Budget 2026 Expectations Highlights: Will Sitharaman's ninth Budget ease investing in global markets? Experts weigh in

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Budget 2026 Income Tax Expectations LIVE: Deep Vadodaria, Managing Director of Nila Spaces Limited, said that the upcoming Union Budget 2026 should continue to prioritise affordable housing by giving it a realistic and execution-focused push.

“The Budget should continue to prioritise affordable housing by giving it a realistic and execution-focused push, in line with the government’s ongoing efforts across states. While demand remains strong, private sector participation has slowed in recent years and needs renewed motivation, similar to what was seen in 2017–18, to significantly accelerate development,” said the expert.

“Affordable housing can address larger urban challenges much faster if supported through targeted incentives. The industry is already contributing actively, including on-ground execution in states like Gujarat, and is well-positioned to scale up further,” said Vadodaria.

Budget 2026 Income Tax Expectations LIVE: Govind Gaur, CEO of WanderOn, said that the travel and tourism sector is expecting the government's continued emphasis on growth, infrastructure and strengthening of consumer confidence in the upcoming Union Budget 2026.

“As we look ahead to the upcoming Union Budget 2026, the travel and tourism sector hopes for continued emphasis on growth, infrastructure and strengthening of consumer confidence. Domestic tourism can become the backbone of India’s tourism landscape, if the government focuses more towards increased infrastructural connectivity, expansion of airports and improving rail travel,” said the industry expert.

Gaur also said that the sector is looking forward to an ‘Industry status’ for travel and tourism, which would become more affordable for consumers, enhancing margins and boosting the circular economy.

Budget 2026 Income Tax Expectations LIVE: Vedant Gupte, Founder & CEO of Trackk, said that the upcoming Union Budget 2026-27 should empower first-time investors and make it easier, transparent, and make it culturally acceptable to build wealth early.

“For new class of investors — 18 to 28-year-olds who are digital-native, UPI-first, and experiment-driven, the biggest reforms are psychological and structural: make it easy, make it transparent, and make it culturally acceptable to build wealth early,” said the industry expert.

Gupte also said that he anticipates that the upcoming Budget signals that India wants its young citizens to be owners, not just consumers.

“That could mean first-time investor incentives, SIP-linked tax credits for long-term holdings, youth-focused equity savings accounts, or even GST relief on verified financial education,” said the expert.

“If we care about inclusive wealth creation, we have to meet this generation where they are — on their phones, learning through simulations, and building small but consistent portfolios. A Budget that empowers first-time investors is a Budget that compounds India’s long-term financial strength,” said Gupte.

Budget 2026 Income Tax Expectations LIVE: Viram Shah, Founder and CEO of Vested Finance, said the upcoming Union Budget 2026 presents an opportunity for the government to support investors investing in global markets

“The upcoming Union Budget presents an opportunity to support this evolution by reducing friction and enabling smoother participation in global markets. Easing global investing under the LRS through measures such as building on the higher TCS threshold and rationalising TCS rates can enhance liquidity and make long-term overseas allocation more seamless,” said the expert.

The industry expert also said that Indians are viewing global investing as a long-term diversification strategy rather than a short-term opportunity.

"Maintaining the $250,000 LRS limit provides stability, allowing investors to plan global diversification with confidence and discipline in a world of currency volatility and evolving capital flows,” said Shah.

Budget 2026 Income Tax Expectations LIVE: Yashesh Mukhi, Founder of footwear brand, Chupps, said that the upcoming Union Budget 2026-27 should focus on the opportunities in strengthening the foundations of consumer manufacturing rather than relying on short-term incentives.

“As India looks ahead to Budget 2026, the real opportunity lies in strengthening the foundations of consumer manufacturing rather than relying on short-term incentives. The previous Budget set a clear direction through its focus on domestic manufacturing, MSME support, and local value chains, especially for brands building at scale with an emphasis on quality and responsibility,” said the industry expert.

