Budget 2026 Expectations Highlights: What auto, finance, and others expect from upcoming Union budget; check here

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Sakshi Balani, Director, Climate Catalyst believes that the main roadblock towards scaling green steel in India is the lack of ‘clear demand signals’ from the industry.

“Over the last three years of working on steel decarbonisation, we have found that the main barrier to scaling green steel in India is not technology or ambition, but the lack of clear demand signals. Our research shows that when procurement rules recognise low-carbon steel and account for the green premium, green steel can be adopted at scale, with the material increase in overall project costs typically remaining below 1% for large infrastructure projects," she noted.

Chandragupt Prakash Mangal, the Managing Director of Mangalam Worldwide Ltd. said that the industry expects to receive continued support to strengthen India’s manufacturing ecosystem through policy stability, infrastructure development, and a level playing field for domestic producers.

He also noted that factors such as rising steel input costs, raw material volatility, global trade disruptions, and dumping pressures continue to pose challenges for the metals and stainless steel sector.

According to Mangal, the forthcoming Budget may consider measures such as:

— Trade safeguards

— Rationalisation of duties on critical steel inputs

— Incentives that encourage capacity expansion and value-added manufacturing.

Abhimanyu Munjal, MD & CEO of Hero FinCorp believes that the Union Budget 2026 can be a major opportunity to further strengthen the country’s inclusive credit ecosystem.

He urges the government to take the following initiatives:

• Provide continued policy support for NBFCs, through better liquidity access, greater access to long-term capital, and a balanced operating environment. Munjal said that these initiatives will be key to accelerating credit flow to underserved segments.
• Simpler compliance, stronger incentives for digital lending, and support for responsible credit expansion can significantly deepen financial inclusion, especially for MSMEs and first-time borrowers.
• He also said that with the right balance of innovation and risk governance, NBFCs can play an even larger role in powering consumption, entrepreneurship, and employment growth across India.

Saurabh Arora, Founder & CEO, University Living believes that since lakhs of Indian students have been studying abroad in 2025, overseas education now functions as an extension of India’s higher education system, financed almost entirely by Indian households.

In the same period, education-related outward remittances under LRS declined from about $3.48 billion in FY 2024 to roughly $2.92 billion in FY 2025, a 16% adjustment. Meanwhile, according to him, student mobility also remained steady, which suggests families are reorganising tuition and settlement payments because of higher costs, proof-of-funds requirements, and compliance procedures across multiple countries.

“These shifts highlight the need to reform overseas education financing across credit, remittances and taxation. Budget 2026 offers an opportunity to ease the burden by extending Section 80E to the new tax regime, allowing limited deductions for self-funded overseas tuition, and creating a simpler, more predictable LRS framework for education,” he said.

RS Subramanian, SVP South Asia at DHL Express feels that reducing the cost of logistics and should remain key focus areas in the upcoming budget.

Four key levers for enhancing India’s global competitiveness continue to be:

• Simplifying customs and tax regulations
• Making compliance process easier and more cost-effective
• Improving infrastructure and resources for seamless logistics
• Moving to a trust-based regulatory environment.

“Continued push for multi-modal infrastructure under the National Logistics Policy remains critical not just for the economy, but also to support India’s growing export ambitions,” Subramanian added.

Ratan Bokadia, MD of Oswal Energies said the upcoming Union Budget can advance green energy manufacturing and enabling sustainable industrial transformation.

• The green hydrogen production in India is one of the major steps the country is taking to move heavy industries like chemicals and fertilizers to eventually decarbonize using their electrified production methods.
• It will be very important to give financial benefits to the producers of electrolyzers, renewable energy plants, carbon-reducing technologies, and research and development in order to enhance the local capacity, fortify the energy security, and lower the carbon emissions.
• Supportive policies will open up opportunities for India to become the world leader in the production of renewable energy solutions and, at the same time, make the industrial growth climate-aligned and inclusive.

According to Abhishek Bansal, Chief Revenue Officer of InsuranceDekho, the Budget should continue policy and regulations from last year's GST reforms.

