Budget expectations Highlights: What does the industry want from Finance Minister Nirmala Sitharaman?

Budget expectations LIVE updates: Ashwinder R Singh, Chair, CII Real Estate; Vice Chair, BCD Group; Advisor, NAR-India, said that the upcoming Union Budget 2026-27 is expected to accelerate India’s housing cycle by improving affordability and reducing friction.

“The Budget can accelerate India’s housing cycle by improving affordability and reducing friction. Key expectations include a higher home-loan interest deduction, continued incentives for affordable housing, and faster approvals through digitisation and single-window timelines. A stable, predictable policy framework will be the biggest confidence signal for both consumers and investors,” said Ashwinder R Singh.

Budget expectations LIVE updates: Harsha Vardhana- Founder & Group CEO, Atom Financial Services, said that the simplified and predictable approach to capital gains in the Union Budget 2025-26.

“As India’s markets evolve and investor participation continues to broaden, coherence in policy matters becomes just as important as growth itself. People are willing to stay invested for the long term, but they seek clarity. That is why, going into Budget 2026, we expect meaningful direction on capital gains and holding periods,” said Vardhana.

“From a wealth management perspective, clear capital gains treatment allows us to channel conversations to where they belong. Asset allocation, risk management and long-term goals should drive portfolios, not uncertainty around taxation. India has taken important steps in bringing household savings into financial markets. The next phase is about strengthening trust and staying power. A simplified and predictable approach to capital gains in Budget 2026 would be a strong signal that long-term investors remain at the centre of policy thinking,” said the expert.

Budget expectations LIVE updates: Ravi Saxena, Co-Founder and CEO of Wonderchef, said that the Indian government should adopt a ‘trust-but-verify’ model that rewards transparency with instant, collateral-free credit through integrated digital platforms.

“The Indian MSME sector is at a critical transition. For this Union Budget, the focus must shift from subsidies to driving a fundamental behavioural change of moving from khata culture to institutional transparency. Many microenterprises remain informal due to 'compliance fear.' To bridge this, the government should adopt a 'trust-but-verify' model that rewards transparency with instant, collateral-free credit through integrated digital platforms,” said Saxena.

“I expect the Finance Minister to deal with structural problems, like making sure that Section 43B(h) is strictly enforced so that big companies pay their MSME debts within 45 days. Furthermore, aligning tax audit exemptions and linking Udyam registration to preferential tariffs will transform formalisation into a ladder for growth rather than a weight of compliance,” said the expert.

Ravi Saxena also said that the Union Budget should focus on compliance enablement, simplifying regulations and decriminalising minor procedural lapses.

Budget expectations LIVE updates: Dr Ramya Chatterjee, Chief of Solitaire, expects that the upcoming Union Budget 2026 will clear a roadmap for purpose-built learning technology.

The expert anticipates that the government will support the deployment of immersive and responsive systems, which are essential for sustaining productivity gains and workforce competitiveness.

“For the upcoming budget, our expectation is a clear roadmap for purpose-built learning technology. In 2026, the priority is no longer just ‘going digital,’ but ensuring that digital tools drive measurable outcomes in both schools and workplaces. By supporting the deployment of immersive and responsive systems, the government can help create a seamless bridge between learning and earning. This shift is essential for sustaining productivity gains and ensuring that our workforce remains competitive in an increasingly complex global environment,” said Chatterjee.

Budget expectations LIVE updates: Kunal Vasudeva, Managing Director and Co-founder of Indian School of Hospitality, urged the Indian government to put education at the highest decision-making table in the Union Budget 2026-27.

“Budget 2026 must place education in the everyday vocabulary of the country and give it a seat at the highest decision-making table. This requires absolute priority over the next two decades, starting with a fundamental reset of primary education, particularly in rural India where outcomes remain uneven,” said Vasudeva.

The expert also focused on one practical lever, which is the development of indigenous AI tools that strengthen teachers’ everyday effectiveness and enable rural classrooms to meet the same functional standards as private schools.

