Budget 2026 Expectations highlights: Two days ahead of FM Sitharaman's Budget speech we decode industry demands

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Sudarshan Ballal, the Chairman of Manipal Hospitals, said that from the upcoming Budget, he expects a viable universal health insurance in general, and not necessarily health care alone.

He outlined a few other demands of the healthcare sector:

— Incentivise semi urban rural health care workers including doctors

— Use AI , technology to bridge and compliment health care services especially in rural areas.

— More investments in primary and preventive care to include antenatal care, vaccinations and nutrition of children.

— Create awareness and measures to prevent communicable diseases like respiratory illnesses, vector borne diseases and gastrointestinal infections.

— Create awareness about the increasing burden of non communicable diseases and preventive measures to control life style illnesses.

"Since cancer is growing in leaps and bounds invest in creating awareness , prevention, surveillance, early detection and care of these patients. Have more centres in each district for intensive care and super specialty care. Continue the programs to increase undergraduate and postgraduate trainees in the country," he said.

B. Shravanth Shanker, Managing Partner at B. Shanker Advocates LLP, believes that the government should consider rationalising Securities Transaction Tax (STT) in delivery - based equity trades, as it directly erodes long-term, post-tax returns for retail investors.

“Unlike speculative trades, delivery investments align with capital formation and household wealth creation,” he said.

He further explained that a calibrated reduction in STT could incentivise genuine equity participation without materially impacting revenue. “This would also align India’s tax structure with global practices, where transaction taxes on long-term investments are relatively low”

Differentiating STT rates would introduce fairness and economic logic into the tax framework, he noted, adding that high-frequency and derivative trades generate systemic volatility and profit from short - term price movements, unlike long - term retail investments that stabilize markets.

“A higher STT on speculative trades and lower STT on delivery - based investments could align taxation with risk and market impact. Such a structure would also support the government’s objective of promoting household equity ownership,” he said.

“Setting up data centres in India requires clients to navigate a convergence of data regulation, emerging AI governance, IP protection and sustainability obligations, all of which directly impact investment risk and scalability,” said Goldie Dhama, Partner at Deloitte.

Speaking of data localisation, Dhama said companies should clearly separate regulated datasets, design compliant data flows, and put proper contractual and technical safeguards in place so they can stay flexible without any regulatory exposure.

“AI compliance today is about managing cumulative obligations under privacy law, intermediary rules, competition regulation and consumer protection. Businesses should consider adopting internal AI governance frameworks, documentation standards and risk assessments,” he further noted.

On IP perspective, Dhama explained that data centres are increasingly hosting proprietary software stacks, automation systems and AI models. “Clear licensing structures, open-source hygiene, and protection of internally developed technologies are critical to avoid value leakage and downstream disputes, particularly in joint ventures and hyperscale partnerships”

“Sustainability has become a board-level issue for data infrastructure. Power sourcing, water usage, environmental approvals and long-term ESG disclosures directly influence financing and regulatory approvals. Companies that integrate sustainability metrics into site selection and design tend to unlock faster approvals, better financing terms and stronger long-term operational resilience,” Dhama said.

As we approach the Union Budget for FY27, the geopolitical imperative underscored by recent border volatilities such as the events of May 2025 necessitates a recalibration of our security spending, said B. Shravanth Shanker, Managing Partner at B. Shanker Advocates LLP.

While defence expenditure as a percentage of GDP has moderated to approximately 1.91% in FY26 from a peak of 2.45% in FY21, he noted, that the consensus view is that this trend must reverse.

“We anticipate a 10–15% year-on-year increase in the overall defence budget, with the strategic intent to gradually edge spending closer to 2% of GDP. This is no longer just about fiscal arithmetic; it is about financing credible deterrence in a neighbourhood defined by heightened strategic competition,” he said.

“In the Union Budget 2026–27, there is a clear and urgent need to strengthen India’s response to the growing mental health challenge, which is increasingly becoming a concern in nearly every household,” said Saroj Dubey, Mental Health Specialist.

Unlike most physical healthcare, mental health treatment is largely outpatient, recurring, and paid out-of-pocket, making it financially inaccessible for many, she noted.

Here's what the sector expects from Budget 2026:

— The government should prioritize scaling programmes like Tele-MANAS, as well as expanding community-level mental health services, and supporting preventive approaches such as mindfulness, counselling, and emotional resilience.

— Reduction of GST on mental health and counselling services should also be considered, from the standard 18% to 0% or 5%.

— Introduce targeted income-tax deductions such as a ₹10,000– ₹15,000 annual deduction for mental-health treatment and counselling to make care affordable, reduce out-of-pocket burden, and encourage early intervention.

"These steps are essential not only to bridge India’s large treatment gap but also to ensure timely, preventive, and holistic care for all,” she said.

