Budget 2026 Expectations Highlights: Will FM Sitharaman's Budget take cues from Economic Survey's policy prescriptions? Capex, income tax measures in focus

Budget 2026 Expectations Live: What it can do for skilling and jobs

"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,” says Kartik Narayan, CEO- Jobs Marketplace, Apna.co.

Budget 2026 Expectations Live: Entertainment sector expectations

"The entertainment sector is evolving rapidly, driven by the digital revolution. The upcoming budget is a prime opportunity to double down on this momentum. Building on initiatives like the 'Create in India' challenge and the National Centre of Excellence for AVGC, we hope to see further policy support for original IP and regional storytelling. Continued investment in hard infrastructure and co-production incentives will be vital for Indian content to not just scale sustainably, but to truly go global,” says Prateek Sharma, Founder, MD & CEO - Studio LSD Ltd.

Budget 2026 expectation: Centre mulls roadmap for PSBs under Viksit Bharat 2047 vision

The Centre is likely to unveil a comprehensive transformation roadmap for public sector banks (PSBs) in the Budget 2026-27, aligning with its Viksit Bharat 2047 vision. The roadmap will focus on structural reforms, technology adoption, and global competitiveness.

Sources familiar with the developments told ET that the framework will outline broad contours for institutional strategy, modernising banking infrastructure, and building globally competitive banks capable of leveraging digital technology and new business models to scale performance.

The strategy, likely to be highlighted in the FY27 Budget speech on Sunday, is aimed at positioning PSBs to break into the top 20 global banks, a key government objective under the Viksit Bharat framework.

A senior official, speaking on condition of anonymity, said the plan would outline the intent “for a transformation roadmap for PSBs to break into the top 20 global banks, with a focus on best practices, including operational efficiency and corporate governance.”

The government has already made it clear that it wants at least two Indian state-owned banks among the world’s top 20 by 2047, dovetailing with the broader development goals of Viksit Bharat 2047.Financial Services Secretary M. Nagaraju has previously noted that PSBs have moved beyond mere survival and stability and are now positioned to play a larger role as “champions of growth, innovation and leadership” in India’s growth journey.

In addition to global benchmarking, the transformation plan is likely to prioritise strengthening asset quality, enhancing risk management systems and implementing a robust resolution framework. Building an inclusive, modern workforce is also expected to figure prominently.

Budget 2026 Expectations Live: Rationalising TDS/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.

Finance minister Nirmala Sitharaman is scheduled to present the Union Budget 2026 in Parliament on February 1, 2026. The Union Budget 2026 will mark FM Nirmala Sitharaman’s ninth consecutive Budget presentation, making her the first finance minister in India to achieve this milestone. She will also become the first finance minister to present a Union Budget on a Sunday, adding to the historic significance of the occasion.

In 1999, when February 28 fell on a Sunday, then finance minister Yashwant Sinha presented the Union Budget a day earlier, on Saturday, February 27. Nirmala Sitharaman has previously presented Budgets on Saturdays as well — on February 1, 2020, shortly before the Covid-19 lockdown, and again on February 1, 2025.

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

"The FPI selling continued in January with total sell figure through exchanges touching Rs 38740 crores. However, the intensity of selling sharply declined in the last few days of the month. FIIs will be looking for indications from the Budget before deciding on their strategy, going forward.

The Economic Survey presented a rosy picture of the economy with GDP growth of 7.4% in FY26 and between 6.8% and 7.2% in FY 27. With inflation projected at 3.5% for FY27, the nominal GDP growth can touch 10%. This augurs well for corporate earnings in FY 27. If the 2026 Budget turns out to be fiscally prudent and growth-oriented, the market will turn resilient. The sharp correction in gold and silver, if it persists, can draw investors away from precious metals to equity,” says Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Budget 2026 Expectations Live: M&A taxation

“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: Growth of the start-up and GCC ecosystem

“Flexible and co-working spaces are fast becoming a bellwether of India’s evolving work culture and the growth of the start-up and GCC ecosystem. In the upcoming Union Budget, the industry looks for formal recognition of flexible workspaces as a distinct real estate category, which would bring much-needed consistency in utilities, taxation, and regulatory treatment.

