Budget expectations 2026 Highlights: Lok Sabha Speaker Om Birla mourns Ajit Pawar's death, Parliament adjourned

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Krupesh Bhat, Founder & CEO of Melento said that India is standing at a rare strategic fork, where it can either remain a large market for AI solutions built elsewhere or become a country that shapes how AI is built, governed, and scaled globally.

“This Budget is less about announcing intent and more about signalling seriousness,” he added.

He further stressed that India's next phase of growth will not come from isolated pilots or sandbox experiments. “It will come from policies that help AI move into production across enterprises, public services, and regulated industries.”

In order to achieve that goal, the industry requires predictable regulation, outcomes-based incentives, and capital structures that support long-term innovation rather than quick exits, he noted.

“Talent is often cited as India’s strength, but talent without speed is wasted potential. If policy can enable faster decision-making, smoother access to capital, and stronger industry–academia collaboration, India can move from being AI-capable to AI-defining. This Budget has the chance to clearly set that direction,” he added.

Mihir Rale, Partner at Cyril Amarchand Mangaldas said that while geopolitical uncertainty and the AI boom make it compelling for nations to look inwards, India must do the opposite.

He further explained that the country's competitive edge will lie in openness, which entails simpler rules, deregulation and predictability.

"In technology, media and telecom, capital follows clarity. This budget should position India as the world’s most open and trusted growth platform,” he said.

Shrikant Pandey, the executive director of Shri Jyoti Foundation, said that the upcoming Union Budget should heavily focus on “people-first growth.”

According to Pandey, this goal can be achieved by strengthening education, primary healthcare, nutrition and skill development at the grassroots.

“India’s true progress will be measured not only by GDP numbers, but by how effectively the budget empowers children, women and vulnerable communities through last-mile delivery, digital inclusion and sustainable livelihoods,” he said.

Speaking of the social sector's expectations from the Budget 2026–27, he noted that the sector seeks deeper investments in quality education, teacher support, and practical skill development for youth.

“A strong education-to-employment pipeline, especially for rural and low-income families will be the real driver of inclusive growth and long-term national productivity,” he added.

“As India moves towards a knowledge-driven economy, the Union Budget should focus on strengthening the full innovation lifecycle, not just headline R&D incentives,” said Ankit Sahni, Partner at Ajay Sahni & Associates.

Speeding up intellectual property (IP) application examination, expanding digitalisation of the IP Office, building specialised judicial capacity for complex IP dispute cases, and ensuring predictable enforcement mechanisms will directly impact investor confidence in areas such as deep-tech, life sciences and advanced manufacturing, he said.

“Equally important is enabling commercialisation of Indian IP through targeted fiscal measures, including rationalisation of tax treatment for IP licensing and royalty income, budgetary support for technology transfer offices in public universities and research institutions, and incentives for structured industry-academia collaboration,” he noted.

According to Sahni, budgetary recognition of intellectual property as strategic economic infrastructure, rather than merely a private legal entitlement, will aid in accelerating domestic innovation, attract long-term capital and strengthen India’s startup ecosystem.

Keyur Gandhi, the Managing Partner at Gandhi Law Associates, said the market’s real expectation is not the announcement of “new schemes” but greater operational clarity and smooth rollout of the new labour codes.

He stressed that clarity is especially needed on subordinate rules, compliance architecture and transition timelines, as employers are planning for potential PF and gratuity cost effects and payroll restructuring, and uncertainty is itself a tax on hiring.

“The most impactful policy change here is simplifying compliance through interoperable digital rails (registrations, returns, inspections) while actually expanding social security coverage credibly, including for platform/gig workers, without creating litigation-friendly ambiguity in definitions and thresholds,” he said.

Anirudh Choudhury, the Managing Director of Progressive Concrete Industries said that the upcoming budget must move construction from labour-heavy methods to technology-driven solutions like precast.

