Budget 2026 Reactions: Tighter Crypto Compliance Welcomed, But Tax Structure Needs Rethink, Says CoinSwitch Co-founder

Prime Minister Narendra Modi hails Union Budget 2026 as historic and ambitious, outlining a road map for Viksit Bharat 2047 with a focus on growth, fiscal discipline, and higher capital spending.

 “This budget is the highway for immense opportunities. It gives shape to the dreams of the present and strengthens the foundation of Bharat’s bright future. It is a strong base for our soaring flight towards a developed India,” Modi said.

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Union Finance Minister Nirmala Sitharaman launched the Bio-Pharma SHAKTI scheme with an outlay of ₹10,000 crore. "The boost to biopharma and medical devices comes at a crucial moment for capacity expansion and domestic value creation," Sachidanand Upadhyay, managing director & chief executive officer, Lord's Mark Industries Ltd., said. "Coupled with sustained semiconductor and electronics incentives, the Budget lays the groundwork for a robust ecosystem supporting advanced diagnostics, med-tech, and digital health. These interventions strengthen India’s trajectory toward becoming a high-value, innovation-centric global manufacturing hub.”

The focus on infrastructure, manufacturing and defence strengthens medium-term growth drivers and boosts India’s competitiveness in services such as IT and digital infrastructure, says Venkatesh Balasubramaniam, managing director & head of research at JM Financial Institutional Securities.

“Budget FY27 strikes a careful balance between growth support and fiscal discipline. It reinforces macroeconomic stability through a credible path of fiscal consolidation while sustaining a strong public capex push focused on infrastructure, manufacturing and defence," Balasubramaniam said. "However, the market impact is mixed. Higher government borrowings and an increase in derivatives transaction taxes could weigh on bond yields, banks, NBFCs and market-linked businesses in the near term. While measures like buyback tax rationalisation provide some relief, the Budget prioritises long-term economic strength over short-term market sentiment," he added.

"When we look at the first kartavya of ‘enhancing productivity, competitiveness and resilience to global volatility’ in Budget 2026, it’s clear that access to basic digital tools plays a central role," said, Chitranshu Mahant, CEO and Co-Founder, Primebook India.

"Government’s plan to set up 15,000 AVGC content creator labs in schools is a step towards more practical, skills-oriented learning. For students to benefit from these initiatives, affordable and dependable personal computing devices will be essential to support everyday digital and creative work," he added.

Prateek Maheshwari, Co-Founder of PhysicsWallah, said the Union Budget 2026 rightly recognises the need to link education with employability by integrating emerging technologies such as AI into learning from school to higher education.

"The decision to launch AVGC (animation, visual effect, gaming and comics) Content Creator Labs in 15,000 schools and 500 colleges is a forward looking step, as we know that this sector will require millions of professionals and we are finally moving beyond rote-learning methods to make Bharat skill-based and future-ready right from the classroom," he said.

"We welcome the announcement of the high level 'Education to Employment and Enterprise' committee because it has the potential to bridge the gap between degrees and employability," Maheshwari added.

He further said that while the reduction in TCS on overseas education is positive, improving affordability of education within India remains crucial for wider access.

"The focus on strengthening MSMEs, improving access to credit and supporting employment has the potential to create meaningful difference to households and local communities across the country," said, Murali Iyer, CFO of IKEA India.

"The emphasis on design education, skilling and support for the textile sector is especially encouraging, recognizing the role of creativity, craftsmanship and capability-building in shaping a resilient economy," he added.

"The government’s push to strengthen Tier II and Tier III cities, developing high-speed rail corridors and improved infrastructure, marks an important step towards India’s next phase of sustainable growth. Better connectivity and well-planned economic regions will open up new opportunities, improve mobility, and bring growth closer to where people live. This vision aligns deeply with IKEA’s long-term commitment to India," Iyer further said.

Abhay Deshpande, Founder & CEO of Recykal, said that the industry sees Budget 2026 as a strong signal to deepen technology-led sustainability across India’s manufacturing and recycling ecosystems.

“Union Budget 2026 has put a strong emphasis on AI adoption, semiconductor manufacturing and digital infrastructure,” he stated.

He added that dedicated policy frameworks for EPR enforcement, waste-to-resource infrastructure, and incentives for digital traceability platforms will be critical to scale the circular economy and formalise India’s vast informal waste and recycling value chain.