We also expect targeted policy support to strengthen digital infrastructure, incentivise energy-efficient fit-outs, and enable smart building integrations—critical for creating future-ready work environments. A single-window clearance mechanism, faster project approvals and the inclusion of co-working spaces within Smart City and urban development programmes can significantly ease operational bottlenecks and accelerate supply.

Further, integrating flexible workspaces into state-level start-up and GCC policies can play a catalytic role in stimulating demand, boosting entrepreneurship and generating employment, positioning the sector as a key enabler of India’s modern, distributed workforce,” says Ritesh Malik, Founder, Innov8.

Budget 2026 expectations: White Lotus Group CEO seeks tax depth for luxury assets

Pavan Kumar, founder & CEO, White Lotus Group, said, "For the Indian real estate sector, and particularly for luxury and design-led development, the Union Budget 2026 presents a timely opportunity to introduce policy depth and tax clarity that align with the market’s maturity and long-term investment horizon. Stakeholders today are looking beyond one-off incentives. What the sector truly needs is structural clarity on capital gains and taxation that recognises luxury properties as long-duration, patient capital assets rather than short-term speculative instruments.

Simplifying long-term capital gains provisions and incentivising extended holding periods will help stabilise pricing, attract sophisticated global capital, and reinforce real estate’s role in generational wealth creation.

GST treatment around input tax credits and works contracts continues to be a key cost driver, particularly for high-end projects that prioritise bespoke materials and sustainability standards. A more predictable and transparent GST framework will not only improve cost efficiency but also enhance pricing clarity for discerning homebuyers.

Complementary measures such as supporting institutional platforms like REITs and fine-tuning policy levers across the housing spectrum can help position real estate as core economic infrastructure and a long-term value engine for the country."

Budget 2026 expectations: After GST, is it time for customs reforms amid global headwinds?

As Union Budget 2026 approaches, economic policymaking has been unfolding against a challenging global backdrop. Slowing trade growth, supply chain realignments, inflationary pressures and geopolitical uncertainty continue to influence investment and production decisions worldwide.

In this environment, India’s fiscal and tax policy choices will play a crucial role in sustaining growth momentum and enhancing resilience of the domestic economy.

Read full story

Budget 2026 expectations: Asana Head advocates for enterprise AI adoption and digital readiness

Vishnu Prasad, head of South Asia, Asana, said, “As the Union Budget 2026-27 approaches, the focus is moving from the scale of India’s AI investment to how effectively these investments are being applied across enterprises. India’s improving position in global AI competitiveness rankings reflects strong policy momentum. The next test lies in whether AI becomes part of day-to-day enterprise work, particularly in areas such as planning, coordination, and execution.
For many organisations, the constraint lies less in access to technology and more in the ability to apply it through productivity and work management systems that create clarity around goals, ownership, and outcomes. Budget measures that reduce adoption friction and strengthen digital readiness across enterprises will play a critical role in converting national ambition into measurable and sustained business impact.”

Budget 2026 expectations: Aaiji Group MD seeks infrastructure push and SEZ flexibility

Lalit Parihar, managing director, Aaiji Group, a Dholera-based real estate firm said, "We expect the Union Budget 2026 to further strengthen infrastructure-led urban development. Continued investment in roads, logistics, airport, bullet train, industrial corridors, and smart city infrastructure will be critical in unlocking the full potential of regions like Dholera as future economic hubs. We also hope for renewed policy focus on Special Economic Zones (SEZs), including greater flexibility and fiscal incentives for developers, to accelerate industrial and mixed-use developments in these regions.

We look forward to measures that support housing affordability, such as rationalisation of GST, extension of tax incentives for homebuyers, and easier access to institutional finance for developers. Incentives for sustainable and green construction, along with faster approvals and reduced compliance burdens, would further improve project viability.

Overall, a balanced Budget combining fiscal discipline with long-term urban planning will help sustain real estate growth, boost investor confidence, and accelerate development across strategically important regions of Gujarat."

Budget 2026 expectations: What Indian economy needs from FM Sitharaman

After several years, the Union Budget will finally be presented against a backdrop of robust economic fundamentals such as strong GDP growth, controlled inflation, resilient external balances, and a steadily declining fiscal deficit.