Vinit Bediya, the chairman and managing director of Silver Consumer Electricals Limited said that the Union Budget 2026 should continue to support domestic manufacturing across solar PV modules, power electronics, motors, pumps and lighting solutions

“Policy stability through consistent PLI frameworks, rationalisation of customs duties on critical raw materials, and incentives for backward integration, including components and upstream technologies, will be essential to reducing import dependence, strengthening supply-chain resilience, and building globally competitive manufacturing ecosystems,” he said.

He further noted that such measures can enhance cost efficiency, encourage long-term capacity creation and enable organised MSMEs to invest in technology, automation and localisation.

“A well-aligned policy framework that supports energy efficiency, clean manufacturing and skill development will help advance the objectives of Make in India and Atmanirbhar Bharat, while accelerating India’s transition towards a resilient, self-reliant and innovation-led manufacturing economy,” he said.

“As we approach the Union Budget 2026, the focus must clearly shift toward long-term growth driven by policy stability, simplified but effective compliance, and stronger supply chains to bridge the gap between urban and rural,” said Amit Anand, the Managing Director of Apis India.

He believes that rationalisation of processes such as tax deduction at source can ease operational complexity for the food and FMCG sector.

While global trade developments, including India-EU engagement, reflect India’s deeper integration with international markets, he noted that, key agri-products such as honey remain outside these trade frameworks.

“With this exclusion, the budget’s role in strengthening overall infrastructure to enable domestic business spread and export readiness becomes even more critical,” he said.

Anand further added that a growth-oriented budget and measurements that increase the disposable income of households can help Indian brands scale responsibly while strengthening domestic consumption and global competitiveness.

Rohit Jain, the Managing Partner at Singhania & Co. said that it would be good if Budget 2026 rationalizes the inverted duty structure under GST, which currently penalises domestic production over imports.

An Inverted duty structure arises when the GST rate on inputs, such as raw materials or components, is much higher than the GST rate on the finished products.

He further added that the government should provide tax clarity on Section 10(6C) for foreign OEMs in G2G partnerships, as it is vital for securing global technology transfers.

Vishal Anand, the founder and pro chancellor of Shoolini University said that the vision of NEP 2020 and ‘Viksit Bharat’ rests on scale, quality, and global relevance in higher education.

“To move towards a 50% gross enrolment ratio, the sector will require sustained long-term investment of nearly $30 billion, supported by policy mechanisms that enable affordable, long-tenure funding and responsible access to capital markets for education institutions,” he said, outlining the education sector's expectations from the upcoming Budget.

He believes India’s role as a global talent engine is equally critical. “By enabling globally accredited skill programmes and internationally aligned certifications, the Budget can help position India as a skill exporter to the world while creating high-value employment pathways for our youth,” he said.

"Strengthening medical and paramedical education, particularly in Tier-2 and Tier-3 regions, through targeted grants and infrastructure support for private institutions, will be essential to building a resilient healthcare workforce and advancing the inclusive development goals of Viksit Bharat.”

“As India rapidly moves towards deeper digital inclusion, the upcoming Union Budget 2026 presents an excellent opportunity to accelerate the growth of the electronics industry through targeted interventions,” Arijeet Talapatra, the CEO of itel India.

He believes that this growth momentum can be sustained through forward-looking policy support for semiconductors and high-end electronic components. According to Talapatra, these are

critical towards reducing India’s import dependence, thereby strengthening the domestic ecosystem and enhancing the country's global competitiveness.

“With industry efforts underway to localize key components manufacturing under the ECMS policy, focused fiscal support can help build resilient and stable domestic supply chains aligned with the Government’s vision of making a Viksit and Atmanirbhar Bharat,” he said.

Talapatra further advised that a dedicated push for innovation through investment schemes and R&D linked incentives will go a long way towards enabling tech brands to design next-generation devices, democratizing technology for millions of consumers across Bharat.

Mahesh Ravaria, ED of Beauty Garage feels that the Indian personal care and hygiene sector is poised for growth, and the 2026 Union Budget presents an incredible opportunity to transform the industry.

• Focused incentives, i.e., prioritizing infrastructure development and supply chain enhancements, will encourage MSMEs to scale operations and expand into global markets.
• A simplified roadmap within the 'Make in India' initiative, with rationalized customs duties on critical materials and ingredients, coupled with the GST inverted duty structure, will provide homegrown brands with the liquidity to invest in R&D and future-ready technology.
• Smart policies, such as these measures, will enable the industry to deliver world-class products. while contributing significantly to the national economy.

