Budget 2026 Expectations Highlights: Will FM Sitharaman’s Union Budget help mitigate impact of Trump’s tariffs?

Budget 2026 Expectations Live: What agriculture sector wants

“Given the importance of the agriculture and food sector in the country's food security and livelihood, the expectations from this year's budget are enhanced outlays for the sector to sustain the government's aspirations towards self-sufficiency and position India as a global agricultural powerhouse.

Research and development (high yielding and climate resilient varieties), infrastructure (production, storage and processing), digital agricultural solutions (ag stack and AgTech) and exports (quality and higher value capture) should be the key focus areas for the upcoming budget.

We expect continued support towards farmer aggregation models like producer organisations and cooperatives. The budget should also support continuity of structural reforms for long term sustainability, while augmenting income support to the farming community,” says Shashi Kant Singh, Partner—Agriculture, Food and Agribusiness, PwC India.

Budget 2026 Expectations Live: What taxpayers want

“From the viewpoint of tax administration and transition, Budget 2026 presents the right opportunity to bring about changes that truly reflect simplicity and predictability in India’s dual tax regime. At present, a clear majority of taxpayers are opting for the new tax regime; therefore, the next logical step would be to make tax slabs inflation-linked, pilot-test Section 87A rebate thresholds, and remove ambiguities that distress small taxpayers.At the same time, any changes to the old tax regime should be introduced gradually rather than being abruptly phased out, in line with India’s savings-oriented culture, where Section 80C–linked products continue to shape long-term financial goals.A unified approach to the taxation of capital gains and dividends—incorporating improved indexation benefits and realistic exemptions for genuine retail investors—could be key to enhancing financialisation, while not compromising on revenue or compliance quality,” says Karthik Narayan, Vice President – Title, Tax & Transition, Stellar Innovations.

Budget 2026 Expectations Live: What can be done for ‘Housing for All’

“Both investors and potential homeowners are considering Budget 2026 as a potential signal regarding the seriousness with which India views the speeding up of its 'Housing for All' and urbanisation policy. The request from the authorities is very simple: redefine affordable housing, give more precise and time-limited tax incentives, and make the 1% GST benefit applicable to a broader and more realistic price range in the major cities. GST reduction on developers' input services and works contracts will help cut costs and prevent low-quality construction. Higher PMAY allocations and ongoing investments in metro, regional rail and logistics infrastructure could make real estate an even more robust source of jobs, consumption and long-term wealth creation for Indian families,” says Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Pvt. Ltd.

Budget 2026 Expectations Live: How to make India a global hub for next-generation biotherapies

“As India builds its ambition to become a global hub for next-generation biotherapies, Union Budget 2026–27 can play a defining role in improving access, affordability and innovation in cell and gene therapy. Broader rationalisation of GST on manufacturing materials and targeted import duty relief on critical raw materials will be key to lowering production costs and expanding patient access. Equally important is the creation of insurance frameworks that recognise the long-term value of potentially curative, one-time treatments such as CAR-T cell therapy. The introduction of innovative financing mechanisms, including outcome-based and annuity-style payment models, can help align affordability with sustainability for patients. Incentivising global technology partnerships will further accelerate knowledge transfer, co-development, and localisation of globally benchmarked therapies in India. to ensure quality, safety and timely adoption without compromising patient outcomes, we also expect a clear, predictable regulatory pathway aligned with international standards,” says Amit Mookim, Board of Director and CEO, Immuneel Therapeutics.

What are the current income tax slabs under the old tax regime?

Budget 2026 Expectations Live: Mitigate impact of the US tariffs policy

“Union Budget 2026 holds significant potential to mitigate the impact of the US tariffs policy framed by Trump with a significant degree of softening on India's domestic growth engines. Even if the pressures on global trade continue unabated, better play through export incentives, rationalization of custom duty, etc., will provide additional support to margins and continue to carry earnings visibility with good play on infrastructure spends on account of robust support to manufacturers, MSMEs, etc., thereby offsetting pressures through its domestic demand pull. Policy continuity and fiscal discipline are what the markets would be looking at, and if the Budget delivers on these counts, India is well set to remain resilient with limited long-term disruption from global tariff volatility,” says Pranav Koomar, Founder and CEO of PlusCash.

Budget 2026 Expectations Live: Secure energy independence

"The upcoming Union Budget has to strike a balance between accelerating economic growth and securing energy independence; and rationalizing taxes across the oil and gas value chain will be a key step in that direction. Bringing transport fuels under GST and harmonising excise duties on CNG and LNG with biogas would help simplify the energy taxation framework and create a growth avenue for India's energy economy”

To further strengthen India’s energy self-reliance there is a need for fast-tracking the Samudra Manthan Mission and launching an Integrated Biofuels Mission that will enhance energy resilience, while creating a powerful new growth engine for the rural economy. It would directly link rural livelihoods with India’s energy transition, making self-reliance not just a policy goal but an economic opportunity,” says Manas Majumdar, Leader Oil & Gas, Fuels & Resources, PwC India.