These outcomes reflect years of consistent policy efforts, but the past year deserves special mention.

Amid heightened geopolitical uncertainty, policymakers deployed every lever to sustain demand, through tax exemptions, lower policy rates, and GST rationalisation.

Read full story

Budget 2026 expectations: TreadBinary founder advocates for global digital financial infrastructure

Darshil Shah, founder and director, TreadBinary, said, “From a technology standpoint, the Union Budget 2025–26 presents an important opportunity for India to position itself as a core enabler in emerging global financial ecosystems. With increasing geopolitical volatility, the focus should be on building future-ready digital infrastructure that can support international collaborations, such as a parallel BRICS currency framework. India’s success with platforms like UPI demonstrates our capability to lead at scale, and similar investments in blockchain-driven payment and settlement systems can help India become an inseparable part of this global supply chain. Allocating targeted funds to develop such ecosystems, bringing together corporates, startups, and deep-tech innovators, would not only strengthen India’s digital leadership but also create long-term strategic value beyond domestic markets.”

Budget 2026 expectations: Home interiors industry seeks GST rationalization and formalization

Srikanth Iyer, Co-founder & CEO of HomeLane, “As we approach the Union Budget 2026–27, India’s home interiors industry stands at a decisive turning point. While consumer demand for organised, design-led solutions is growing rapidly, nearly 85–88% of the sector continues to operate informally, resulting in inconsistent quality, unpredictable pricing, limited accountability and most important, away from the GST Net.

In contrast, organised players—who make up only around 12–15% of the market—shoulder a much higher GST of 18%, making organised services less affordable than those offered by unorganised vendors.

The opportunity, however, is immense. Tier-2 households now spend an average of Rs 3.9 lakh on interiors, about 74% of metro spending signalling rising aspirations, stronger brand preference, and growing demand for modular solutions. A rationalised GST rate of 5% could bridge this affordability gap, driving faster formalisation and widening the tax base as more businesses enter the organised fold.

At the same time, strengthening domestic supply chains and nurturing skilled talent are essential for sustainable growth. Reducing reliance on imported raw materials through local manufacturing and PLI support, alongside investments in vocational training and design education, will build an efficient, self-reliant, and future-ready interiors ecosystem.”

We expect an inflection in India’s upcoming defence budget cycle, with core message being, capital outlay likely to grow faster than the overall defence budget, and the incremental funding would be channeled toward domestic procurement and modernisation-heavy programmes.

The Defence Secretary in a FICCI forum recently highlighted that the Ministry of Defence (MoD) is asking for a ~20% increase in capital acquisition budget for FY27e, described as the steepest single-year jump, explicitly prioritising domestic procurement.

Budget 2026 expectations: Expert flags M&A tax risks

Rahul Yadav, partner at Shardul Amarchand Mangaldas & Co, called for the introduction of safe harbour measures for off-market transactions in listed shares to prevent unintended tax liabilities caused by market price fluctuations between the signing and closing of M&A deals.

Yadav emphasised the need for legislative clarity regarding the taxation of contingent or earn-out considerations, arguing that taxing promoters on income that has not yet accrued—and may never be received—creates an undue financial burden. He further highlighted the uncertainty sparked by a recent Supreme Court ruling on treaty benefits and indirect transfers, suggesting that the government should issue a circular to reassure investors that only structures failing anti-abuse tests will be targeted.

Ultimately, Yadav asserted that prioritising tax stability, aligning contingent payments with an accrual-based framework, and focusing on transaction substance will be essential for maintaining India's appeal to foreign capital and improving the overall ease of doing business in the M&A sector.

Budget 2026 expectations: Better facilities, schemes for MSMEs

"I would expect better facilities and better schemes for MSMEs to scale up, modernise and grow and be competitive in this global order... A better credit facility without collateral is one aspect that will emphasise... We expect some rationalisation of the mining laws and taxes... We also expect the Government of India to take proactive measures to deregulate all sectors, especially the MSME sector, and to exempt the MSMEs from these approvals and clearances, with a validity of at least three to five years," Prabodh Mohanty, president of the Utkal Chamber of Commerce and Industry, said.

