Synopsis

Budget 2026 Expectations highlights: As the Union Budget 2026 draws closer, India Inc is keeping a close watch amid mounting global uncertainty and rising tariff-related concerns. With businesses looking for tax relief, policy clarity and growth-focused measures, expectations are running high across sectors. This ET liveblog brings you all the key reactions, demands and updates as they unfold.

Budget 2026 Expectations highlights: Union Finance Minister Nirmala Sitharaman will present the Union Budget 2026–27 on Sunday, February 1, with expectations high amid global uncertainties and concerns over US tariffs. The Budget is seen as a key step in advancing the government’s Viksit Bharat 2047 vision and strengthening India’s economic resilience.

03:14:10 PM IST, 31 Jan 2026

Budget 2026: Real estate industry expects regulatory simplification and faster approvals

‘’Looking toward 2026, India’s real estate sector is set for stable growth, buoyed by rapid urbanization and significant investment in infrastructure, as it transitions towards organized and sustainable growth. The market is now largely end-user led, enhancing stability, transparency, and long-term confidence. Rising incomes, stable interest rates, and better-designed housing are strengthening affordability and genuine demand. Buyer preferences are moving toward plotted and low-rise projects for security, flexibility, and value appreciation. Growing participation from institutional investors, REITs, and NRIs, especially in RERA-compliant assets, reinforces credibility, however the absence of GST Input Tax Credit raises costs. As Budget 2026 nears, we expect regulatory simplification and faster approvals," Somesh Mittal, Co-Founder, One Prastha said.

03:13:08 PM IST, 31 Jan 2026

What service industry is expecting from this Budget?

"The service industry is looking for measures that support sustainable expansion. Restaurant brands are ready to grow, but high operating costs, rising energy expenses, and complex regulations remain challenges. Rationalisation of GST for dine-in services is important, as it directly affects pricing, consumer demand, and overall viability. From a food industry standpoint, rising raw material costs and logistics pressures need policy attention. Support for MSMEs through easier access to credit will enable expansion into new markets and cities. Labour is another critical area. Investment in skill development, structured training, and simpler labour compliance will help build a stable workforce. Restaurants are significant employment generators across skill levels and contribute meaningfully to tourism-led demand. Clear and predictable policies can help the sector scale responsibly while strengthening local economies and preserving regional cuisines," Yogesh Sharma, Managing Director, Karigari Ventures.

03:12:18 PM IST, 31 Jan 2026

"India’s increasingly volatile weather highlights urgent need for parametric climate insurance"

"India’s increasingly volatile weather and rising climate disasters highlight the urgent need for parametric climate insurance. In 2024–25 alone, extreme events caused over 3,000 deaths, widespread agricultural damage, housing losses, and livestock casualties, exposing gaps in current post-event relief systems. While existing government insurance schemes focus on long-term compensation, immediate livelihood protection remains missing. A pre-funded, data-driven parametric insurance framework can enable rule-based, real-time payouts triggered by objective climate data, reducing delays and leakages. As India’s gig workforce expands rapidly, Budget 2026 support for pilots, incentives, and Centre-State coordination can shift disaster response from reactive relief to proactive climate resilience. From the 2026 Union Budget, clear policy direction, pilot funding, fiscal incentives, stronger Centre-State coordination, GIC Re participation, and alignment with NDMA and SDMA frameworks can help India transition from reactive relief to proactive climate resilience and set a global benchmark in climate security," Ankur Indrakush,MD and co-founder at Plutas AI said.

07:13:29 AM IST, 21 Jan 2026

Budget 2026 Expectations LIVE: Government plans double-digit hike in rural scheme allocations to boost growth, demand

Budget 2026 Expectations LIVE: ​The government is planning to further bolster its rural focus with a double-digit growth in allocations for key schemes in the upcoming budget for 2026-27, people aware of the deliberations told ET.

07:11:09 AM IST, 21 Jan 2026

Budget 2026 Expectations LIVE: What is EV industry expecting from Nirmala Sitharaman & Co?