Budget 2026 Expectations Live: How customs allowances stand right now

Budget 2026 Expectations Live: Continue to prioritise public health and quality-of-life

“As we look ahead to the Union Budget 2026, we are optimistic that the government will continue to prioritise public health and quality-of-life outcomes through stronger focus on clean drinking water, sanitation, and last-mile infrastructure. For a country as diverse as India, ensuring water quality at the point of consumption remains critical, and policy support in this direction can accelerate adoption of reliable purification solutions across both urban and Bharat markets.

We also expect Union Budget 2026 to maintain a strong push towards domestic manufacturing and competitiveness, with industry looking forward to continued momentum on PLI-led incentives, easier access to credit for MSMEs, and measures that strengthen supply-chain resilience. Simplification of compliance and a stable, predictable tax framework will be critical to improve ease of doing business and unlock long-term investments in R&D and energy-efficient product innovation. Such interventions can enable faster localisation, better affordability, and stronger service reach, helping scale wellness solutions across India,” says Rakesh Kaul, MD, Livpure.

Budget 2026 Expectations Live: Fundamental rethink on infra projects needed

“While the government has consistently increased infrastructure outlays, today’s global uncertainties call for a fundamental rethink of how projects are designed, awarded and delivered. Moving beyond the L1 procurement model and rewarding performance, innovation, sustainability and quality is an important rethink on how projects are developed. Further, the upcoming budget must place greater emphasis on the neglected area of “operations and maintenance” to avoid the costly cycle of build, neglect, and rebuild. Finally, not just constructing projects but a stronger focus on lifecycle spending and completion-centric metrics can help unlock revenues faster, improve user experience and ensure infrastructure assets deliver long-term value,” says Manish Sharma, Partner & Leader- Infrastructure, Transport & Logistics, PwC India.

What are the current income tax slabs under the new tax regime?

Budget 2026 Expectations Live: Give higher allocation for PMAY-Urban

“The real estate sector is looking for a clear signal from the government regarding the alignment of tax policies with the new urban housing price realities as we approach Budget 2026. The existing limit of ₹45 lakh for the 'affordable housing' category and the associated 1% GST benefit do not correspond to the land and construction costs in most of the development areas. A realistic price bracket of ₹80-90 lakh and a reduction in GST rates on works contracts from 18% to 12% can lead to the revival of the projects which are stalled and also the opening up of a new supply pipeline. In addition to this, a higher allocation for PMAY-Urban, along with quicker approvals, will not only benefit the first-time buyer in India's growing cities but also the entire housing sector as it will lead to more livable and ready-to-move-in homes,” says Shiv Garg, Director, Forteasia Realty Pvt. Ltd.

Budget 2026 Expectations Live: Centre may recalibrate EV PLI, boost R&D and domestic manufacturing

The Union Budget is expected to strengthen fiscal and policy support to accelerate the adoption of electric vehicles (EVs) in India. In an interaction with ANI, Sheena Sareen, Partner at Deloitte India, said that the government may roll out measures aimed at reinforcing domestic manufacturing, boosting clean mobility initiatives and attracting investments across the EV value chain as part of the country’s transition to sustainable transport.

She noted that a review and realignment of the Production-Linked Incentive (PLI) scheme for EVs and advanced automotive components, coupled with targeted tax incentives for research and development as well as capital goods manufacturing, could enhance scale, efficiency and global competitiveness.

The Union Budget for 2026–27 is scheduled to be presented in Parliament on February 1.

Deloitte India’s analysis indicated that such policy interventions could lower dependence on imported technologies, support indigenisation and help reduce crude oil imports, thereby conserving foreign exchange.

Sareen added that easing eligibility conditions under incentive schemes would enable more companies to access benefits. She also stressed that sustained investment in research and development would be key to expanding EV production and building a robust, self-reliant EV ecosystem in the country.

Budget 2026 Expectations Live: UP CM Yogi Adityanath says people's expectations should be government's top priority

For the upcoming Budget 2026, Uttar Pradesh CM Yogi Adityanath stressed that the focus should remain on public welfare and meeting the expectations of the people. He urged officials to design the budget in a way that balances citizens’ aspirations, regional priorities, and long-term development objectives.

"Over the past nearly nine years, Uttar Pradesh has made concrete progress in the direction of development, security and prosperity. This has raised expectations among the people of the state, and meeting those expectations is the government's top priority," Adityanath said. The chief minister emphasised that the budget should aim to bring meaningful improvements in the lives of the poor, farmers, workers, women, youth, and other disadvantaged groups, describing this as the “soul of the budget.”

He further noted that the confidence and new identity the state has built over the past nine years should be strengthened through the upcoming budget.

According to Adityanath, the budget for the next financial year will be a key step in fulfilling the aspirations of the people, supporting public welfare, promoting good governance, and driving financial prosperity across Uttar Pradesh.

Budget 2026 Expectations Live: Gems and jewellery sector calls for GST cuts, duty reforms & more

India’s gem and jewellery industry is pushing for duty cuts, procedural reforms and lower GST in the Union Budget 2026-27 to stay competitive in a tough global market.