Mukhi explained how targeted support for material R&D, easier access to compliant manufacturing infrastructure, and simplified regulations for responsible production can significantly improve global competitiveness while reducing environmental impact.

“For digitally native brands that own both product and consumer relationships, policy stability and manufacturing-led support matter far more than short-term cost reliefs,” said the expert.

Budget 2026 Income Tax Expectations LIVE: Shashi Kiran Shetty, Founder & Chairman of Allcargo Group, expects that the upcoming Union Budget 2026 is set to support the digitisation efforts in the logistics sector.

“Budget 2026 could continue to support digitisation of logistics, as the industry would benefit immensely if public systems databases are integrated securely with organisational data,” the expert said.

Shetty also highlighted that the overall logistics industry expects Budget 2026 to keep the focus on incentivising private participation in infrastructure creation, capacity building, digitisation, skill development, and sustainability, for India's journey toward Viksit Bharat 2047.

“Budget 2026 offers an opportunity to align India’s personal income tax structure with the evolving needs of the salaried class. While a dramatic overhaul may be unlikely, measures such as increasing the standard deduction threshold — currently at ₹75,000 under the new tax regime — or refining slab thresholds and rebates can meaningfully reduce tax outgo for millions of employees. Additionally, tax simplification and improved clarity around deductions will help salaried taxpayers plan better and potentially unlock greater savings over time. These kinds of pragmatic changes could translate into real benefits for working professionals and support household financial resilience," says Senthil R. Kumar, Managing Director & CEO, Nitstone Finserv

“The upcoming Union Budget presents a vital opportunity to address the high cumulative tax burden (BCD, Health Cess, Surcharge, and GST) on essential medical devices which reaches up to 30% in some segments. This is especially important for products where domestic manufacturing remains limited or absent. Current tax levels directly inflate the cost of critical care - specifically in surgery, management of NCDs, and diagnostics - pushing families into financial hardship. With rising input costs due to supply-chain disruptions, calibrated duty reductions are no longer a concession, but a public health imperative to ensure affordability,” says Pavan Choudary, Chairman, Medical Technology Association of India (MTaI).

“We believe the next phase of India’s renewable growth will be defined not by the electrons we generate, but by how effectively we integrate and manage them through a flexible, digitalized, and resilient grid. That said, technology alone will not deliver the transition. What is equally critical is execution-led policy support that prioritises speed, scale, and certainty, shifting from a project-based mindset to a programmatic approach,” said N Venu, MD & CEO – India & South Asia, Hitachi Energy.

Union Parliamentary Affairs Minister Kiran Rijiju will convene an all-party meeting of floor leaders of both Houses of Parliament on January 27, ahead of the upcoming Budget Session.

As per sources quoted by ANI, the meeting is scheduled to be held in the main Committee Room of Parliament. The government is expected to discuss important national issues and legislative business likely to come before the Houses during the upcoming session.

“Following the policy signals and allocations announced in recent budgets, optimism continues to remain strong within India’s travel and tourism industry as the country heads into Budget 2026. There is growing expectation within the sector for further policy interventions such as granting infrastructure status to hospitality, rationalisation of GST on hotels and restaurants, and 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,” says EaseMyTrip co-founder and CEO Rikant Pittie.

“Colors Queen Cosmetics anticipates more assistance for MSMEs in the form of incentives for domestic manufacturing, easier access to working capital, and streamlined compliance. Homegrown companies like Colors Queen would be able to grow sustainably and compete more successfully in both domestic and international markets if e-commerce infrastructure and logistics were strengthened along with programs promoting innovation and local sourcing,” says Chetna Kochar, assistant general manager at Colors Queen Cosmetics.

“Budget 2026 should ideally place human capital at the heart of India’s technology strategy backing AI education, interdisciplinary research, and industry academia collaboration with sustained funding. Without this commitment, the country risks remaining dependent on imported innovation,” says Sid Mitra, COO of sirrus.ai.