Budget 2026 Expectations LIVE: “Ground-level adoption trends show that sustainable EV growth depends more on long-term structural enablers than short-term subsidies, making policy stability increasingly important for manufacturers. The Union Budget 2026–27 should prioritise deeper localisation through component-specific PLI support for battery cells, controllers, and power electronics to reduce import dependence and strengthen Make in India. Rationalising GST on electric two-wheelers and enabling priority-style, low-cost financing can accelerate mass adoption more effectively than one-time incentives. A clear national charging roadmap, including a target of 50,000 public charging points by 2027 and mandatory chargers at highways and fuel stations, along with longer-tenure capital, will be essential to building a scalable and resilient EV ecosystem,” said Mr. Kunal Arya, Co-founder & MD of Zelio E Mobility

01:18:52 AM IST, 21 Jan 2026

Budget 2026 News LIVE: Budget 2026 could be the gear shift India’s auto industry is waiting for

Budget Expectations 2026 LIVE Updates: India's auto industry seeks budget support to sustain recent recovery. Experts urge targeted measures for affordability, especially for entry-level cars and two-wheelers, and to boost EV adoption. Policy clarity on hybrids, component duties, and scrappage incentives are crucial for cost reduction and demand revival. Read more

12:23:03 AM IST, 21 Jan 2026

Budget 2026 News LIVE: Incentives likely for carbon capture, utilisation & storage tech

Union Budget 2026: India's government is exploring incentives for carbon capture technology in the upcoming FY27 Budget. This move aims to reduce emissions from crucial sectors like power, steel, and cement. The CCUS program, with a significant government allocation, is planned in phases. This technology is vital for India's energy security and its commitment to net-zero emissions by 2070. Read more

09:53:03 PM IST, 20 Jan 2026

Budget 2026 News LIVE: Focus on liquidity, refinance support key for MSME financing, says UGRO Capital founder

Budget Expectations 2026 LIVE Updates:

• Shachindra Nath, Founder and Managing Director of UGRO Capital, said the government should look beyond short-term stimulus measures and focus on structural reforms that lower the cost of capital and improve liquidity access for MSME-focused lenders.

• He emphasised that enabling efficient risk-sharing mechanisms would be critical to strengthening last-mile credit delivery, particularly for institutions financing small businesses.

• Nath said India’s digital public infrastructure and evolving co-lending frameworks offer a strong foundation to shift MSME lending away from collateral-heavy models towards cash-flow-based and behaviour-driven underwriting.

• He added that the industry is seeking the creation of a dedicated NBFC–MSME or NBFC–PSL category, along with access to stable and affordable refinance funding, potentially through SIDBI.

• Such measures, he noted, would help NBFCs manage liquidity cycles more effectively, protect asset quality, and ensure uninterrupted credit flow to MSMEs, especially during periods of economic stress.

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08:18:54 PM IST, 20 Jan 2026

Budget 2026 News LIVE: MSME credit push, tax relief and tech adoption key, says Summercool’s Ashutosh Gupta

Budget Expectations 2026 LIVE Updates:

• The Director of Sales & Marketing at Summercool Home Appliances Ltd Ashutosh Gupta said continued policy support for micro, small and medium enterprises (MSMEs) will be crucial to sustaining India’s growth momentum.

• He noted that last year’s Budget played a significant role in strengthening the sector by recognising MSMEs as the “second engine of growth” and easing access to formal credit through higher investment and turnover thresholds.

• Gupta pointed out that measures such as the expansion of the credit guarantee cover from Rs 5 crore to Rs 10 crore have already begun to yield results, enabling small manufacturers to improve working capital, invest in technology upgrades and scale operations.

• Looking ahead, he said Budget 2026 is expected to further address financing challenges through enhanced credit support, reduced regulatory friction and targeted incentives for technological adoption, steps that could strengthen competitiveness, boost job creation and support long-term economic growth.

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05:41:46 PM IST, 20 Jan 2026

Budget 2026 News LIVE: AI infrastructure is the real budget priority, says Happiest Minds CEO

• Ahead of the Union Budget 2026–27, Sridhar Mantha, CEO of Generative AI Business Services (GBS) at Happiest Minds Technologies, said the upcoming budget presents a crucial opportunity to move India from being an AI consumer to a global AI leader.

