Budget Expectation 2026: Who wants what? Sector-wise wishlist as India awaits February 1

Budget Expectation 2026 Live News: 'Continued focus on infra & housing-led growth to strengthen building products sector further'

Nirupam Sahay, Chief Executive Officer, Hindware Ltd, said that GST rationalisation measures introduced in 2025 were a welcome step, moving India towards a simpler rate structure while easing tax burdens for both businesses and consumers.

"As we look ahead to the upcoming Budget, continued focus on infrastructure and housing-led growth, along with support for sustainable and energy-efficient manufacturing, will further strengthen the building products sector," he said. 

"Calibrated efforts to reduce construction costs and stronger skilling and employment support for the manufacturing workforce will also help make quality solutions more accessible across the country," added Sahay. 

Budget Expectation 2026 Live News: Direct tax reforms and dispute resolution

The survey also said that the direct tax system required three main changes. The first requirement for direct tax systems is to establish a system which allows for online tax reporting. The second requirement is to provide taxpayers with assured tax outcomes. The third requirement is to develop better systems for handling disputes and managing litigation. The corporate restructuring field and investor services section need to facilitate organisations according to the respondents' requirements.

Also Read: Budget 2026: India Inc upbeat on growth; jobs, infra and exports top industry wish list, says FICCI

Budget 2026 Live Updates: Push for RoDTEP hike and tariff rationalisation

The survey demonstrated that the external sector required better export policy support because global trade disputes and tariff uncertainty, and non-tariff barrier regulations, which included the Carbon Border Adjustment Mechanism (CBAM) and deforestation-related regulations, were increasing.

Respondents requested that trade facilitation and customs processes should become more efficient, while logistics and port-related delays needed to be eliminated, and export incentives with refund systems should be strengthened. 

The survey recommended higher allocations under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. The survey recommended that the Special Economic Zone (SEZ) policy undergo reforms, which would result in better customs tariff management through the elimination of the current tariff rate systems. The survey recommended that customs tariffs should undergo rationalization which would create three standard rate tiers to achieve better compliance and predictability.

Budget 2026 Live Updates: Manufacturing, electronics and defence in focus

Industry stressed the need to continue prioritising manufacturing and capital expenditure. FICCI highlighted the importance of setting up a mega electronics industrial cluster to co-locate original equipment manufacturers (OEMs), electronics manufacturing services (EMS) firms and component suppliers, to further strengthen the electronics ecosystem.

Defence manufacturing needs a capital outlay increase to 30 per cent because defence funds require modernisation support for equipment, which includes UAVs, counter-UAV systems, electronic warfare systems and AI-enabled capabilities. The survey recommended increasing the Drone Production-Linked Incentive (PLI) outlay to Rs 1,000 crore and creating a Rs 1,000 crore Drone R&D Fund.

Budget Expectation 2026 Live News: Jobs, infrastructure and exports top the wish list

The survey identified job creation, a sustained push on infrastructure, and stronger support to exports as the key macroeconomic priorities for the upcoming Budget. Sectors such as infrastructure, manufacturing, defence and MSMEs are expected to remain in focus, as per industry respondents.

Budget Expectation 2026 Live News: GDP growth to remain upto 8%

About 50 per cent of respondents expect India’s GDP growth to remain in the range of 7–8 per cent in FY27, reflecting confidence in the economy’s medium-term fundamentals despite global uncertainties. The survey also highlighted industry’s support for fiscal discipline, with around 42 per cent of participants expecting the government to achieve its fiscal deficit target of 4.4 per cent of GDP in FY26, in line with the fiscal consolidation roadmap.

Budget Expectation 2026 Live News: India Inc upbeat on growth prospects

Industry sentiment remains strong ahead of Budget 2026–27, with nearly 80 per cent of respondents confident about India’s growth prospects, according to the Federation of Indian Chambers of Commerce and Industry’s (FICCI) Pre-Budget Survey.

Budget 2026 Live Updates: Clean mobility and sustainability push

On the sustainability front, she mentioned that India is switching to cleaner mobility, which is being driven by Corporate Average Fuel Efficiency (CAFE) norms rather than the immediate imposition of carbon taxes or green levies.

"As these measures evolve, they are likely to further incentivise electrification, hybridisation and other low-emission technologies," Sareen said, remarking that the industry has carried out major investments in EV platforms and energy-efficient technologies already.

She further elaborated that a well-designed combination of EV-centric incentives, tax cuts, and regulatory clarity in the upcoming Budget would not only bolster India's clean energy targets but also gradually reduce the country's reliance on fossil fuels and strengthen its external balance.

Also Read: Budget 2026 may revamp EV incentives, boost R&D and clean mobility: Deloitte India

Budget 2026 Live Updates: Customs, SVB norms need easing

Sareen highlighted the requirement of the easing of customs procedures, especially the ones linked to the Special Valuation Branch (SVB) for related party imports. Easing SVB restrictions and eliminating the provisional duty would not only help the supply chain but also provide more certainty regarding the import costs for EV manufacturers.

