Budget 2026 Expectations LIVE: Simpler Rules, Clear Taxes Key to Building Strong Start-up Ecosystem

“As we look toward the upcoming Budget, the expectation is for deeper support through simpler compliance, clearer tax frameworks, enabling dual listings and creating stronger incentives for domestic capital to participate at the earliest stages. These steps can help convert today’s policy intent into durable, long-term outcomes. India has laid a strong foundation. With continued, thoughtful reforms, we have the opportunity to become one of the most resilient and inclusive startup ecosystems globally," said Archana Jahagirdar, Founder & Managing Partner of Rukam Capital.

 “One of the key expectations is a move toward a more balanced, alcohol-content-based tax structure, which would help address pricing distortions across states and improve transparency for both consumers and manufacturers. The industry is also seeking simplification of customs duties on imported raw materials and brewing inputs, along with clearer import–export guidelines to support premiumisation and global competitiveness. Streamlined procedures and reduced compliance complexity would significantly improve ease of doing business, encourage responsible consumption, and enable Indian spirits brands to scale more efficiently," said Prasann Kedia, Managing Director at Associated Alcohols & Breweries Ltd.

The Indian stock market will remain open on February 1, 2026, Sunday for the Union Budget 2026 presentation. Both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have announced that trading will run at normal hours, letting investors react right away to the finance minister’s announcements.

Markets are normally closed on Sundays, making this a rare event. The move shows how important the budget is, as it can influence businesses, investors, market trends. Traders will be closely watching every update.

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 “For Budget 2026, we expect a decisive policy push toward GST rationalization on travel products made of man-made fibers & polymers and reforms that bolster domestic manufacturing. Strengthening MSME supply chains and incentivizing "Made in India" production will be critical to meeting domestic demand while unlocking our massive export potential. Furthermore, the industry seeks frameworks that encourage eco-friendly materials, circular economy practices, and sustainable packaging to align with global consumer shifts,” said Tushar Kamath, Chief Financial Officer, uppercase.

"We expect continued emphasis on industrial corridors, enhanced connectivity, and further ease-of-doing-business reforms to attract global investments and integrate Indian industry deeper into global supply chains. Rationalization of GST slabs, especially incentives for sustainable packaging and eco-friendly packaging, will not only reduce costs for the beverage industry but also accelerate our transition toward a circular economy. Targeted measures to boost rural incomes and consumption will unleash enormous demand potential across tier-2, tier-3 cities and rural markets, the real growth engine of tomorrow," Paritosh Ladhani - Joint Managing Director of both SLMG Beverages and Sincere Developers.

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“India’s formal recycling ecosystem remains constrained by a policy framework that has not kept pace with sustainability goals. High GST on plastic waste, scrap, recycling machinery, and inputs continues to make compliant recycling financially uncompetitive. The Union Budget must prioritise zero-rating GST on plastic waste, scrap, and recycling equipment, along with a meaningful reduction in GST on recycled plastic granules, to incentivise their use in long-life and durable products. Without correcting these cost distortions, the transition from virgin to recycled plastics will remain limited," said Sushil Kumar Aggarwal, Chairman and Whole-Time Director of AVRO India Limited and National President of The All-India Plastics Molded Furniture Manufacturers Association (AIPMFMA).

"We appreciate the Government of India’s constructive steps toward GST/Cess simplification and rationalisation. Continued emphasis on infrastructure development—particularly roads and high-speed charging infrastructure—along with rationalisation of taxes/duties, a stable long-term policy framework, and steady foreign exchange conditions will be instrumental in accelerating growth in the luxury car industry. We remain optimistic that the forthcoming budget will serve as a catalyst for boosting overall consumption, including in the luxury automobile segment," said Balbir Singh Dhillon, Brand Director, Audi India.

Kami Viswanthan, President, MEISA, FedEx, said, “In a rapidly evolving global trade environment, supply chains are increasingly being designed around speed, certainty and trust.”

He added that India’s global competitiveness depends on seamless cargo movement across borders and transport modes. The upcoming Union Budget can reinforce this by investing in dedicated air cargo infrastructure, streamlining digital customs and ensuring time-bound clearance processes to strengthen trade efficiency and logistics resilience.

Keyur Shah, Chairman & Managing Director, Yash Highvoltage Limited, said, “The Indian power sector delivered a record performance in 2025 by meeting peak demand, expanding capacity and sharply reducing shortages.”

He added that the upcoming Union Budget should sustain this momentum with continued capital expenditure while supporting infrastructure-led growth.

He believes that focus on renewables, smart grids, energy storage, green hydrogen, PLI incentives for niche power equipment manufacturers and a rationalised tax framework will strengthen domestic competitiveness and future-proof the sector.