Masood Mallick, Chairman, CII National Committee on Waste to Worth Technologies and Managing Director & Group CEO, Re Sustainability Limited, said that the industry views Budget 2026–27 as a turning point for resource security and decarbonisation.

“The INR 20,000 crore commitment to Carbon Capture, Utilisation and Storage over five years is a particularly important signal for hard-to-abate sectors such as steel and cement,” Mallick stated.

He added that support for critical minerals, battery manufacturing and clean fuels will strengthen circular economy infrastructure and boost confidence to invest in sustainable industrial technologies.

Arunabha Ghosh, CEO of CEEW, said that the industry views Budget 2026 as a catalyst for strengthening India’s capabilities across energy, technology, cities and agriculture.

“The announcement of Rare Earth Corridors and a Semiconductor Mission 2.0 moves India decisively from policy intent to state-level execution, addressing the long-standing processing gap in the critical minerals supply chain,” he shared.

He added that support for climate-resilient cities, carbon capture, digital public infrastructure for farmers and disaster risk financing will be crucial to building a competitive, low-carbon and inclusive economy.

Vijendra Singh, President of the All India Distillers’ Association (AIDA), said that the industry sees Union Budget 2026 as a significant boost to India’s biofuel and ethanol sector.

“With duty exemptions for biogas-blended CNG and incentives for ethanol growth, combined with digital agriculture initiatives like Bharat Vistaar, feedstock productivity and farm-level decision-making will improve,” Singh mentioned.

He added that these measures will strengthen energy security, enhance rural livelihoods, and accelerate the country’s transition toward cleaner and self-reliant energy.

Manoj Dabas, India Country Director of CIFOR-ICRAF, said that the industry views Union Budget 2026 as a strong signal for locally grounded, technology-driven growth in agriculture and forestry.

“This Union Budget has expressed a clear signal that India’s growth story is rooted in its young people, its farmers and its ecosystems, with a focus on technology adoption, region-specific crops and partnerships with state governments,” he expressed.

He added that support for high-value tree crops like sandalwood, agarwood, cashew and walnuts will empower rural livelihoods, enhance ecological resilience, and strengthen India’s global competitiveness in forestry and agroforestry sectors.

Laxit Awla, CEO of SAEL Industries Ltd, said that the industry sees Budget 2026 as a decisive step towards strengthening manufacturing, energy security and industrial decarbonisation.

“Measures such as customs duty exemptions for lithium-ion battery energy storage system capital goods, relief on sodium antimonate for solar glass, and targeted support for carbon capture reflect a holistic approach to the energy value chain,” he shared.

He further added that incentives for data centres and clean power demand will accelerate investment in a vertically integrated solar and energy storage ecosystem, reinforcing domestic capability and energy self-reliance.

Sanjay Katkar, Joint Managing Director, Quick Heal Technologies Ltd, said that the industry views Budget 2026’s focus on cloud, data centres and AI-led platforms as a major catalyst for digital adoption across sectors such as agriculture, healthcare, education and skilling.

“With initiatives like AgriStack, digital education, medical value tourism and large-scale skilling, cyber resilience becomes foundational,” he said, adding that strengthening cybersecurity frameworks will be critical to securing digital public infrastructure and sustaining trust in India’s rapidly expanding digital economy.

A big move in Budget 2026 was to bring back the services sector into focus, says Prashant Kumar, Managing Director & CEO, Yes Bank.

"Safe harbour rules for the IT sector were amended, and the threshold for availing safe harbour was enhanced. Recognising the sharp growth of data centres across the world and to attract global investments in this area into India, a tax holiday was provided to the sector till 2047 to foreign companies that provide cloud services to customers globally by using data centre services from India,” said the private lender's CEO.

The budget offers a strategic push for comprehensive economic reforms that set the stage for sustainable growth by driving employment, productivity, and competitiveness, said Vikram Gandotra, President, IEEMA (Indian Electrical & Electronics Manufacturers' Association).

"To advance green energy, a ₹20,000 crore outlay over five years is proposed to scale CCUS technologies across five key sectors, including power, aligning with the December 2025 roadmap. The strong push on infrastructure, including the establishment of new Dedicated Freight Corridors, and the enhanced focus on Tier 2 & 3 economies, will provide a significant boost to the electrical equipment industry," said Gandotra.