The Gem and Jewellery Export Promotion Council (GJEPC), in its pre-Budget recommendations to Finance Minister Nirmala Sitharaman, has outlined measures to make exports more cost-efficient and establish India as a hub for diamond trading and value discovery.

“The global gem and jewellery trade is undergoing a major transformation. With high US tariffs, evolving consumer preferences, and shifting global supply chains, it is imperative that India maintains its competitive edge,” GJEPC chairman Kirit Bhansali said. The chairman further added that the Council’s proposals are aimed at improving cost efficiency for exporters, reinforcing Special Economic Zone (SEZ) operations and creating a policy environment that supports investment and skill development.

He added that with the right reforms and a stable trade ecosystem, India could not only navigate current global challenges but also lead the next phase of growth in the international jewellery market.

Budget 2026 Expectations Live: What home decor and furniture sector wants

“For the online sale of home decor and furniture, Budget 2026 expectations are determined by the capability to make supply chains and consumers’ wallets more powerful. We are looking for faster multi-modal logistics together with the money for digital tracking and warehouses as well as the GST cuts that have already made freight 5% more efficient and appliances 18% more accessible. The increase in MSME support such as the doubling of investment limits, ₹5 lakh credit for micro-units, and export incentives will allow our platform to provide personalized and made-to-order experiences across the country. Moreover, the urban and Tier-2 areas’ tax rebates adjusted for inflation and higher deductions will result in increased spending which in turn will lead to e-retail growth from $163 billion by 2026 onwards, inclusive and tech-driven growth,” says Lokendra Ranawat, Co-Founder & CEO, Wooden Street.

Budget 2026 Expectations Live: What healthcare MSMEs want

“The healthcare MSMEs are looking for Budget 2026 to be a driving force for Atmanirbhar innovation in the face of growing demand. The government should improve the PLI program for medical devices with a budget of ₹5,000 crores and eliminate the customs duties on over 50 categories of APIs that are critical for life-saving. Expanding the Ayushman Bharat scheme with disability coverage and employer-provided health insurance for gig workers and MSME employees would make it more inclusive. Besides this, a Health Shield program for sizeable micro, small, and medium-sized enterprises that would supply insurance against climate risks along with funding for good manufacturing practice (GMP)-compliant plants will protect 38 million registered units. On the other hand, the chances of doubling the R&D tax exemption from 100% to 200% for the pharmaceutical MSMEs and the fast track BIS/FSSAI certifications will reduce costs by 20 to 30%, which in turn will allow for the exports and cheap healthcare for India's 1.4 billion people,” says Jeevan Kasara,Chairman, Steris Healthcare.

Budget 2026 Expectations Live: Empower new entrepreneurs

“Budget 2026 is being anticipated by media and digital service MSMEs to get rid of the 'missing middle' problem through a data-driven, seamless financing solution. We require not only raising the credit guarantee limit for MSEs and exporters to ₹10 crore and ₹20 crore, respectively, but also a common digital platform that will combine the cash flow data from GST, e-invoicing, ITR, and bank statements for instant, collateral-free loans up to ₹50 lakh. GST 2.0 simplifications—quarterly filings for turnovers under ₹5 crore and AI-powered compliance tools—will reduce administrative burdens by 40%. The ₹10,000 crore MSME growth fund routed through fintechs, along with district transformation cells for scaling up mentorship, will not only empower 5 million new entrepreneurs but also legitimise the sector's 30% contribution to GDP,” says Abbhinav R. Jain,Co-founder & Chief Financial Officer, AdCounty Media.

Budget 2026 Expectations Live: Golden opportunity for the Indian retail sector to grow

“Budget 2026 will be a golden opportunity for the Indian retail sector to grow as a result of the government taking the burden off the expensively priced home accessories and consumer goods. After the recent reduction in GST on large items like furniture and home appliances, the furniture industry seems to have only one way to go, that is, to make input tax credits and slab rates simple. This will make both showrooms and online platforms equally competitive. The honing of MSMEs credit guarantees up to ₹20 crore and lowering of fees on multimodal transport will bring down logistics costs significantly and also, the speed of delivery will be increased to Tier-2/3 cities where demand is now booming. If tax relief on personal income is given along with the mentioned measures then, there will be no holding back of demand for home improvements and thus, retail sector will be rightly called the consumption powerhouse for the Indian economy,” says Raghunandan Saraf, Founder & CEO, Saraf Furniture.

Budget 2026 Expectations Live: What hospitality and foodservice sector wants

“The hospitality and foodservice sector has become a strong reflection of India’s evolving consumption story, driven by rising disposable incomes, experiential spending and renewed momentum in tourism and events. As we look to the Union Budget, continued focus on infrastructure development, tourism promotion and urban connectivity will have a meaningful multiplier effect on hospitality-led businesses, enabling India to position itself as a global destination for premium culinary and lifestyle experiences. From an industry perspective, rationalisation of GST, clarity on compliance norms and support for skill development will help improve operating efficiencies while strengthening employment generation. Measures that ease access to credit, simplify trade processes and support globally expanding Indian hospitality brands will not only benefit the sector but also contribute to a stronger services-driven economy. A growth-oriented Budget that balances fiscal discipline with consumption and tourism-led growth can further accelerate India’s hospitality and experiential economy,” says Sanjay Manohar Vazirani, Chairman and Managing Director, Foodlink F&B Holdings (India) Limited.