“Faster execution and structured supplier credit will directly lower project costs and improve infrastructure delivery,” he said.

Precast concrete is made by pouring concrete into a mould in a factory or plant, instead of directly pouring it at the construction site, and the final product is later transported to the sites.

He further added that the government should introduce targeted incentives for precast and modular construction to accelerate the adoption of these solutions.

Anand Achari, the principal of VES College of Architecture said that the upcoming Budget presents an opportunity to the education sector, including specialised disciplines such as architecture, to move beyond a primary focus on access and enrolment towards improving outcomes, relevance, and employability.

“With India’s cities, infrastructure, and built environments undergoing rapid transformation, architecture education must evolve in step with emerging technologies and sustainability imperatives,” he said.

He further stated that for architecture institutions, this evolution means deeper integration of advanced tools such as artificial intelligence, data analytics, and Building Information Modelling (BIM) into mainstream curricula.

“Equally important is strengthening education around sustainable, climate-resilient, and resource-efficient design, capabilities that are no longer optional but central to addressing India’s urban growth, environmental challenges, and net-zero ambitions,” he added.

Hence, budgetary support that enables institutions to invest in digital tools, software, and project-based learning can significantly accelerate this transition, he said.

Manan Lahoty, the head of capital markets at Cyril Amarchand Mangaldas, said that he is hoping to see measures aimed at deepening India's capital markets,

He further noted that one step towards this goal could be a revamp of the framework governing Indian Depository Receipts (IDRs).

IDRs allow Indian investors to invest in foreign companies through the domestic market without opening overseas accounts. They are denominated in Indian rupees and traded on recognised Indian stock exchanges under SEBI regulations.

“This would not only introduce new products but also attract a new class of issuers—foreign corporates—into Indian markets. Over time, it could help position India as a more credible international financial centre,” he added.

Sudhin Mathur, the COO of Xiaomi India is eyeing targeted sector-specific FDI relaxations ahead of the Union Budget 2026, which he believes will strengthen the electronics manufacturing ecosystem.

“India’s electronics industry is at a pivotal stage of evolution, shaped by rapid technological advancement, growing domestic demand, and steady progress in ease of doing business. Against this backdrop, the sector is navigating sustained input cost pressures driven by rising component prices and evolving global supply-chain dynamics," he said.

He further noted that measures such as FDI relaxations can help ease cost pressures across the value chain, encourage long-term investment, build domestic capacity, and support job creation.

“This becomes increasingly relevant as the industry enters a new phase of technology advancement, with higher adoption of AI-driven features increasing the use of advanced memory and processing components. While companies continue to optimise costs and absorb part of these pressures, input costs remain an important factor in overall device economics,” he said.

“For startups, particularly innovation-led ventures, the focus should be on unlocking patient risk capital, strengthening incubation and acceleration ecosystems, and expanding R&D-linked incentives. A targeted push in deep-tech sectors such as artificial intelligence, advanced manufacturing, semiconductors, climate tech, and clean energy will be key to positioning India as a global innovation leader rather than only a consumption-driven economy,” said Jeenendra Bhandari, Chairman, JITO Incubation and Innovation Foundation..

Himanshu Arya, the founder of Luxury Cart, said that the industry is not looking for any ‘dramatic’ changes or announcements, rather it is expecting to not receive any sort of surprises from the government's end.

“In the pre-owned luxury car space, clarity around taxation and ownership transfers makes a real difference to day-to-day transactions. Buyers are already careful with their decisions, especially in a high-value category like this,” he said.

He further noted that when rules keep changing, people tend to pause rather than move ahead. “The resale market does play a role in keeping cars in use for longer, but it works best when the ground rules are clear. When there is consistency, businesses know how to operate and customers feel comfortable taking a call in their own time, without feeling pushed or held back.”

Zaiba Sarang, co-founder of iThink Logistics said that while India’s logistics sector has made visible progress on infrastructure, Budget 2026 remains to be an opportunity to convert intent into measurable cost and time reduction for businesses.