Budget 2026 expectations: What the highways sector should focus on

The Bharatmala Pariyojana is a well-conceived transformational, corridor-based programme. By focusing on the completion of the projects by creating a dedicated task-force and prioritising projects that are more than 80% complete for targeted funding and fast-tracking processes such as land acquisition and clearances, the programme can unlock great value. Read full article:

Budget 2026 Expectations Live: What real estate sector wants

“As we look ahead to Union Budget 2026, our expectations reflect both the challenges and opportunities in India’s real estate sector, particularly in established urban markets like Delhi, Mumbai, Bengaluru etc. We hope the Budget will prioritise measures that strengthen demand-side support, including extension of tax incentives for homebuyer, continued focus on infrastructure investment - especially in urban transport, last-mile connectivity and sustainable utilities that will be vital in boosting the attractiveness and long-term value.

We also seek policies that encourage institutional capital flows into real estate, such as enhanced incentives for Alternative Investment Funds in order to make it more attractive to investors. Such a move will streamline investments, make it institutionalised and regulated. A balanced, growth-oriented Budget will not only support project execution but also drive confidence among homebuyers and investors alike and boost the Indian economy,” says Ankur Jalan, CEO, Golden Growth Fund (GGF), a category II Real Estate focused Alternative Investment Fund (AIF).

Budget 2026 Expectations Live: Emphasise disciplined spending

“The Union Budget 2026 is expected to be a cautious, tightly balanced budget focused more on strategic prioritisation than big announcements. With tax revenues under pressure due to last year’s income-tax relief, the government’s major focus will be to fund rising needs, especially defence, renewable energy, and semiconductors—without breaking fiscal discipline.

Instead of aggressive public spending, this year's budget will likely rely on a recovery in consumption and private investment to drive growth, while keeping overall capex growth moderate. Defence, green energy, urban infrastructure, and manufacturing will see clear preference, while health, education, and traditional infrastructure get only incremental increases. Overall, Budget 2026 will emphasise disciplined spending, targeted capital allocation, and private-sector crowding,” says Gaurav Garg, Research Analyst at Lemonn Markets Desk.

Budget 2026 Expectations Live: Support AI startups

"India stands at a unique inflection point: we have the talent to build world-class AI, the democratic values to make it trustworthy, and the cost structure to make it accessible—but we lack the patient capital to scale AI startups from prototype to global product. Budget 2026's proposed ₹750 crore for AI Centres of Excellence focuses on research, which is critical. But we also need a parallel stream specifically supporting AI startups building for export markets as they're not just generating revenue—they're establishing India as the world's trusted AI factory. The Budget should, hence, create incentives for 'Made in India AI'—whether through compute subsidies, export credit guarantees, or co-investment with sovereign wealth funds from allied nations. This isn't about competing with the US's $471 billion in AI funding. It's about strategically positioning India's unique advantages—multilingual AI, frugal innovation, democratic governance—to capture a meaningful share of the global AI services market projected to exceed $1 trillion by 2030,” says Harshit Jain, MD, Founder and CEO, Doceree.

Budget 2026 Expectations Live: BFSI sector looks for tax clarity and liquidity support

The banking sector has a focused wish list from Budget 2026. A key demand is a reasonable increase in the tax deduction available for provisions made for Non-Performing Assets (NPAs) from the current 8.5 percent to 15 percent, which would provide tax relief to offset the potential credit losses. Read full article:

Budget 2026 Expectations Live: Is India ready to levy duty on digital goods?

While Moratorium bars India from levy of duty on digital transmission of goods – given India’s longstanding position against the moratorium, India may choose to set up the framework for levy of duty on digital goods. In the run up to this, Finance Minister in the upcoming budget may propose to introduce a new Chapter 99, diverging from usual WTO HSN practice, to cover digital goods, keeping the duty rates zero for now. Read full article:

Budget 2026 Expectations Live: Incentives to focus on chip production

"It is expected that the budget will come out with incentives which focus on chip production (rather than just assembly) and strong domestic supply chain for semiconductor industry. There should also be incentive schemes for local components, chip design and manufacturing for sustainable growth. It is also pertinent that the incentives which have been committed are released faster as large fab and OSAT projects are under financial pressure. Parallel reforms under related laws are required to boost the momentum and for the nation to achieve its aim of becoming top chip manufacturing hub by 2032 and attract major financial investment in this sector,” says Rajul Bohra, Partner, JSA Advocates & Solicitors.

