Budget 2026 Expectations Live: Focus On Rural Credit, GST Reforms And More

"To strengthen inbound tourism, policy support for niche segments such as medical, sustainable, and MICE tourism with focus on incentives and skill development programs; review of visa policies (faster e-visa processing, expanded e-visa categories, targeted visa-on-arrival schemes), and enhanced allocation for global marketing campaigns like Incredible India will be critical," Mahesh Iyer - managing director and  chief executive officer, Thomas Cook (India) Ltd. said.

"Our key recommendations are:

• GST Procedural Reforms: While GST 2.0 was a welcome and major reform, it had largely confined itself to rate rationalisation. It is now time to implement an option for Centralized Registration, seamless single returns and reporting across all states and procedural simplification to achieve a truly 'Good and Simple Tax' system.
• Flat 1% TCS: Replace the complex multi-tier structure with high tax rates (5%/ 20%) with a universal 1% rate. This ensures a clear audit trail of information to the tax department and enforcement authority, while avoiding needless cash/ liquidity blockage at travellers’ end.
• Industry Status: Grant 'Industry Status' to the tourism sector to unlock its potential and facilitate growth."  Vishal Suri – Managing Director and CEO, SOTC Travel Ltd. said.

"Measures such as the 1% TDS on transactions pushed trading activity offshore, reducing transparency within the domestic ecosystem. The inability to set off losses against gains has also limited prudent portfolio management. Reducing TDS to 0.1% and allowing loss offsetting could lower friction, encourage responsible participation, and support a transparent, compliant, and sustainable crypto ecosystem in India," Edul Patel, CEO of Mudrex said.

"This budget must move construction from labour-heavy methods to technology-driven solutions like precast. Faster execution and structured supplier credit will directly lower project costs and improve infrastructure delivery. Targeted incentives for precast and modular construction should be introduced to accelerate adoption," Anirudh Choudhury, Progressive Concrete Industries said.

"First, extending Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act rights to NBFCs across all loan values. This will help accelerate recovery processes, reinforce credit discipline, and ultimately reduce borrowing costs for customers.

Second, launching a dedicated refinance/liquidity window for MSME-focused NBFCs to ensure steady and cost-effective access to funds for underserved segments.

Third, improving access to long-term funding for NBFCs financing long-tenor assets, which will help ease asset–liability mismatches and support sustainable balance-sheet growth.

Finally, putting in place policies to further strengthen digital public infrastructure for credit—through consent-based data sharing and interoperable registries—to enhance underwriting quality and enable faster, more informed lending decisions," Pinank Shah, CEO, Capital India Finance Ltd. said.

"Our highest earners (Rs 2 crore ) currently face a peak tax rate of nearly 39% to 43%. This isn't just a tax; it’s an exit trigger. We are seeing a quiet migration of our best entrepreneurs to hubs like Dubai, where personal income tax is Nil. To keep Indian capital at home, we must rationalize surcharges and cap the effective tax rate at a competitive 30%, " Rajeev Gupta, Executive Vice President & Business Head - Third Party Products, Religare Broking Ltd. said.

"In the markets, the 12.5% Long-Term Capital Gains (LTCG) tax has created a "friction of success." We urge a return to the 10% LTCG regime. Taxing inflationary gains discourages the long-term compounding essential for our Viksit Bharat 2047 target of a $30 trillion economy," Gupta added.

"Currently, in NPS, there is a lack of clarity on the final pension amount a citizen will receive from their corpus. We call for an 'assured pension' within the NPS for all citizens. By removing the fog around annuity returns, we can turn the NPS into a true pillar of national dignity and social security," he further stated.

"Funds must be directed toward modern, research-informed professional development programs that equip educators with the skills to facilitate inquiry-based classrooms effectively. Overall, the upcoming Budget presents a timely opportunity to reinforce education as a long-term national priority, one that places research, experiential learning, and strong teaching capacity at its core," Vallish Herur, Executive Chairman, Prayoga Institute of Education Research said.

"For third party logistics players, policy support for technology adoption such as automation, AI and digital supply chains, along with incentives for green warehousing, can significantly enhance productivity and sustainability. Clarity on GST, especially input tax credit on construction, will unlock faster development of Grade A warehouses, " Ajay Rao, founder and CEO, Emiza said.

"Budget incentives should reward climate-responsive design, passive strategies, and durable materials that reduce long-term maintenance and energy costs for both occupants and asset owners, A design-led budget will help developers build smarter assets while enabling policymakers to create resilient, efficient, and people-centric cities," Tripat Girdhar, founder of Arete Design Studio said.

"Affordable housing policy must emphasise liveability, dignity, and long-term performance, not just unit counts. Urban planning, public spaces, and last-mile connectivity deserve stronger fiscal support," he added.

"If Budget 2026 strengthens technology upgradation and supports sustainable manufacturing at scale (for MSMEs), it will help factories become globally competitive while staying grounded in unit economics," Neal Thakker, founder and chief executive officer of Magma Group said.