Budget 2026 Expectations Live: Regard housing as essential infrastructure

“For a rapidly urbanising India, this Budget needs to regard housing as essential infrastructure rather than a treatable asset class. PMAY-Urban 2.0 and a multi-lakh-crore commitment for urban housing have already announced the tremendous intent of the government, but now the policy fine-tuning is critical to the supply on the ground matching the intent. Rationalising GST on under-construction homes, increasing the affordable housing price band, and extending the targeted tax deductions for end-users will make the projects workable and the homes available, especially in Tier 1.5 and Tier 2 cities which are becoming the employment hubs. If Budget 2026 provides clarity and stability in these areas, the developers would surely invest in environmentally friendly, high-density and near-transport communities that would be supportive of India's growth during the next decade,” says Anurag Goel, Director, Goel Ganga Developments.

Budget 2026 Expectations Live: Strengthen India’s critical national infrastructure

“Budget 2026 is an opportunity to decisively strengthen India’s critical national infrastructure (CNI) by recognising cyber-physical security and resilience as a core national capex priority, not merely an IT expense. As power grids, oil & gas networks, utilities and transportation systems become increasingly digitised, vulnerabilities in Operational Technology/ Industrial Control Systems (OT/ICS) environments can translate into safety incidents and large-scale service disruptions. While India has taken important regulatory steps through National Critical Information Infrastructure Protection Centre (NCIIPC) and Indian Computer Emergency Response Team (CERT-In), the next leap must be execution at scale—backed by sustained funding for sectoral institutions, training, audits, tooling and rapid-response capabilities.

We expect a strong push to modernise mission-critical communications—upgrading legacy networks to resilient Internet Protocol and Multiprotocol Label Switch (IP/MPLS), optical and secure wireless systems across substations, pipelines and energy corridors—supported through capex incentives, faster depreciation and viability-gap-style mechanisms. Equally important is a shift from pure asset creation to lifecycle assurance, with budgetary incentives for reliability, cybersecurity, digital Operations & Maintenance (O&M) and predictive maintenance to ensure long-term safety and uptime.

Secure-by-design procurement norms for critical national infrastructure (CNI) projects, emphasising integration accountability, rigorous testing, documentation and lifecycle support, will be critical as integration quality directly impacts national safety and resilience. Budget support for indigenous manufacturing and trusted supply chains—along with rationalised duties where domestic capabilities are still evolving—will keep modernisation affordable and timely.

Finally, building a dedicated Operational Technology (OT) cybersecurity talent pipeline and improving access to long-tenure, infrastructure-aligned capital will enable Indian companies to scale responsibly while strengthening the resilience of India’s mission-critical infrastructure,” says Shriprakash Pandey, Chairman and Managing Director, Commtel Networks Limited.

Budget 2026 Expectations Live: Strengthen farmers’ incomes

“The dairy sector is a cornerstone of India’s food security and rural economy, directly supporting millions of farmers and allied livelihoods. Union Budget 2026 presents a timely opportunity to accelerate the next phase of growth for this vital sector. We welcome the government’s continued support on the GST front and believe there is scope for further rationalisation of key inputs such as packaging material, refrigeration equipment, animal feed and veterinary services. This would go a long way in easing rising cost pressures and improving overall efficiency across the value chain.

A strong policy push towards strengthening cold-chain infrastructure and logistics is critical. Enhanced capital subsidies, interest subvention schemes and easier access to long-term credit will help bridge existing infrastructure gaps, reduce wastage and improve milk quality, especially in hinterland regions. Targeted incentives for both dairy companies and farmers are equally important. Initiatives focused on productivity enhancement, fodder development, animal health, affordable cattle insurance and cold-chain logistics can significantly improve farmer incomes while ensuring consistency in supply.

From an industry standpoint, incentives for value-added dairy products, automation, advanced quality-testing laboratories and sustainability initiatives will encourage private players to invest in modern, scalable capacity aligned with global standards. Overall, a balanced and forward-looking Budget that strengthens farmer incomes, upgrades infrastructure and enables organised dairy players to scale sustainably will create long-term value for the sector and reinforce India’s position as one of the world’s leading dairy economies,” says Dr. K. Rathnam, Whole Time Director & CEO, Milky Mist Dairy Food Limited.

Sensex Down 5.25% From Lifetime High Hit In Nov 2025

Budget 2026 Expectations Live: Focus on making tree farming predictable

"We expect the honorable FM to focus on making tree farming (agroforestry) predictable and financially rewarding by investing in high-quality planting material, regulating nurseries, and strengthening extension services. This will go a long way not only to restrict imports of wood (and wood-based products) in production of which the country has an inherent natural advantage in producing. Imports of wood cost India 7 billion USD per year, rising at a CAGR of ~15%. Farmers currently take the risk of poor saplings and uncertain outcomes, which discourages them from long-term tree cultivation. A National Agroforestry Mission that offers affordable credit, insurance, and market linkage can transform trees into a stable income asset for rural households. Rectifying tax and duty structures that bring disadvantage to the domestic producers will further incentivize plantations. Addressing the wood deficit would not only address the concern about import substitution but would also help India build resilient rural economies and provide long-term livelihood security,” says Manoj Dabas - Country Head, CIFOR-ICRAF.