Budget 2026 Expectations Live: : What salaried taxpayers, households want

Households may also look for targeted relief at the lower end of the income spectrum. Under the new tax regime, the current rebate ensures that individuals with income up to Rs 12 lakh face no tax liability. For salaried taxpayers, the Rs 75,000 standard deduction effectively extends this relief to those with gross income up to Rs 12.75 lakh. Read full article:

Budget 2026 Expectations Live: Top 2 things FM should do on personal finance

Indian households have traditionally favoured fixed-income products. Globally, there are two avenues of funding growth—loan and capital markets. The domestic mutual fund industry’s assets under management (AUM) clocked a CAGR of over 20% in the past five fiscals to reach Rs 80.23 lakh crore as of December 2025. The mutual fund folio count rose 16.11% on-year to 26.12 crore. Systematic investment plan (SIP) assets stood at Rs 16.63 lakh crore, accounting for 20.7% of the overall mutual fund assets, driven by the highest ever monthly inflow of Rs 31,002 crore. Read full article:

Budget 2026 Expectations Live: What to expect from defence budget?

The Times of India Online spoke to a range of economists and policy experts to assess whether India needs a substantial hike in its defence budget and, just as importantly, how such spending should be structured. The broad consensus is clear - there is a strong case for higher defence spending. However, experts are equally emphatic that the answer does not lie in indiscriminate increases. Read full article here

Budget 2026 Expectations Live: Delayed gratification

Economic Survey had an important note: Yama’s message in the Katha Upanishad is timeless: every moment asks us to choose between Śreya, the enduring good, and Preya, the fleeting comfort. The mature mind chooses Śreya; the immature mind settles for Preya. In other words, the country stands to gain immensely when all of us embrace delayed gratification.

Budget 2026 Expectations Live: Health Insurance

“It is anticipated that budget 2026 will shift the health insurance debate away from hospitalisation to preventative and outpatient health care. As more than 45% of the total healthcare expenditure in India consists of out-of-pocket spending, the insurers are looking to get policy backing to increase preventive coverage. In our view, the wellness-based incentive insurance plans would have a considerable impact on reducing the pressure on the long-term claims and enhancing the population health outcomes. This would also make insurance in line with the overall public health goals of India,” says Samir Sheth Managing Partner, Deal Advisory, BDO India.

He highlights the potential effects: Reduced volatility of claims, improved risk pricing, less healthcare burden.

Budget 2026 Expectations Live: Strong push to boost consumption

“I see the government's clear signal through recent income tax cuts and GST reductions: a strong push to boost consumption and revive that aspect of the economy. The upcoming budget should follow suit, layering in additional supports to sustain this momentum. Last year festive sales were very strong & for a retail brand like ours, this means brighter prospects for demand, sales growth, and business expansion. Overall expect this year to focus on mass consumption too,” says Vidushi Jain, Co- Founder, Attrangi.

Budget 2026 Expectations Live: Strengthen agri-focused MSMEs

“Budget 2026 is a critical opportunity to strengthen agri-focused MSMEs that are driving farm mechanisation across Tier 2 and Tier 3 India. With mechanisation levels still at 40–45%, targeted support through easier institutional credit, interest subvention, R&D incentives, expanded PLI for rural manufacturing, and faster approvals for agri-tech innovations is essential. The right policy push can accelerate sustainable mechanisation, reduce labour dependency, strengthen rural supply chains, and position India as a global hub for agri-machinery under the Make in India vision,” says Rohit Bajaj, Co-Founder, Balwaan Krishi.

