Budget 2026 Expectations Highlights: Will Nirmala Sitharaman open her purse to boost growth? What industries want

Budget 2026 Expectations LIVE Updates: Masaharu Morita, Founder and Program Director, NURA – AI Health Screening Centre, said that the upcoming Union Budget 2025-26 presents an opportunity to reorient healthcare towards prevention and early intervention.

“As India prepares for the Union Budget, there is a crucial opportunity to reorient healthcare towards prevention and early intervention. Non-communicable diseases (NCDs) continue to place a growing burden on individuals, families and public health systems, yet many conditions remain undetected until advanced stages,” said the industry expert.

“Strengthening structured screening programmes and enabling technology-led risk assessment can help identify disease earlier, improve outcomes and reduce avoidable hospitalisation. Targeted policy support for preventive health infrastructure, workforce training and data-driven screening models can optimise long-term healthcare spending while easing pressure on tertiary care facilities,” said Morita.

“Encouraging public-private collaboration and integrating preventive screening into primary care pathways will be key to building a more sustainable system. A forward-looking budget that prioritises early detection, personalised risk profiling and preventive care can help India move from a treatment-centric approach to a healthier, more resilient population. This shift will support affordability, equity, productivity, and long-term national well-being across diverse communities nationwide and sustainably,” said the expert.

Budget 2026 Expectations LIVE Updates: Nitin Chitkara, CEO, MMCM, said that the upcoming Union Budget 2026-27 provides a critical opportunity to accelerate a high-circularity ecosystem by rationalising goods and services tax (GST).

“This Budget presents a critical opportunity to accelerate a high-circularity ecosystem by rationalising GST on products and services pertaining to recycled materials, an example being the government-issued Certificates of Deposit on end-of-life vehicles. Incentivising formal, traceable recycling will not only strengthen domestic supply chains but also position India as an emerging environmental superpower,” said Nitin Chitkara.

Budget 2026 Expectations LIVE Updates: Gaurav Garg, Research Analyst at Lemonn Markets Desk, expects that the upcoming Union Budget 2026-27 will be cautious and tightly balanced, focusing more on strategic prioritisation than big announcements.

“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,” said the expert.

Garg said that 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,” said the market expert.

Budget 2026 Expectations LIVE Updates: Gautam Mohanka, Director of Gautam Solar said that the Union Budget 2025-26 is expected to focus on advancing solar energy development and climate policies on the backdrop of the rising energy needs of India.

“All eyes are on the Union Budget 2026-27, with higher expectations to act as a key force in advancing the country’s solar energy development and climate policies. With ever-growing demands for energy, increased risks from global climatic changes, and its commitment to reaching net-zero emissions by 2070, this is an appropriate moment to make solar energy even more attractive relative to ordinary fossil fuels,” said the expert.

“The FY27 Budget will be an opportunity to reinforce ongoing economic reforms with climate-linked growth at the center of policymaking. Increased renewable infrastructure, especially solar, backed by more intense public-private cooperation, would be needed to bridge the gap between current capacity and the 500 GW target by 2030,” said Gautam Mohanka.

Budget 2026 Expectations LIVE Updates: Shriprakash Pandey, Chairman and Managing Director, Commtel Networks Limited, said that the Union Budget 2026-27 is expected to push towards modernising mission-critical communications.

“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,” said the industry expert.

Budget 2026 Expectations LIVE Updates: Angshu Mallick, Executive Deputy Chairman, AWL Agri Business, said that India’s consumption-led sectors are at an intersection of household spending, farmer livelihoods and food security.

“Budget 2026 comes at a crucial juncture for India’s consumption-led sectors, particularly FMCG and food staples, which sit at the intersection of household spending, farmer livelihoods and food security. Over the past year, policy stability and calibrated fiscal measures have helped sustain demand without adding inflationary pressure. With rural markets showing steady recovery, continued emphasis on farm incomes, agri-infrastructure and consumption support will be vital to strengthen growth at the base of the economy,” said Angshu Mallick.

