Budget 2026 expectation Highlights: A week ahead, here's what the industry wants from Finance Minister Sitharaman

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“India today generates over 9 million tonnes of plastic waste every year, yet formal recycling remains in single digits. The current recycling ecosystem is constrained by high taxation on plastic waste and recycling inputs, inconsistent enforcement of Extended Producer Responsibility (EPR), limited traceability, and inadequate access to modern recycling technology," said Sushil Aggarwal Chairman & Whole-Time Director, AVRO India Limited.

According to him, these challenges make EPR-compliant recycling economically unviable and discourage the use of recycled plastics in durable applications, resulting in continued dependence on virgin plastics and increasing pressure on landfills.

To address these gaps, he urges the government to consider the following steps in upcoming Union Budget:

— Prioritise making recycling both commercially and operationally sustainable. This should include zero GST on plastic waste, scrap, and recycling machinery, along with a lower GST on recycled plastic granules to incentivise their adoption in long-life products such as furniture and other durable applications.

— Create a clear, stable, and enforceable EPR guidelines with full traceability, supported by capital assistance through a dedicated technology upgradation fund and targeted subsidies for advanced recycling processes and automation.

— Make strategic investments in Plastic Parks, Material Recovery Facilities, and PPP-led recycling infrastructure will be critical to strengthening formal capacity across the entire value chain.

“The 2026 national education budget is an opportunity to continue shaping the future of India and unlocking our demographic dividend. We need to prioritize spending that catalyzes quality innovation,” said Sandeep Rai, the founder of the Circle, a company operating in the education space.

Here's what he expects from the Budget 2026:

— As a country, we have to move away from chasing both infrastructure and enrollment and pivot to investments that can catalyze quality educational outcomes.

— India should invest into revamps of teacher recruitment, selection, development, and retention systems, and utilise this year as an opportunity to find the best people possible to teach

— Investment in public private partnerships is also crucial to the sector's growth.

— Allocate funding to organizations that can develop innovative high-quality model schools.

Amit Chand, Founder, BYT Capital believes that deep tech will play a crucial role in securing India’s technological sovereignty, strategic resilience, and long-term industrial competitiveness.

According to him, for this potential to be fully unlocked, the government must take “bold and outcome-driven steps” to support high-risk innovation, especially where private capital alone cannot sustain the gestation cycle.

“India now stands at an inflection point. Budget 2025 signaled intent. Budget 2026 must deliver action—not just through new initiatives, but by making existing mechanisms frictionless, founder-first, and ready for deployment,” he said.

Ajay Kela, the CEO and Board Member of Wadhwani Foundation said that the upcoming Budget should strengthen innovation ecosystems that “move ideas from labs to markets”.

According to Kela, this goal could be achieved through translation support, including entrepreneurs' training of researchers, applied research, and clear commercialization pathways, clearing the way for innovation in AI and emerging technologies to drive new ventures, productivity levels, and high-value employment.

“India is now the world’s third-largest startup ecosystem, but the next phase of high-value jobs and economic growth will depend on deep-tech innovation and how well research translates into enterprises and jobs." he said.

Siddharth Maurya, the Founder and Managing Director of Vibhavangal Anukulakara Pvt. Ltd. said that the primary demand of the sector is personal tax structure to be aligned with the realities of inflation and income of the present day.

“For almost ten years now, the limit for Section 80C has been stuck at ₹1.5 lakh and the health insurance deductions allowed under Section 80D have also been very limited, which taxpayers have been coping with despite the fact that costs of premiums, EMIs, and education have gone up significantly,” he said ahead of the Union Budget 2026.

Therefore, he urges the government to consider a hike in the 80C limit to around ₹3 lakh, an increase in the health insurance limits, and a raise in the income threshold for the highest 30% slab so that the relief becomes more apparent to the families earning between ₹10–35 lakh.

“Besides, rationalising capital gains taxes, particularly through the increase of tax-free LTCG exemption instead of tinkering with rates, would push the small investors towards long-term wealth building without affecting the market behaviour,” he added.