“In FY 2026–27, India’s sports budget is expected to rise to around ₹3,900– ₹4,500 crore… with Khelo India likely continuing at ₹1,000 crore or higher; this increase aligns with India’s long-term ambition for global sporting events and improved medal performance,” says Nasir Ali, CEO and founder of Gallant Sports Infra.

“My foremost expectation is robust, targeted investments in infrastructure, processes, equipment, and people across all modes of transport, road, rail, air, express and sea. The spends must be synergized to deliver seamless multimodal connectivity, where every policy and rupee aligns to develop faster turnarounds backed by true 7 days a week and zero-friction operations,” says Yashpal Sharma, CMD, Skyways Group

“Ahead of the Union Budget, there is strong anticipation around measures that can strengthen household financial resilience and deepen long-term participation in formal financial markets. Simplifying tax structures, providing greater clarity and incentives for long-term investments such as mutual funds and retirement products and encouraging financial inclusion through digital-first frameworks will be key. With rising awareness among retail investors, policy continuity and stability can help channel savings into productive investments while supporting wealth creation across income segments,” says Abhishek Dev, co-founder, Epsilon Money.

The brokerage firm Nuvama Institutional Equities suggests that the budget for FY27 will likely maintain a neutral stance from the market's perspective. In their latest report, they noted that the FY27 budget is expected to be somewhat supportive of growth, which is a positive development. However, they believe that the recovery is anticipated to be modest and will not interrupt the cycle of earnings downgrades.

“As a family office investor, our primary expectation from the Budget is policy stability and tax rationalisation that encourages long‑term domestic capital to stay invested in India. If India wants family offices to play a larger role in funding deep tech, infrastructure and long‑cycle businesses, the tax framework needs to reflect that intent,” says Anirudh A Damani, Director of Artha India Ventures.

“The Union Budget 2026 may consider increasing the standard deduction for salaried employees to ₹1 lakh. Currently it is ₹50,000 under the old tax regime and ₹75,000 under the new tax regime. A higher standard deduction would help salaried taxpayers manage rising living costs,” says Nehal Mota, Co-Founder & CEO, Finnovate.

“By promoting Atmanirbhar Bharat solutions and fostering a supportive policy ecosystem, India’s aviation sector can remain safe, technologically advanced and Export-ready, further reinforcing the objectives of the ‘Make in India’ mission,” says Kapil Bardeja, Founder and CEO, Vehant Technologies.

PL Capital believes that major “big bang” announcements are unlikely in the upcoming Budget 2026-2027, following last year’s sweeping tax reforms. Instead, the government is expected to focus on sustaining growth through incremental reforms and targeted capital expenditure.

“Budget 2026 can lay the foundation for a more resilient computing ecosystem by encouraging collaboration between OS developers, cloud infrastructure providers, and application ecosystems. As a brand working to build an integrated computing experience, we see immense value in policy frameworks that promote interoperability, open standards, and ecosystem-led growth. Such an approach can reduce long-term reliance on closed global platforms and ensure that India’s computing future is shaped by local innovation. Strategic investments in this layer will be critical for sustainable digital growth,” says Chitranshu Mahant, CEO and co-founder of Primebook India

“As we approach Budget 2026, the renewables industry is looking for enhanced fiscal support that deepens investment, reduces upfront costs, and strengthens domestic manufacturing across the solar, wind, storage and green hydrogen value chains. With ambitious targets such as 500 GW of non-fossil fuel capacity by 2030, there is a clear need for policies that accelerate grid modernisation, expand transmission infrastructure, and improve access to affordable green finance. We also hope to see Budget support for decentralised energy solutions, skill development, and R&D, ensuring clean technologies scale sustainably and competitively,” says Yogesh Mudras, Managing Director at Informa Markets in India.