• He noted that while the India AI Mission has laid a strong foundation, the focus must now shift towards infrastructure sovereignty, including support for high-performance indigenous hardware and data centres.

• Mantha added that extending PLI benefits to new-age tech sectors, offering tax incentives for green data centres, and strengthening support for start-ups and skilling initiatives would be key to enabling large-scale adoption of generative AI across industries.

05:11:06 PM IST, 20 Jan 2026

Budget 2026 News LIVE: Budget 2026 should focus on affordability, deeper insurance penetration, says Shriram General Insurance CIO

Ahead of the Union Budget 2026, Ashwani Dhanawat, Executive Director and Chief Investment Officer of Shriram General Insurance, said that while Budget 2025 took positive steps for the non-life insurance sector, particularly with the increase in FDI to 100 per cent, insurance penetration in India remains low at around 1 per cent of GDP.
He noted that the next phase of reforms must focus on improving affordability, penetration, efficiency, and resilience across the sector.
Dhanawat added that measures such as enhancing health insurance tax benefits, strengthening Ayushman Bharat, improving claim settlement mechanisms, and supporting agriculture and motor insurance reforms would be key to achieving the government’s vision of ‘Insurance for All by 2047’.

04:51:18 PM IST, 20 Jan 2026

Budget 2026 News LIVE: Footwear and consumer manufacturing need long-term policy focus, says Chupps founder

Budget Expectations 2026 LIVE Updates:

• As India prepares for Budget 2026, Yashesh Mukhi, Founder of Chupps, noted that the real growth opportunity lies in strengthening domestic consumer manufacturing rather than offering short-term incentives.

• He said that while previous budgets highlighted MSME support and local value chains, sectors like footwear, straddling fashion, mobility, and daily utility, remain under-represented in discussions on sustainability and responsible production.

• Mukhi added that targeted support for quality-led manufacturing, innovation, and durable products can help shift the industry from volume-driven growth to value-driven growth, ensuring global competitiveness while reducing environmental impact.

04:33:56 PM IST, 20 Jan 2026

Budget 2026 News LIVE: What a director EVM India had to say

Budget Expectations 2026 LIVE Updates: Quote from Mr. Aatish Hundia, Director, EVM India: Over the last few years, the government’s consistent push has helped India’s electronics manufacturing ecosystem come of age. At a time when global storage and memory prices are under pressure, a continued focus in this Budget on local value addition, testing capabilities, and quality-led manufacturing can go a long way in reinforcing India’s position as a dependable and competitive base for consumer electronics.

04:33:09 PM IST, 20 Jan 2026

Union Budget 2026: Focus on faster air cargo, customs clearances

As global supply chains prioritise speed and reliability, industry participants say India’s trade competitiveness will increasingly depend on faster cross-border cargo movement.

Here is what Kami Viswanthan, president, Middle East, Indian Subcontinent, and Africa (MEISA) at FedEx had to say:

"In a rapidly evolving global trade environment, supply chains are increasingly being designed around speed, certainty, and trust. For India, competitiveness will increasingly be shaped by how seamlessly cargo moves across borders and modes, particularly in time-sensitive trade. The Union Budget can support this momentum by further developing dedicated air cargo infrastructure and accelerating digital, time-bound customs and clearance processes.”

02:35:06 PM IST, 20 Jan 2026

Union Budget 2026: Expected to back smart proteins, bioeconomy growth

As demand rises for affordable and sustainable sources of nutrition, industry stakeholders say Union Budget 2026 can play a key role in scaling alternative and smart protein ecosystems in India.

"This year’s Budget comes amidst rising demand for affordable, high-quality protein that is produced sustainably and meets the nutritional needs of our population. For smart proteins to achieve price parity and global competitiveness, we hope to see incentives for public-private partnership models that lower capital risk, alongside institutional procurement pilots to increase market access.
Building on National Missions for pulses, oilseeds and high-yield seeds, the Budget should expand investment in agricultural R&D for underutilised pulses and indigenous crops, as well as dedicated processing infrastructure for plant-based value chains that will in turn enhance farmer incomes. Continued rollout of the BioE3 policy and RDI Fund must prioritise multi-year investment in shared biomanufacturing infrastructure and R&D.
Coupled with targeted investment in Bio-AI, digital bioprocessing, and workforce skilling, India can accelerate its path towards a $300 billion bioeconomy and bring fermentation-derived proteins and cultivated meat to global and domestic markets," said Sneha Singh, Managing Director, GFI India.