“For tech-enabled logistics platforms working closely with MSMEs and D2C brands across multiple carrier networks, the focus must shift from capacity creation to execution certainty, where predictability, SLA reliability, and cost-to-serve matter more than raw scale,” she said.

Sarang further said that continued focus on multimodal logistics and freight corridors, combined with incentives for AI-led routing, IoT-based shipment visibility, and end-to-end digitisation, will improve delivery performance and compliance.

"Equally important is clear, actionable support for green logistics from EV adoption and charging access to sustainable warehousing. Simplifying GST and cross-border procedures will be critical in helping growing Indian sellers scale efficiently and compete globally,” she added.

Anil Harish, Partner, D.M. Harish & Co. believes that from an income tax perspective, there should be no changes.

The income tax act 2025 was introduced in August last year. It will be effective from 1 April 2026. The Act simplifies language, removes obsolete provisions and consolidates and restructures provisions, according to the government.

“If changes are made to the income tax act now, without the act having even come into force, that will indeed be a poor reflection on the CBDT and the ministry of finance. It will then mean that they just cannot plan for the long-term and for stability in the laws,” Harish said.

He further noted that the income tax act 2025 has not made very many substantive changes compared to the act of 1961.

“However, what I feel needs to be done, to actually have an impact at the taxpayer level is: Firstly, that the surcharge and cess need to be removed. Secondly, the forms need to be simplified,” he said.

Biplab Lenin, Partner, Cyril Amarchand Mangaldas, said that the pharma and healthcare industries' expectations from the upcoming Budget 2026 include:

— Enhanced support for domestic and indigenous manufacturing and R&D activities, with a particular focus on active pharmaceutical ingredients (APIs), key starting materials (KSMs), and medical devices.

— Increased spending on developing India’s digital health infrastructure especially in Tier 2 and Tier 3 cities.

“Software as medical devices (SaMD) is a globally growing sub-sector which, if incentivized in India, may see rapid expansion given India’s historical pedigree in IT and healthcare services,” he further noted.

He also said that a long-standing industry demand is for faster and time-bound regulatory approvals, along with improved alignment between CDSCO and state regulators to ease compliance, mitigate risk and support long-term planning.

Deepan Kapadia, the executive director and CIO of Portfolio Management Services at Spark Capital Private Wealth Management, said that the upcoming Budget appears positioned to strengthen India’s structural growth narrative, favouring quality capex and manufacturing-led investments over broad consumption themes.

“India’s Budget 2026 is expected to reinforce the investment-led growth framework rather than pivot toward near-term consumption stimulus. With nominal GDP growth projected at around 10% in FY27 and fiscal consolidation targeted at 4.0–4.2% of GDP, policymakers are likely to balance growth ambitions with fiscal discipline, creating a constructive backdrop for equities,” he said.

He further added that capital expenditure will remain the cornerstone of fiscal policy, with central government capex estimated at ₹12–12.5 lakh crore, or roughly 3.2% of GDP. “The budget is also expected to deepen India’s strategic manufacturing agenda, with sustained support for defence, electronics, telecom, medical devices, and critical metals, aligned with the objective of reducing import dependence through PLI schemes and targeted industrial policies,” he said.

“Today, an average Indian taxpayer is taxed at almost every step of life. First on income. Then on spending. Then on travel, fuel, groceries, electronics, furniture, holidays, tolls. And when you try to save or invest what’s left, there’s tax there too,” said Aman Dhall, Comms Tech Entrepreneur & Angel Investor (BASIC Home Loan, Sugmya Finance & KhiladiPro).

He further explained that while tax slabs and exemptions are endlessly debated — ₹1.5 lakh here, a deduction there — real life doesn’t work in slabs. “Real life works in what actually stays in your hand. If I earn ₹100, I don’t feel like I have ₹100. By the time I’ve lived a normal, responsible life, far less than half of that feels usable, for savings, security, or future planning,” he said.

