Budget 2026 Expectations Live: Will Defence Spending Once Again Take Centre Stage?

"As renewable penetration deepens, the budget must recognise that the energy transition is no longer about generation alone; it is about reliability.  A budget that aligns power, industry, and infrastructure will define India’s ability to lead, not just participate, in the global energy transition," said Shobit Rai, Co-Founder & MD, Prozeal Green Energy Limited.

"The Budget can also unlock the next phase of growth by easing regulations around factoring services and accelerating the adoption of TReDS platforms, enabling faster working capital cycles for MSMEs. Combined with access to stable, long-term funding, these measures will support infrastructure and green financing, deepen formal credit penetration, and ensure NBFCs continue to drive inclusive and sustainable economic growth. We are confident that Budget 2026 will provide the necessary policy impetus to strengthen India's financial ecosystem and accelerate our journey towards a developed nation," said Ravi Narayanan, MD & CEO, SMFG India Credit.

"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. We are already seeing strong momentum across industries to rethink how supply chains are designed and managed. Climate volatility, geopolitical shifts and rising sustainability expectations are encouraging organizations to seek more stable, transparent and data-driven supply networks. In this environment, 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 Smitha Shetty, Regional Director, APAC, Achilles Information Ltd.

"As we approach the Union Budget 2026–27, the general insurance industry stands at an inflection point where last year’s landmark reforms such as the GST exemption on health insurance policies, stricter time‑bound cashless claim norms, and the broader legislative push toward affordability and transparency have set a strong foundation for deeper transformation in the year ahead," said Rakesh Jain, CEO, IndusInd General Insurance.

He further added that the Budget to focus on three decisive priorities that can shift the industry from reform to measurable results.

• First, India must double down on digital rails that cut friction, fraud, and administrative costs.
• Second, strengthening domestic reinsurance capacity and ensuring stable long‑term regulatory frameworks will be essential for supporting India’s expanding infrastructure, mobility, cyber, and property‑risk landscape.
• Third, India must build climate and MSME resilience at scale through a National Catastrophe Risk Pool, which has become increasingly urgent amid rising urban floods, cyclones, and heat‑related losses.

“By standardizing energy-saving materials and encouraging eco-friendly alternatives, India can ensure that industrial growth remains globally competitive and environmentally responsible,” Brijesh Patel, Managing Director of Aerolam Insulations said. 

Kunal Jhunjhunwala, Founder, airpay, expects that "fintech and digital payments must move beyond prioritizing scale to focus on resilience, compliance, and the depth of adoption.  The policies in place will not only determine the growth trajectory of the next phase but also influence the digital infrastructures that will be built under regulation, as well as the compliance facilitation and interoperability among the various payment channels that will be established. The government should also push for the adoption of cutting-edge technologies, such as AI-based risk management and fraud detection, to build trust, resilience, and productivity across India's financial ecosystem, thereby securing sustainable growth in the upcoming phase of the digital economy." 

"Budget 2026 presents an opportunity to deepen this momentum by strengthening domestic production capabilities, improving supply-chain resilience and accelerating infrastructure-led productivity across sectors," Sharad Malhotra, managing director, Nippon Paint (India) Group said.

"The next phase should focus on access to quality raw materials, energy-efficient manufacturing and sustainability-led innovation, which are increasingly central to global competitiveness. For sectors such as paints and coatings, these measures can drive higher value creation and export readiness," he added.

"Increased investment in interdisciplinary learning, digital infrastructure, and faculty development will be critical to preparing students for rapidly evolving job markets. Support for international collaborations and mobility will further strengthen India’s academic influence worldwide, " Anita Patankar, executive director, Symbiosis Dubai said.

"The Budget should also emphasise affordability, stronger industry–academia linkages, research-driven education and skill-based education so that Institutions can contribute meaningfully to employability, innovation, and the long-term growth of India’s knowledge economy," Patankar added.

“As we look toward Union Budget 2026, we anticipate a strategic focus on expanding affordable credit for MSMEs and the underserved. Microfinance institutions are the engine of rural demand; however, to scale effectively, we need a significant reduction in funding friction and the removal of operational bottlenecks.," Avinash Kumar, chief operating officer, DJT Microfinance, said,

"We call for dedicated refinance windows to lower costs for NBFCs and a simplified, extended MUDRA framework to ease balance sheet stress," Kumar added.