“India’s domestic equity ecosystem has structurally strengthened, with average monthly SIP inflows now doubled to ₹28,202 crore in FY26 from ₹13,000 crore in FY23, reflecting that retail investors are a stabilising counterbalance during periods of global volatility. In this context, a calibrated rationalisation of LTCG would serve less as a tax concession and more as a behavioural incentive for long-term capital formation. Even marginal improvements in post-tax returns compound meaningfully over long holding periods, reinforcing household participation in financial assets.India, as of October 2025, has nearly 13.6 crore investors holding more than 21 crore demat accounts, with a growing share of first-time investors entering markets from non-metro regions. While India’s equity taxation remains reasonable by international standards, frequent recalibration of capital gains parameters can introduce uncertainty for retail investors who lack institutional tax-planning flexibility. In a maturing market, policy visibility becomes as important as tax rates themselves. A clearly articulated medium-term capital gains framework would strengthen confidence, support disciplined investing behaviour, and complement the government’s emphasis on transparency, compliance, and long-term market development without materially impacting fiscal outcomes.,” says Vanita Salian Bangera, Head Institutional Sales Trading, Aikyam Capital Group.

Akshali Shah, Executive Director, Parag Milk Foods feels that a continued focus on the dairy and agriculture sector, particularly on strengthening infrastructure, improving farm productivity, and expanding milk collection, can help the sector become more efficient and globally competitive.

“Investments in modern processing technology, organised supply chains, and better farm practices will not only support farmers and reduce wastage but also give the Indian dairy sector greater global reach and recognition for quality products,” Shah added.

Expectations:

• Boosting consumption remains an important ask from the FMCG sector. While urban demand is showing signs of recovery, rural consumption—though resilient—requires continued policy support, especially in the face of monsoon risks and inflationary pressures.
• Initiatives such as incentivising modern processing facilities and expanding cold-chain logistics can help improve milk availability, product quality, and overall efficiency.
• By building on recent progress and supporting farmers with better access to credit and resources, the sector can become more resilient, competitive, and capable of meeting growing consumer demand.

According to Abhishek Dua, Co-Founder of Showroom B2B, the apparel and textile sector will be looking for measures that improve ease of doing business for MSME manufacturers including smoother access to working capital and support for technology adoption across production and sourcing.

“Continued investment in logistics, warehousing and digital supply chains; and consistent focus on sustainability, skill development and organised retail participation will strengthen India’s position over the long term,” he added.

Key Expectations:

• Provide investment and encourage Make-in-India MSME manufacturers.
• Boost domestic production to safeguard jobs.
• Promote domestic manufacturers to adopt technology and strengthen competitiveness.

According to Ramani Sastri, Chairman & MD of Sterling Developers, the real estate sector is hopeful for progressive reforms that could benefit homebuyers and the industry.

Expectations include:

• Policies that will address both the challenges faced by developers and the evolving needs of homebuyers.
• Expansion in the definition of affordable housing in urban areas, and interest subsidy for first-time homebuyers who currently fall outside the affordable housing benefits
• GST rationalisation on under-construction homes and quicker approvals to reduce project delays.
• Raise the deduction limit for interest payment on home loans from the existing ₹2 lakh a year to ₹5 lakh.
• Grant of industry status to realize real estate sector's full potential, as it will unlock affordable funding and streamline regulatory processes.
• Continue focus on more infrastructure development to drive housing demand across the country.
• Announcements to enhance ease of doing business for the developers.

According to Dr Sajeev Nair, Founder and Chairman of Vieroots Budget presents a critical opportunity to shift healthcare in India from reactive to preventive and predictive wellness.

“We hope to see stronger policy and fiscal support for AI-driven health platforms, digital diagnostics, and personalised wellness solutions that leverage genomics, biomarker intelligence, and real-time health data,” he said.

• Incentives for health-tech startups can significantly improve early risk detection and reduce long-term healthcare costs.
• Integrating wearables, remote monitoring, and digital therapeutics into insurance frameworks and public–private partnerships.
• Focused push on data infrastructure, ethical AI frameworks, and innovation-led healthcare.

According to Rohit Chaturvedi, Partner – Transport & Logistics at Forvis Mazars India, the transport and logistics sector expects policy interventions that move beyond incremental capacity creation toward enhancing competitiveness, sustainability, and deeper global integration.