Budget Expectation 2026 Live News: Limited scope for GST rate cuts

Speaking about indirect taxes, Sareen mentioned that there is very little room for further GST rate rationalisation on vehicles, since the recent reforms have already eliminated rate disparities among the segments.

"The GST 2.0 exercise lowered rates for smaller vehicles to around 18 per cent and pegged mid and higher segments at close to 40 per cent. Expecting further broad-based cuts may be a stretch," she said.

Nevertheless, the industry persists in bringing up the issue of the inverted duty structure, which is a contributor to the overall costs of vehicles and EVs.

Sareen suggested that extending inverted duty refunds to capital goods and input services or supporting refunds based on exports could make cost competitiveness remarkably better.

"These costs ultimately get embedded in vehicle pricing. Any relief here would directly improve EV affordability and adoption," she said.

Budget Expectation 2026 Live News: Industry push for PLI relaxations

Sareen corroborated that the industry is pushing for relaxation of domestic value addition norms and reduction of investment thresholds under the PLI policy, which will allow more manufacturers, including EV startups and component suppliers, to qualify for incentives.

She also pointed out the expectations around the proposed capital goods incentive scheme, under which the automotive and EV sectors would have their defined thresholds.

"This would encourage domestic manufacturing of capital goods required for the EV and automotive sectors, which currently remain heavily dependent on imports," she said.

The aim of this segment would be to support the entire EV value chain and to cut back on import reliance in the long run.

Budget 2026 Live Updates: Boost to large-scale EV manufacturing

Sareen also commented that the actions could assist in the large-scale production of EVs, the country's technological dependence would be lessened, and the crude oil import bill of India would be reduced, leading to conservation of foreign exchange.

"This will help companies that have so far been unable to avail incentives due to stringent eligibility conditions," Sareen told ANI in an interview, adding that R&D remains central to the EV ecosystem.

Innovation tax breaks could serve to speed up the process of bringing battery localisation, power electronics, and other EV-critical components into the country.

Budget Expectation 2026 Live News: EV industry seeks PLI tweaks and R&D tax support

According to a conversation with ANI, Sheena Sareen, Partner at Deloitte India, mentioned that the government might announce the measures to support domestic manufacturing, provide clean mobility and investment across the EV value chain to India's journey to sustainable transport.

Sareen stated that if the PLI scheme for EVs and advanced automotive components is adjusted and complemented with tax benefits directed at research and development, as well as the manufacturing of capital goods, it would undoubtedly enhance the scale and competitiveness of the entire industry.

Budget 2026 Live Updates: Auto and tyre industry looks for infra, export and demand boost

Sharing his key expectations from the upcoming Budget, Dr Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries Ltd, said, “As we look ahead to the Union Budget 2026, we are optimistic about a renewed emphasis on meaningful ease of doing business, particularly through faster approvals and more streamlined regulatory processes that can unlock private investment. 

Continued focus on quality infrastructure and logistics will be critical in strengthening India’s cost competitiveness and manufacturing efficiency. 

In the context of evolving global trade challenges, policy measures that support exports and deepen India’s integration into global supply chains will be increasingly important. 

For the automotive and tyre sectors, policy continuity that enhances affordability and supports rural incomes can sustain demand and create strong multiplier effects across the economy. 

A forward-looking, investment-led Budget will play a key role in accelerating India’s manufacturing growth and reinforcing investor confidence.”

Budget Expectation 2026 Live News: Push sought to scale Tier-2, Tier-3 startups

Gupta highlighted that around one lakh startups currently operate in Tier-2 and Tier-3 cities and suggested introducing a dedicated scheme to scale this up to five lakh startups. He said such measures could significantly boost employment opportunities across the country while driving balanced regional development.

Also Read: Budget 2026–27 should boost digital economy, MSMEs in Tier-2 and Tier-3 cities: Experts

Budget Expectation 2026 Live News: Call for digital economy zones beyond metros

Gupta noted that MSMEs in Tier-2 and Tier-3 cities currently contribute around $1.5 trillion to India’s economy and are growing at a pace of nearly 10 per cent. According to Gupta, with structured support for technology adoption, the growth rate of MSMEs could rise to as much as 18 per cent, significantly strengthening the digital economy. He also stressed the need to create digital economy zones in Tier-2 and Tier-3 cities, which could help develop nearly 100 new growth engines and ease pressure on major metros.

Budget Expectation 2026 Live News: Focus on digital economy, MSMEs

Experts believe the Union Budget 2026–27 should place strong emphasis on boosting the digital economy and supporting MSMEs, particularly in Tier-2 and Tier-3 cities. Speaking to IANS, Karnataka Digital Economy Mission CEO Sanjeev Kumar Gupta said the Budget should encourage faster and structured adoption of technology by micro, small and medium enterprises.

Budget 2026 Live Updates: Industry seeks clarity, simplification and growth-driven tax reforms

According to Abhishek Mundada, Partner, Dhruva Advisors, on the ease of doing business front, industry is looking for greater tax clarity and simplification , from rationalising multiple TDS rates and extending deductions for research and development, to linking buyback taxation with accumulated profits. Clear guidance on anti-avoidance provisions, fast-track demergers, and transfer pricing Associated Enterprise (AE) definition can significantly reduce interpretational disputes. Equally important are reforms that unlock philanthropic capital by easing investment restrictions for charitable institutions, and acknowledging the non-taxability of principal loan waivers in IBC situations. Together, these measures can foster inorganic growth, encourage innovation, and strengthen confidence in India’s evolving tax ecosystem.