Budget 2026 Expectations Live: What past 5 years tell us

Looking at Budget 2026, to be presented on February 1, expectations would be that it would be yet another opportunity to deepen reforms by pushing manufacturing competitiveness, improving human capital, modernising tax and trade regimes, and reinforcing investment in emerging technologies that will lay out a roadmap for resilient, inclusive, and innovation-led growth.

Here is a quick rundown of the key changes that have been seen in the past 5 years and what is the scope for FY 2026-27. Read full article:

Budget 2026 Expectations Live: Strong need for enhanced credit facilities for MSMEs

“Lowering the tax burden has increased disposable income for the middle class, and the reduction of GST to 5% on apparel priced below Rs. 2,500 has provided a meaningful boost to demand in the apparel sector. Such measures not only stimulate consumption but also move India closer to becoming a global fashion hub for finished apparel, rather than remaining primarily an exporter of raw cotton.

We are optimistic about a more bullish 2026, with rising demand across both domestic and international markets. As a brand that manufactures entirely in India, we would welcome stronger policy support to boost apparel exports and simplify export processes through improved trade agreements. This would enable Indian apparel brands to scale globally and compete on the world stage.

Additionally, there is a strong need for enhanced credit facilities for MSMEs and women entrepreneurs particularly at the growth and scaling stage. While seed-stage funding has become more accessible, capital availability significantly narrows when businesses begin to scale, even though this is the phase that requires larger, sustained investments to create jobs and build global Indian brands,” says Surbhi Bhatia, Founder, The Mom Store.

USD to INR from 1960 to January 2026

The date for the presentation of the Union Budget is drawing closer and everyone is speculating what Nirmala Sitharaman's bahikhata might just be holding. More than just a government financial statement, the event is a roadmap for taxation, spending and public policy that influences how the economy performs over the next year. The Budget announcements are tracked by both common man and Dalal Street, looking for tax rate changes, spending priorities and sectoral allocations, as they affect everything from household disposable income to corporate profitability and investment flows.

Budget 2026 Expectations Live: What the real estate segment is looking for?

Realtors’ body CREDAI has urged the government to announce a national mission for rental housing in the forthcoming Union Budget, calling for tax incentives for both developers and tenants to address gaps in the organised rental market.

The agency, in its Budget wishlist, also highlighted its demand for changes to the definition of affordable housing, seeking a revision of area norms and the existing price cap of Rs 45 lakh. CREDAI has further proposed enhancing the deduction on home loan interest to Rs 5 lakh from the current Rs 2 lakh.

"With rapid urbanisation driving migrant inflows, the organised rental housing segment remains underdeveloped," the association said.

To address this, CREDAI recommended setting up a "National Rental Housing Mission to develop large-scale affordable rental stock in tier-1 and tier-2 cities through fiscal incentives for developers, tax relief for tenants, and institutional participation." The body said such a move would help formalise the rental market, reduce informal settlements and support workforce mobility.

CREDAI President Shekhar Patel said housing continues to be a key driver of economic growth, employment creation and urban transformation.

"Housing remains a critical engine of economic growth, employment generation, and urban transformation.

To keep pace with India's rapid urbanisation, it is vital to strengthen affordability, expand access to formal finance, and develop a robust rental housing ecosystem," Patel said.

The association also stressed the need to update affordable housing parameters to reflect present-day market conditions.

"The current affordable housing definition, unchanged since 2017, restricts units to 60 square metres in metros and 90 square metres in non-metros, with a Rs 45 lakh value cap that no longer aligns with escalated land and construction costs," CREDAI said.

It proposed revising carpet area norms to 90 square metres in metros and 120 square metres in non-metros, while removing the value threshold altogether.

Budget 2026 Expectations Live: Centre may recalibrate EV PLI, boost R&D and domestic manufacturing

The upcoming Union Budget could sharpen India’s push towards electric mobility by extending and fine-tuning fiscal and policy incentives aimed at accelerating EV adoption. According to Sheena Sareen, Partner at Deloitte India, the government may use the Budget to reinforce domestic manufacturing, strengthen clean mobility initiatives and drive investment across the electric vehicle value chain.

Speaking to ANI, Sareen said recalibrating the Production-Linked Incentive (PLI) scheme for EVs and advanced automotive components, along with targeted tax incentives for research and development and capital goods manufacturing, could help improve scale and global competitiveness.

As per convention, the Union Budget for 2026-27 will be presented in Parliament on February 1, 2026.

Deloitte India’s analysis suggests that such measures could reduce dependence on imported technologies, support indigenisation efforts and help bring down crude oil imports, contributing to foreign exchange savings.

Sareen said these interventions could be critical in expanding EV production and easing reliance on overseas technologies, while also lowering India’s crude oil import bill.