"Budget 2026 is a real opportunity to align sustainability with competitiveness by backing technology upgradation, green materials, and simpler compliance for manufacturers who want to modernise without losing margins," Thakker added.

Nikhil Mansukhani, Managing Director, MAN Industries (India) Ltd says, "Infrastructure and manufacturing sectors are looking for continued increases in public capex and timely release of funds to ensure smooth execution." For companies operating across oil & gas, water and urban infrastructure, he says sustained and front-loaded capex is critical for demand visibility. Mansukhani adds that "predictable allocations for water, energy and city gas projects can ease working capital stress. Policy support to manage steel input volatility, faster GST refunds and simpler compliance will improve liquidity and execution efficiency."

Dr Devlina Chakravary, Managing Director, Artemis Hospitals says, "The healthcare sector expects Budget 2026–27 to build on recent progress through higher funding and stronger public health infrastructure." She says greater emphasis on preventive care and NCD management, including tax incentives for health screenings, is critical. Chakravary adds that boosting MedTech R&D, improving GST rationalisation for medical devices and expanding healthcare workforce capacity can lower treatment costs. Continued support for Ayushman Bharat and rural healthcare access, she says, will strengthen long-term health outcomes.

Dr Sanjay Sharma, CEO and Whole Time Director, Park Medi World Ltd says, "As India moves toward its 2030 healthcare spending target, Budget 2026 must focus on both the quality and efficiency of healthcare investment." He expects rate rationalisation, predictable reimbursements and stronger public–private collaboration, especially across schemes like Ayushman Bharat. Sharma adds that GST support for medical devices, correcting inverted duty structures and easier access to affordable capital can reduce operating costs. Focused support for mid-scale hospital expansion in Tier 2 and Tier 3 cities, he says, can improve access and affordability.

Sriram Velliyur, Co-founder and CEO, Curapod says, "As India approaches Budget 2026–27, the healthcare sector needs a more structured and forward-looking fiscal approach focused on primary care and NCD management." With non-communicable diseases accounting for nearly 65% of all deaths, he says "preventive care, early screening and technology-enabled therapies must be prioritised". Velliyur adds that recognising pain management as part of primary healthcare and supporting non-invasive, at-home therapies can reduce long-term medication dependence. Higher public health spending and targeted incentives for medical innovation, he says, can meaningfully lower the economic and social burden of chronic conditions.
 

Manish Rathi, Co-founder and CEO, RailYatri says, "The railways have shown strong execution momentum across safety, capacity and passenger upgrades." Looking ahead to Budget 2026, he expects focus to shift toward integrated travel experiences. Seamless multimodal connectivity, station modernisation and better first- and last-mile links, Rathi says, can unlock the full potential of rail transport.

Venkatesh Naidu, CEO, BajajCapital Insurance Broking Ltd says, "Budget 2026 offers an opportunity to bridge India’s protection gap across life, health and retirement." He expects greater tax clarity and parity for insurance products to strengthen household trust and adoption. Encouraging micro-insurance and simplified frameworks, Naidu says, "can bring first-time buyers into the ecosystem. Public–private collaboration and digital distribution will be key to expanding coverage efficiently."

Manish Rathi, Co-founder and CEO, IntrCity SmartBus says, "India’s intercity mobility sector is at an inflection point as passengers shift toward organised, experience-led bus travel." He expects Budget 2026 "to complement highway investments with modern, airport-style bus terminals along key corridors. Such infrastructure can improve safety, reliability and shared mobility adoption." Fiscal incentives and PPP models, Rathi says, can accelerate a sustainable intercity transport ecosystem.

Piyush Kedia, Co-founder and CEO, InCommon says, "India has built strong foundations in digital infrastructure, skilling and AI, and Budget 2026 must now make GCC expansion operational, especially in Tier-2 cities." He says predictable execution support in the first 90 days is critical for PE- and VC-backed firms. Clearer frameworks around infrastructure readiness, skilling partnerships and compliance, Kedia adds, can make India the default choice for global capability centres.

Sanjiv Bajaj, Joint Chairman and Managing Director, Bajaj Capital says, "The focus ahead of Budget 2026 should be on strengthening household confidence through higher disposable incomes and policy predictability." He expects tax simplification and incentives to support long-term savings, investments and insurance adoption. Bajaj adds that "retirement preparedness through NPS and improved insurance penetration must remain a priority. Sustained MSME credit support and infrastructure capex", he says, are vital for economic stability.

Subodh Garg, CFO, Cashify says, "Budget 2026 has an opportunity to shift India’s electronics sector from scale to sustainable value creation." He expects alignment of ESOP taxation with actual monetisation and greater clarity on capital gains for unlisted shares to support patient capital. Garg adds that "recognising certified refurbishment and recommerce can reduce import dependence. Moving from ‘Make in India’ to ‘Make it Last in India’", he says, "can multiply long-term economic returns."