“From an agri value-chain perspective, policy support for domestic edible oilseed cultivation, such as mustard and soybean, can significantly reduce India’s edible oil import dependence and advance Aatmanirbhar Bharat,” said the expert.

Budget 2026 Expectations LIVE Updates: Ashish Sharma, AVP Operations, Brahma Group, said the Union Budget 2025-26 provides a key opportunity to strengthen momentum across the real estate sector.

“We looks forward to measures that accelerate infrastructure development, improve access to long-term financing, and streamline approval processes to support timely project execution. Sustained capital investment in urban infrastructure and mobility will continue to drive demand for housing and office spaces across metros and emerging cities,” said the expert.

“Greater clarity on taxation and incentives for green and technology-enabled construction can further enhance efficiency and asset quality. Together, these measures will boost investor confidence, improve delivery timelines, and support the development of high-quality, future-ready urban environments,” said Sharma.

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

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

“Budget 2026 must continue with the government's focus on enabling MSMEs and start-ups to access capital more quickly and fairly through streamlined, collateral-free lending, and credit guarantees. While recent announcements have expanded credit guarantee coverage and introduced targeted instruments, many businesses still face high borrowing costs, slow loan approvals, and compliance burdens that stretch working capital. Building on the government’s year-end focus on ease of doing business, Budget 2026 should further simplify rules and reduce punitive compliance approaches that discourage formalisation. Continued support for MSME exporters through better export credit, interest subvention, faster duty refunds, and easier access to incentive schemes will be key to improving global competitiveness,” says Arun Poojari, CEO & Co-Founder of Cashinvoice

“India’s textile garments sector is grappling with intense global price competition and volatile export orders. The immediate challenge lies in retaining existing customers and order volumes while absorbing margin pressures arising from tariff-related discounts in the US market. As the industry looks ahead to Budget 2026-2027, it seeks a predictable and long-term export framework, anchored in expanded trade agreements with key markets, targeted tariff relief, and clear, stable labour policies. Such measures are critical to enhancing workforce productivity, improving margins, de-risking fresh capacity expansion, and encouraging large-scale, job-intensive investments,” says P Senthilkumar, Senior Partner, Vector Consulting Group

“The forthcoming Union Budget can bring about compelling reform for the life insurance sector by making long-term financial protection more accessible and relevant for today’s families.To achieve this, the limits on tax concessions for life insurance and retirement products must be revisited, as current thresholds do not reflect rising incomes or evolving life-stage needs. Expanding deductions or making incentives easier to claim will significantly boost demand for higher-value policies, especially given the high protection gap in India.Affordability and participation can be improved by simplifying taxation across life insurance products, encouraging pure protection plans and incentivizing long-term savings. Equally important will be policy continuity and regulatory clarity, enabling insurers to plan responsibly and invest for the future”, says Alok Rungta, MD and CEO, Generali Central Life Insurance

Rajan Yadav, Director, Roots Developers , says, "On February 1, 2025, the union budget is expected to provide measures to improve the real estate segment. The industry seeks tax deductions on home loan interest, better subsidies for buyers, and disbursements to reduce EMIs and risks. Such steps can drive growth and urban development while restoring demand in luxury segments. In the luxury real estate, sustained demand from HNIs and NRIs will ensure project placement with wellness amenities and ESG compliances, even without direct incentives. A buyer centric budget will make housing purchases more attractive while maintaining luxury real estate’s strong performance."

“In medical tourism, even small policy shifts around visas, accreditation, travel ease and insurance portability can quickly change patient flows and open up new geographies and we need this policy momentum in the country. For India, the opportunity is to move from being seen only as a ‘value’ destination to being recognised for superlative quality, seamless travel and coordinated post-treatment support. Stronger public–private collaboration can then translate these gains into better infrastructure and more reliable service delivery on the ground. As more international patients look for one-stop, end-to-end care journeys rather than standalone procedures, GlobalCare Health is focusing on building these integrated pathways by connecting hospitals, facilitators and travel partners, so that choosing India for treatment feels simpler, safer and more outcome-focused,” says Rajeev Taneja, founder at GlobalCare Health.