"This will help companies that have so far been unable to avail incentives due to stringent eligibility conditions," Sareen told ANI, adding that research and development remains central to the EV ecosystem.

Budget 2026 Expectations Live: What education sector wants from the FM this time?

As preparations for the Union Budget 2026 draws closer, voices from the education sector are calling for enhanced financial support to advance the objectives laid out in the National Education Policy (NEP) 2020, with a particular focus on improving quality, ensuring equity and preparing students for future needs.

Stakeholders believe education must see a rise in budgetary allocation, given its central role in developing India’s talent pool and underpinning long-term economic growth. However, industry leaders stress that achieving these outcomes will require consistent public spending that translates policy frameworks into tangible results.

Key areas identified for increased investment include teacher capacity-building, educational infrastructure and the integration of technology across institutions. Sector leaders argue that these components are essential to delivering reforms envisioned under the NEP.

Shishir Jaipuria, chairman of the Jaipuria Group of Educational Institutions, underscored the importance of education as a driver for other sectors and said it should receive funding in line with NEP 2020 recommendations.

"My biggest expectation is in terms of the professional development of educators, because empowered teachers enhance the standards of education more than anything else.

"Secondly, to facilitate the effective implementation of the curricular reforms introduced by CBSE with respect to mandatory skill education for classes 6 to 8, I wish to see greater thrust on vocational and skill-based education through national programmes and structured funding," Jaipuria said.

He also said that the integration of artificial intelligence within school systems should be promoted, supported by investments in digital infrastructure, to ensure schools in rural areas and small towns are not excluded from these developments.

Budget 2026 Expectations Live: MMTC-PAMP flags duty gap, seeks relief for refiners in upcoming Union Budget

With the Union Budget 2026 approaching, India’s precious metal refiners have outlined their expectations from the finance ministry, calling for changes to the current duty structure that they say puts domestic refiners at a disadvantage compared to importers operating under free trade agreements.

MMTC-PAMP Managing Director and CEO Samit Guha said the existing duty gap has hurt the competitiveness of local refiners, even though the issue is well known to the government. He pointed out that the disparity largely arises from how duties are applied under free trade routes.

Highlighting the concern, Guha said the entire sector has been affected. “The whole precious metal refining sector has seen this disparity, which is there in duty, especially through the SEPA route between what we get as dore versus what refined bullion is imported at,” he said.

Guha added that bullion has been excluded from free trade agreements signed after SEPA, and the industry expects gold and silver to remain outside concessional duty regimes in future trade deals as well. According to him, the sector is seeking targeted policy support to help India strengthen its refining capabilities and increase the number of refineries accredited by the London Bullion Market Association.

He said this could be achieved through input-linked incentives and wider duty differentials, either through trade agreements or by expanding the existing gap. “We would request the government to see what they can do in terms of either input-related benefits, in terms of duty differentials...which will really encourage local refiners to invest in the refinery and get ROIs and up their refining capacity and capability to a global level,” Guha said.

Currently, imports of dore attract a duty of 6 per cent for both gold and silver. Refiners receive a differential of 0.65 per cent, which brings the effective duty down to 5.35 per cent.

Budget 2026 Expectations Live: Improve the quality of growth

“Strong headline growth and lower inflation are welcome, and the budget must preserve that. With GDP growth looking robust, the real test is improving the quality of growth: jobs, wages, and rural demand - so the benefits are durable and widely shared. The budget must recognize that we live in a very uncertain world and it should insure the economy against uncertainty. The central challenge for Budget 2026 is uncertainty—currency volatility, shifting capital flows, tariff risks, and inflation spillovers. The budget should insure the economy against uncertainty both at the macro level and micro level by building macro-resilience in an uncertain world and reducing the cost of risk for producers and exporters, particularly for MSMEs. The budget should also incentivize channelling of patient capital to long-term projects, “ says Dr. Partha Chatterjee, Dean of Academics and Professor of Economics, Shiv Nadar University, Delhi-NCR.

Budget 2026 Expectations Live: Precious metals customs duty changes?

The precious metals refining industry is looking to the government to resolve customs duty imbalances that leave domestic refiners at a competitive disadvantage compared with bullion imports routed through free trade agreements, MMTC-PAMP Managing Director and CEO Samit Guha said on Friday.
Guha noted that the issue extends beyond MMTC-PAMP and affects the entire refining ecosystem, pointing to a clear disparity in duties, particularly under the SEPA route, between dore imported for refining and finished bullion brought into the country. According to him, this difference in duty structures materially weakens the position of local refiners, even though policymakers appear to be conscious of the problem.

He added that free trade agreements concluded after SEPA have kept bullion outside their scope, and the industry is hopeful that upcoming FTAs will adopt a similar framework by excluding gold and silver from concessional duty regimes.

Guha said that strengthening India’s position as a global refining hub and expanding the pool of London Bullion Market Association-accredited refiners would require policy support in the form of input-linked incentives through duty differentials, either under FTAs or by widening the existing gap. “We would request the government to see what they can do in terms of either input-related benefits, in terms of duty differentials…which will really encourage local refiners to invest in the refinery and get ROIs and up their refining capacity and capability to a global level,” he said.