Ravindra Rai, MD and CEO of Bobcard, wants the Budget to continue emphasis on digital payments, cybersecurity, and financial infrastructure to strengthen trust across the ecosystem.

• Also expect a sustained push toward technology investments, particularly in secure payment platforms, cybersecurity, virtual and tokenised cards, and UPI-first credit products, as consumer behaviour shifts toward real-time, digital-first transactions.
• Equally, policy support for alternative credit assessment models can meaningfully expand access to formal credit. Enabling the use of transaction and cash-flow data will help bring more first-time and underserved consumers into the system, while ensuring credit growth remains responsible and sustainable.

Abhishek Anand, Sr Partner at MicroSave Consulting (MSC) feels that the Union Budget 2026 presents a pivotal opportunity to pivot from "opening accounts" to "ensuring credit flow" by leveraging Digital Public Infrastructure (DPI) to deepen the reach of NBFCs and MFIs.

Expectations include:

• A critical step forward is the expansion of the Grameen Credit Score (GCS), which uses alternative data like SHG repayment history and utility payments to create formal financial identities for the unscored rural population.
• To support this, we expect the budget to introduce a dedicated Refinance Window for mid-sized NBFCs and lower the SARFAESI Act threshold, which would enhance recovery, boost institutional Credit Ratings, and lower borrowing costs.
• Streamlining these recovery processes will also lead to more transparent and non-coercive recovery measures, fostering a healthy credit culture where borrowers understand their obligations and lenders act with accountability.
• Strengthening of Regional Rural Banks through consolidation and enhanced capital infusion is essential to drive credit specifically into the agriculture and allied sectors.
• By integrating GCS into the lending workflows of RRBs and MFIs, the government can transform rural banking into a precision tool for Viksit Bharat, ensuring that credit reaches smallholders and women entrepreneurs as a reliable engine for sustainable livelihood growth.

Vikas Garg, Chairman of Ebix Group notes that this budget arrives at a moment when India needs to reinforce the digital plumbing that holds its financial and transactional systems together.

“We have reached a point where the conversation cannot be about marginal fixes. India needs long-lasting frameworks that give institutions the confidence to operate at scale and give consumers the assurance that every transaction is secure, compliant, and seamless,” he said.

Expectations include:

• A simpler KYC framework, clearer risk rules, and stronger incentives for secure digital flows would make a meaningful difference on the ground.
• Continued investment in digital public infrastructure, which has already changed how businesses operate and how citizens interact with the economy.

Preet Sandhu, Founder and MD of AVPL International feels the Union Budget is an opportunity to accelerate India’s drone and deep-tech ecosystem through an infrastructure-first approach.

Expectations include:

• Strengthening Drone Shakti through incentive-based manufacturing will clearly signal India’s shift from pilot adoption to large-scale expansion of the drone economy.
• Priority support for skill-linked training infrastructure, indigenous component manufacturing, and shared testing and certification facilities is essential to reduce import dependence and speed up innovation.
• Simplified and incentivised R&D frameworks and policy support for the Drone-as-a-Service model across agriculture, infrastructure and public services can further drive adoption, jobs and long-term scale.

Ganesh Sonawane, Co-founder and CEO of Frido wants emphasis on creating an environment where Indian D2C brands can build and scale from within the country with confidence.

Expectations to encourage brands to invest deeper in local manufacturing, product quality, and supply chains:

• Consistent tax policies,
• Simpler GST compliance,
• Better access to working capital,
• Extend PLI incentives to a wider set of consumer and wellness categories.

According to Raymond Andrews, co-founder of Biryani blues, organised food service brands are looking for measures that strengthen consumption and support the broader food services ecosystem.

Expectations:

• Continued investment in supply-chain infrastructure, cold storage and efficient logistics is critical to reducing wastage and ensuring quality consistency at scale.
• Policies that can enhance the urban purchasing power, as consumption growth remains the key driver for the sector.
• Focused support for skill development across the food and hospitality workforce, given the industry’s significant role in employment generation.
• Initiatives that encourage sustainable sourcing and domestic food processing will further improve resilience and long-term efficiency.