Ranging from regulatory clarity to clear taxation policy, and cryptocurrency framework, the virtual digital assets (VDAs) stakeholders in India have high expectations from the government. They feel the budget presents an opportunity to strengthen the VDA ecosystem, refine taxes, and support responsible market development. Read full here

The healthcare industry believes that Budget 2026 will indicate how the sector is positioned within India’s growth priorities. Thus, the healthcare sector is looking forward to policies that support need for infrastructure expansion across rural India, increased capex allocation, tax deductions for patients, insurance regulation and other key areas of need. Read more here

“As we approach Union Budget FY27, the railway technology sector stands at an exciting threshold, thanks to the visionary leadership driving India's rail revolution. We commend the government's tireless efforts in prioritizing safety, security, and innovation across the ecosystem, evident in groundbreaking initiatives like green hydrogen adoption and Kavach 4.0," said Gaurav Lath, Joint Managing Director, Concord Control Systems.

“We appreciate Union Minister Ashwini Vaishnaw’s (Minister for Railways, Information & Broadcasting and Electronics & Information Technology, GoI) focus on policy-driven growth, including infrastructure investment, manufacturing and innovation support, inclusive development, and regulatory simplification. The sector strongly supports this approach, which will create a stable, predictable environment to scale homegrown technologies and attract global investment,” he further said.

“The sector seeks sustained policy support to scale from pilots to commercial green hydrogen infrastructure for railways. Long-term policy visibility, paired with targeted incentives for indigenous R&D in advanced electronics, will supercharge homegrown players like us Concord Control Systems Limited. Strengthened public-private partnerships, swift technology validation, and streamlined certification, building on the government's robust frameworks therefore will fast-track innovations. These steps will further cement Atmanirbhar Bharat, and position India as a rail tech superpower. We're confident this budget, under Hon'ble Finance Minister's guidance, will deliver that transformative foundation,” Lath added.

“The Union Budget 2026 presents a clear opportunity to fast-track investments in grid modernisation with increasing share of renewables in the energy mix. Higher budgetary support for renewables, tax and GST rationalisation for Battery Energy Storage Systems (BESS) are critical to improve project viability and attract private investment,” said Saurabh Kumar, Vice president, India, Global Energy Alliance for People and Planet.

“Extension of PM-KUSUM scheme to more states will further accelerate agri-solarisation. We also hope that incentives for utility-led models for rooftop solar adoption will promote revenue generation for DISCOMS and encourage adoption by low-income households,” he added.

“As India navigates the complexities of global supply chain shifts, the Union Budget 2026 presents a pivotal opportunity to redefine the competitive edge of our MSME sector. Now more than ever, it is imperative that the budget focuses on strengthening climate finance infrastructure specifically for small and medium enterprises,” said Rajashri Sai, Founder & CEO, Impactree.ai.

“The bridge to this transition is technology. We hope to see the government incentivize digital ecosystems that help MSMEs translate their sustainability performance into financial credibility. By leveraging data-driven platforms, we can simplify the reporting process, allowing small businesses to unlock 'green' capital that was previously out of reach. This isn’t just about compliance; it is about building a 'Green Credit' framework where an enterprise’s social and environmental resilience becomes an asset on its balance sheet. The ask is to successfully democratize access to climate finance through technological intervention as it will help India build a growth model that is both resilient to global shocks and highly investable for the future. We look forward to a Budget that empowers MSMEs to be the vanguard of India’s sustainable industrial revolution,” Sai added.

“As we approach the Union Budget 2026, BD India acknowledges the government’s continued commitment to enhancing patient access through the strengthening of healthcare infrastructure, including the expansion of hospital capacity and medical education," said Atul Grover, Managing Director, Becton Dickinson India & MTaI Member.

“We look forward to budgetary measures that will further elevate the quality of care till the last mile, supported by increased investments in critical areas such as infection prevention and control to enhance safety outcomes for patients as well as healthcare professionals, antimicrobial resistance mitigation and, comprehensive cancer diagnosis and management,” he further said.

"BD India remains committed to supporting and partnering in the government’s vision of a safer, higher quality, and more resilient healthcare ecosystem,” Grover added.

Micro, small and medium enterprises (MSMEs) in India are looking forward to Centre bringing measures in Union Budget 2026, that can reinforce measures from GST reforms in order to ensure operational ease and continuity for the sector, an industry study showed.

The industry feels the Union Budget “must reinforce its commitment to sustainable manufacturing, MSME enablement, and technology-led supply chains”. Check story here

Focus on edtech and education sectors is important for the Indian government's Viksit Bharat 2047 goal, feel industry voices.

Stronger support for personal finance in the education and skilling sector, tax benefits on professional courses, reduced GST on edtech services, simplifying access to education loans, increased public spending on digital learning infrastructure is important for India to build a skilled workforce, they say. Read full here

• India's first budget was presented by RK Shanmukham Chetty in 1947, after independence. Challenge was to battle the economic headwinds.
• FM Nirmala Sitharaman still holds the title for the longest budget speech in 2020, at 2.42 hour.
• As part of Halwa ceremony, halwa is prepared and served to officials and staff members of the finance ministry who are involved in preparing the Budget.
• In 1950, the Budget was leaked during the printing process. After that, the printing process was shifted from Rashtrapati Bhawan to Minto Road. In 1980, it was shifted to the North Block basement.
• Until 1955, the Budget document was exclusively in English, but after 1955-56, it started getting presented in both English and Hindi.

