Budget 2026 Expectations Highlights: Policy and govt reforms in high demand ahead of Fin Min Sitharaman's speech

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Budget 2026 News LIVE: Smitha Shetty, Regional Director, APAC, Achilles Information Limited, said that the upcoming Union Budget 2026-27 holds the opportunity to strengthen the country's supply chain beyond short-term incentives.

“As India looks ahead to Budget 2026, there is a real opportunity to strengthen the foundations of the country’s supply chains in ways that go beyond short-term incentives. Reducing strategic dependence on a limited set of geographies will depend on thoughtful policy support that improves logistics, deepens domestic supplier ecosystems and builds long-term industrial capability, alongside fiscal measures,” said Shetty.

“Budget measures that support greater supply chain visibility, help MSMEs connect into global value chains, and invest in logistics and critical inputs can play a meaningful role in strengthening India’s global competitiveness. Over time, this will also help businesses manage risk more effectively while advancing sustainability and resilience across the wider economy,” said the industry expert.

Budget 2026 News LIVE: Dr Partha Chatterjee, Dean of Academics and Professor of Economics, Shiv Nadar University, Delhi NCR, said that the upcoming Union Budget 2026-27 faces challenges over currency volatility, shifting capital flows, tariff risks, and inflation spillovers.

“The budget must recognise that we live in a very uncertain world and it should ensure the economy against uncertainty. The central challenge for Budget 2026 is uncertainty—currency volatility, shifting capital flows, tariff risks, and inflation spillovers. The budget should ensure the economy against uncertainty both at the macro level and micro level by building macro-resilience in an uncertain world and reducing the cost of risk for producers and exporters, particularly for MSMEs. The budget should also incentivise channelling of patient capital to long-term projects,” said the industry expert.

Dr Chatterjee also said that the strong headline growth and lower inflation are welcomed, and the upcoming Union Budget 2026-27 should preserve that aspect.

Budget 2026 News LIVE: Pratap Daruka, CFO of Tredence, an artificial intelligence (AI) solutions provider, said that the central government in its Budget 2026-27

“As the IndiaAI Mission scales and India’s startup and GCC ecosystems deepen, Budget 2026 must clearly recognise AI, data engineering, and applied analytics as strategic growth infrastructure. A targeted policy push—through stronger R&D incentives, AI-ready digital and compute infrastructure, clean-power data centres, and deeper public–private collaboration on skilling—can help India shift from a talent supplier to a creator of AI platforms, intellectual property, and high-value exports. This shift can unlock millions of future-ready jobs and firmly establish India as a global leader in the next phase of AI-led growth,” said the industry expert.

“With AI projected to inject $1.7 trillion into the economy by 2035, budget 2026 will be a primary catalyst for accelerating innovation across finance, healthcare, retail, and manufacturing,” said Daruka.

Budget 2026 News LIVE: Pankaj Chandna, Co-Founder of Vaidam Health, said that the medical tourism industry is expecting continued investment in healthcare infrastructure, expansion of digital health adoption, and improved access for international patients.

“Policy reforms are recognising medical value travel as a structured, systems-led growth opportunity. Continued investments in healthcare infrastructure, expanding digital health adoption, and improving access for international patients have created a strong foundation,” said the expert.

Chandna also said that the next phase of growth will depend on clearer policy direction and faster, simpler medical visa processes, along with well-defined cross-border care pathways and patient facilitation standards that reduce uncertainty for families planning treatment.

“Looking to 2026, with the right policy support, India can extend medical tourism beyond metro cities into emerging healthcare hubs, building a more inclusive and resilient ecosystem,” said Pankaj Chandna.

Budget 2026 News LIVE: Rajesh Sharma, Managing Director of Capri Global, said that in the Union Budget 2026-27, the non-banking financial companies (NBFCs) are expected to play a decisive role in extending last-mile credit.

“As India approaches the Union Budget 2026–27, Non-Banking Financial Companies are expected to play a decisive role in extending last-mile credit, sustaining consumption, and supporting economic stability—particularly in underserved and emerging segments of the economy,” said the industry expert.

The expert also said that the MSME sector remains a cornerstone of the government’s Viksit Bharat vision, as it fuels entrepreneurship, employment generation, and grassroots-level growth.

Ravindra Agrawal, Chairman of KisanKraft feels that Budget 2026 is an opportunity to undertake architecture-level reforms that the Indian agriculture sector has long needed.

• Key priority must be efficiency-driven “inputs subsidy” reform. We need to shift from consumption-based subsidies to scientifically designed, Package of Practice (PoP)–linked incentives tied directly to production outcomes.
• Performance-based support improves soil health, enhances resource efficiency, and strengthens farmer incomes.
• Mechanisation subsidy should be delivered strictly through DBT and do away with separate approval processes at each state and their various departments. It should continue to be restricted to FMTTI/BIS-approved equipment to ensure impact in the field.
• India must rethink seeds, package of practices, and cropping patterns on a mission footing.
• Another foundational reform is universal, digitised land records. Clear titles are indispensable for affordable credit, long-term farm investments, and accurate, data-driven policymaking. Without them, farmers struggle for access to institutional finance and land values remain artificially depressed.
• Accelerate technology-enabled supply chains. Purity, standardised grading, modern storage, traceability systems, and logistics infrastructure can sharply reduce post-harvest losses and enhance farmgate prices, while enabling higher export earnings.
• Parallelly, raising Seed Replacement Rates must be prioritised to ensure quality inputs and productivity gains at the farm level.
• Pursue stable, multi-year policies for global competitiveness—from reliable availability to certification systems, to residue control (trace amounts of harmful chemicals), so that Indian produce consistently meets international standards.

