Budget expectations Highlights: Budget Session from 28 January, has speech date been announced?

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India is pushing hard to accelerate electric vehicles and green mobility as part of its climate and sustainability goals. Even major automotive companies are expanding their EV efforts by setting up charging networks and launching new electric models.

“India’s EV journey is entering a decisive phase, where resilience and long-term value will matter as much as adoption numbers. Over the past few years, policy interventions have rightly focused on accelerating vehicle uptake and battery localisation. However, recent global supply disruptions have highlighted a deeper structural vulnerability in India’s continued dependence on imported rare-earth magnet motors, a critical and cost-defining component in EVs," said Bhaktha Keshavachar, co-Founder and CEO of Chara Technologies.

As we look towards Budget 2026, there is a timely opportunity to strengthen India’s EV manufacturing base by formally recognising and supporting magnet-free motor technologies within existing fiscal frameworks. Targeted incentives for rare-earth-free motor manufacturing would not only de-risk India’s EV ambitions but also position the country as a global hub for affordable, resilient, and export-ready EV powertrain solutions, she added.

As the Union Budget 2026 is inching closer, the healthcare sector in India is anticipating increased spending on public health, in view of the increasing burden of diseases, said Puja Kapoor, Pediatric Neurologist and Co-founder of Continua Kids.

“Strengthening primary healthcare, preventive screenings, and mental health services should be a priority. Increased allocations for medical research, digital health infrastructure, and workforce training will improve efficiency and accessibility,” she said.

“Furthermore, tax incentives for healthcare investments and support for health-tech innovations can accelerate last-mile delivery of services. A robust, policy-backed budget can play a crucial role in building a sustainable and equitable healthcare ecosystem,” Kapoor added.

Financial support for new technology startups remains a debated issues, as experts claim that most tech companies in India rely heavily on investors for funding.

Hence the tech sector has called for better access to finance and credit. “While foreign and domestic investors are one channel, bank-led funding should become simpler, faster, and more accessible,” said Amit Chaurasia, the founder of Dataneers Pvt Ltd.

He added that easier access to capital is especially required by small and deep-tech companies, so they can invest meaningfully in research, R&D, and product development.

As the Union Budget approaches, climate and sustainability need to be firmly embedded within the country’s economic strategy, in line with near-term de-carbonisation targets, the Viksit Bharat 2047 vision, and India’s net-zero commitment for 2070, said Anup Garg, founder and director of World of Circular Economy (WOCE).

“The scale of the transition is significant; India will require over USD 10 trillion in climate investments by 2070, making it essential for the Budget to move beyond signaling and focus on enabling execution,” he said.

He further added that a key priority should be the creation of clear, investable frameworks that unlock private and international capital, as well as address growing external pressures on trade and competitiveness.

Budget expectations LIVE Updates: Nikunj Saraf, the CEO of Choice Wealth, said that the Indian government's focus must be on balancing growth with fiscal sustainability in the Union Budget 2026-27.

“With strong GDP momentum and controlled inflation, the government has a unique opportunity to support capital expenditure, MSME growth, and new-age sectors such as AI, digital infrastructure and clean tech — areas that will define competitiveness over the next decade. At the same time, tax simplification and targeted relief for the middle class and entrepreneurs can drive consumption, broaden the tax base, and unlock long-term investment,” said the expert.

“A forward-looking Budget that anchors structural reform while ensuring inclusive growth will not only boost investor confidence but also accelerate India’s journey toward a developed economy by 2047,” said Saraf.

Budget expectations LIVE Updates: Suprio Banerjee, Vice President & Co-Group Head, ICRA, said that infrastructure modernisation, Capacity expansion, accelerated deployment for Kavach 4.0, and capacity expansion are among other things in focus for Budget 2026-27.

“With electrification nearly complete, focus will remain on decongestion through capacity augmentation—new routes, gauge conversion, track doubling, and dedicated freight corridors. Infrastructure modernisation, including rolling stock upgrades and station redevelopment, alongside safety enhancements, will remain critical,” said the expert.

“Within capacity expansion, economic corridors (e.g. ports and mineral logistics) coupled with accelerated deployment of Kavach 4.0 and advanced signalling across the network, are expected to dominate both budgetary priorities and execution strategies,” said Banerjee.

The ratings agency ICRA anticipates a range-bound increase in the Railways’ budget allocation for 2026-27, given the trend seen over the past two years.

Budget expectations LIVE Updates: Ajay Kumar Yadav (CFPCM), Group CEO & CIO of Wise Finserv, said that the upcoming Union Budget 2026-27 should target its focus on providing fiscal support to the economy through incentives.

“India’s reform base is strong. The new tax regime has simplified personal taxation, while GST reforms have improved compliance. The next step should focus on targeted fiscal support. Incentives linked to job creation, incremental investment, and manufacturing capacity can revive private capex without stretching fiscal discipline,” said Yadav, emphasising that the markets are expecting dramatic announcements from the central government.

“Continued thrust on infrastructure spending would also help crowd in private investment and support employment. This Budget does not need to be loud. It needs to be clear. A steady, focused approach can quietly rebuild confidence and sustain long-term growth,” said the expert.

According to Tanuj Shori, Founder and CEO of Square Yards, the Indian housing market is moving out of a luxury-led upcycle and into a more value-driven phase, with the mid-income segment poised to anchor growth as premium demand begins to stabilise.