For the FMCG sector, the Viksit Bharat agenda serves as a vital catalyst by synchronizing demand and supply-side enablers, said Rajiv Kumar, Vice Chairman, DS Group. Adding that specific interventions in agriculture like push for production of cocoa, fisheries and animal husbandry and the expansion of TReDS and improved credit access will alleviate working capital pressures for distributors and contract manufacturers, fortifying the entire FMCG ecosystem.

"On the operational front, significant outlays for freight corridors, inland waterways and Tier II-III infrastructure are expected to lower logistics overheads and bridge the gap in last-mile connectivity encouraging deeper regional penetration. These logistical gains, paired with a focus on domestic manufacturing, chemical parks and energy security, will help stabilize input costs against global volatility," said Kumar.

The emphasis on infrastructure development, services-led growth and digital integration in the Budget 2026 directly supports consumer-facing sectors such as beauty and personal care, according to Rahul Shanker, Group CEO, Quest Retail (The Body Shop India).

"Investments in manufacturing ecosystems, urban and regional economic clusters, and skills aligned to emerging technologies will strengthen supply chains and improve market access. For large retail and brand-led businesses, these measures create the right environment to expand responsibly into Tier-2, Tier-3 and rural markets, unlock new consumer demand, and accelerate the creation of globally competitive Indian brands. By supporting consumption and improving ease of doing business across the value chain, the Budget lays the groundwork for inclusive and sustained growth," said Shanker.

The government’s focus on upskilling and training through the institutionalisation of hospitality education will ensure the availability of a skilled workforce capable of meeting global standards in the industry, witnessing rapid growth and high domestic and international demand, according to Rahul Deb Banerjee, COO, Clarks & Resorts.

"Further, identifying historical, spiritual, and medical destinations to create specialised, high-value tourism hubs would attract niche tourists and boost local economies. For the travel and tourism sector, projected to grow at 7.1% annually, these steps would encourage private investment and long-term sustainable growth," he said.

The Union Budget 2026-27 signals a decisive focus on accelerating & sustaining the growth momentum towards Viksit Bharat ambition, by investing on empowering & enabling our youth, the MSMEs and the manufacturing sector in particular, while continuing fiscal prudence, said Kamal Bali, President & Managing Director, Volvo Group India.

"Together with the next gen reforms like GST2.0, the new IT Act, the new labour codes, etc and several important FTAs, there is a decisive shift in India’s engagement with global capital by offering greater certainty and long-term policy clarity. This is reinforced by the measures announced such as the expanded 'safe harbour' regimes and simplified 'transfer pricing' via streamlined advance pricing agreements, aimed at reducing disputes and improving predictability," said Bali

The introduction of specific penalty provisions is a positive milestone for the crypto industry, said Ashish Singhal, Co-founder, CoinSwitch. He claims that by mandating a ₹200 daily penalty for reporting delays and a ₹50,000 fine for inaccuracies, the government has formalised high standards of tax compliance and reporting for both users and VASPs.

"This validates the "Compliance-First" model of Indian platforms like CoinSwitch, shielding users from reporting risks and aligning with compliance goals. While compliance and surveillance have tightened, true growth requires economic rationalization to keep Web3 innovation and talent within India. The 1% TDS, lack of offset of losses and the 30% flat capital gains rate, create an asymmetric environment for genuine participation. These measures risk driving Indian capital toward non-compliant offshore platforms, leaving users vulnerable to legal and financial scrutiny. CoinSwitch remains fully committed and we will continue to work with the Government towards a balanced, user-first tax regime that pairs robust oversight with economic viability,” said Singhal.

The Budget 2026 is a progressive step for MSMEs and manufacturing. By strengthening TReDS as a pricing benchmark and settlement platform, the government has directly addressed a long-standing working capital challenge for small businesses, according to Manish Shah, MD & CEO at Godrej Capital.

"The MSME Growth Fund and the enhanced Self Reliant India Fund further improve access to capital and growth opportunities. At the same time, measures like the National Fibre Scheme and the textile expansion plan modernise key value chains and position India’s traditional industries for long-term success. Initiatives such as She-Marts to empower women entrepreneurs put women-led enterprises at the centre of India’s growth story, signalling a shift toward inclusive entrepreneurship that delivers both dignity and economic participation at scale. The continued push on infrastructure-led development, especially along rail corridors, will support real estate growth and affordable housing growth in Tier 2 and Tier 3 cities and create sustained demand across housing and allied sectors," said Shah.