Budget Expectation 2026 Live News: Focus on middle-class, salaried employees and MSMEs

According to tax expert Sunil Garg, the Union Budget 2026 is likely to prioritise economic growth rather than major tax rate changes. He said the government’s focus would be on increasing disposable income among middle-class families, salaried employees and MSMEs, as higher consumption by these segments is critical for supporting India’s consumption-driven economy and advancing the goal of ‘Viksit Bharat 2047’.

Also Read: Union Budget 2026: Middle class, salaried employees back in focus? Experts weigh in

Budget Expectation 2026 Live News: Old tax regime likely to continue for now

Both tax experts expect that the old tax regime is unlikely to be phased out immediately. While the government’s long-term goal is to move towards a single, simplified tax system, the existing regime may continue in the near term as it offers crucial deductions for disability, serious illnesses, education loans and home loans—benefits that many taxpayers have relied on for long-term financial planning.

Budget 2026 Live Updates: Surcharge cap for high earners

Garg further suggested easing the tax burden on high-income earners by revisiting surcharge limits. According to him, if the maximum effective tax rate is capped closer to 35 per cent, it could improve sentiment without significantly hurting tax collections.

Budget 2026 Live Updates: Higher exemption on employer contributions

Garg also proposed raising the exemption limit on employer contributions for salaried employees from Rs 7 lakh to Rs 10 lakh.

Budget 2026 Live Updates: Higher NPS contribution suggested

Sunil Garg said the National Pension System (NPS) is a strong long-term savings tool and suggested that the government could consider increasing its contribution to make the new regime more appealing.

Budget Expectation 2026 Live News: Focus on implementation, not frequent tweaks

Bhagat noted that the government has achieved several objectives, including encouraging adoption of the new tax regime, improving GST collections and introducing a new income tax law effective April 2026.

The emphasis, she said, should now be on smoother implementation—faster income tax return processing and timely refunds—especially as many taxpayers are still awaiting refunds from earlier assessment years.

Budget Expectation 2026 Live News: Stability likely over major tax changes

Ruchika Bhagat said major tax slab changes may be unlikely this year. According to her, the government has already undertaken significant tax reforms in the previous Budget, making stability a priority in 2026.

Budget Expectation 2026 Live News: Key expectations of taxpayers

In a discussion with Zee Business, tax experts Sunil Garg and Ruchika Bhagat shared their views on what taxpayers can realistically expect from Budget 2026, with the focus shifting from big announcements to continuity.

Budget 2026 Live Updates: GJC seeks push for gold monetisation, exports and tax relief

Speaking to Zee Business, Rajesh Rokde, the GJC (All India Gem and Jewellery Council) Chairman, discussed the major expectations from the Union Budget 2026. He mentioned that the government's priority should be the industry's protection alongside the support for its gradual maturity. The key demands are as follows:

• Gold monetisation: GJC has put forward a detailed, all-inclusive, step-by-step proposal regarding the Gold Monetisation Scheme, which, if properly executed, can lead to a cut down of gold imports by almost 50–60 per cent.
• Export boost: Rokde went on to say that the value of the gems and jewellery industry, which is around Rs 12–13 lakh crore, has plenty of room for increasing the exports, which are still unutilized to a great extent. GJC thinks that the proper policy support can lead to the involvement of more wholesalers and manufacturers in the export activity.
• EMI facility for jewellery: The industry has sought permission to offer EMI options on jewellery purchases, which could help expand the consumer base and support demand.
• Tax-related relief: Since gold prices are still high, GJC has urged the government to consider extending the tax payment deferment period to ease cash flow pressures for investors and jewellers.

Budget Expectation 2026 Live News: GJEPC seeks reverse job work approval, tax relief on rough diamonds

• Reverse job work: GJEPC Chairman Kirit Bhansali said the industry should be allowed to undertake reverse job work for the domestic market until jewellery exports to the US stabilise and return to normal levels.
• Raw material sourcing: Despite India manufacturing 95–98 per cent of rough diamonds, most trading is routed through Dubai due to its efficient customs system and zero taxation.
• Tax waiver on rough diamonds: Rough diamonds imported into India attract a levy of around 2–4 per cent. The industry has sought a waiver on this levy to bring trading activity back to India and strengthen the country’s position as a global diamond trading hub.

Budget 2026 Live Updates: Bullion industry seeks duty relief, simpler gold mining norms

Prithviraj Kothari, President of the India Bullion and Jewellers Association (IBJA), has outlined key demands placed by the bullion industry ahead of the Union Budget 2026. Here’s what the sector is seeking:

• Customs duty benefit: Extension of the 1 per cent customs duty benefit on gold imports from Dubai.
• Lower import duty: Reduction in basic customs duty on gold from 5 per cent to 3 per cent.
• Mining reforms: Simplification of rules and regulations governing gold mining in India to boost domestic production.