He also said MMTC-PAMP is willing to assist the government or relevant ministries with technical inputs, drawing on its experience of operating an LBMA-accredited refinery.

At present, customs duty on dore is 6 per cent for both gold and silver, with refiners receiving a differential of 0.65 per cent, resulting in an effective duty of 5.35 per cent. As a refiner, MMTC-PAMP mainly imports gold in dore form, with gold and silver imports traditionally split in a 1:1 ratio. In 2024-25, the company imported about 40 tonnes of gold and 50 tonnes of silver.

Between April and December of the current financial year, MMTC-PAMP brought in 36 tonnes of gold and 60 tonnes of silver, reflecting particularly strong demand for silver, Guha said.

Budget 2026 Expectations Live: What luxury automobile segment wants

Strengthening infrastructure, particularly road networks, alongside tax and duty rationalisation, a predictable long-term policy environment and measures to ensure stable foreign exchange conditions in the forthcoming Union Budget could play a crucial role in driving faster expansion in the luxury car market, Audi India Brand Director Balbir Singh Dhillon said.

He described Union Budget 2026 as a significant chance to consolidate India’s growth trajectory and bolster consumer confidence, especially amid ongoing geopolitical uncertainties. Finance Minister Nirmala Sitharaman is scheduled to present the Budget on February 1.

“The luxury automobile sector is closely aligned with macroeconomic stability, rising disposable incomes, a conducive business environment, and a buoyant equity market – all of which contribute to positive consumer sentiment,” Dhillon said.

Welcoming the government’s efforts towards simplifying and streamlining GST and cess structures, he added, “continued emphasis on infrastructure development – particularly roads and high-speed charging infrastructure – along with rationalisation of taxes/duties, a stable long-term policy framework, and steady foreign exchange conditions will be instrumental in accelerating growth in the luxury car industry.”

Dhillon further noted, “We remain optimistic that the forthcoming budget will serve as a catalyst for boosting overall consumption, including in the luxury automobile segment.”

Budget 2026 Expectations Live: Defining period for India’s power sector

“FY26 marks a defining period for India’s power sector, with significant capacity additions driven predominantly by renewable energy. As clean power generation gathers significant pace, installing energy storage solutions will become crucial in shaping the sector’s next phase of growth. In the upcoming Budget 2026, favourable regulations and policies that enable the seamless deployment of large-scale battery storage infrastructure and solutions alongside renewable projects are expected to guide the industry’s expansion. We are observing the commissioning of large-scale initiatives that focus on deploying solar rooftop infrastructure, and, therefore, interventions that support project financing and address supply-chain bottlenecks will aid growth at scale. Further, strengthening the policy framework to enhance skilled employment generation will have a positive impact on the industry’s competitive advantage in the long-term, contributing meaningfully to India’s transition to clean energy,” says Shyam Sunder Jindal, Promoter, BC Jindal Group.

States' consolidated fiscal deficit widens

The combined fiscal shortfall of states has climbed to 3.3 per cent of GDP in FY25, after holding steady at 3 per cent over the previous three financial years, the Reserve Bank said on Friday. The central bank, which reviewed the budget documents of all states for the year, linked the increase largely to higher borrowings undertaken through the Centre’s 50-year interest-free loan programme under the Special Assistance to States for Capital Investment scheme.
The RBI pointed out that borrowing under this facility is allowed in addition to states’ normal net borrowing limits. Despite the wider deficit, the focus on capital spending has been maintained, with states’ capital expenditure staying at 2.7 per cent of GDP in both 2023-24 and 2024-25 and projected to rise to 3.2 per cent of GDP in 2025-26.

According to the study on state finances, outstanding consolidated liabilities have remained high in the post-pandemic period and are estimated at 29.2 per cent of GDP by the end of March 2026. The report also highlighted the role of demographic factors, particularly population age profiles, noting that states are progressing through different phases of demographic transition.

States with younger populations enjoy a longer growth window supported by a rising working-age cohort and stronger revenue potential, which can be leveraged through greater investment in human capital. In contrast, ageing states face mounting fiscal strain from a shrinking tax base and higher committed spending, necessitating improvements in revenue capacity along with reforms in healthcare, pension systems and labour policies. States at an intermediate stage must pursue growth while simultaneously preparing for future ageing-related pressures, the RBI said.

Budget 2026 Expectations Live: Rehauling of capital gains tax will restore overall confidence

“The union budget 2026 assumes significance given the geopolitical turmoil, tariff led distortions and cyclical slowdown. FY26 witnessed combination of both fiscal & monetary stimulus given mounting external headwinds. On the fiscal front, both income and GST stimulus totalled 0.9% of GDP. Amidst this backdrop, we expect continuity of measures around stimulating consumption which has been a mixed bag so far. These measures are likely to be selective. Governments task is cut out to strike a balance between fiscal prudence and growth engine. We expect continued thrust around quality of spending thus focus is likely to remain on capex, manufacturing sector boost via PLI, job creation and continued support for MSME’s.