Budget 2026 Expectations Live: EVs & Charging Infrastructure

“The EV ecosystem is at a stage where scale will be dictated not by demand incentives, but by infrastructure (supply side incentives). Budget 2026 should focus on the charging infrastructure, battery recycling, and production of components (mainly battery packs, electric powertrain etc.) within the country. We believe that the incentives allocation between ecosystem builders and buyers should be changed, and long-term viability should be enhanced. When EV infrastructure confidence substitutes subsidy dependence, EV adoption will increase at a faster rate.”Potential Effects: Accelerated EV uptake, localisation of supply-chain, investor trust, says Prince Arora, Partner, Financial Due Diligence, BDO India.

Budget 2026 Expectations Live: PM Awas Yojana in focus as Centre boosts rural and urban housing — what to expect

With the Union Budget for 2026–27 scheduled for February 1, housing is expected to remain a priority, and allocations for the Pradhan Mantri Awas Yojana (PMAY) will be closely tracked. Since 2014, the government has positioned housing at the centre of its development agenda, launching PMAY-Urban in 2015 and PMAY-Gramin in 2016 to provide pucca homes to poor families.

Budget allocations for PMAY-Urban (including PMAY-Urban 2.0) and PMAY-Gramin have varied over the years, rising from Rs 40,260 crore in FY21 to Rs 78,126 crore in FY26 (BE), reflecting continued policy focus on affordable housing. Read full story

Budget 2026 Expectations Live: From assembly to autonomy – What’s next for India’s manufacturing?

With the Union Budget approaching, the manufacturing sector is being viewed as a key pillar of India’s economic resilience, even as many global economies struggle with slowing growth. The Economic Survey 2025–26 has struck an optimistic note, projecting GDP growth of 7.4 per cent for the current financial year. In practical terms, this suggests confidence that factories, construction activity and businesses will continue to expand, generating jobs and sustaining incomes. Read full story

Budget 2026 Expectations Live: Market price stabilisation

Market price stabilisation hinges on mechanisms such as the minimum support price, the Market Intervention Scheme and the Price Deficiency Payment Scheme, which are aimed at providing targeted income support and price certainty to farmers while maintaining market efficiency and allowing demand-supply dynamics to operate freely.

However, uptake of these schemes has been lower than expected. utilisation for price support schemes under the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM AASHA) initiative was only ~64 % in fiscal 2022 and 89 % in fiscal 2023. Moreover, these schemes received only 5-6% of the Department of Agriculture and Farmers' Welfare's total budget in fiscal 2026.

Therefore, to enhance price stabilisation under PM AASHA, the Union Budget may consider increasing the allocation for this umbrella scheme and combining it with a streamlined onboarding process, time-bound direct benefit transfer settlements, and state incentives or conditional grants to improve utilisation, says Pushan Sharma, Director, Crisil Intelligence.

Budget 2026 Expectations Live: Make insurance simpler, more affordable

“General insurance in India remains significantly under-penetrated at around 1% of GDP, compared to a global average of over 4%, even as everyday risks continue to rise. Budget 2026 should focus on making insurance simpler, more affordable, and preventive, with incentives for risk reduction and greater support for digital distribution and claims to lower costs.

On commissions, rising acquisition costs and front-loaded structures have pushed total commissions beyond ₹60,000 crore in FY25, growing faster than premiums. Rather than blunt caps, he suggested spreading commissions over the policy lifecycle and linking them to persistency and service quality, while encouraging digital sales to improve efficiency,” says Rakesh Kumar MD and Founder Square Insurance.

Budget 2026 Expectations Live: Fashion and luxury sector opportunity

“India’s fashion and luxury opportunity now extends far beyond manufacturing. To truly scale value-added growth, we need policy support for technology-led ecosystems—authentication, supply chain digitisation, and the fast-growing resale economy. Budget measures that rationalise GST on premium fashion and bring clarity to authenticated resale will not only revive discretionary spending but also make genuine luxury more accessible, sustainable, and counterfeit-free for India’s aspirational consumers,” says Ackshay Jain, Co-Founder & CEO, Culture Circle.

