Budget 2026 expectation Highlights: As date nears industry watchers eagerly await Finance Minister Sitharaman's speech

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The education sector seeks government’s continued commitment to widening access, strengthening digital infrastructure, and making higher education more outcome-led in the true spirit of NEP 2020,” said Ajit Chauhan, Chairman, Amity University Online.

“The progressive regulatory framework for online degrees has enabled institutions to deliver borderless, credible education to learners and working professionals across India and global markets,” he said.

As India moves decisively towards the vision of Viksit Bharat, Chauhan believes that this can be an opportunity to accelerate the momentum through deeper investments in digital public infrastructure for education.

Abhijeet Sinha, the Principal Adviser of SEPC, and Ministry of Commerce & Industry said that the Union Budget 2026 is expected to begin the countdown for India's $1 trillion product and services export ambition.

“The mission recently received timely Cabinet approval in November 2025, with an outlay allocation of Rs. 25,060 Crore ($2.774 billion) for FY 2025–26 to FY 2030–31,” he noted.

According to Sinha, the initiative aims to strengthen export-led growth through a strategic shift from multiple fragmented schemes to a single, outcome-based, adaptive mission that responds swiftly to trade challenges and evolving exporter needs amid global tariff wars.

The Union Budget 2026 is expected to be a watershed moment for Tier 2 and Tier 3 cities as these emerging hubs are now the centers of demand for high-quality residential and mixed-use spaces, said Rajesh Damani, Founder and Managing Director of Jamshri Realty Limited.

“We anticipate a budget that prioritizes 'Infrastructure-led Urbanization.' Increased capital expenditure on regional connectivity, such as ring roads and metro extensions, will unlock new growth corridors,” he noted.

Another expectation from the sector is the revision of the 'Affordable Housing' price cap. “Raising this limit to 75 lakh or 80 lakh would reflect the current land and construction costs in growing cities. This change would allow more families in Tier 2 markets to access credit-linked subsidies and tax benefits,” he added.

For developers, granting the real estate sector 'Infrastructure Status' and streamlining single-window clearances will reduce project timelines significantly, Damani noted.

Aashit Verma, the Founder of Hanto Workspace believes that in order to unlock India's economic potential and investor confidence, the government needs to bring targeted reforms in real estate and the flex sector .

“The process of registering agreements through online seva should be as seamless as filing GST returns, enabling companies to stay compliant while boosting governance, judicial enforceability, and investor confidence. At the same time, GST structures for flex and service operators must be optimised especially for startups, so that access to input refunds becomes simpler and adoption easier for VC-funded enterprises,” he said.

The flex sector also needs a more rational GST framework, including clarity on input credits for leasehold capex, which will directly accelerate sectoral growth, he added.

Abhinav Kumar, the co-founder of Brand Concepts limited said that the hike in GST on apparel priced above ₹2,500 to 18% has added pressure on the bridge-to-luxury segment. According to Kumar, this hike in GST has impacted pricing flexibility and demand.

Therefore, the sector seeks a more graded tax structure, which would support sustainable premiumisation, the expert said.

"The Production Linked Incentive scheme is a positive step and with the right execution, can encourage global premium and luxury brands to leverage local production capabilities to manufacture higher-value products in India, strengthening the domestic retail ecosystem. While stronger action on counterfeits and clear data-privacy norms are essential to protect brand equity and build consumer trust in organised retail,” he added.

Ravindra Rai, Managing Director, and CEO of BOBCARD LIMITED believes that continued emphasis on digital payments, cybersecurity, and financial infrastructure would go a long way in strengthening trust across the ecosystem.

Speaking of Budget expectations, he said that the industry seeks sustained push toward technology investments, particularly in secure payment platforms, cybersecurity, virtual and tokenised cards, and UPI-first credit products.

“These are critical enablers as consumer behaviour shifts toward real-time, digital-first transactions,” he added.

Avinash Deshmukh, COO of iThrive, a Pune-based health & wellness platform, believes what is really holding startups back today is not intent or innovation, but survival in an increasingly complex compliance and funding environment.