Dr Manika Khanna, IVF Specialist, Founder and CEO, Gaudium IVF says, "Women’s healthcare in India is at a critical inflection point ahead of Budget 2026." She expects stronger policy "focus on preventive diagnostics, early screening and continuum of care. Rationalising GST on essential consumables, expanding Section 80D for preventive screenings and improving OPD insurance coverage", Khanna says, can "enhance affordability. Priority lending and incentives for Tier II and Tier III expansion are also crucial."

Pavan Kumar, Founder and CEO, White Lotus Group says, "Union Budget 2026 is a timely opportunity to bring structural clarity to taxation for luxury and design-led real estate." He says simplifying long-term capital gains and incentivising longer holding periods can attract patient global capital and stabilise pricing. Kumar adds that predictable GST treatment on input credits and works contracts is critical for high-end projects. Supporting REITs and refining housing policy levers, he says, can position real estate as long-term economic infrastructure.

Arijeet Talapatra, CEO, itel India says, "As India advances digital inclusion, Budget 2026 offers an opportunity to accelerate electronics manufacturing through targeted support." He expects sustained policy backing for semiconductors and high-end components to reduce import dependence and strengthen global competitiveness. Talapatra adds that fiscal support for localisation under ECMS and R&D-linked incentives can help build resilient supply chains. A stronger innovation push, he says, will enable next-generation device design and wider access to technology.

Santosh Shah, Managing Director, VYNA Electric says, "With the electronics PLI scheme already attracting large investments, Budget 2026 should deepen support for domestic manufacturing." He expects a modest reduction in import duties on raw materials and extension of incentives to lighting and switchgear components. Shah adds that such measures can help manufacturers deliver global-quality electrical products at competitive prices. Strong policy support, he says, will encourage responsible scaling and improve product safety and durability for consumers.

Abhishek Somany, Managing Director and CEO, SOMANY Ceramics says, "Natural gas is a critical input for ceramic tile manufacturing but remains outside the GST framework, leading to cascading taxes and higher production costs." He expects Budget 2026 to bring natural gas under GST to enable input tax credit and improve cost efficiency. Somany adds that tiles, despite being core to housing-led infrastructure, continue to be taxed at 18% and need rationalisation to the 5% slab. Such measures, he says, would support affordable housing, stimulate demand and strengthen domestic manufacturing.

Nikhil Sharma, Managing Director and COO, South Asia, Radisson Hotel Group says, "Tourism and hospitality are at a critical inflection point as demand deepens across leisure, religious, MICE and medical travel." He expects the Budget to recognise hospitality as productive economic infrastructure rather than discretionary consumption. "Granting infrastructure status, GST rationalisation and restoration of input tax credit," Sharma says, "can unlock long-term financing and improve competitiveness. Targeted incentives, connectivity investment and hospitality-specific skilling can position the sector as a key engine of inclusive growth."

Mr Shaji Varghese, CEO, Muthoot FinCorp Ltd. said, "We recommend budgetary measures for more credit supply to the rural and lower middle-income segments in India. To achieve this, the Union Budget 2026 can include measures for liberalising branch-opening norms for Gold Loan NBFCs to accelerate outreach and deepen market penetration, especially for secured Gold Loans which carry relatively lower risk. Rationalising capital risk weights for Gold Loans by NBFCs to reduce the cost of lending and enable greater credit flow to rural and semi-urban markets." He further recommended, "Harmonising SARFAESI Act applicability for NBFCs in line with banks and Housing Finance Companies (HFCs) to help drive rural housing credit and strengthen recovery mechanisms for smaller-ticket mortgage loans. Also, designing targeted schemes to ensure customers who experienced temporary or one-time credit default are not permanently excluded from formal banking channels and are brought back into the lending ecosystem. And lastly, promoting formalisation of gold lending by encouraging policy reforms that shift activity from informal channels to regulated institutions and strengthen consumer protection."

Mayank Kale, CEO and Co-founder, Loop Health says, "Budget 2026 presents a chance to correct a structural imbalance in India’s health insurance system, where group health insurance receives no tax support." He expects zero-rating of GST on group health premiums and full input tax credit to lower employer costs and boost preventive care. With the New Tax Regime reducing the relevance of Section 80D, Kale adds that incentives must shift toward prevention, early detection and workforce health, which is an economic priority.

Venkatraman Narayanan, Managing Director, Happiest Minds Technologies says, "Union Budget 2026 is an important opportunity to strengthen the operating environment for India’s IT industry as it enters its next growth phase." He expects policies that promote ease of doing business, technology exports and regulatory clarity for global digital delivery. "Incentives for digital engineering, cybersecurity and platform-led services, along with simplified compliance norms," he says, "can help mid-sized IT firms scale sustainably. Focused investments in industry-aligned skilling and academia-industry collaboration will be key to maintaining India’s global tech leadership.: