Union Budget 2026 LIVE: Economic Survey Calls for Converged Policy Decisions Ahead of Budget

“The Economic Survey 2026 underscores India’s strong growth momentum, anchored in resilient domestic demand and a credible macroeconomic framework. With GDP growth estimated at 7.4% in FY26 and a stable outlook ahead, India remains among the world’s fastest-growing major economies. Progress on fiscal consolidation alongside sustained public infrastructure investment is encouraging. The continued reduction in the fiscal deficit reflects a clear focus on stability and quality expenditure, setting a constructive backdrop for the Union Budget. A continued emphasis on capex, productivity-enhancing reforms, and job creation will be key to sustaining momentum. Externally, the advancing India–EU free trade agreement offers an opportunity to boost competitiveness, exports, and employment. As India moves towards Viksit Bharat 2047, effective government–industry collaboration will be critical to delivering durable and inclusive growth,” said Yezdi Nagporewalla, CEO of KPMG in India.

"Budget 2026–27 should recognise lab-grown diamonds as a strategic sunrise segment, with continued rationalisation of duties on raw materials and equipment, and targeted incentives for advanced manufacturing. Such measures can lower entry barriers for MSMEs and accelerate ethical, future-ready diamond production. Given the sector’s strong MSME backbone, simplified GST compliance, faster refunds for export units, and improved access to affordable credit would meaningfully strengthen cash flows and scalability," said Anand Lukhi, Founder & CEO, Lukson.

"As India intensifies its focus on cleaner and more efficient freight mobility, we look forward to the upcoming Union Budget recognizing LNG as a critical transition fuel for long-haul transportation. While LNG trucks offer significant economic and environmental advantages, their adoption continues to face challenges such as higher upfront vehicle costs, limited refueling infrastructure, and fuel pricing complexities arising from multi-layered taxation. From the Budget, there is a strong expectation of targeted fiscal measures that can bridge this cost parity gap, including rationalization of GST, accelerated depreciation benefits, and direct purchase incentives for LNG-powered heavy vehicles. Equally important will be policy support to accelerate the development of LNG refueling corridors through viability gap funding, concessional financing, and strategic land allocation along national highways," said Deepak Acharya, Chief Executive Officer at INOX India Limited.

"For the wood panel and furniture industry, the Union Budget must continue incentives for affordable housing, increased tax exemptions on home loan interest payments, and policies that enhance liquidity for real estate developers. In addition, we look forward to a strong push for ‘Make in India’ furniture and interior products, that promote domestic sourcing and value addition. This will help drive capacity additions and make Indian wood panel manufacturers more sustainable and less dependent on imports,” said Manoj Tulsian, CEO & Joint Managing Director, Greenply Industries Ltd

“As Budget 2026 approaches, the AYUSH sector is at an inflection point where scale, credibility, and global relevance must progress together," Issac Mathai, founder chairman & medical director, SOUKYA International Holistic Health Center, said.

The next phase of growth must be driven by stronger public investment, with a focus on well-funded national and regional R&D through public–private partnerships, robust outcome tracking, and closer integration of AYUSH services into public health schemes such as AB-PMJAY, he added.

Further, Incorporating standardised AYUSH treatment packages into public insurance systems can widen access, reinforce preventive and community-based care, and create jobs across the healthcare and wellness ecosystem. For the broader population, this marks a shift in AYUSH from an alternative therapy to a formal pillar of population health.

“From the retail sector’s perspective, the increase in GST on apparel priced above ₹2,500 to 18% has added pressure on the bridge-to-luxury segment, impacting pricing flexibility and demand. A more graded tax structure would support sustainable premiumisation,"  Abhinav Kumar, Cofounder of Brand Concepts Ltd said.

"The Production Linked Incentive scheme is a positive step and with the right execution, can encourage global premium and luxury brands to leverage local production capabilities to manufacture higher-value products in India, strengthening the domestic retail ecosystem. While stronger action on counterfeits and clear data-privacy norms are essential to protect brand equity and build consumer trust in organised retail.”

Centre’s revenue receipts rose to 9.2% of GDP in FY25 (provisional), while gross non-performing assets fell to a multi-decade low of 2.2% as of September 2025. Financial inclusion expanded further, with 55.02 crore bank accounts opened under the PM Jan Dhan Yojana by March 2025, including 36.63 crore in rural and semi-urban areas.

India’s share in global merchandise exports increased from 1% in 2005 to 1.8% in 2024, while services exports hit a record $387.6 billion in FY25, growing 13.6%. The country remained the world’s largest recipient of remittances, with inflows of $135.4 billion in FY25. Foreign exchange reserves rose to $701.4 billion as of January 16, 2026, covering about 11 months of imports and 94% of external debt.