He further flagged issues, such as limited access to credit, which remains fragmented and difficult, especially for those at early-stage businesses doing meaningful work.

“Without uncomplicated and more predictable mechanisms of financial support, many up and coming startups cannot survive,” he said.

Another important reform is to increase the threshold for GST registration from ₹20 lakh to a minimum of ₹1 crore. With inflation and operational realities, ₹20 lakh is no longer a meaningful benchmark, Deshmukh noted.

He believes that the compulsion to comply to these rules at such an early stage diverts valuable time, energy, and resources from building the business.

"Monthly filings, penalties, and high interest for delayed payments are disproportionately punitive for small enterprises and crippling at times. True ‘ease of doing business’ would finally come when compliance systems support growth rather than overwhelm it. A higher threshold and rationalised penalties will enable startups to focus on innovation, employment, and value creation,” he said.

Balbir Singh Dhillon, the Brand Director of Audi India views the Union Budget 2026 as a key opportunity to further boost India’s growth momentum and strengthen consumer confidence, especially in the wake of the current geopolitical environment.

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

He hailed the government's steps toward GST/Cess simplification and rationalisation. “Continued emphasis on infrastructure development—particularly roads and high-speed charging infrastructure—along with rationalisation of taxes/duties, a stable long-term policy framework, and steady foreign exchange conditions will be instrumental in accelerating growth in the luxury car industry,” he added.

According to him, the company remains optimistic that the upcoming budget will aid in boosting the overall consumption, including in the luxury automobile segment.

Shaji Varghese, the CEO of Muthoot FinCorp Ltd. urges the government to take budgetary measures for more credit supply to the rural and lower middle-income segments in India.

He further recommended ways of achieving this, which include:

— The Union Budget 2026 can include measures for liberalising branch-opening norms for Gold Loan NBFCs to deepen market penetration, especially for secured Gold Loans which carry relatively lower risk.

— Rationalising capital risk weights for Gold Loans by NBFCs to reduce the cost of lending and enable greater credit flow to rural and semi-urban markets.

— Design targeted schemes to ensure customers who experienced temporary or one-time credit default are not permanently excluded from formal banking channels and are brought back into the lending ecosystem.

— Promoting formalisation of gold lending by encouraging policy reforms that shift activity from informal channels to regulated institutions and strengthen consumer protection.

Nirupama Soundararajan, the co-founder & CEO of Policy Consensus Centre urges the government to focus on scaling exports, particularly e-commerce exports, this year. Here's the expectations:

— The Union Budget 2026 should enable collateral-free, data-led financing for exporters.

— Marketplace sales data and overseas inventory visibility should be recognised for credit assessment, supported by a factoring-style framework for goods stored in global warehouses.

— The government should also look at a dedicated sub-programme under NIRYAT PROTSAHAN, piloted through EXIM Bank and extended to commercial banks, which can significantly ease working-capital constraints for MSME e-commerce exporters.

“These recommended initiatives, along with the RBI's crucial changes made to EDPMS in November last year, will provide a significant boost to Indian e-commerce exports,” she said.

Vinay Swamy, Country Head at Pearson India said that this Budget must focus on three critical pillars.

• First, accelerate education funding toward NEP 2020's 6% of GDP target with dedicated allocations for AI-ready infrastructure and teacher training.
• Second, scale skilling through expanded funding for micro-credentialing and industry-linked certifications with formal recognition for employability.
• Third, rationalize GST and introduce fiscal incentives for digital education services to ensure equitable access across India's diverse landscape.

“These measures will be instrumental in building an AI-fluent, future-ready workforce that can drive India's growth story forward,” he added.

Pankaj Jathar, CEO of NIIT noted that AI and digital are not peripheral skills but the core gateway to jobs and competitiveness. However, today most online courses are taxed at 18% GST, which impacts price accessibility at scale.

Thus, expectations from Budget 2026 include:

• Rationalising GST on verified digital learning programmes to a 5% bracket would make high-quality AI-enabled education more affordable, accelerate widespread adoption, and empower training providers and startups to scale sustainably in support of India’s talent ambitions.
• Urge the government to set a clear target of 6% of GDP for education, to be delivered through higher absolute allocations that prioritise digital infrastructure, public–private skilling partnerships, and hard-to-reach geographies.
• A crucial time for national push that combines fiscal incentives for low-cost digital learning with a sustained increase in public education investment to deliver both equity and economic returns.