Budget 2026 Expectations Live: Support omni-channel and enterprise payments

“The next phase of digital payments growth will be driven by enterprises - particularly fast-scaling D2C brands operating across online, offline and marketplace channels. With UPI and other digital rails reaching maturity, volume-led growth is naturally peaking. The Budget should support omni-channel and enterprise payments by providing long-term clarity on payment incentives and the actual costs businesses incur while accepting digital payments. Enabling responsible, credit-linked use cases on UPI and other platforms can further strengthen collections and working capital access for growing businesses,” says Rajesh Londhe, Co-Founder, Phi Commerce.

Budget 2026 Expectations Live: Make education affordable

"My expectation for the budget is to make education affordable and accountable. I want to see a reduction in the GST on educational services. The current 18% rate is a burden. Lowering this is essential to make quality learning accessible to every family. Additionally, I want to see a shift to outcome-based budget allocation. This would be transformational for Bharat because it moves the focus from spending to impact. We shouldn't just fund infrastructure but results, such as improved learning outcomes and increased employability. When we link budget to performance, we ensure that every rupee spent directly empowers our youth and builds a skilled nation,” says Prateek Maheshwari, Co-Founder, PhysicsWallah.

Budget 2026 Expectations Live: Pharmaceuticals & Healthcare expectations

“The pharmaceutical and healthcare industries have one of their 2026 projections of the budget, which is changing to domestic capacity resilience and not just export-led incentive. As the global supply chains are pressured, they are considering API production, incentive of R&D and accelerating regulatory clearance. We believe that specific fiscal incentives on local manufacturing and innovation would greatly decrease the level of imports. This is not really about subsidies but rather about strategic self-reliance,” says Kunal Gala, Partner, Deal Value Creation Services, BDO India.

He elaborates on the potential Effects: API self-reliance, Research and development, resiliency of supply chain.

Budget 2026 Expectations Live: What crypto and blockchain industry want

“For Budget 2026, the crypto and blockchain industry is looking for a pragmatic policy reset that balances innovation with safeguards. A meaningful reduction in the 1% TDS on Virtual Digital Asset (VDA) transactions — ideally to 0.01% — would ease liquidity constraints and curb capital flight to offshore platforms.

There is also a strong case to revisit the flat 30% tax on crypto gains and allow loss set-offs, bringing VDAs closer to the taxation treatment of other asset classes. Beyond taxes, the most critical need is regulatory clarity. India should explicitly enable real-world use cases such as stablecoin-based settlements and asset tokenisation, while treating them under existing payment and securities tax frameworks rather than imposing separate or punitive crypto-specific levies.

This would encourage enterprise adoption, support financial innovation, and help India emerge as a credible global hub for blockchain-driven finance,” says Aishwary Gupta, Global Head of Payments, Polygon Labs.

Budget 2026 Expectations Live: Climate resilience

“Climate related events can materially impact agricultural production in India. For instance, a 1 degree Celsius increase in temperature can potentially reduce crop yields by 4.5-9%, leading to economy-wide losses of up to ~1.5% of the gross domestic product (GDP) annually.

In the context, it becomes imperative to ensure sustained funding for the National Innovations in Climate Resilient Agriculture project, which delivers on-ground adaptation through climate-resilient technologies and infrastructure, protecting productivity and food security, especially for small and marginal farmers.

Simultaneously, irrigation resilience must be scaled up by expanding the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) scheme, including Per Drop More Crop (PDMC) and Har Khet ko Pani (HKKP). Although micro irrigation coverage (supported by on-farm water management and PDMC) clocked a CAGR of ~13% between fiscal 2015 and fiscal 2023, increased funding is necessary. For example, HKKP received only ~4% of the fiscal 2026 budget of the Department of Water Resources, River Development and Ganga Rejuvenation.

Scaling up these initiatives is critical to strengthen micro irrigation, water harvesting and last-mile delivery, thereby building climate resilience and sustaining agricultural growth, says Pushan Sharma, Director, Crisil Intelligence.

Budget 2026 Expectations Live: Address crypto market structure

“India’s crypto conversation has largely focused on enforcement and taxation, but the next phase needs to address market structure and sustainability.

The real question for Budget 2026 is not whether virtual digital assets should exist, but how regulated activity can be kept onshore, transparent, and economically viable. Today, compliant Indian participants face friction that often pushes volumes offshore, weakening oversight rather than strengthening it.

