Budget 2026 Expectations Live: Focus On Clean Energy, Power Infrastructure Push, And More

"With the upcoming iteration of the Defence Acquisition Procedure, a timely opportunity is presented to implement targeted reforms, such as phased localisation, multipliers focused on Micro, Small, and Medium Enterprises  and stronger vendor-driven ecosystem development, to further liberalise the defence ecosystem, expedite procurement timelines, and effectively catalyse self-reliance in defence manufacturing,"  Nikunj Parashar, Founder And CEO of Sagar Defence Engineering said.

Sanjay Mariwala, executive chairman and managing director of OmniActive Health Technologies Ltd called for policy stability and economic discipline in the upcoming budget.

"Large industrial and infrastructure investments are planned over five to seven years, but when policies shift every Budget, companies are forced to keep adjusting their plans. That is why private investment remains cautious, even at a time when government capital expenditure has crossed Rs 11 lakh crore in FY25," Mariwala said.

"What industry needs is not another round of policy declarations, but a clear multi-year framework, with each budget focused on transparent progress reporting and fixing what is not working. Predictability, backed by accountability, will sustain long-term economic momentum," the MD added.

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.

"Continued investments in urban mobility, digital infrastructure, and resilient power and data ecosystems can reinforce India’s readiness for the next phase of GCC growth," Monica Pirgal, CEO, Bhartiya Converge said.

Beyond growth numbers, there is hope for targeted policy measures that ease leasing-related compliance, provide greater tax clarity for both occupiers and developers, and support GCC offshoring momentum and office ecosystem growth, 

It would also be encouraging to see continued investment in urban infrastructure, last-mile connectivity, and transit-oriented development, as these directly influence location attractiveness and leasing decisions.

" 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.

"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.

"With the Indian higher education system re-positioning itself in sync with NEP 2020, we anticipate an increased allocation of funds in Union Budget 2026 to make universities centres of advanced research and innovation," Yajulu Medury, vice chancellor, Mahindra University said

"This should translate to increased investment in emerging areas to foster holistic development and to facilitate better synergy between industry and academia,"  Medury added.

"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.

“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.

"Targeted direct and indirect incentives (for tech manufacturing) can help attract long-term FDI and enable deeper technology collaborations in these critical areas. At a time when business sentiment remains resilient despite global geopolitical uncertainty, stability is key,"  Ajay Sethi, Managing Partner, Baker Tilly ASA India said.

"Finally, with new labour codes now operational, a robust check-and-balance mechanism is crucial. Overregulation at the inspection level can deter investment. A dedicated committee to monitor implementation and recommend course corrections over the next five years would help protect worker interests while sustaining investor confidence," Sethi added.

"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.

"The announcement of the National Geospatial Mission in the Union Budget 2025 marked an important step towards strengthening India’s geospatial infrastructure and data ecosystem, " Agendra Kumar, managing director, Esri India said.

"This mission will support the modernization of geodetic frameworks, enhancing geospatial infrastructure, standardizing data systems, and promoting the adoption of emerging technologies. As the next step, the government must allocate adequate funds so that the roll-out of this program can gain speed and provide the data and infrastructure to support numerous other programs and initiatives of various ministries," he added.

Abhishek Bisen, Head- Fixed Income, Kotak Mahindra AMC expects the centre to continue with it's current plant to reduce the FY27 fiscal deficit and projects it to be at 4.3%.

"We expect the FY27 fiscal deficit to remain on the glide path of fiscal consolidation and likely to peg at 4.3%, implying a government gross borrowing programme of around Rs 16.5 trillion. While net borrowing should stay broadly similar to last year, the gross figure may rise due to higher maturities next year," Bisen said.

Dhanu Roy, Founder & Director, Right4Paws, says "over 60% of pet food — largely premium — is still imported. Budget 2026 presents a clear opportunity to strengthen Make-in-India pet nutrition by incentivising domestic manufacturing, ingredient sourcing, and food-processing infrastructure, reducing reliance on imported formulations. While pets fall under the companion animal category, their role in providing emotional, physical, and psychological support — especially to urban families, senior citizens, and young professionals living away from home — makes this a sector with both economic and social impact.”

Rajneesh Chopra, Managing Director, Amway India believes that inclusion is crucial for the India story. "To enable grassroots entrepreneurship, the Budget should consider introducing lower income tax slabs for small businesses like direct sellers/ distributors, sole proprietors,  similar to the fiscal support extended to start-ups through deferred taxation, thereby enabling millions, including women and those in smaller towns, to participate meaningfully in the formal economic growth and drive more inclusive development. Dedicated budgetary support for clinical research and evidence-based nutrition will be crucial to strengthening consumer trust and enhancing the global credibility of Indian-made supplements, firmly positioning India as a trusted, science-led hub for preventive health and long-term well-being."

Aditi Singh, Chief Strategy Officer, Satin Creditcare believes that "it is essential to continue to focus on rural livelihood support, women entrepreneurship, and MSME sustainability. Increased budget outlays for credit-linked social security programs, quicker transmission of policy rate changes, and continued support for housing and clean energy will help increase last-mile economic engagement. An equally important aspect would be building a supportive regulatory ecosystem for NBFCs to support banks to extend responsible access to credit, focusing semi-urban and rural areas. A growth budget for consumption, employment, and inclusion would do a lot to sustain economic confidence."

Nasir Ali, CEO and Founder, Gallant Sports Infra, believes that sport must be treated as a core national investment, not a discretionary expense. "India’s sports budget is expected to rise to around Rs 3,900–Rs 4,500 crore. Medals are not created on podiums; they are built on fields, tracks, and courts that are accessible, safe, and future-ready. India’s progress from 2 Olympic medals in 2016 to consistent multi-medal performances in recent Games, and a record 29 Paralympic medals shows what targeted investment can achieve, with Khelo India likely continuing at Rs 1,000 crore or higher; this increase aligns with India’s long-term ambition for global sporting events and improved medal performance. Make in India must extend to  sports infrastructure, enabling world-class surfaces, equipment, and technologies to be designed and manufactured domestically."

