Dear reader, as 2025, a year of global tumult and volatility, rolled by, Mint's reporters and columnists looked around the corner on what is coming in 2026—to help you know what to expect and prepare for it. Tell us what you think at feedback@livemint.com.
New Delhi: For India, 2026 is shaping up as a pivotal year. As the global economy becomes more fragmented and trade more uncertain, wider and deeper reforms will make the core of the government's economic strategy. From taxes and regulations to ease of doing business and support to small businesses, industry leaders see the next phase of reforms in the new year as key to attracting investment and moving closer to the country's ambitious growth goals.
With lower direct and indirect tax rates, a simplified income tax law and reforms in the bankruptcy code, the National Democratic Alliance government has already set in motion a drive to modernize India’s regulatory ecosystem, which experts and industry executives believe will continue into 2026, as the country navigates a fast de-globalizing world that requires strong domestic growth and heightened global competitiveness.
Reform is a top priority for policymakers as India needs to grow at 8% for at least a decade to move closer to its goal of becoming an advanced economy by 2047.
Experts expect that further deregulation and de-criminalization of laws, cutting red tape, making states compete to woo investments and broader reforms aimed at enhancing the economy’s productivity will drive the legislative and regulatory agenda next year.
- To achieve the "Viksit Bharat" (Advanced India) goal by 2047, policymakers are anchoring 2026 as a year to secure a consistent 8% GDP growth rate.
- A primary pillar for the 2026 agenda is the modernization of the regulatory ecosystem.
- Key moves include a simplified income tax law, lower direct and indirect tax rates, and a significant overhaul of the customs duty regime to boost global competitiveness.
- Small and medium businesses are set to receive targeted support through plug-and-play facilities to reduce setup times.
- The government aims to formalize this sector by providing affordable credit, faster payment cycles, and incentives for technology upgrades.
- Industry leaders have identified the 5.5 crore pending court cases as a major drag on progress. To convert "investment intent" into actual projects, there is a massive push for an end-to-end single-window system.
- Significant changes are expected in the insurance and R&D sectors.
A reduced compliance burden, coupled with lower taxes, are also expected to complement the government’s bold capital investments, leading to stronger private investment growth.
Year of reforms
The year 2026 is expected to see many financial and non-financial sector reforms, for which two committees have been appointed under government think tank Niti Aayog member and former cabinet secretary Rajiv Gauba.
Mint had reported on 11 October that next generation reforms will be the predominant theme of the upcoming Union Budget for FY27. Systemic reforms meant to improve investor sentiment and accelerate the private investment cycle will get special attention in the Budget, the report said.
At the HT Leadership Summit in the capital on 6 December, finance minister Nirmala Sitharaman had said an overhaul of the customs duty regime will be the next major area of reforms.
According to Confederation of Indian Industry (CII) President and EY India Chairman Rajiv Memani, three things stand out if we reflect on the major developments of the current year. “These are trade diversification, the GDP growth rate which is incredible in the backdrop of what is happening in the world, and the pace at which reforms are being rolled out, whether it is about labour codes, FDI or energy. The reform journey has to continue,” he said.
fAccording to Memani, rolling out the ₹1 trillion research and development (R&D) fund, testing the efficacy of various production linked incentive (PLI) schemes and continuing the emphasis on manufacturing are essential.
“We must also push pending reforms in energy and mining sectors to build competitive advantages and continue efforts related to land, environmental clearances, and construction permits for ease of doing business," the industry chamber chief said. "However, the one area where I believe there is still not enough momentum is judicial reforms. With a pendency of almost 5.5 crore cases, increasing by 3-4% annually, this backlog can significantly slow down India's progress.”
According to Memani, decriminalization and simplification of laws, tight statutes of limitation, limiting the number of appeals by the government, strengthening alternative dispute resolution mechanisms such as mediation and arbitration and improving court infrastructure are also essential.
Eyes on single-windows
Businesses are looking at end-to-end single-window system for all clearances and licences required, faster and more predictable approvals, and quicker contract enforcement. This, they say, are essential to converting investment intent into timely project execution.
“As India looks ahead to 2026, sustaining strong growth will require productivity-enhancing reforms that materially improve ease of doing business,” said Nirmal K. Minda, president of the Associated Chambers of Commerce and Industry of India (Assocham).
According to him, the ecosystem for micro, small and medium enterprises (MSMEs) needs sharper and a more targeted support. This includes wider and more affordable credit access, faster payment cycles, and stronger incentives for technology upgradation and export readiness, said Minda.
Structural ease of doing business measures can unlock disproportionate gains for MSMEs, said Minda, citing examples such as plug-and-play facilities that dramatically reduce set-up time and compliance burden. Such measures will lower entry barriers for small businesses and accelerate formalization and scale, he said.
“Empowering India’s small and medium enterprises through these reforms is central to broad-based job creation, resilient supply chains and sustaining the country’s growth momentum in the years ahead," said Minda.
In the insurance sector, the recent liberalization allowing full foreign ownership is expected to be followed by structural reforms aimed at improving penetration and product innovation, said Narinder Wadhwa, managing director and chief executive officer of financial services firm SKI Capital Services Ltd.
Simplified licensing, faster product approvals, rationalization of commissions and renewed discussion on composite licences and open distribution architecture may gain momentum in 2026, he said.
On the non-financial side, reforms are expected to complement financial-sector initiatives by strengthening the real economy in 2026, he said.
MSME-focused measures, aimed at easing compliance, improving access to formal credit and supporting SME listings are likely to feature prominently in the Budget, he said.
“Overall, reforms expected in 2026 reflect a maturing policy framework that seeks to balance growth with stability, he said. “The emphasis is likely to be on building a resilient financial system, supported by strong banks and non-bank finance companies, deeper insurance and pension markets, efficient and transparent capital markets, and a digitally-enabled but well-regulated financial architecture.”