Budget 2026 Expectations: Industries Push for Policy Support Across Renewables & Innovation

"Budget 2026-27 is expected to begin the countdown for Bharat’s $1 trillion product and services export dream. The mission recently received timely Cabinet approval in November 2025, with an outlay allocation of Rs. 25,060 Crore ($2.774 billion) for FY26 to FY31. It aims to strengthen export-led growth through a strategic shift from multiple fragmented schemes to a single, outcome-based, adaptive mission that responds swiftly to trade challenges and evolving exporter needs amid global tariff wars," said Abhijeet Sinha , Principal Adviser - SEPC, Ministry of Commerce & Industry, Government of India.

“Budget 2026 presents an opportunity to support newer computing models that move beyond device-bound performance. Policy measures that encourage cloud-native operating systems can help redefine access to productivity tools. From our perspective, enabling these models can unlock flexibility, improve resource efficiency, and reduce dependency on rigid legacy systems. A budget that supports cloud-integrated computing will accelerate the transition toward more adaptive and future-ready digital ecosystems,” said Chitranshu Mahant, CEO and Co-Founder, Primebook India.

"Rationalization of the GST rates on the necessity-based home and kitchen appliances would help improve affordability and accelerate the entry into Tier 2 & Tier 3 markets. In the manufacturing areas, continued focus on PLI schemes and reduced import duties for key components and raw materials would help domestic manufacturing scale up. The industry also awaits increased incentives for R&D in innovative new products, including AI and IoT solutions in the area of energy efficiency and sustainability," said Tushar Gupta, Director of Operations, Thermocool Home Appliances Ltd.

"The recent GST reforms, such as simplified rates and a reduction in rates for construction materials, would help in reducing costs and making it more transparent, instilling investor confidence. Combined with other proposed measures such as RERA, development of infrastructure, online land record management, and sustainability norms, this sector shall finally witness more organization and professionalism. The upcoming budget looks forward to fixing boundaries for affordable housing, home loan tax deductions, GST reforms, and sectoral recognition, further kick-starting this sector in the year 2026," said Abhishek Raj, Founder and CEO, Jenika Ventures.

"Extending and strengthening PLI schemes, along with manufacturing-linked incentives, will further expand production capacity and generate high quality employment across the country. For pharma MSMEs, the true backbone of grassroots innovation, targeted Budgetary support for R&D infrastructure, quality systems, and regulatory compliance will be essential to meet revised Schedule M requirements and succeed in stringent global audits such as USFDA and EMA," said Nikkhil K. Masurkar, CEO, ENTOD Pharmaceuticals.

"On the outbound tourism front, the current tax and regulatory framework continues to challenge organized travel players. High GST on tour packages and a 20% TCS on overseas tour programs have materially increased travel costs for consumers. The upfront collection of TCS impacts cash flows, complicates pricing, and discourages advance bookings, while diverting demand toward unorganised or offshore channels. Additionally, foreign spending caps and compliance complexities under the LRS further constrain seamless outbound travel," said Wilfred Selvaraj, Managing Director LGT Holidays.

“We also expect the forthcoming Budget to strengthen insurance coverage and wellness provisions to include long-term preventive care, while accelerating investments in digital health infrastructure and community-based clinics. Such measures can bridge access gaps in Tier-2, Tier-3, and semi-urban regions. Keeping affordability at the core, through targeted tax incentives, employer-led wellness programs, and robust public-private partnerships, will be critical to reducing out-of-pocket expenses and ensuring sustainable, inclusive healthcare growth for India,” said Dr. Mukesh Batra, Founder-Chairman Emeritus, Dr Batra’s Healthcare.

The upcoming Budget can accelerate bond adoption by reducing friction and improving liquidity. Key steps include incentivising secondary-market trading, strengthening repo and market-making frameworks, and expanding credit enhancement mechanisms so issuances are not restricted only to top-rated entities. These measures would make bonds more competitive with equities as scalable, long-term investment options," said Nikhil Aggarwal, Founder & Group CEO, Grip Invest.

Adding that a recent report by Niti Aayog on Deepening the Bond Market clearly identifies tax asymmetries such as slab-rate taxation of interest, TDS inefficiencies and unfavourable capital-gains treatment as major deterrents to long-term bond investing.

"Rationalising these, especially for long-tenor listed bonds and retail-focused fixed-income products, would materially improve household participation," he noted.

“The emphasis now should be on creating an environment where Indian D2C brands can build and scale from within the country with confidence. Consistent tax policies, simpler GST compliance, and better access to working capital, along with extending PLI incentives to a wider set of consumer and wellness categories, can encourage brands to invest deeper in local manufacturing, product quality, and supply chains. For ergonomics and wellness brands like ours, this stability allows a sharper focus on thoughtful design and long-term consumer value, while strengthening India’s manufacturing ecosystem and keeping high-quality products accessible for everyday consumers,” said Ganesh Sonawane, Co-founder and CEO of Frido.