02:12:27 PM IST, 20 Jan 2026

Union Budget 2026: Markets await for Feb 1 with tax relief, capex push in focus

With Finance Minister Nirmala Sitharaman set to present her ninth consecutive Union Budget, investors are weighing high-probability measures that could shape both macroeconomic momentum and sectoral performance.
Here is what Satinder Aggarwal, Founder & CEO of EQBAC has to say:

• "Markets are watching closely as Finance Minister Nirmala Sitharaman prepares her 9th consecutive Budget, with high-probability expectations shaping both macro and sectoral sentiment. Income tax relief, a capex surge of ₹11.5–12 lakh crore, and a fiscal deficit target of 4.4% are expected to support growth. At a sector level, the focus is on GST relief for FMCG, continued support for semiconductors under ISM 2.0, and momentum around green finance.

• Rules for uniform capital gains and a clearer treatment of crypto and foreign income remain less certain, but could be meaningful if addressed. Early market moves are likely to be led by FMCG and Realty, with Nifty expected to track key consumption and capex signals. From a market-structure standpoint, confirmation of Sunday trading remains an additional variable if the Budget is tabled on February 1"

08:17:13 PM IST, 23 Jan 2026

Capital expenditure will remain the cornerstone of fiscal policy, Deepan Kapadia Executive Director & CIO, Spark Capital Private Wealth Management

"India’s Budget 2026 is expected to reinforce the investment-led growth framework rather than pivot toward near-term consumption stimulus. With nominal GDP growth projected at around 10% in FY27 and fiscal consolidation targeted at 4.0–4.2% of GDP, policymakers are likely to balance growth ambitions with fiscal discipline, creating a constructive backdrop for equities. Capital expenditure will remain the cornerstone of fiscal policy, with central government capex estimated at ₹12–12.5 lakh crore, or roughly 3.2% of GDP. The budget is also expected to deepen India’s strategic manufacturing agenda, with sustained support for defence, electronics, telecom, medical devices, and critical metals, aligned with the objective of reducing import dependence through PLI schemes and targeted industrial policies," Deepan Kapadia Executive Director & CIO – Portfolio Management Services at Spark Capital Private Wealth Management said.

"Healthcare is likely to receive focused allocations, including potential expansion of PM-JAY, district-level oncology infrastructure, and medical education capacity, signalling a shift from access-led spending to improving quality and depth of care. Asset monetisation, PPP frameworks, and refined incentive structures should help crowd in private capital without straining public finances. Overall, Budget 2026 appears positioned to strengthen India’s structural growth narrative, favouring quality capex and manufacturing-led investments over broad consumption themes," Deepan Kapadia said.

01:13:03 PM IST, 20 Jan 2026

Union Budget 2026: To position AI as core growth infrastructure

As artificial intelligence emerges as a dominant driver of global growth and capital formation, industry leaders say India is approaching a decisive moment in how it frames AI within its economic strategy.

Pratap Daruka, CFO, Tredence Inc. says:

• On a global scale, a concentrated group of AI-led firms is driving a disproportionate share of growth and capital formation. Since late 2022, fewer than 50 AI-centric companies have generated nearly 65%–75% of S&P 500 earnings and capital expenditure, while technology capex alone has fuelled over 40% of incremental US GDP growth in 2025. This shift marks AI’s evolution from an experimental phase to a cornerstone of national competitiveness and productivity. India now stands at a defining inflection point. 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.

• 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."