Union Budget 2026: The Budget will be presented by Finance Minister Nirmala Sitharaman in Parliament on 1 February 2026, Sunday. This will be Sitharaman's ninth consecutive Budget speech and is the first time that the India Union Budget will be presented on a Sunday in at least a decade.

Here's all you need to know about the scheduled date and time, where and how to watch the Budget announcement speech by Finance Minister Nirmala Sitharaman this weekend. Read full here

Union Budget 2026 is just around the corner. Knowing the Budget keywords will give you a fair idea of what is being said to shape public spending and revenues for the fiscal year.

Here is a roundup of important Budget keywords that will be relevant during FM Sitharaman's Budget 2026 speech. Check detailed glossary here

Union Finance Minister Nirmala Sitharaman already has quite a few Budget records up her sleeve, like presenting the most consecutive Budgets ever and making the longest Budget speech. However, her 2025 Budget will definitely go down in history as one of the most important Budgets that reshaped India's consumption. At a time when India's consumption was going down, Sitharaman came in right on time with her Budget that benefitted millions of taxpayers — especially the middle class. The FM introduced new tax slabs, and lowered income tax liabilities under the New Tax Regime. Taxpayers earning up to ₹12 lakh per year were required to pay zero taxes now, while the limit increased to ₹12.75 lakh for salaried people as standard deduction was increased to ₹75,000. This gave almost instant results, boosting consumption as taxpayers were now getting more money in hand.

The Dream Budget of 1997 was presented by P Chidambaram, one of the most famous Finance Ministers of India. In this Budget, Chidambaram overhauled India's tax system by simplifying it, reducing income tax and corporate tax. The Dream Budget aimed to boost investment, modernise fiscal policies, and make India's tax system more competitive. It is still remembered as the Budget that made India more growth-oriented and investor-friendly.

One of the most important Budgets in India's history, the 1991 Union Budget was presented by Dr Manmohan Singh when he was the Finance Minister of the country. India was struggling with a balance of payments crisis and low foreign exchange reserves and the government introduced major reforms to overcome the situation. The Epochal Budget, as it is now dubbed, ushered an era of liberalisation, privatisation, and globalisation by removing restrictive licenses, deregulating industries and opening up the Indian economy to foreign investments. The aim was to move India from a state-controlled economy to a more competitive and open one. The changes boosted India's economic growth, brought in foreign capital and changed India's position in the global economy.

Budget 1986, presented on 28 February that year by VP Singh under the Congress government was the first step towards abolishing License Raj in India. The Budget, which provided both incentives and punishments, was dubbed the “Carrot and Stick” Budget as it came down heavily on tax evaders black marketers, and smugglers. This Budget also implemented the MODVAT (Modified Value Added Tax) credit to bring down the cascading tax impact on consumers.

The 1973 Budget presented by Yashwantrao Chavan came to be known as the ‘Black Budget’, and was presented at a time when India was undergoing an economic crisis. That year, the limit of government finances came into light with a large fiscal deficit of ₹550 crore, rising oil prices, and food shortages.

The Union Budget presented in 1957-58 by then Finance Minister TT Krishnamachari introduced the wealth tax for the first time in India's history. This was done with an aim to reduce inequality and broaden the tax base. With the 1858 Budget, the government expanded its fiscal toolkit. It remained part of India's tax law until it was abolished in 2015.

The first Budget of independent India was delivered by RK Shanmukham Chetty on 26 November, 1947, laying the foundation for India's fiscal policy. Over the years, finance ministers of India have delivered some of the most historic budgets that have reshaped the country's economic landscape. Here is a list of five such budgets that are considered key in strengthening India's financial situation.

Notably, the government's health report of the Indian economy, the Economic Survey 2026 was tabled in Parliament on 29 January.

According to the Economic Survey 2026, the Indian economy is expected to expand by 6.8-7.2% in FY27, supported by strong macro fundamentals and a series of regulatory reforms. The survey also found that India’s core and headline inflation rates are likely to be higher in FY27 than in FY26. However, it is unlikely to be a concern. As of November 2025, India's fiscal deficit stood at 62.3% of the Budget Estimates, and the government aims to attain a fiscal deficit target of 4.4% of GDP by FY26, the survey noted.

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.

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 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.

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.

Good morning and welcome to Livemint's extensive coverage of Union Budget 2026. Days ahead of Finance Minister Nirmala Sitharaman's Budget speech on 1 February (Sunday), we bring you the latest news and updates ahead of India's eagerly awaited finance event.