Padmanand V, Partner and Agriculture Industry Leader, Grant Thornton Bharat, highlighted that while a large portion of India’s agri-budget is spent on DBT, MSP and input subsidies, investment in farm mechanisation and infrastructure remains limited.

“It is the investment multiplier, given the Incremental Capital Output Ratio (ICOR) that will lead to sustained and rapid growth of the agri sector,” he said.

He added that the upcoming budget should prioritise direct infrastructure investment and subsidies to boost long-term agricultural growth.

Dr. G. Anil Krishna, Chairman & Managing Director of Medicover Hospitals (India), said that healthcare should remain a central focus in the upcoming Union Budget, stressing the need for stronger hospital infrastructure, emergency response systems, and advanced diagnostic facilities to manage rising lifestyle and chronic diseases. He also underscored the importance of preventive care, early screening and affordability to improve outcomes nationwide.

“A healthcare-focused budget will empower hospitals to continue delivering comprehensive, patient-centric care and improve health outcomes for communities across the country,” he added.

Prakash Ravindran, CEO & Director of InstiFi, said the Union Budget will be crucial in reinforcing India’s rapidly expanding digital payments ecosystem through stronger infrastructure, cybersecurity and regulatory clarity.

He noted that policy support easing compliance for MSMEs and encouraging fintech innovation would help payment aggregators scale responsibly while maintaining trust.

“Continued focus on cybersecurity, data protection and ease of doing business will strengthen the overall payments landscape,” he added.

"As India prepares for the upcoming Union Budget, we hope to see continued recognition of education as a core driver of long-term economic growth and the Viksit Bharat vision. Building workforce readiness through outcome-led skilling, industry-aligned learning, and practical capabilities will be crucial as India’s young and working population navigates an increasingly competitive, skills-driven job market," Dr Sanjay Salunkhe, founder, Jaro Education, said.

The education sector calls for targeted support for digital and online education, which can significantly widen access to high-quality higher and executive education for working professionals across geographies. Building a robust higher education ecosystem will be vital to creating future-ready talent at scale.

There is also a need for policies that promote closer collaboration between academia, industry, and education providers, allowing learners to translate academic knowledge into real-world business and workplace applications.

"The budget should aim to strengthen India’s healthcare system in a more inclusive and secure manner. With rising healthcare demands across urban and rural India, it will be essential to take a decisive step by ensuring accessible healthcare for all," Reny Varghese, chief operating officer, Zynova Shalby Hospital Mumbai, said.

The key demands call for a higher budgetary allocation to strengthen rural healthcare by improving access, infrastructure, and availability of trained medical professionals. The budget should also actively involve experienced private-sector healthcare professionals in policy formulation to bring practical insights and operational efficiency, Varghese said.

Additionally, there is a strong push for dedicated funding to protect medical professionals from workplace violence, ensuring their safety, dignity, and ability to deliver timely, consistent, patient-centric care, with public health and the healthcare workforce treated as central priorities.

"Building India’s AI capacity will depend on new investments and incentives," Jaspreet Bindra, co-founder, AI & Beyond, said.

Industry urges for long-term fiscal support to expand data centers and cloud infrastructure to meet the rising demand of the AI segment. Sanctioning a second phase of the IndiaAI Mission with increased grants for infrastructure, will address sector-specific AI challenges.

Bindra also recommends for a national Compute Credit program, to subsidize cloud/GPU hours on India-based platforms. Further, expanding R&D spending by extending tax credits or direct grants for AI research is also keenly watched out for in the Budget.

Additionally, extending the Production Linked Incentive scheme to new technology segments could drive innovation and attract investments, Bindra added.

"Greater focus on distributed solar applications, energy storage, and last-mile infrastructure will be key to improving grid resilience, reducing transmission losses, and ensuring reliable power access, especially in rural and high-demand regions," Vivek Gupta, managing director, Oswal Pumps, said.

He further added that policy incentives that support domestic manufacturing, indigenous innovation, and affordable green financing can significantly accelerate adoption while reducing import dependence.

A forward-looking Budget with clear regulatory frameworks and targeted financial support can enable these solutions to scale sustainably, strengthening India’s energy security and advancing inclusive, low-carbon growth, Gupta added.

Rising living costs, higher housing expenses, and taxes on investment returns have now fuelled fresh calls for relief on the income-tax front. Experts have urged the government to revisit home loan benefits, revise the standard deduction, and introduce changes to provisions under the Income Tax Act, 1961—particularly Section 80C—as well as the rebate under Section 87A.

However, with the proposed Income-tax Act, 2025 already introduced, some industry experts expect limited substantive changes on the direct tax front in the upcoming Budget.

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