“The expectation from Union Budget 2026 is to focus on stimulating housing demand and consumer spending while maintaining fiscal discipline. For the organised home interiors and home improvement ecosystem, policy support in the form of faster regulatory approvals, GST rationalisation on interior and renovation services from 18% to 5%, and targeted incentives for first-time homebuyers could act as strong growth catalysts. Additionally, encouraging the adoption of sustainable and certified materials would help accelerate the transition toward tech-enabled, organised players. Such measures would not only improve consumer confidence and transparency in the sector but also generate large-scale skilled employment across design, manufacturing, and on-ground execution, contributing meaningfully to India’s urban growth story,” says Shezaan Bhojani, CEO and co-founder at DesignCafe.

“As we approach the Union Budget 2026–27, the focus for industries connected to India’s built environment must shift decisively from intent to execution. Over the past few years, strong momentum in commercial real estate, infrastructure, and workplace development has been driven by urbanisation, private sector investment, and government-led capital expenditure. The upcoming Budget presents an opportunity to consolidate this momentum through greater policy predictability, operational efficiency, and long-term capacity building,” says Sammeer Pakvasa, Managing Director & CEO, Eleganz Interiors.

According to domestic brokerage firm Axis Securities, markets are likely to favour a budget that sustains growth without compromising medium-term fiscal consolidation.

“Thermocool Home Appliances feels that it is a great opportunity for the growth momentum in the Indian consumer durable sector to be consolidated as it is slowly shifting towards upgraded, efficient, and technologically advanced products. It is eagerly waiting for what it hopes will be a growth-friendly approach in the Union Budget 2026,” says Tushar Gupta, Director of Operations at Thermocool Home Appliances.

“We expect the upcoming budget to bring immense support in the form of easier access to institutional credit for franchise partners, rationalization of GST on private-label and essential goods, financial incentives for local sourcing and packaging, and small-format retailers being less troubled with compliance issues. The above-mentioned actions could then, in turn, strengthen the retail backbone of India and nurture the new wave of entrepreneurs and the future retail and private label ecosystems that will be scalable and locally made,” says Ashish Pandey, director and co-founder of BuyBuyCart.

“For most Indian households, the home loan is the biggest monthly outflow and we hope the Budget strengthens home-loan tax benefits to support long-term affordability. Alongside this, there is a clear need for simpler, borrower-friendly disclosures from lenders-how the interest rate is calculated, what can change over time and when changes are passed on. If we make loan terms easier to understand, we can meaningfully reduce overpayment at a national level and improve household financial resilience,” says Vikas Tarachandani, co-founder of SURE.

“We believe the upcoming Budget should prioritise rationalisation of import duties on critical raw materials, long-term policy clarity for ODM-led manufacturers, and expanded incentives for design ownership, product engineering, and R&D. Access to affordable long-tenure capital, support for automation, and skilling in design for manufacturability and advanced electronics manufacturing will be key to improving competitiveness and quality consistency,” says Sagar Gupta, Co-Founder & Director, Ekka Electronics, on expectations of manufacturing and electronics industry.

“As Budget 2026 approaches, there is a familiar mix of hope and cautious optimism across households, businesses, and investors. For the common taxpayer, income tax rationalisation remains a key expectation. Many salaried individuals are looking for greater clarity and simplification between the old and new tax regimes, along with an increase in standard deductions and a much-needed revision of limits under Section 80C to ease pressure on personal finances and improve disposable incomes," says Sunil Kumar Roy, Professor and Dean, School of Business, Manav Rachna University

FM Sitharaman gave a mega boost to Indian taxpayers by cutting income tax on earnings up to ₹12 lakh, benefitting millions of middle class taxpayers. For the salaried class, the non-taxable income under the new tax regime increased to ₹12.75 lakh after standard deduction.

Union Budget 2026 will be presented on 1 February, 2026, Sunday. Finance Minister Nirmala Sitharaman is set to present the Union Budget on this day.