“From the 2026 Union Budget, one should expect a sharper focus on improving affordability through enhanced tax relief for mid-income homebuyers, higher interest deduction limits and sustained investment in urban infrastructure,” he feels.

“Equally important is policy support that encourages supply in the affordable and mid-market segments, as recent launches have been disproportionately skewed towards higher ticket sizes. A budget aligned to these realities can strengthen end-user demand, improve price-to-income dynamics and support a more balanced and sustainable phase of urban housing growth,” Shori added.

On expectations from the healthcare and pharma sectors, Mytri Macherla, Vice President & Sector Head – Corporate Ratings at ICRA, feels that the upcoming budget is likely to focus on preventive healthcare given the significant rise in non-communicable and lifestyle diseases in the country.

“To boost investments in the sector, tax incentives for private sector investments in modernising medical facilities, especially in tier-2 and tier-3 cities and developing greenfield hospitals in rural areas will be a welcome step. Further, given the low doctors-to-people and nurses-to-people ratio, increased allocation towards training medical personnel would be highly beneficial,” Macherla said.

Adding, “The pharma sector seeks rationalisation of GST rates on key raw materials to address the inverted duty structure, restoration of tax incentives on R&D spend, and expansion of PLI schemes to strengthen API self-reliance. Increased public healthcare spending and targeted incentives for biopharma innovation are critical to sustain growth.”

Chief Minister Pramod Sawant has sought a more equitable Centre-state funding pattern under centrally sponsored schemes, taking into account Goa's coastal challenges, Western Ghats ecology, and national tourism responsibilities, PTI reported.

The CM said Goa also sought to strengthen social welfare schemes, ensuring continued support for capital investment, carrying forward state-specific Finance Commission recommendations, and seeking a "more equitable Centre-state funding pattern under the centrally sponsored schemes," it said.

Vamsi Vikas, Founder and MD of Raghu Vamsi Aerospace Group believes that India needs a Union Budget that “recognises the realities, without micromanaging execution” when it comes to defence manufacturing.

He believes that the domestic industry has “developed meaningful capabilities, created robust infrastructure, and nurtured specialised talent” and now requires equal attention to “sustainability of this ecosystem as it moves from promise to performance”.

Expectations include:

• Attention to cost and risk borne by industry in taking a technology beyond early production, transitioning from initial production to scale.
• Attention to long-term capital investments made by industry in defence manufacturing amid uneven expenditure across budget cycles.
• Attention toward global interest in sourcing defence systems from India.

According to Swapnil Aggarwal, Director at VSRK Capital, the recent market action suggests cautious optimism from investors, who can expect some degree of pre-Budget positioning in the markets, though it is likely to be selective rather than a broad-based rally.

“As the Union Budget approaches, sentiment typically improves on expectations of growth-supportive measures, especially around capital expenditure, infrastructure push, and incentives for emerging sectors. Recent market action suggests cautious optimism, with participants closely tracking macro signals, global cues, and fiscal discipline,” he said.

Adding, “While volatility may persist in the near term, incremental buying could emerge in pockets where policy continuity and earnings visibility are expected. That said, markets are unlikely to price in aggressive outcomes ahead of the Budget, and any upside may remain measured until there is clarity on actual announcements. Overall, the near-term trend points towards consolidation with intermittent rallies, as investors balance Budget optimism with valuation concerns and global uncertainties.”

As the budget presentation approaches, expectations rise for tax reforms. EY India emphasises the 2026 Union Budget's potential to enhance growth, tax certainty, and recommends rationalising TDS. Read full here

• Ensuring tax certainty for foreign investors is essential, with specific rules on the determination of permanent establishment (PE) and profit attribution.
• Government should consider reintroducing accelerated depreciation as a targeted fiscal incentive to boost investment and stimulate growth in the manufacturing sector.

• The firm advised that Budget 2026 should establish a clear roadmap for streamlining the TDS rate structure with no more than three or four rates.
• B2B payments subject to GST could be exempt from TDS, as information about such transactions is already captured in Form 26AS/AIS.
• The New Income Tax Act 2025 should be implemented along with detailed guidelines and FAQs to minimise confusion, prevent litigation and facilitate smooth transition for taxpayers.

EY India has highlighted the critical role of the upcoming Union Budget 2026 in shaping India’s economic trajectory, which is likely to focus on sustaining robust growth, enhancing tax certainty, and driving sector-specific investments. EY expects the direct tax framework to undergo critical changes aimed at enhancing certainty and compliance.

The budget session marks the first session of Parliament in a calendar year, starting with the President's address to the joint sitting of the two Houses. Union Finance Minister Nirmala Sitharaman is expected to deliver her ninth consecutive Union Budget for the 2026-27 fiscal year.

The Parliament's budget session typically consists of two parts with a break in between to allow the standing committees to examine the demands for grants of various ministries.

Union Finance Minister Nirmala Sitharaman is expected to present the Union Budget on Sunday (1 February), PTI reported, citing sources. They said: “We have a fixed day for the presentation of the general budget. The concept of Sunday was brought by the British.”

According to Union Minister Kiren Rijiju:

• The Session will commence on 28 January 2026 and continue till 2 April 2026.
• The first phase concludes on 13 February 2026, with Parliament reassembling on 9 March 2026.