US led tariff turmoil has impacted INR while FII’s have been elusive. Meaningful push to continue removal of non-tariff barriers, greater openness to Foreign Direct Investment (FDI) across sectors and targeted support for export-oriented sectors are required. Rehauling of capital gains tax (including FII) will restore overall confidence though we are not making any bets here. While FY26 focused on boosting consumption, FY27 may shift toward supporting investment through continued deregulation and improved ease of doing business,” says Pradeep Gupta, Executive Director, Head of Investments – India, Lighthouse Canton.

Budget 2026 Expectations Live: What the EV sector wants

"As we gear up for the 2026–27 budget, tackling urban air pollution has to rise to the top of our national priorities. Last year in 2025, cities like Delhi, Mumbai, and Bengaluru routinely smashed past AQI levels of 400, plunging residents into hazardous health risks from respiratory diseases to heart issues that hit vulnerable groups hardest. We must take bold, trackable actions like hefty incentives for electric mobility and clean public transport to deliver real, felt improvements in air quality within the year.

The growth trajectory of the electric vehicle (EV) industry in India presents a tremendous opportunity to push for deeper Tier II city penetration. This is essential for advancing green and sustainable mobility across the nation. Infrastructural development is key to such a transition, especially the setting up of charging points for electric vehicles to encourage consumers to adopt electric vehicles.

We urge the government to reconsider the current GST rate of 18% on EV charging services and reduce it to 5%. Lowering this tax would not only make EV charging more affordable but also stimulate demand for electric vehicles, aligning with our goals for a cleaner and more sustainable future. Furthermore, there is an urgent need to convert heavy commercial vehicles to eco-friendly alternatives, such as electric vehicles, to significantly reduce pollution in major cities. By addressing both consumer and commercial sectors, we can pave the way for a comprehensive and sustainable transformation in India's transportation landscape," says Akshit Bansal, Founder & CEO, Statiq.

Budget 2026 Expectations Live: Build native recycling, refining and recovery capabilities

“As India approaches the Union Budget 2026, there is a strong opportunity to firmly position critical minerals, recycling and rare earth elements as strategic enablers of long-term economic and industrial self-reliance. Recycling today is not only about sustainability, it is about material security. India continues to rely heavily on imports for lithium, cobalt, nickel and rare earths that power electric mobility, clean energy, electronics and defence. Building native recycling, refining and recovery capabilities are some practical ways to reduce this dependence and create resilient, domestic supply chains. E-waste, end-of-life batteries and industrial scrap represent a strategic resource base that can be unlocked at scale through technology.

Budget 2026 can accelerate this transition by recognising recycling and advanced materials recovery as core industrial infrastructure, enabling easier access to long-term capital and encouraging Indian deep-tech innovation in automation, robotics and process engineering. Targeted fiscal incentives for advanced recycling technologies, rare earth processing and downstream manufacturing will help Indian startups and scale-ups compete globally. With the government’s growing mission-level focus on critical minerals, this budget has the potential to convert intent into impact, strengthening Atmanirbhar Bharat and advancing a truly circular economy,” says Nitin Gupta, Co-Founder & CEO, Attero.

Budget 2026 Expectations Live: What needs to be done for Viksit Bharat dream

"As India charts its ambitious course towards a Viksit Bharat and a $5 Trillion economy, the upcoming Union Budget must unequivocally prioritize strategic investment in our greatest asset: our people. World-class skills, adaptive capabilities, visionary leadership, and disciplined execution – core to effective project management – are paramount for national transformation. With AI, automation, and sustainability reshaping sectors, the Budget must aggressively strengthen mid-career reskilling, AI-fluent executive education, and talent mobility. This creates an agile, future-ready workforce, adept at leveraging technology for efficiency and innovation.

India's mega projects in manufacturing, construction, and infrastructure demand unparalleled efficiency and accountability. PM Gati Shakti demonstrates integrated planning's value; we must now reinforce delivery frameworks with world-class project management and AI capabilities to accelerate outcomes with precision. A forward-looking Budget must allocate substantially to next-generation skills, advanced education, technology adoption, and robust execution capacity. This reinforces India as a global talent hub, ensuring resilience and a competitive edge. The true measure of our Viksit Bharat ambition lies in the quality and timely delivery of outcomes through exemplary project management,” says Amit Goyal, Managing Director, South Asia, PMI.

Budget 2026 Expectations Live: What Consumer durable sector wants

“As India approaches the Union Budget 2026–27, the electronics sector stands at a critical inflection point. Global supply chains are being reshaped, and countries that can offer scale, stability and cost competitiveness will define the next phase of manufacturing. India has made encouraging progress, and recent GST reforms, particularly in categories like televisions, have helped improve cost efficiency and accelerate domestic production.”

“Electronics is a power-lifter sector for India. The next step is policy continuity with deeper support for local value addition and support affordable consumption at home. Simplified tariffs, predictable incentive disbursements and sustained investment in skills, component ecosystems and applied R&D can significantly reduce friction at the factory level and enable long-term planning.

“As manufacturers, we are also expecting the government to enhance support to compete more effectively on the global stage, which would strengthen the 'Made in India' brand in international markets,” says Saket Gaurav, CMD, Elista.