Budget 2026 Expectations: All eyes on FM Nirmala Sitharaman's Budget presentation

“India’s healthcare sector is entering a defining phase, and Budget 2026 has the potential to shape its growth trajectory for the next decade. With NCDs such as cancer, diabetes and hypertension rising steadily, the focus must shift towards affordability, preventive care and early diagnosis. Continued support for PLI schemes across pharmaceuticals, APIs, biosimilars and medical devices will be critical to strengthen supply-chain resilience and scale high-value manufacturing. Fiscal incentives for R&D, innovation and technology adoption can further position Indian pharma as a global growth engine. Equally important will be increased investments in digital health platforms under the Ayushman Bharat Digital Mission, expansion of cancer care beyond metros, and targeted skilling initiatives to bridge healthcare workforce gaps. A forward-looking Budget that balances industry competitiveness with patient affordability will be key to advancing the vision of a Healthy and Viksit Bharat," said Bhanu Prakash Kalmath, Partner and Healthcare Industry Leader, Grant Thornton Bharat.

Gourav Sogani, Partner, Economic Laws Practice, said, "In a challenging global environment and with India gearing up for FY26 with renewed emphasis on investment-led growth and business stability, the upcoming Union Budget will be crucial."

He added, "The rollout of GST 2.0 in September 2025 and the move to a dual-rate structure (5% and 18%) was a significant step toward rate simplification. However, operational challenges still continue. The inverted duty structure (IDS) remains one of the key concerns, particularly for MSMEs. Industry players are hoping that input services and capital goods will also be included in the current IDS refund formula. Further automation and easing of refund processes are also expected to support smoother cash flows, as it strains working capital. Another pressing concern is the multiple, parallel GST investigations and audits by different authorities, which disrupt business operations. Clear guidelines and a more coordinated enforcement framework are expected for improving certainty and ease of doing business. A long-awaited Customs Amnesty Scheme is also expected to help close prolonged customs disputes. Another major expectation is for amendments to streamline proceedings before the GST Appellate Tribunal (GSTAT), given the delay in its operationalization and the resulting accumulation of cases. The amendments to GST law as proposed by the GST Council in its 56th meeting are also expected to be brought into effect in the Budget."

"On the Direct Tax front, recent reforms such as the revised personal tax regime and enhancement of tax-free income thresholds have been positively received. However, taxpayers continue to expect a more harmonized capital gains framework. This inter alia includes rationalizing multiple rate slabs, reducing disparities across listed and unlisted securities, debt instruments, and real estate, and potentially increasing the long-term capital gains deduction threshold for listed securities," he further said.

"Budget 2026 presents a critical opportunity to accelerate EV adoption across both the two-wheeler and passenger vehicle segments. Especially for electric two-wheelers, a multi-pronged approach can boost consumer and sectoral confidence. Simplified financing options for first-time EV buyers and gig workers who depend on two-wheelers for their livelihoods, subsidised credit schemes with a rural focus and targeted grants for domestic OEM startups developing affordable entry-level products – can reduce barriers to financial aid, help lower ownership cost and incentivise local manufacturing. Equally crucial is extending duty exemptions to critical components such as battery materials, controllers, and motors, which currently constitute 40-50% of vehicle costs. This comprehensive policy framework can transform EVs from aspirational products into accessible and affordable mobility solutions, driving the volume growth needed in FY27. It will also help in building a self-reliant domestic automotive ecosystem that aligns with the vision of Vikshit Bharat, reduces import dependence and positions India as a global EV manufacturing hub," said Tushar Choudhary, Founder & CEO, Motovolt Mobility.

Jyoti Mayal, Chairperson of Tourism and Hospitality Skill Council: As we look forward to the Union Budget 2026, we expect the government to prioritise long-pending skilling reforms that can truly strengthen India’s tourism and hospitality workforce. The sector urgently needs industry-aligned curriculum, modernised training with digital and AI-integrated modules, and regional hospitality skill centres that expand access, especially across high-potential states. Streamlined apprenticeship pathways and stronger PPP models can significantly boost hands-on training, employability, and wage growth for youth.

With targeted budgetary support towards curriculum modernisation, digital skilling, apprenticeships, and quality assurance, India can reduce persistent skill gaps and raise service standards across the sector. We also hope for continued focus on MSME support, sustainable tourism, infrastructure enhancement, and ease of doing business, all of which are essential to unlocking new destinations and strengthening India’s global tourism competitiveness. A future-ready, industry-trained workforce remains central to achieving Tourism Vision 2047.

Kamal Chhabra, founder & CEO of KC GLobEd: In Budget 2026, I hope to see stronger support for personal finance in the education and skilling sector. Today, students and working professionals want to upskill, but high costs often hold them back. The government can make a real difference by offering tax benefits on professional courses, reducing GST on EdTech services, and simplifying access to education loans. Increased public spending on digital learning infrastructure will also empower millions to pursue global credentials without financial stress. An affordable, future-ready learning ecosystem is not just an expectation - it’s a necessity for India’s skilled workforce.

Abhishek Wadekar, founder chairman, Tradelink International Pvt Ltd: As India prepares for the upcoming Union Budget, we expect the budget to look forward to policy measures that strengthen the agricultural and fertilizer ecosystem. The fertilizer industry plays a pivotal role in ensuring food security and we request the government to look at the aspects of affordability, accessibility and innovation in this sector.

We hope to see a balanced approach to import duties, infrastructure development and incentives for sustainable technologies that can reduce dependency on volatile global supply chains. Such measures will empower Indian agriculture, enhance productivity and reinforce India’s position in the global fertilizer market.

The Central government is likely to decide the date for the upcoming Union Budget 2026 today with the Cabinet Committee on Parliamentary Affairs likely to take the call, sources aware of the development told Moneycontrol.

A proposal has been given to continue with the convention and present the Budget on February 1, which falls on a Sunday. Read more

India's automobile industry is looking for policy continuity and long-term clarity in the upcoming Union Budget after the successful implementation of GST 2.0, Skoda Auto Volkswagen India MD and CEO Piyush Arora said on Tuesday.

Sustained support for domestic manufacturing and increased allocation for road and transport infrastructure will be key priorities, Arora said in a statement.

"As the Union Budget approaches, after the successful and welcome implementation of GST 2.0, the industry will be looking for policy continuity and long-term clarity," he said.

Pointing out key priorities, Arora highlighted the need for sustained support for domestic manufacturing and increased allocation for road and transport infrastructure.

Exporters are under pressure as they are struggling with high tariffs on Indian goods and a trade deal with the US is still not in sight. They would be hoping for a trade agreement between New Delhi and Washington and sops from the Budget to ease tariff pains.

For exporters, this will be the decisive month for sealing the trade pact so contracts can be secured for the first half of 2026, according to half a dozen local exporters who spoke to Bloomberg News. The punitive 50 percent US tariffs since August already hurt the exporters’ order volumes in the typically busy winter and Christmas season in 2025.

Union finance minister Nirmala Sitharaman is unlikely to break the convention and go ahead with the presentation of Budget 2026 on February 1 (Sunday). The Budget session of the Parliament is likely to begin from January 28. However, the final decision is set to be taken by the Cabinet Committee on Parliamentary Affairs, the Economic Times reported on January 7.

Earlier, PTI had also reported that the finance minister is likely to continue with the tradition of presenting Budgets of February 1.