• A balanced approach to the taxation of pensions and annuities, greater clarity on composite licensing, and a sharper focus on micro-insurance can significantly strengthen insurance penetration.
• Structural reforms that prioritise ease of doing business will ultimately be far more impactful than short-term incentives in creating a resilient and inclusive insurance ecosystem.
• Building a stable, innovation-friendly regulatory framework is what will truly enable the sector to scale responsibly while ensuring long-term consumer trust.

According to Kami Viswanthan, president, Middle East, Indian Subcontinent, and Africa (MEISA), at FedEx,amid the evolving global trade environment, supply chains are increasingly being designed around speed, certainty, and trust.

• “For India, competitiveness will increasingly be shaped by how seamlessly cargo moves across borders and modes, particularly in time-sensitive trade,” he added.
• Budget can support this momentum by further developing dedicated air cargo infrastructure and accelerating digital, time-bound customs and clearance processes.

Shams Tabrej, Co-founder & CEO of Ezeepay thinks the Budget should emphasise deeper and meaningful digital adoption, especially in the rural and semi-urban areas of India.

• Budget 2026 should give priority to last-mile integration that is accessible, sustainable, and trustworthy.
• Strengthening of the incentives for Banking Correspondents and local merchants supported by fintech would mean that financial access in regions that are not well served would be faster.
• Reduction of compliance costs for small fintech companies and the acceleration of payment cycles under government-led financial inclusion programs would mean that the service at the grassroots level would be continuous.
• Investment in secure digital infrastructure, fraud risk management, Aadhaar-enabled payments, and rural connectivity from the very beginning is important in order to differentiate and protect first-time digital users, building their confidence in formal financial systems.

Pranay Aggarwal, Director and CEO of Stoxkart feels the defence sector’s growth can be accelerated through stronger Budget support for indigenisation and exports.

• Expand Positive Indigenisation Lists, strengthening defence industrial corridors with better fiscal incentives and infrastructure, simplifying licensing and export procedures.
• Increase allocations for R&D, innovation and technology transfer, while targeted export incentives and credit support can help scale defence exports towards long-term targets.

According to Satishwar B, MD & CEO of Bandhan Life, the GST waiver has made life insurance more affordable and accessible and he hopes this year’s Budget will continue that momentum.

• Better tax benefits for protection and health plans—under both tax regimes—can help more families get covered.
• Stronger support for pension products and an increase in the premium cap for ULIPs to Rs. 5 Lakh, similar to traditional plans.
• Simple, inclusive reforms can go a long way in securing India’s financial future and accelerate progress towards ‘Insurance for All by 2047.

MSMEs expect Union Budget 2026 to reinforce GST reforms to ensure operational ease and continuity for the sector. As per the 10th NeoInsights report, 86% of MSMEs expect business growth in 2026 and are pinning hopes on Finance Minister Nirmala Sitharaman's announcements.

• Around 25% of MSMEs highlighted the importance of faster and improved access to government schemes, alongside continued simplification of GST and compliance processes.
• A number of MSMEs also noted the role of digital tools and online payments in improving efficiency, transparency, and customer reach. Read full here

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.

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.

With a little over two weeks to go for the Union Budget 2026, eyes will be on the Economic Survey, a key document released ahead of the annual budget announcement.

With the government having set a date of 1 February 2026 for this year's Union Budget, the Economic Survey is expected to be tabled in Parliament a day prior to it.

• 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.

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.

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 the highly anticipated Union Budget 2026 will be announced in Parliament on Sunday, 1 February, by Finance Minister Nirmala Sitharaman.

Earlier PTI had cited sources saying that the finance minister would present the Budget on Sunday, saying“We have a fixed day for the presentation of the general budget. The concept of Sunday was brought by the British.”

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

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.

Good morning and welcome to Mint's LIVE coverage ahead of the Union Budget 2026, as we bring you the latest news and updates and industry expectations ahead of the official announcement this year.