Dhall noted that India is not a high-tax country by global standards as the country's tax-to-GDP ratio is still ‘modest’. “Yet the experience of taxation feels heavy because it’s fragmented and invisible. Income tax here. GST there. Cess, surcharge, tolls, duties, all quietly adding up.”

"Tax should feel predictable, fair, and explainable. Not like death by a thousand small cuts. When citizens understand what they pay and why, compliance improves. Trust improves. And the economy benefits," the expert said.

Following the policy signals and allocations announced in recent budgets, optimism continues to remain strong within India’s travel and tourism industry, said Rikant Pittie, the co-founder and CEO of EaseMyTrip.

Hence, there is growing expectation within the tourism sector for further policy interventions, which includes:

— Granting infrastructure status to hospitality.

— Rationalisation of GST on hotels and restaurants.

— Enhanced overseas marketing spends to strengthen India’s global tourism positioning.

“If implemented effectively, these measures could significantly accelerate tourism-led economic growth while supporting employment generation across allied sectors ,” he noted.

He further added that the industry remains optimistic that continued budgetary support and policy clarity will help strengthen India’s tourism ecosystem.

“India’s mobility ecosystem is undergoing a decisive transformation, driven by rapid urbanization, progressive policy making and growing adoption of clean energy vehicles. As we approach Union Budget 2026, we are hopeful of continued policy momentum to further accelerate the growth pace of the industry. Support for shared and technology-led mobility solutions will be critical in shaping the next phase of growth for the automobile industry and addressing the evolving needs of naya Bharat,” Mayank Jain, CEO, Auto Classifieds, CarDekho Group.

“Budget 2026 has the potential to be a defining inflection point in accelerating India’s logistics transformation under the PM Gati Shakti vision. Building on the progress made in recent years, the next phase of growth will depend on deeper integration of infrastructure planning across air, road, rail, and multimodal networks, supported by faster adoption of digital platforms that enable seamless coordination across the logistics value chain. For the express logistics sector, sustained investments in airport infrastructure, cargo handling capacity, and regional air connectivity will be critical to improving turnaround times and supporting high-value, time-sensitive shipments,” says Balfour Manuel, Managing Director, Blue Dart.

“This Union Budget has the potential to be a gamechanger for the QSR sector. With the Indian QSR market projected to grow at ~9.25% CAGR over the next 5–6 years, an organised growth strategy from the government could drive scale and long-term value creation. We believe a key priority should be reframing the GST framework. The current 5% GST regime without Input Tax Credit (ITC) leads to tax cascading and sustained pressure on unit economics. GST embedded in F&B real-estate inputs—commercial rent, CAM charges, fit-outs, and kitchen capex becomes a hard cost for expanding brands. Enabling ITC on core operating and expansion spends would encourage organised growth. Equally important is a QSR-focused skilling framework to address talent gaps and support rapid market expansion,” says Arjun Toor, co-founder of Rolls King.

Lok Sabha adjourned till Thursday, 11 am

Addressing the lower House, Lok Sabha Speaker Om Birla mourned the death of Maharashtra Deputy CM Ajit Pawar, who passed away on Tuesday in a plane crash in Maharashtra's Baramati.

Lok Sabha proceedings have resumed with the national anthem after the President's speech.

“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.

Lok Sabha adjourned till 12:48 pm

President Droupadi Murmu's reference to the VB-G RAM G Act in her address to the joint sitting of both houses of Parliament on Wednesday sparked protests from opposition parties which raised slogans demanding a roll back of the law.

In her address, the President said the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) would provide guarantee for 125 days of work, and would also stop corruption and leakages.

Opposition parties are demanding the withdrawal of the VB-G RAM G Act and restoration of MGNREGA as a rights-based law in its original form, the right to work and the authority of panchayats.