Pradeep Gupta, Executive Director, Head of Investments – India at Lighthouse Canton believes this budget assumes significance given the geopolitical turmoil, tariff led distortions and cyclical slowdown.

Expectations include:

• Continuity of measures around stimulating consumption which has been a mixed bag so far. These measures are likely to be selective. Governments task is cut out to strike a balance between fiscal prudence and growth engine.
• Continued thrust around quality of spending thus focus is likely to remain on capex, manufacturing sector boost via PLI, job creation and continued support for MSME’s.
• Rehauling of capital gains tax (including FII) will restore overall confidence amid US tariffs, though we are not making any bets here.
• While FY26 focused on boosting consumption, FY27 may shift toward supporting investment through continued deregulation and improved ease of doing business.

According to Aashit Verma, Founder of Hanto Workspace the real estate and flex sector needs targeted reforms.

Expectations:

• Process of registering agreements through online seva should be as seamless as filing GST returns, enabling companies to stay compliant while boosting governance, judicial enforceability, and investor confidence.
• GST structures for flex and service operators must be optimised especially for startups, so that access to input refunds becomes simpler and adoption easier for VC-funded enterprises.
• The flex sector also needs a more rational GST framework, including clarity on input credits for leasehold capex, which will directly accelerate sectoral growth.
• Focused budget allocation to upskill blue-collar real estate workers and standardise labour IDs to streamline incentives and compliance.
• Formally recognise flex operators as a high-impact sector, one that now contributes meaningfully to GDP, taxes, and employment, with several players already part of India’s public markets.

Dharmakirti Joshi, Chief Economist at Crisil told ANI that the budget is being prepared under a favourable growth and inflation scenario, though global uncertainty and volatility remain key considerations for the government.

"Well, first of all, the budget is being prepared under a much better-than-expected growth and inflation scenario. Growth proved to be higher than expected, and the inflation was much lower than expected," Joshi said.

Expectations:

• Ensure that public finances remain in good shape to maintain economic stability.
• Continued push for reforms aligned with the 'Viksit Bharat by 2047' target.
• Focus on incentivising newer segments such as electronics and ACC batteries.

Jammu and Kashmir Chief Minister Omar Abdullah on 23 January chaired a pre-budget consultation meeting with key stakeholders from various sectors ahead of the Union Territories' Budget 2026-27, PTI reported.

An official spokesperson told the agency that the meet was attended by Ministers Sakina Itoo, Javaid Ahmad Dar and Satish Sharma, and senior officers of various departments at the civil secretariat.

According to Lohit Bhatia, President, Indian Staffing Federation (ISF), India must prioritize shifting its workforce from informal to formal employment.

Recommendations for Budget include:

• Rationalizing GST on Staffing Services: Recognizing employment as a 'merit service' and reducing the GST burden on staffing will significantly lower the cost of formal hiring for enterprises.
• Strengthening Section 80JJAA: Enhancing this tax incentive with inflation-adjusted benchmarks and introducing specific boosters for women’s employment will drive inclusive growth and better retention.
• Industrial Infrastructure for Workers: Enabling CSR-supported worker hostels in major industrial clusters will provide the necessary dignity and safety for migrant and women workers, ensuring a stable and mobile labor supply.

“By reducing the barriers to formalization, the government can expand the formal tax base, enhance the 'Ease of Doing Business,' and create a more resilient, protected, and productive workforce for India's future,” feels Bhatia.

Kamal Bali, President and MD of Volvo Group India told PTI that he expects the Budget to have Viksit Bharat 2047 as the ‘north star’ or strategic direction.

“With the mission Viksit Bharat 2047, as a North Star, the union budget, 2627 or the Indian strategic direction, cannot be anything but pro-growth and pro-development, with sustained investments in manufacturing, infrastructure, energy, transition, education, human skills and digital capabilities over the next several years,” Bali said.