According to Amit Chand, Founder of BYT Capital, India’s aspiration to lead in frontier technologies will be defined not just by vision, but by the ability to convert policy into accessible, scalable support for startups and research-led innovation.

He added that the real test lies in execution—particularly in speed, clarity of access, and seamless coordination across ministries.

Expectations include:

• Government must take bold, outcome-driven steps to support high-risk innovation from deep tech—especially where private capital alone cannot sustain the gestation cycle.
• Budget 2026 must deliver action—not just through new initiatives, but by making existing mechanisms frictionless, founder-first, and ready for deployment.
• Collective focus must shift from announcement to absorption—from policy architecture to tangible outcomes on the ground.

Ajay Trehan, Founder and CEO of AuthBridge believes the upcoming Budget 2026 presents an opportunity to further strengthen digital trust infrastructure, streamline regulatory processes, and reinforce India’s leadership in building inclusive, secure, and future-ready digital systems.

Trehan feels that ahead of pre-Budget discussions, the progress made through government-led initiatives have created a foundation that enables millions of citizens and businesses to access financial, welfare, and governance services seamlessly. E.g. Aadhaar authentication transactions growth, rollout of the Digital Personal Data Protection (DPDP) Act, continued focus on strengthening cybersecurity, compliance frameworks, and data governance.

Pratik Vaidya, MD of Karma Management Global Consulting Solutions noted that labour law reforms will take some time before compliance is complete. Adding, “This Budget shall have a national digital compliance spine with comprehensive state-wise regulations, best practice templates and single-window workflows for registrations, licences, renewals, returns and inspections."

Expectations include:

• MSMEs need risk-based compliance, not one-size-fits-all forms.
• Promote self-certification for low-risk sites, create more facilitation centres, and ensure that inspections are predictable with a selection based on data and a level of assurance and proper protections.
• If the government is going to formalise and strengthen social security coverage, it should ease friction for compliant employers and impose severe punishment on wilful defaulters.
• Easy transition into compliance would result in better jobs, vendor governance and investor confidence.

Sushil Aggarwal, Chairman & Whole-Time Director of AVRO India and ex-Chairman of CII – Western Uttar Pradesh feels that the current recycling ecosystem is constrained by high taxes, inconsistent enforcement, limited traceability, and inadequate access to modern recycling technology.

Aggarwal expects the Budget to address these gaps:

• Prioritise making recycling both commercially and operationally sustainable.
• Zero GST on plastic waste, scrap, and recycling machinery, along with a lower GST on recycled plastic granules to incentivise their adoption in long-life products such as furniture and other durable applications.
• Need clear, stable, and enforceable EPR guidelines with full traceability, supported by capital assistance through a dedicated technology upgradation fund and targeted subsidies for advanced recycling processes and automation.
• Strategic investments in Plastic Parks, Material Recovery Facilities, and PPP-led recycling infrastructure critical to strengthening formal capacity across the entire value chain.

Vinu Warrier, Managing Partner and Founder at eduVelocity feels the education sector is looking for a shift from incremental funding to structural reform that genuinely addresses access, affordability and outcomes.

Expectations include:

• A student-centric financing model that combines affordable credit, income-linked repayment mechanisms and transparent scholarship disbursal.
• Greater alignment between education funding and employability outcomes. Degrees alone are no longer sufficient; students need integrated career guidance, skilling support and exposure to emerging sectors. Public spending must therefore prioritise not just enrolment, but retention, completion and workforce readiness.
• Deeper public-private collaboration in digital learning infrastructure, assessment reform and faculty development to ensure quality keeps pace with scale.

“Education should be treated as a long-term economic investment, not a discretionary expense. The real success of this Budget will be measured by whether a student’s future is shaped by ability and aspiration, rather than by financial constraints or lack of institutional support,” Warrier added.

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.

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.

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.

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.

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.

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.”

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.

• 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.

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.