01:15:29 PM IST, 20 Jan 2026

Union Budget 2026: Finance Act 2025 eases Transfer Pricing compliance with more certainty, less litigation

01:07:44 PM IST, 20 Jan 2026

Union Budget 2026: Urged to bridge affordability gaps in senior care and assisted living

Ishaan Khanna, CEO, Antara Assisted Care Services says

• We are seeing growing investor interest in senior-friendly healthcare and assisted living infrastructure, reflecting the growing recognition of India’s demographic shift and changing family structures. However, capital alone cannot build a holistic, integrated care ecosystem that is both scalable and sustainable.

• This momentum would be best supported if the Budget backed it with comprehensive policy provisions, particularly around insurance coverage for long- and short-term assisted living, and at-home care. This represents a critical affordability gap for seniors and their families to access a service that’s increasingly becoming a wellbeing need.

• The second big unlock would come from announcements supporting large-scale training of non-medical care professionals in geriatrics, building of standardised norms for assisted care, and formal recognition of caregiving as a skilled, professional service.

• As demand for senior care rises, India has a timely opportunity to move from informal, fragmented, and ad-hoc solutions to a regulated, high-quality care ecosystem that delivers dignity, safety, and continuity of care for seniors.

12:52:44 PM IST, 20 Jan 2026

Union Budget 2026: Warehousing industry calls for technology-led next phase

Aditya Kale, Founder & CEO, AirattixAs the Union Budget 2026 approaches, industry participants say policy support for digitally connected, automated and energy-efficient warehousing, alongside continued investment in logistics corridors and MSME-focused measures, could unlock underutilised capacity and strengthen supply chain resilience."Over the past year, infrastructure-led growth has strengthened India’s warehousing and storage ecosystem by improving connectivity and supply chain efficiency. As Budget 2026 approaches, the focus must shift from capacity creation to enabling smarter, technology-driven storage solutions.Policy support for digitally connected warehousing, shared and distributed storage models, and AI-led space management can significantly improve utilisation and demand responsiveness.Greater emphasis on automation, energy efficiency, and digital operations can unlock underutilised storage, especially in dense urban and fast-growing semi-urban markets.Continued investment in logistics corridors remains essential, while targeted skilling, tax rationalisation, and better access to finance can further boost MSME participation and long-term job creation," said

12:27:47 PM IST, 20 Jan 2026

Union Budget 2026: urged to fast-track AI adoption in healthcare

As India looks to harness artificial intelligence to improve healthcare delivery, industry stakeholders say Union Budget 2026 can play a decisive role by backing digital health infrastructure, data interoperability and homegrown innovation.
“As India embraces AI and machine learning to transform healthcare delivery, Union Budget 2026 presents a pivotal moment to accelerate this shift. We expect the government to prioritize investments in secure, interoperable health data infrastructure and cloud-based platforms that enable AI-powered diagnostics, predictive analytics, and remote patient monitoring. Support for healthtech startups through tax incentives, subsidized computing resources, and funding for pilot programs will empower innovation in AI-driven SaaS healthcare solutions.
Additionally, budgetary emphasis on skilling healthcare professionals in AI, fostering digital adoption, and improving healthcare access in underserved regions can significantly enhance clinical outcomes. By backing indigenous technology, the budget can help scale homegrown AI solutions, improve operational efficiency in hospitals, and strengthen India’s global competitiveness in health innovation,” said Kumar Surender Sinwar, Founder and CEO mlHealth 360

11:59:19 AM IST, 20 Jan 2026

Union Budget 2026: Seen balancing credit growth with loan quality, RBI caution in focus

As credit demand remains strong across retail and MSME segments, policymakers and lenders say the challenge for Budget 2026 will be sustaining growth without compromising financial stability.

"Our aim should be to manage credit growth such that it keeps the economy going and at the same time it remains healthy and sustainable. With supply, demand dynamics in place, the continued focus on development spending and a stable fiscal stance will be the key drivers to keep momentum across retail and MSME lending. At the same time, there should also be a very significant effort to raise the bar in terms of better lending practices and being more vigilant about the quality of the loan book, something which is consistently being stressed by the RBI. Indeed, technology could significantly assist this effort. By bolstering the digital lending infrastructure and facilitating the use of analytics, driven credit appraisal, lenders can achieve rapid growth without incurring undue risk," said Joydip Gupta, APAC Head at Scienaptic AI

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