Swiggy Food CEO Rohit Kapoor hails Budget 2026 for its focus on urbanization, AI innovation, and women entrepreneurs. Discover how Swiggy is leveraging technology to support India's "Reform Express" and the consumption-led growth story.

He said, “This Budget makes strong strides towards strengthening India’s consumption engine and building a Viksit Bharat by 2047. The Budget’s focus on urbanisation, productivity, skilling, and easier access to credit for small businesses reinforces confidence across the services and MSME ecosystem that underpins everyday consumption. The emphasis on enabling women entrepreneurs and continued investments in digital public infrastructure and AI innovation further strengthen the foundations of a more inclusive, formalised economy. At Swiggy, we remain committed to support India’s “Reform Express”, leveraging technology, investing in people, and supporting ecosystem resilience at scale."

Blue Dart MD Balfour Manuel reacts to Union Budget 2026, highlighting the removal of the ₹10 lakh courier export cap and customs duty exemptions for aviation. Discover how these reforms aim to lower logistics costs and empower MSME exporters.

Balfour Manuel, Managing Director at Blue Dart said, “Today’s Budget is a decisive, action-oriented roadmap that accelerates India’s journey towards Viksit Bharat by aligning infrastructure expansion, manufacturing scale-up and trade facilitation with deeper global integration. For the logistics sector, announcements around new dedicated freight corridors, waterways, high-speed rail connectivity and enhanced container manufacturing capacity are particularly significant. These measures will strengthen multimodal integration, reduce transit variability, and structurally lower logistics costs which are critical enablers for exports and stronger participation in global value chains. The exemption of customs duty on aviation components is especially important for the express logistics ecosystem, where aircraft uptime and maintenance efficiency directly impact time-definite delivery performance. The removal of the ₹10 lakh per consignment value cap on courier exports is a landmark reform for cross-border ecommerce. It unlocks scale for MSMEs and D2C exporters, enabling them to access global markets without artificial shipment constraints. The proposal to develop ‘Corporate Mitras’ in Tier-II and Tier-III towns will further strengthen compliance readiness, helping smaller enterprises formalise and integrate seamlessly into global supply chains. These reforms, coupled with broader simplification proposed under the Customs Act, will significantly ease cross-border e-commerce, lower compliance friction, and empower MSMEs to scale globally. Together, sustained capital expenditure of ₹12.2 lakh crore and targeted support for manufacturing and MSMEs create a future-ready ecosystem for integrated logistics providers driven by stronger infrastructure, seamless trade flows, and technology-enabled efficiencies powering India’s next growth chapter.”

Trade expert Karanvir Singh analyzes Budget 2026’s impact on the Global South. Discover how India is leveraging manufacturing and logistics reforms to build trust-based, non-extractive trade partnerships across emerging markets.

He said, "Budget 2026 reflects India’s growing confidence as a Global South leader. The emphasis is not just on domestic growth, but on enabling India to play a larger role in shaping inclusive global trade.

Through Connecting Nations, we see strong demand from Global South economies for India-led platforms that offer collaboration rather than dependency. India’s shared development context makes it a natural partner.

Visionum Global’s engagement across emerging markets highlights a key truth: Global South trade requires trust, execution, and long-term commitment—not extractive models."

Rustom Kerawalla, Chairman of VIBGYOR Group, reacts to Union Budget 2026. He emphasizes that technology and AI are no longer optional but fundamental to excellence, urging a shift toward outcome-driven implementation of the NEP.

"Technology is no longer optional; it is fundamental to improving learning outcomes through digital classrooms, data-driven instruction and AI-enabled personalised learning. The Budget’s focus on digital infrastructure, continuous teacher upskilling and sustained public funding must now translate into effective, outcome-driven implementation. Anchored in the National Education Policy, this approach can strengthen quality, accelerate innovation and enhance India’s global competitiveness in education," said.

KPMG India CEO Yezdi Nagporewalla analyzes Union Budget 2026. He highlights the ₹40,000 crore semiconductor push (ISM 2.0), the 20-year tax holiday for hyperscalers, and the ₹10,000 crore SME Growth Fund as key drivers for a "Viksit Bharat."

He said, "The Union Budget 2026 presents a clear and confident vision of the Government’s commitment to building a developed India, one that effectively balances fiscal responsibility with ongoing investment in growth, resilience, and inclusion. Adhering to the fiscal deficit glide path, even amidst global trade and supply-chain challenges, underscores the robustness of India’s macroeconomic fundamentals and policy credibility."