Mangesh Chauhan, MD of Sky Gold & Diamonds shared that the gems and jewellery sector seeks measures that reduce costs, simplify trade procedures, boost domestic demand, and enhance global competitiveness.

• A key priority is rationalising import duties on gold, silver, platinum, coloured gemstones and other essential inputs. Lower duties will ease manufacturing costs, improve pricing for exporters, and help Indian producers compete more effectively in global markets.
• Simplification of customs procedures through faster clearances, risk-based checks, and digital documentation would reduce delays and lower logistics costs for exporters.
• On the domestic front, streamlining GST on jewellery, including a reduction from the current 3% to around 1–1.25%, will lower the cost to consumers, encourage formal sales, and broaden the tax base.
• There is also a clear industry call for the early rollout of the Tourist GST Refund scheme at major airports, which will help retain luxury retail spending within India.
• Additional support for skills development, infrastructure in export clusters, and industry formalisation will further strengthen India’s position in global markets.

Aditya B Yamsanwar, Director at Team One Architects feels that in order to make non-metro talent truly GCC-ready, Budget 2026 must pivot from intent to execution.

• Enable urban-scale development—planned business districts, ESG-compliant Grade-A offices, mobility, housing and ecosystem anchors that create employment density.
• Integrate GCC objectives with Smart Cities investments in transit, utilities and digital infrastructure can help convert today’s momentum into structurally sustained, infrastructure-backed growth.

Rajan Luthra, CFO of Action Construction Equipment feels this Budget comes at a critical juncture for India to set the stage for sustainable economic growth, amid global trade headwinds and an uncertain external environment.

Expectations for the construction equipment industry:

• Expect demand recovery to be led by rising private capex, expanding export opportunities, defence applications, and sustained investments in airports, railways and freight corridors.
• Supportive policy measures, including GST rationalisation, easing interest rates and improved liquidity, will be further vital to crowd in private investment and strengthen industry confidence.
• As project execution accelerates, visibility across equipment categories will improve, alongside deeper adoption of digital technologies such as telematics and predictive analytics.

According to Pawan Sharma, MD of TRG Group, the real estate industry is expected to show sustainable and organized growth in 2026.

Expectations from Budget include:

• Affordable housing will continue to need specialized intervention due to the rise in construction and land costs.
• Budget allocations and initiatives related to the real estate industry, such as affordable housing, housing loan tax, and reduced and refined GST will help accelerate and aid growth trajectory.

Jashan Bhumkar, Director of Soujanya Group believes that India’s pharmaceutical sector is at a critical inflection point and the next phase of growth must focus on manufacturing depth and innovation-led scale-up.

• Budget should prioritise easier access to long-term capital, faster environmental and regulatory clearances, and targeted incentives for complex APIs, fermentation-based products, probiotics, enzymes, and specialty excipients.
• Support for pilot plants, technology transfer, and first-of-kind commercialisation will be key if India is to move from volume-driven growth to high-value, IP-backed pharmaceutical manufacturing.

Aman Moudgil, Director of Gilco global feels the complicated global trade backdrop means Budget should back sectors that turn global trade into real jobs and safer cities. E.g vertical mobility (elevators) for an ageing population and for people with disabilities.

• Industry needs smarter policy support. Rationalised duties on CKD components, with a clear path to localisation, would help.
• So would structured financing for standalone and retrofit lifts.
• A targeted GST relief for lifts installed for senior citizens and persons with disabilities would directly improve ease of living.
• India has improved approvals through single-window systems, but mid-scale manufacturing still needs a predictable package — land, incentives, and fast clearances — to attract serious global investment.

Satyabrata Satapathy, Co-founder & CEO of BonV Aero feels that from the perspective of an Indian drone OEM, the Union Budget should focus on removing structural bottlenecks and enabling scalable, globally competitive drone manufacturing and services.