"Oben Electric views the Union Budget 2026-27 as a vital opportunity to strengthen India’s electric mobility journey. While 2025 was a landmark year with EV sales reaching a record 2.3 million units, anchored by 1.28 million two-wheelers, the industry’s long-term health depends on structural tax reforms. A primary concern for domestic manufacturers is the inverted tax structure," says Madhumita Agrawal, Founder & CEO of Oben Electric.

Vedanta's iron ore mining arm, Sesa Goa, has urged the government to provide incentives for low-grade iron ore beneficiation, emphasising that targeted policy support and infrastructure investment are critical to make the processing economically viable and to expand the sector, reports PTI.

Speaking to PTI, Skoda Auto Volkswagen India MD and CEO Piyush Arora vouched for policy continuity ahead of the Union Budget 2026.

"And from that point of view, if there are some important duties in the electric (vehicle) space that can be addressed (in the Budget) going forward, it would help... Continuity is extremely important for our sector, along with further focus on infrastructure growth and building up the EV ecosystem," he said.

"We hope to see dedicated funding for design-led research and development, creative-technology labs, and industry-linked universities that translate knowledge into products, services and cultural exports. Supporting institutions that integrate design, technology, sustainability and entrepreneurship will help India move from being a cost-competitive economy to a globally competitive innovation economy," Sanjay Gupta, vice chancellor, World University of Design, said.

"There is hope for greater fiscal support for emerging areas such as green hydrogen, energy storage, grid modernisation, and industrial decarbonisation," Vasudha Madhavan, founder and chief exeuctive officer of Ostara Advisors said.

"It would also be encouraging to see a continued emphasis on electric mobility through more targeted subsidies, steady investment in public and urban charging infrastructure, and incentives that support domestic manufacturing of EV components and strengthen supply chains," Madhavan added.

"We hope to see dedicated funding for design-led research and development, creative-technology labs, and industry-linked universities that translate knowledge into products, services and cultural exports. Supporting institutions that integrate design, technology, sustainability and entrepreneurship will help India move from being a cost-competitive economy to a globally competitive innovation economy," Sanjay Gupta, vice chancellor, World University of Design, said.

"A forward‑looking Budget that positions general insurance as essential economic and social infrastructure anchored in digital enablement, affordability, home and MSME protection, and climate‑risk financing can significantly deepen insurance penetration and support the nation’s long‑term trajectory of inclusive and resilient growth," says Rakesh Jain, CEO, IndusInd General Insurance.

“Elders need specialised geriatric care rooted in dignity and compassion. For those battling life-limiting illnesses, especially the rural poor, the support and care outside hospitals, at their homes or communities, is often left unaddressed, leading to immense suffering. While policies already recognise Palliative Care under NHM, NPHCE & Ayushman Arogya Mandir (AAM) program (included as one of the 12 essential services package), a national mission approach with dedicated resources and timelines is urgently required to fully operationalise this. We also urge financial support under PM‑JAY for home‑based palliative and caregiving services through registered providers,” says Rohit Prasad, CEO, HelpAge India.

Naval Kagalwala, COO & Head of Products, Shriram Wealth Ltd., expects gross market borrowing to remain elevated in FY27 as many existing bonds are coming due. This is starting to weigh on the bond market and 10‑year yields have risen in recent sessions even though the RBI has tried to ease liquidity through measures like OMOs and dollar‑rupee buy‑sell swaps, Kagalwala said.

Govind Sankaranarayanan, Co-founder & COO, Ecofy expects "measures that can accelerate green lending at scale. The proposed establishment of a dedicated Green Finance Institution (GFI) can be a game-changer, offering credit guarantees, concessional finance, and securitisation support that substantially lower risks and borrowing costs. Along with targeted incentives for EVs, rooftop solar, and industrial decarbonisation, such institutional support can expand the green credit pipeline and help India stay aligned with its 2030 climate ambitions. The next phase of growth will depend on how effectively policy and finance converge to de-risk and scale sustainable investments across sectors."