Deepak Chand Thakur, Chairman and Managing Director of NPST, said the Union Budget presents a key opportunity to strengthen the sustainability of India’s digital payments ecosystem.

“The zero MDR framework has played a critical role in accelerating adoption and inclusion,” he added.

Thakur noted that rising UPI volumes and system complexity require predictable funding models to support continued investment in infrastructure, security, and innovation. He added that calibrated MDR or multi-year reimbursement mechanisms could preserve affordability while enabling long-term resilience and trust in digital payment systems.

The GCC industry is seeking a clear shift from intent to execution. While India hosts over 1,800 GCCs and remains the global hub of choice, the absence of a national framework creates uncertainty for long-term investments, especially in Tier-2 and Tier-3 cities.

Budget 2026 must deliver policy clarity, targeted incentives for AI- and engineering-led GCCs, and stable tax and regulatory support to unlock the next phase of growth.

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“We welcome BIS clarity distinguishing natural from lab-grown diamonds. Forward-looking and consistent policies will strengthen the sector and reinforce India’s position in the global gems and jewellery value chain,” said Paul Alukkas, Managing Director, Jos Alukkas.

He added that as gold prices hit record highs amid currency volatility and global demand, the industry seeks well-defined regulations for digital gold to protect consumers and formalise the market. Steady growth in natural diamond demand underscores the need for clear, supportive policies to boost India’s global competitiveness.

“India’s renewable energy journey is transitioning into an era of innovation, scale, and economic opportunity,” said Faruk G Patel, Founder, Chairman & MD, KPI Green Energy.

He added that with KP Group’s 6 GW capacity and plans to reach 10 GW by 2030, Budget 2026 should continue policy support for hybrid energy systems, energy storage and green hydrogen. Strengthened incentives, tax clarity and capital support mechanisms will sustain investor confidence, create jobs and drive India’s leadership in renewables and long-term economic growth.

Dr. Roy Patankar, Gastrointestinal & Laparoscopic Surgeon and Director, Zen Multispeciality Hospital, Chembur, said, “To strengthen healthcare access across India, the upcoming budget should consider offering a three-year tax holiday for public–private partnership (PPP) hospitals with more than 200 beds in Grade B towns.”

He added that such incentives would promote advanced hospitals, modern diagnostics and specialised care in smaller cities, bridging urban–rural healthcare gaps, creating jobs and driving inclusive, sustainable growth in Bharat.

“On a global scale, a concentrated group of AI-led firms is driving a disproportionate share of growth and capital formation. Since late 2022, fewer than 50 AI-centric companies have generated nearly 65%–75% of S&P 500 earnings and capital expenditure, while technology capex alone has fuelled over 40% of incremental US GDP growth in 2025," Pratap Daruka, chief financial officer, Tredence, said.

As the IndiaAI Mission scales and India’s startup and GCC ecosystems deepen, budget 2026 must clearly recognise AI, data engineering, and applied analytics as strategic growth infrastructure. A targeted policy push—through stronger R&D incentives, AI-ready digital and compute infrastructure, clean-power data centres, and deeper public–private collaboration on skilling—can help India shift from a talent supplier to a creator of AI platforms, intellectual property, and high-value exports, he added.

“As India approaches the Union Budget 2026, the infrastructure and EPC sector remains central to the country’s long-term economic growth and competitiveness," Parveen Gupta, director, Ramacivil India, said.

We believe the upcoming Budget should prioritise timely fund release mechanisms, faster project clearances, and streamlined contract frameworks to improve execution efficiency. With consistent policy support and execution-focused reforms, India’s infrastructure sector can continue to drive employment, regional development, and long-term economic resilience, Gupta added.

"Budget 2026 should strengthen innovation ecosystems that move ideas from labs to markets, through translation support, including entrepreneurs' training of researchers, applied research, and clear commercialization pathways, so that innovation in AI and emerging technologies drives new ventures, productivity, and high-value employment," Ajay Kela, chief executive officer & board member, Wadhwani Foundation said.

India is now the world’s third-largest startup ecosystem, but the next phase of high-value jobs and economic growth will depend on deep-tech innovation and how well research translates into enterprises and jobs.

“As India readies for Budget 2026, the electric mobility sector stands poised for a breakthrough not just in pilot projects or fleet deployments, but in mainstream commercial adoption. For electric corporate transportation to truly scale, policy support must be practical, targeted, and demand-driven," Abhinav Kalia, chief executive officer and co-founder, ARC Electric, said.