• The single most critical requirement for the sector today is liquidity predictability, regulatory clarity, and incentives that reward real capability creation rather than short-term adoption.
• Working capital access needs urgent intervention through advance monetisation of GST input tax credit for startups, dedicated low-collateral working-capital lines for certified drone OEMs and service operators, invoice discounting for Government and PSU receivables, and expanded credit-guarantee coverage to offset long payment cycles inherent in public-sector demand.
• Equally important is GST rationalisation and certainty. The Budget should retain the uniform 5% GST on drones, provide clear HSN classification for drone parts and services, and ensure time-bound GST refunds and input-credit settlements, especially for exporters and domestic manufacturers, to prevent capital lock-ups and recurring tax disputes.
• To build long-term technological depth, the ecosystem needs refundable R&D tax credits for approved areas such as autonomy, perception, secure communications, and advanced battery systems, along with reimbursement support for IP creation and patent filings to strengthen India’s sovereign drone IP base.
• On the demand side, outcome-linked adoption incentives should be extended to FPOs, agri-service entrepreneurs, MSME surveyors, and construction and infrastructure users, with subsidies redeemable only through compliant, India-registered drone operators and OEMs, ensuring that public spending builds domestic capacity.
• Import framework should follow a clear “negative list” approach, allowing zero or low duty on components not currently manufactured in India on a time-bound basis, explicitly linked to a defined localisation and indigenisation roadmap.

Lalit Ahuja, Founder & CEO, ANSR feels that GCC growth beyond Tier-1 cities has been uneven and execution-led rather than demand-led. GCC are global capital centres.

Expectations:

• Upcoming budget should move decisively from signalling to hard enablers — targeted incentives for engineering, AI and product-led GCCs in Tier-2/3 cities, shared infrastructure and skilling investments, and a simpler, harmonised compliance framework across states.
• Budget must send a clear long-term signal to global enterprises: that India sees GCCs not as cost centres, but as strategic engines for IP creation, innovation and global product ownership.
• Must signal that policy support for GCCs will be stable, consistent and anchored to a 10-to-15-year horizon.

According to Anand Mahurkar, CEO of Findability Sciences, the most effective thing the Budget can do is make compute and high-quality datasets easily accessible.

“Talent already exists. Innovation already exists. What slows teams down is access to affordable, reliable compute and usable data… Make computer and data as accessible and predictable as electricity,” he added.

• Budget should also incentivize applied AI.
• Faster and more predictable approvals for data centers and AI infrastructure would unlock a lot of private investment very quickly.

HS Kandhari, Executive Director of Harmony Infra Ventures feels that Budget 2026 presents an opportunity to boost real estate growth.

• Hope the government raises the affordable housing limit to ₹80–90 lakh and provides better tax benefits for homebuyers.
• Lowers GST and standardises stamp duty to make homes more affordable and projects easier to execute.
• Continued investment in infrastructure, faster approvals, and support for Tier-II cities will help developers deliver projects efficiently.

According to Dr Niranjan Hiremath, senior consultant – cardiovascular and aortic surgeon, and surgical lead at Apollo Hospital, India’s healthcare expectations from the upcoming Union Budget are centred on a decisive move from reactive spending to preventive and resilient systems.

• Budget must prioritise early diagnosis, community-level screening, and strengthened primary care, rather than relying predominantly on tertiary interventions.
• Investments in district hospitals, diagnostics and healthcare workforce training are critical to reducing long-term costs and improving outcomes.
• Need for clarity on digital health implementation—technology can expand access, but only if supported by interoperable systems, strong data governance and last-mile execution.
• Health insurance frameworks must evolve to incentivise prevention and chronic disease management, not just hospitalisation.
• From a macroeconomic perspective, healthcare spending is not merely social welfare; it directly impacts labour productivity and economic growth.
• Policy continuity, execution certainty and a clear recognition that sustainable healthcare financing is essential to building human capital. A healthier population is ultimately India’s most valuable economic asset.

Gunjan Vijay Jain, President of the Nuts and Dry Fruits Council (India) aka NDFC feels the sector is looking for policy support that strengthens domestic processing and value addition rather than focusing only on trade flows.

The sector expects “a clear recognition that long-term competitiveness in this segment will come from domestic capacity building and value addition, not short-term market interventions”, he added

Expectations:

• Build robust processing ecosystem that can generate employment, reduce wastage and enhance value capture within the country.
• Invest in modern processing units, scientific storage, grading, sorting and packaging infrastructure can significantly improve efficiencies across the supply chain, particularly in producing and consuming states.
• Targeted budgetary support to encourage setting up of processing clusters, access to affordable long-term credit, and technology upgradation for MSMEs involved in handling and processing nuts and seeds.
• Strengthen linkages between processors and farmers through aggregation models that ensure better price discovery and income stability.

Abhishek Raj, Founder and CEO of Jenika Venture feels the Budget is expected to promote affordable housing and the Indian real estate sector looks forward to substantial growth, supported by government policies.

Expect the upcoming budget to fix boundaries for affordable housing, home loan tax deductions, GST reforms, and sectoral recognition.

• The budget session kicks off on 28 January with a joint address by the President in Parliament and will end on 2 April.
• The Economic Survey will be presented in Parliament on 31 January by CEA V Anantha Nageswaran.
• The Union Budget 2026 will be presented in Parliament on 1 February by Finance Minister Nirmala Sitharaman.

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

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

Notably, Budget 2026 will be Union Finance Minister Nirmala Sitharaman's ninth consecutive presentation of the country's annual financial statement in Parliament.

Sitharaman will become the first finance minister to present nine back-to-back Budgets this year. And, next year, she will tie with former Prime Minister Morarji Desai's record of presenting 10 Union Budgets.

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.