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."

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." 

Aditya Kale, Founder & CEO, Airattix expects a shift in focus "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."

Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries Ltd, says, “Continued focus on quality infrastructure and logistics will be critical in strengthening India’s cost competitiveness and manufacturing efficiency. In the context of evolving global trade challenges, policy measures that support exports and deepen India’s integration into global supply chains will be increasingly important. For the automotive and tyre sectors, policy continuity that enhances affordability and supports rural incomes can sustain demand and create strong multiplier effects across the economy. A forward-looking, investment-led Budget will play a key role in accelerating India’s manufacturing growth and reinforcing investor confidence.”
 

Namrata Mittal, CFA, and Chief Economist, SBI Mutual Fund expects ''the Union Budget to sustain its focus on supporting MSMEs facing tariff-related external pressures, pursue further rationalization of customs duties, maintain its emphasis on capital expenditure, and explore measures to incentivize job creation. Given that significant tax reforms have already been implemented in the past two years, this Budget may lean more towards expenditure-side initiatives. However, any changes to capital gains taxation could influence near-term equity market sentiment. The fixed-income market will pay close attention to the recommendations of the 16th Finance Commission, expected around the same time, as these will shape state finances and influence the overall supply of government securities in FY27."
 

Mr. Umesh Revankar, Executive Vice Chairman, Shriram Finance laid forth the expectations from the NBFC industry. He says, “The broad expectation from the upcoming Budget is continued support for India’s growth priorities with a strong focus on implementation. With large infrastructure projects already identified, timely execution, smoother coordination, and reduced approval friction will be key to ensuring that spending translates into durable assets. From an NBFC ecosystem perspective, industry discussions have centered on incremental enabling measures rather than headline announcements—such as improving operational efficiency in funding flows, making refinancing channels more accessible, and providing a level playing field in the use of SARFAESI"

Mr. Parveen Gupta, Director, Ramacivil India lays out the expectations from the construction industry. He expects "the upcoming Budget should prioritise timely fund release mechanisms, faster project clearances, and streamlined contract frameworks to improve execution efficiency. Access to long-tenure, low-cost financing for EPC players, especially mid-sized contractors, will be crucial in managing working capital cycles and project risk. Additionally, policy support for adoption of modern construction technologies, prefabrication, and sustainable building practices can help improve productivity and reduce cost overruns."

Mr. Amol Goel, Founder & CEO, Louis Stitch has his own expectations from the point of view of the Indian footwear and leather goods industry. He expects a shift in focus "from volume to value, design, and brand-led manufacturing. We believe the upcoming Budget should prioritise rationalisation of GST on premium footwear and leather accessories, as the current inverted duty structure continues to impact margins and consumer pricing. A more uniform tax regime across materials, components, and finished products will significantly improve supply-chain efficiency and compliance. From a manufacturing standpoint, targeted incentives for modernisation of leather processing, automation in cutting, stitching and finishing, and adoption of Industry 4.0 technologies can help Indian manufacturers improve consistency, reduce wastage, and meet global quality benchmarks."

Vikas Tarachandani, Co-founder, SURE expects the Budget to "strengthen home-loan tax benefits to support long-term affordability. Alongside this, there is a clear need for simpler, borrower-friendly disclosures from lenders-how the interest rate is calculated, what can change over time and when changes are passed on. If we make loan terms easier to understand, we can meaningfully reduce overpayment at a national level and improve household financial resilience".

Gurjodhpal Singh, CEO, Tide India expects a decisive shift towards "easing the cost of doing business. Simplifying GST compliance and reframing compliance as a growth enabler through targeted education, digital-first processes, and trust-based frameworks will help small businesses move from informal survival to scalable growth. The budget must also strengthen credit guarantees, deepen women-focused and PMJDY-linked financing, and enable MSMEs to better leverage India’s FTAs through improved export readiness and working capital support. Equally critical is a targeted push on MSME skilling, focused on digital and sector-specific capabilities, to help businesses improve competitiveness. A focused push on digitisation, including AI-led lending and risk assessment, can bridge the gap between underserved MSMEs and formal finance. With this budget, the government has the opportunity to move beyond short-term relief and lay the foundation for a resilient, tech-enabled, and globally competitive MSME ecosystem.”

Simarpreet Singh, Executive Director & CEO, Hartek Group expects recognition in "grid strength, energy storage, skilled manpower and domestic manufacturing as strategic enablers of India’s energy transition, not peripheral add-ons. Only then can renewable scale translate into stable, bankable and sustainable outcomes. There is a pressing need to accelerate funding for smart grids, flexible transmission networks, HVDC corridors, and extra-high-voltage and GIS substations. Equally important is long-term capability building. Budget 2026 should significantly scale up R&D investments, technology incubators and academic–industry collaboration across renewables, energy storage and grid automation, while introducing focused skilling programmes for high-voltage systems, HVDC, automation and project execution."

Devansh Jain, Executive Director, INOXGFL Group expects that "the focus on clean energy remains positive, especially around increasing transmission capacity, enabling grid flexibility, storage, and resolving ongoing issues, leading to capacity addition growth required to achieve our 2030 target of 500 GW of installed renewable capacity. Our ambition remains unchanged: to contribute meaningfully to India’s sustainable and self-reliant energy future. The opportunity ahead is significant, and we are preparing for it with humility in efforts, ambition in vision, and confidence in our people."