Budget 2026 should therefore focus squarely on VDAs. One meaningful step would be to rethink transaction-level taxation. The current withholding mechanism adds operational burden without materially contributing to revenues. A more effective alternative would be a VDA transaction tax, similar to the securities transaction tax in capital markets that achieves traceability while also generating predictable revenue.

Such a structure would help bring volumes back to spot markets, reduce excessive reliance on high-risk derivatives, and introduce greater stability into a growing ecosystem that is increasingly intersecting with mainstream finance,” says Manhar Garegrat, Country Head - India, Liminal Custody.

Budget 2026 Expectations Live: What India’s battery ecosystem needs

For the vision of Atmanirbhar Bharat and Make in India to be realised meaningfully, India’s battery ecosystem must therefore be built from the ground up. This means moving upstream — into mining and the manufacturing of advanced battery materials such as anodes and cathodes. These components largely determine battery cost, performance, and reliability, and they account for a significant share of value creation and supply-chain risk. Read full article here:

Budget 2026 Expectations Live: Improve tourism infrastructure

“The Upcoming Union Budget presents yet another opportunity to further strengthen India's travel and tourism sector. Reducing indirect taxes would increase affordability, boost global competitiveness, and encourage tourism. Such actions would promote long-term value, employment generation, and steady growth throughout the hospitality ecosystem. At the same time, the government should assign funds for improving tourism infrastructure and facilities for domestic and international travelers. Industry status is long overdue demand for hospitality sector which generates enormous foreign exchange and provides employment to crores of people,” says Abhishek Sahai, General Manager, Conrad Pune.

India's growth story

Budget 2026 Expectations Live: Rationalising fertiliser use

Rationalising fertiliser use is crucial for sustainable growth of agriculture, says Pushan Sharma, Director-Crisil Intelligence.

In 2023, urea application in the country averaged ~182  kilogram per hectare (kg/ha), higher than the global average of ~116 kg/ha but far below China’s ~335 kg/ha. There were significant regional disparities, too.

The government is encouraging balanced nutrient management through the Pradhan Mantri Programme for Restoration, Awareness Generation, Nourishment, and Amelioration of Mother Earth (PM-PRANAM) scheme, which incentivises reduced use of chemical fertilisers, and the Market Development Assistance (MDA) scheme, which promotes organic inputs. However, these schemes require sharper focus and fund allocation.

Policies that support organic fertilisers, such as MDA and the Galvanising Organic Bio-Agro Resources Dhan (GOBARdhan) schemes, accounted for only 0.1 % of the total fertiliser budget in fiscal 2026. Allocations to these schemes must be substantially increased to achieve sustainable agriculture without sacrificing yields, he says.

Budget 2026 Expectations Live: Beyond PSU Recapitalisation

“With credit expansion continuing to be robust yet lopsided, the Budget 2026 is therefore likely to favour credit flow to less penetrated sectors as opposed to headline recapitalisation of the banks. The focus of policy will probably be on credit guarantee improvements, lending credit to MSMEs risk-sharing, and enhancing recoveries under IBC. In our view, the quality of transmission of credit is much more important than raising balance sheets. The next banking cycle will be characterised by sustainable credit growth,” says Akhilesh Pandey, Partner & Practice Leader, Financial Due Diligence, BDO India. He highlights the potential Effects: Improved credit allocation, reduced NPAs, improved lending cycle.

Budget 2026 Expectations Live: Strategic disinvestment

“Strategic disinvestment has progressed in a calibrated manner over recent years. Since 2016, in-principle approval has been accorded for strategic disinvestment for 36 CPSEs, of which 13 transactions have been completed, with the remainder at various stages of implementation. During FY26, approvals were also accorded for stake dilution or exit from select joint ventures, including NTPC’s divestment from Utility Powertech Limited. These actions were complemented by governance reforms that empowered CPSE Boards to undertake the closure, merger, or disinvestment of subsidiaries.

Going forward, receipts from equity monetisation can be strengthened by selectively reducing Government equity in certain CPSEs beyond the minimum public shareholding norms, guided by market conditions and enterprise-specific factors,” says the Economic Survey.