Enhanced incentives for charging infrastructure, financial support mechanisms such as tax benefits, and interest subventions will improve affordability and ease the shift from fossil fuel fleets. Further, rationalisation of GST and clearer regulations around battery disposal and second-life reuse will reduce operational complexity and long-term costs, Kalia added.

"This year’s Budget is expected to serve as the next building block in strengthening the education ecosystem. Greater emphasis is likely to be placed on skill-based education, digital literacy, and teacher empowerment, alongside addressing infrastructure gaps, expanding inclusive access, and promoting stronger industry-academia links for enhanced employability this year," Anil Kapasi, managing director & co-founder, Arihant Academy, said.

He further added that continued support for schemes such as Samagra Shiksha, PM-POSHAN, and PM SHRI, combined with a broader focus on holistic development, will be crucial to driving balanced and inclusive growth across both rural and urban India.

“Union Budget 2026 is expected to play a critical role in strengthening India’s logistics ecosystem, with a sharper focus on speed, efficiency and multimodal connectivity across road, rail, air and sea. Higher targeted investments in logistics infrastructure, automation and green mobility, along with process reforms to enable seamless and 24/7 operations, will be key to supporting India’s $5 trillion economy ambition,” Yashpal Sharma, CMD, Skyways Group, said.

He further added that the Budget should prioritise urban logistics infrastructure, last-mile connectivity and digital supply chain systems to support the rapid growth of quick commerce.

“Tax incentives for green equipment and innovation, clear timelines for execution, and focused skill development will be crucial to reducing logistics costs, boosting exports and improving India’s global logistics ranking,” Sharma said.

“In the Union Budget FY27, the government is expected to continue on the growth path laid out over the past few years, with greater clarity on execution and near-term spending priorities. While fiscal consolidation is likely to remain a core focus, the current geopolitical uncertainties may prompt the Budget to provide additional support to the defence sector,” Anooshka Soham Bathwal, Founder and CEO of Dhanvesttor, said. She further added that higher allocations for infrastructure development, measures to boost consumption, and a sustained focus on rural development could emerge as key themes in the Finance Minister’s Budget address. “Clear detailing of ongoing initiatives and targeted spending will be crucial to maintaining growth momentum amid a challenging global environment,” Bathwal said.

“As we approach Union Budget 2026, the mood in the D2C ecosystem is largely optimistic, driven by the government’s pro-growth reforms. The Export Promotion Mission approved in November 2025, with an outlay of ₹25,060 crore, is a significant step in recognising the global potential of Indian MSMEs. Alongside this, GST rationalisation on consumer essentials has improved disposable incomes, particularly in Tier 2 and 3 cities, leading to a visible boost in consumption,” Chirag Taneja, Co-founder and CEO of GoKwik, said. He further added that addressing the inverted duty structure will be critical to sustaining this momentum.

“While lower GST on retail goods benefits consumers, brands continue to pay higher taxes on key inputs such as logistics and digital services, resulting in working capital being locked in input tax credit. Faster ITC refunds, startup-friendly compliance under the DPDP framework, and the rollout of e-commerce export hubs with green channels for international returns will be essential to help Indian brands scale globally,” Taneja said.

“As the Union Budget approaches, we look forward to policy measures that strengthen India’s recycling-led manufacturing. Lead is among the most extensively recycled metals globally, and in India nearly 85–90% of lead production comes from recycling, underscoring the sector’s critical role in resource efficiency. With over 80% of lead consumption driven by battery manufacturing and an installed recycling capacity of around 3.53 million tonnes per annum across nearly 672 registered units, the industry is well positioned for sustainable growth. Budgetary support for environmentally responsible recycling, efficient waste management, energy optimization, improved compliance frameworks, rationalize indirect taxes as well as support access to long term capital and ease of doing business will help organised players like us scale operations, enhance efficiency and contribute meaningfully to India’s circular economy and ‘Make in India’ objectives,” Nikunj Aggarwal, Promoter and Whole time Director at Ardee Industries Limited.

Abhinav Jindal, Founder & CEO Kimaya Himalayan Beverages LLP said, "The beer industry in India has been at the forefront of promoting agriculture growth through various initiatives. Cultivation of barley, rice and other adjuncts have consistently risen and found favor with the farmers. However, the Industry continues to struggle to find support from the Government despite being a 100% agri-industry.

•⁠ ⁠it is important that beer industry is made a part of the PLI scheme of the GOI for food processing industry

•⁠ ⁠⁠Input credit for atleast the SGST portion of RM/PM is credited to the manufacturers

•⁠ ⁠⁠Import duty on special inputs like craft Malts and Hops is reduced"