“Budget 2026 therefore represents a critical opportunity to unlock productivity gains across aviation, maritime, and surface transport ecosystems through targeted fiscal, financial, and regulatory measures,” he noted.

• Maintenance, Repair, and Operations (MRO) segment seek capital-linked incentives such as investment subsidies and accelerated depreciation, calibrated through outcome-based cost benefit assessments.
• Ports and bunkering seek enhanced infrastructure support for bunkering facilities, rationalisation of duties on bunker fuels, and targeted incentives for greener alternatives such as methanol and LNG.
• Budgetary support for the development and adoption of an integrated deep-tech logistics stack covering visibility, tracking, automation, and data integration.
• Broader incentives under PLI and export promotion schemes, alongside the potential grant of infrastructure status.

According to Anirudha Jalan, Co-Founder and Chief Strategy Officer at Recykal, they would like the Budget to address the need for a dedicated circular economy fund to help enable the build of critical recycling and processing infrastructure needed in India.

Expectations include:

• Lower interest refinance windows through NABARD and SIDBI for circular startups and waste management companies.
• Reducing India's dependence on imported critical minerals, needs three focused interventions:

1. Blended financing and research grants for battery and e-waste recycling technologies that can create domestic supply chains.
2. Reduced GST slabs for the waste management sector (current 18% rate) to encourage formalization of the sector.
3. Investments in awareness, teaching for sustainable development in schools and colleges, etc.”

According to Nikhil Agarwal, President at CJ Darcl Logistics, there is need for execution-driven reforms across multimodal transport, the driver ecosystem, and outcome-based sustainability incentives in Union Budget 2026-27.

Expectations include:

• Focus on strengthening the logistics ecosystem through execution-led reforms with clear carbon-reduction outcomes.
• Faster multimodal integration particularly greater rail and coastal share supported by efficient first- and last-mile connectivity can significantly lower logistics costs while delivering meaningful reductions in carbon emissions.
• Priority for driver ecosystem — investments in driver training, upskilling, safety, and high-quality rest infrastructure-linked to performance and efficiency incentives to improve reliability and address growing shortage of skilled drivers.
• Outcome-based incentives linked to measurable carbon emission reductions in logistics operations.

Gurvinder Gandhi, CFO at Mitsubishi Electric India feels that the Budget can accelerate India’s manufacturing journey, by enabling the domestic manufacturing of advanced factory automation tools, including PLCs, industrial robots, cobots, and servo systems.

Expectations include:

• Incentives in these segments can assist the Indian industry to go beyond fragmented automation to factory ecosystems that are consistent with global standards.
• Reinforcement of high value engineering and innovation through incentive policy assistance to enhance involvement in global value chains and establish long-term technical capabilities.
• Focus on technologies that address air quality and energy efficiency across industries through incentives.

According to Badal Yagnik, CEO & MD at Colliers India, Budget 2026 is expected to prioritize growth across economic sectors and usher in equitable real estate development through policy incentives and tax rebates.

“The Union Budget is likely to serve as a guiding tool balancing fiscal discipline alongside growth — keeping India globally competitive in key sectors including real estate,” he said.

Expectations include:

• Standardization and revision of affordable housing criteria to reflect price reality of Tier I cities can provide a demand-side boost to residential real estate.
• Supply side push through infrastructure augmentation and capacity building can trigger long-term growth levers across real estate segments.
• Real estate democratization and retail investor participation can be encouraged by making REITs and SM-REITs more attractive.
• Lay foundation for sustained long-term growth, cushioning the impact of global volatility and trade frictions to an extent.

Union Finance Minister Nirmala Sitharaman is expected to present the Union Budget on Sunday (1 February), as per reports, despite confusion over whether the government would opt for either Saturday or Monday instead.

Union Minister Kiren Rijiju said that the decision will be taken by the Cabinet Committee on Parliamentary Affairs “at an appropriate time”, while PTI cited sources saying: “We have a fixed day for the presentation of the general budget. The concept of Sunday was brought by the British.”

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.