal could result in a significant short-term revenue loss and potential cash-flow impact for the government, particularly in sectors with thin margins or historically lower tax compliance. Any rationalisation, therefore, must be calibrated and selective, balancing ease of compliance with the need to safeguard revenue and prevent leakage, says Sandeep Bhalla, Partner, Dhruva Advisors.

Budget 2026 Expectations Live: Education must be treated as national capability-building

“As India looks to become a $7-trillion economy in the next decade, education must be treated as national capability-building, not just social spending. With over 250 million students in the system, the real challenge is not enrolments, but outcomes, what children are actually learning, how well they can apply concepts, and how prepared they are for a rapidly changing world. The shift now needs to be from inputs to learning impact is critical to building productive human capital. Budget priorities that reward innovation, teacher enablement and measurable learning outcomes will directly shape India’s workforce quality, productivity and global competitiveness in the years ahead,” says Atul Temurnikar, Chairman and Co-founder, Global Schools Group.

Budget 2026 Expectations Live: What individual taxpayers are hoping for

As the government prepares for the landmark shift to the new Income-tax Act in April 2026, the Union Budget presents an opportunity to address a few long‑standing demands of individual taxpayers. While sweeping changes may be unlikely in a year of transition, targeted reforms whether through higher deductions or more flexible timelines could significantly improve the taxpayer experience, says Parizad Sirwalla of KPMG. Read full article:

Budget 2026 Expectations Live: Key expectations of M&A sector

“From an M&A taxation perspective, in cross border share swaps, many times employee stock options are also swapped. While share swaps done by way of tax neutral mergers enjoy a tax exemption, stock options do not enjoy similar exemption, which raises issues around taxability for employees on the swap, esp, when the options are already vested. Providing clarity on such swaps and bringing them at par with share swaps will add more certainty for cross border M&A transactions.”

“Mergers and demergers usually carried out through the High Court and then NCLT approval route have enjoyed the same tax neutrality. However, under the new law, fast track mergers are tax neutral, but a similar benefit is not available for fast track demergers. While this may not be intended, the language of the law has cast a shadow on the tax neutrality of fast track demergers. It is important to clarify this appropriately to ensure that the Government’s objective of simplifying and deregulating internal corporate reorganisations is not marred by undesirable tax exposure.”

“A key question that arises in case of earn-outs and performance linked consideration on a share sale is whether taxability triggers in the year of sale or the year of receipt. Since most of the times, this consideration is based on achievement of profitability or other financial/ operating milestones in the future, the consideration truly accrues only when such milestones are achieved. Hence, it is natural to tax it when the income has accrued. Full tax neutrality is granted to shareholders receiving shares on domestic mergers or demergers or mergers/ demergers into Indian transferee companies. However, in case of overseas mergers or demergers involving Indian assets, tax neutrality to the resident or non-resident shareholders is not provided. This puts overseas reorganisations at a disadvantage to domestic reorganisations. While foreign shareholders are exposed to taxes in India on such mergers/ demergers only if the substantial value test under section 9 is met, resident shareholders are taxed irrespective of the value. It will be useful to extend the tax neutrality to the shareholders considering that the tax neutrality is provided to the transferor company itself. Similar to mergers between companies, mergers between limited liability partnerships should also be considered for tax neutrality. While the LLP law permits such mergers, the absence of tax neutrality has led to barely any precedence around the same. Similarly, on conversion of partnership and LLP structures into companies, while the partnership/ LLP is not taxed subject to compliance with prescribed conditions, such tax neutrality is not available to the partners who receive shares of the company upon conversion. To reduce ambiguity and litigation, it will be worthwhile to extend the tax neutrality to partners as well,” says Vaibhav Gupta, Partner, Dhruva Advisors.

Budget 2026 Expectations Live: Support high-quality professional education

Sajid Khan, Director – India, Association of Chartered Certified Accountants, said, “As India prepares for the Union Budget 2026, the focus on strengthening the country’s financial and economic ecosystem must go hand in hand with investing in future-ready talent. The accounting and finance profession is undergoing rapid transformation driven by digitalisation, sustainability reporting, AI, and evolving global compliance standards. We hope the upcoming budget prioritises measures that support high-quality professional education aligned with global standards and strong industry–academia collaboration. Incentives for skill-based learning, digital upskilling, and global mobility of Indian professionals will be crucial in positioning India as a hub for world-class finance and accounting talent. Such initiatives can help bridge the skills gap, enhance employability, and ensure India’s workforce remains globally competitive.”

Budget 2026 Expectations Live: Inclusion-focused Budget can significantly enhance rural livelihood

“As we approach the Union Budget 2026, Muthoottu Mini Financiers Limited underscores the critical role played by Non-Banking Financial Companies (NBFCs) in meeting the financial needs of rural and semi-urban India. While regulatory measures are essential to ensure financial stability, it is equally important to recognize the challenges faced by individuals, farmers, and small enterprises in accessing traditional banking credit due to stringent requirements. From the upcoming Budget, we look forward to policy continuity that supports grassroots credit flow, regulatory stability, and a predictable cost-of-funds environment for lenders.”

“We strongly believe that recognizing NBFCs as key enablers of priority sector objectives and facilitating bank lending to the sector at competitive rates will empower lenders to offer affordable credit to underserved communities. Additionally, continued emphasis on governance, customer protection, and responsible digital enablement will strengthen trust in the financial system.”

“A pragmatic and inclusion-focused Budget can significantly enhance rural livelihoods, drive MSME growth, and reinforce the NBFC sector’s role in promoting sustainable and inclusive economic development,” says Mathew Muthoottu, Managing Director,” Muthoottu Mini Financiers Limited.