President Murmu leaves Parliament after delivering her joint address

National Anthem plays at the Parliament after the conclusion of President's address.

“India believes that objective of global politics should be service of humanity… Deep fake, misinformation, fake content are big dangers for democracy, social harmony,” says President Murmu.

President Droupadi Murmu's address ends after one hour. VP CP Radhakrishnan translates parts of her speech in English.

The recently launched Vande Bharat Sleeper train between Kamakhya in Assam and Howrah in West Bengal earned appreciation in President Droupadi Murmu’s address to the joint sitting of both Houses of Parliament on Wednesday. She said the new-generation train is a significant achievement for Indian Railways.

“Post Operation Sindoor, confidence has increased in Made in India platform,” says President Murmu.

“As a result of the progressive mindset and policies of my Government, women have gone ahead rapidly in every ambitious area of the country. In this direction, a few months back, the country achieved another major milestone when the first batch of women cadets passed out from the National Defence Academy (NDA). This has further strengthened the belief that in the development and empowerment of the country, 'naari shakti' stands first,” says President Murmu.

Watch | President's grand entry at the Parliament

“Operation Sindoor showed India's valour. Our government gave message that any terror attack will invite resolute, decisive action,” says Murmu.

“Subhanshu Shukla reaching the International Space Stationn (ISS) is the beginning of a historic journey. In the coming years, India is moving towards building its own space station. The nation is working enthusiastically on the Gaganyaan mission,” says President Murmu.

“For employment and development in rural areas, Viksit Bharat-G RAM G law has been formed. With this new reform, there will be 125 days of employment guarantees in villages,” President Murmu said on G RAM G Act.

“Welfare of backward communities is the government's priority. Women are being empowered through various welfare schemes of the government,” says President Droupadi Murmu.

“Operation Sindoor showed India's valour; govt gave message that any terror attack will invite resolute, decisive action,” says President Murmu. Her comment was met with loud cheers from MPs.

“In last one decade, 25 crore citizens have come out of poverty. In the third tenure of the Govt, drive to further empower the poor has been taken forward with a greater speed,” says President Murmu.

“Old rules are being changed keeping in mind future needs; govt moving on path of 'Reform Express',” says Droupadi Murmu.

President Murmu said social security benefits are now available to nearly 95 crore citizens of the country.

"My government is committed to true social justice," she said, adding that 25 crore Indians moved out of poverty in the last 10 years.

In the third term of the government, she said, work is being done to further empower the poor.

The President also said the government has been successful in tackling corruption and scams, ensuring proper use of public funds.

The Parliament erupted with major chaos on Tuesday as President Droupadi Murmu mentioned the G RAM G Law, which aims to replace MGNREGA.

“FTA with the European Union will fuel service and manufacturing sectors; will provide employment opportunities to youth,” says President Murmu.

President Droupadi Murmu in her address also hailed the railway sector's advancements, highlighting that 150 Vande Bharat trains are currently running in country.

Addressing the joint session of the Parliament, President Murmu highlighted India's achievement in the space sector. “India surging ahead to set up its own space station,” she said, and referred to Captain Shubhanshu Shukla's achievements.

“The country celebrated the 350th Shaheedi Diwas of Sri Guru Tegh Bhadur Ji. During the 150th birth anniversary of Birsa Munda, the entire country paid him tribute and remembered his tribute to the tribal community. The events related to the 150th birth anniversary of Sardar Patel further strengthened the sense of Ek Bharat Shresht Bharat. The entire country became witness to how Bharat Ratna Bhupen Hazarika's birth anniversary celebrations of filled the country with music and a sense of unity. When the country remembers the contribution of its ancestors, the new generation gets inspiration which further speeds up our journey towards Viksit Bharat,” says President Murmu.

“Social security benefits are now available to nearly 95 crore citizens of the country,” says President Droupadi Murmu.

Watch President Murmu's address LIVE