Budget 2026 Expectations Live: Railways, MSMEs and green transition likely priorities

As India moves steadily toward its Viksit Bharat vision, the Union Budget 2026 becomes a critical opportunity to accelerate the country’s next wave of economic transformation. One of the biggest issues faced by businesses is the risk of litigation and also prolonged litigation which take years to resolve. The Union Budget should focus on creating for clarity on litigative issues and dispute resolution. In line with Sabka Vishwas Scheme of 2019, a one-time settlement scheme under the Customs Act should be offered to ease the accumulating disputes. This scheme will also help monetize the blocked revenue involved in litigation. Further in order to provide tax certainty and a clearer framework wrt compliances and reducing the risk of litigation, the validity period for advance ruling may be extended to five years from the existing 3 years. Last but not the least simplification of the existing Customs Tariff Structure is the call of the hour. In line with the GST rate rationalization, the customs tariff framework should be simplified. -- Smita Singh, Partner ( Indirect Tax ) at S&A Law Offices

We have strong expectations for the education sector from the Union Budget 2026. Education is one of the important sectors that creates the foundation of the talent pool which drives other sectors. It has to get its due budgetary allocation in line with the recommendations of NEP 2020.

My biggest expectation is in terms of the professional development of educators, because empowered teachers elevate the standards of education more than anything else. Secondly, in accordance with the curricular reforms introduced by CBSE with respect to mandatory skill education for grades VI to VIII, I wish to see greater thrust on vocational and skill-based education through national programs and structured funding. Likewise, integration of AI within school systems should be encouraged with investments directed towards enhancing digital infrastructure, ensuring that the schools in rural areas and far-flung towns are not left behind.

Equity in education is a subject close to my heart. Budgetary allocations directed towards improving the infrastructure, ensuring adequate teachers per public schools, and elevating the quality of learning in rural areas will help a great deal to empower the last child. Lastly, I look forward to some announcements encouraging the public-private partnerships in education, so that private capital may enter education and take it to the global standards. India’s march towards becoming a knowledge superpower and Viksit Bharat will be powered by the education sector. The Union Budget should reflect this ambition. -- Shishir Jaipuria, Chairman, Jaipuria Group of Educational Institutions

MSMEs are also expected to feature prominently in the Budget. According to the PHD Chamber of Commerce and Industry, the sector requires improved access to finance, lower compliance costs, and reduced regulatory friction to strengthen its competitiveness in global markets.

Ratings agency ICRA expects railways to continue as a major focus area. With electrification largely completed, policy attention is likely to shift towards reducing congestion and expanding capacity through new lines, track doubling, gauge conversion, and progress on dedicated freight corridors.

Market participants believe Budget 2026 will prioritise five broad areas: fiscal and policy support, defence, MSMEs, railways and infrastructure, and the transition towards greener growth.

Economists and industry bodies expect the government to build on last year's personal tax relief and GST rationalisation to sustain household demand. However, with fiscal space remaining limited, large-scale spending announcements are seen as unlikely, with the emphasis expected to be on targeted measures.

The countdown to Union Budget 2026 has begun, with Finance Minister Nirmala Sitharaman set to present her ninth Budget-and the 88th since Independence-on Sunday, February 1. The Budget is being framed against a backdrop of a slowing global economy, raising expectations of a stronger policy push to support domestic consumption.