“The Union Budget FY2026 presents an important opportunity to reinforce India’s commitment to providing future-ready education for all. We look forward to policy measures that strengthen higher education reforms, promote interdisciplinary learning and research, and prioritise skill development aligned with industry needs. Enhanced support for research, innovation, and emerging technologies such as AI will be crucial in building a globally competitive talent pool. Greater encouragement for digital learning and industry-academia partnerships can significantly improve graduate employability,” says Dr. Ashwini Sharma, Acting Director, Institute of Management, JK Lakshmipat University.

"Achieving the goal of ‘Insurance for All by 2047’ will require a clear, time-bound roadmap supported by targeted policy and budgetary measures. The focus should be on building shared digital insurance infrastructure such as interoperable platforms and cost-efficient distribution frameworks that can be used across the industry to expand reach, particularly among first-time buyers.The Budget can also play a catalytic role by allocating sustained funding for insurance awareness and literacy initiatives, especially in rural and low-income regions where adoption remains uneven. In parallel, government insurance and welfare schemes should be structured to enable wider participation from private insurers through more consultative and business-friendly frameworks. Together, these measures will help narrow protection gaps, improve affordability and translate the vision of universal insurance into on-ground outcomes,” says Sharad Mathur, MD and CEO, Universal Sompo General Insurance

“The real estate sector, contributing nearly 7% to India’s GDP and employing over 70 million people, remains a cornerstone of economic growth, job creation, and urban transformation. A supportive fiscal policy framework in FY27 can unlock the next phase of housing-led growth, attract long-term institutional capital, and accelerate the Government’s vision of Housing for All,” says Knight Frank India.

“We hope this budget restores strong support for R&D for both public institutions and industry. Pesticides are not luxury products. They are plant medicines and a form of crop insurance for farmers. Yet, they attract 18% GST, similar to luxury items. Just as the GST on essential human medicines was reduced, we urge the government to bring the GST on pesticides down to 5%, so farmers are not overburdened. At the same time, we recognise that several promises from the last Budget have moved from announcement to action. Other initiatives are underway, and the intent is positive. The key focus now should be execution and real impact at the farm level,” says RG Agarwal, Chairman Emeritus of Dhanuka Agritech.

“Real estate developers and homebuyers are looking to Union Budget 2026 for relief on several long‑pending issues. The first big demand is for stamp duty benefits for green homes. Industry bodies want the central government to nudge states to offer standardised stamp duty concessions to homebuyers who purchase certified green properties. If buying an eco‑friendly home becomes cheaper, more people will choose sustainable housing, instead of it being limited to a premium segment,” says Heena Chheda, Partner, Economic Laws Practice.

“India’s VDA ecosystem is at a pivotal stage, with growing adoption across the country. However, the current tax framework presents challenges for retail participants by taxing transactions without recognising losses, creating friction rather than fairness. A reduction in TDS on VDA transactions from 1% to 0.01% could improve liquidity, ease compliance, and enhance transparency while preserving transaction traceability. Raising the TDS threshold to ₹5 lakh would help protect small investors from disproportionate impact,” says Ashish Singhal, co-founder at CoinSwitch

“As India approaches Union Budget 2026–27, the gems and jewellery sector stands at a pivotal moment, particularly with the rise of lab-grown diamonds (LGDs). Long a global leader in cutting, polishing, and jewellery manufacturing, India now has an opportunity to align growth with sustainability, technology, and value-led consumption. Budget 2026–27 should recognise lab-grown diamonds as a strategic sunrise segment, with continued rationalisation of duties on raw materials and equipment, and targeted incentives for advanced manufacturing. Such measures can lower entry barriers for MSMEs and accelerate ethical, future-ready diamond production,” says Anand Lukhi, founder and CEO, Lukson

“For India to truly become a product nation, we must move beyond assembly and adoption to designing and developing critical technologies in India. This requires a mission-mode approach for sectors of national importance such as clean energy, clean mobility, AI, rare earth security, and energy security. The government should revive strong R&D incentives, including up to 250% weighted deductions, and act as a demand aggregator for mission-critical technologies. Public procurement must shift from L1 to T1-based evaluation, rewarding companies with 80% local sourcing and indigenous design, particularly in electrolyzers, fuel cells, EVs, energy storage, and hydrogen mobility systems,” says Akshay Kashyap, Managing Director of Greenfuel Energy Solutions Pvt. Ltd.

"Budget 2026 is an opportunity to transform India's demographic dividend into a genuinely future ready workforce. To be able to address the growing skills gap, we need to have a major allocation of funds for project-led programs in artificial intelligence, data science, and other emerging technologies, besides investment in multilingual digital learning platforms under Digital India. This means funding not just content, but labs, faculty development, and industry led projects that bring NEP's vision to life inside classrooms. Affordability, however, remains the biggest barrier for millions of deserving students, especially in Tier-2 and Tier-3 India. The Central government can ease this by expanding interest free or subsidised education loans on an EMI model, strengthening credit guarantees, and increasing the scholarship corpus for under-served communities. At the same time, tax deductions on individual and corporate spend towards recognised skill certifications will normalise lifelong learning.In the same way that health insurance has become standard, we need to provide incentives through "employer sponsored learning credits" with tax incentives and cofunding structures that make it attractive for companies to invest in campus talent and early-career upskilling. Doing so would sharply improve employability outcomes and hasten India's march toward a resilient, innovation-driven economy," says Ashish Munjal, co-founder and CEO, SUNSTONE.

“To fully capitalise on India's demographic advantage and become the global skills capital, Budget 2026 must make skills-embedded higher education the foundation of nation building. The Government should support both private and state-owned institutions by increasing funding by 20% — that is at least ₹10,000 crore — to develop AI-powered, industry-synced experiential labs in 500 tier-2 and tier-3 institutions, along with enhanced research funding, which will help universities like CUTM scale up hands-on training in deep technology, climate-resilient agriculture and allied health science. Tax incentives and a simpler CSR route for industry–academia partnerships could free up about ₹5,000 crore a year for structured apprenticeships, greatly improving employability for rural and first-generation learners. Making employer-sponsored health coverage mandatory for contractual and gig educators, and speeding up claim processing, would also boost the resilience of the academic workforce. These measures will close the rural–urban skills gap, align learning with future job needs, and position India as a global leader in inclusive, job-ready education,” says Prof Supriya Pattanayak, Vice Chancellor, Centurion University, Odisha.

The Cellular Operators Association of India (COAI) has submitted a set of recommendations to the government ahead of the Union Budget 2026-27, calling for a reduction in regulatory levies and reforms in Goods and Services Tax (GST) to ease the financial stress on the telecom sector.

COAI, the industry body representing telecom service providers, said the proposed measures are aimed at enabling further expansion of digital infrastructure and accelerating the rollout of next-generation connectivity in line with the vision of a Viksit Bharat.

In a first, Finance Minister Nirmala Sitharaman will present the Union Budget in Parliament on Sunday, February 1, Lok Sabha Speaker Om Birla announced on Monday.

Finance Minister Nirmala Sitharaman will present Budget 2026 on February 1. This will be Sitharaman's ninth budget presentation, one short of the record 10 budgets presented by the former finance minister Morarji Desai.

In a first, Finance Minister Nirmala Sitharaman will present the Union Budget in Parliament on Sunday, February 1, Lok Sabha Speaker Om Birla announced on Monday.