Vinay Pradhan, Country Manager, India & South Asia, Udemy feels that in this Budget, a key focus will be upskilling the existing workforce so they can grow along with rapid technological change and drive innovation across industries.

• Partnership-led upskilling initiatives will help build an AI-fluent workforce and support AI-led growth.
• Making cyber awareness and foundational security skills important for the workforce regardless of specialisation.
• Continued investment in cybersecurity education and AI ethics will help ensure India leads with AI in a way that is resilient and secure, without being slowed by avoidable cyber risks.

According to Balbir Singh Dhillon, Brand Director at Audi India, the Union Budget 2026 “is a pivotal opportunity to reinforce India’s growth momentum and strengthen consumer confidence, especially in the wake of the current geopolitical environment”.

Expectations for luxury automobile sector include:

• Continued emphasis on infrastructure development—particularly roads and high-speed charging infrastructure.
• Continued emphasis on rationalisation of taxes/duties.
• A stable long-term policy framework.
• And steady foreign exchange conditions.

Prior to 1964 the Economic Survey was part of the Budget presentation and served as an official economic record to inform budgetary discussions in Parliament. Thus, it was separated from the Union Budget to provide lawmakers and the public with important economic context, including data-driven views at the condition of the economy.

The document, by identifying challenges and other issues, also gives crucial context for policy direction.

The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs under the Ministry of Finance. It is headed by the Chief Economic Adviser.

The document presents an annual report on the Indian economy. It mainly details the finance ministry's analysis of the state of the economy, and reviews performance over the fiscal year, looking at indicators from growth and inflation to jobs, trade, and fiscal health.

The first Economic Survey was presented along with the Budget in 1950-51 but was separated since 1964.

Ahead of the Budget, all eyes are on the Economic Survey, which is scheduled to be tabled in Parliament a day prior to it.

Typically, the Economic Survey document is divided into two parts, A and B.

Part A: Showcases major macroeconomic developments over the course of the fiscal year, as well as a broader review of the Indian economy.

Part B: Covers specific socio-economic issues pertaining to the economy.

Union Budget 2026 is Finance Minister Nirmala Sitharaman's ninth straight presentation of the country's annual financial statement in Parliament.

She will become the first finance minister to present nine back-to-back Budgets this year. In 2028, Sitharaman is set to tie with former Indian Prime Minister Morarji Desai's record of presenting 10 Budgets in Parliament.

Lok Sabha Speaker Om Birla on 19 January confirmed that Union Budget 2026 will be announced in Parliament on Sunday, 1 February.

Union Minister Kiren Rijiju had earlier this month said the decision would be taken by the Cabinet Committee on Parliamentary Affairs “at an appropriate time”.

It was also reported but not confirmed that Finance Minister Nirmala Sitharaman would present the Budget on Sunday. Sources had told PTI: “We have a fixed day for the presentation of the general budget. The concept of Sunday was brought by the British.”

• The budget session kicks off on 28 January with a joint address by President Droupadi Murmu to both Houses of Parliament.
• The Economic Survey 2026 will be presented in Parliament by Chief Economic Advisor V Anantha Nageswaran on 31 January.
• The Union Budget 2026 will be presented in Parliament on 1 February by Finance Minister Nirmala Sitharaman.
• The Parliament's budget session will conclude on 2 April 2026.

The Union Budget is an annual exercise under which India's finance minister presents the country's financial statement for the year. As per Article 112 of the Constitution, the Budget is announced before both Houses of Parliament.

The Union Budget includes estimated annual receipts and expenditure of the following financial year, besides key policy and reform proposals for future developments and projects.

Expectations are high, as Budget 2026 will be the Prime Minister Narendra Modi-led government's second full-fledged Budget, amid its third consecutive term in power.

In 2025, Finance Minister Nirmala Sitharaman presented the interim Budget in February ahead of Lok Sabha elections, followed by the Union Budget 2025 in July after the government was voted to power.

Good morning and welcome to Livemint's extensive coverage of Union Budget 2026. With less than 10 days left for Finance Minister Nirmala Sitharaman's speech on 1 February, we bring you the latest news and updates ahead of India's eagerly awaited finance event.