Union Budget 2026: Navigating India’s Economic Inflection Point. As the clock ticks toward February 1, 2026, the eyes of over 1.4 billion people are fixed on North Block. At 11:00 AM this coming Sunday, Union Finance Minister Nirmala Sitharaman will step onto the floor of the Parliament to present the Union Budget 2026-27. This presentation is historic on two major counts: it marks her ninth consecutive budget and represents the first time since 2017 that the financial roadmap is being unveiled on a Sunday—a move intended to allow markets to digest the news without the typical intra-day volatility.
Against a robust backdrop of a 7.4 per cent GDP growth rate, the Modi 3.0 government faces the challenge of sustaining this momentum amidst a shifting world order and global geopolitical uncertainty. From GenZ investors on their smartphones to MSMEs in rural Bharat, the expectations are as diverse as the country itself.
The Taxpayer’s Wishlist: Relief, Reform, and Rationalization
The middle class, often called the backbone of the Indian economy, is looking for a budget that acknowledges the “inflation pinch.” With the New Income Tax Rules set to take effect on April 1, 2026, this budget is the final bridge toward a simplified, technology-driven direct tax regime.
- Fine-Tuning the New Tax Regime
While the new tax regime has simplified filings, it hasn’t yet fully satisfied the “take-home pay” expectations of the salaried class. According to a Grant Thornton Bharat survey, 44% of taxpayers want wider tax slabs or lower rates. There is also a significant push (supported by 16% of respondents) for a progressive standard deduction linked to salary levels, ensuring that those in higher cost-of-living urban areas receive adequate relief.
- The TDS and TCS “Compliance Headache”
One of the loudest cries for help comes from those dealing with multiple income streams. A KPMG India pre-budget report reveals that 67% of respondents view current TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) provisions as a major hurdle. Simplification here isn’t just about lower rates; it’s about reducing mismatches that lead to unnecessary tax notices and stalled refunds.
- Faceless Assessments vs. The Human Touch
As the government pushes for “faceless” proceedings to reduce corruption, experts like Rahul Jain of Khaitan & Co suggest that “one size does not fit all.” There is a growing demand for in-person hearings in complex disputes where video conferencing fails to capture the technical nuances of a case.
GenZ and the Digital Asset Revolution
The youngest workforce in the world—GenZ—is no longer just consuming; they are investing. Vedant Gupte, CEO of Trackk, emphasizes that this budget must meet young investors “where they are—on their phones.”
The demand is clear: Clarity on Virtual Digital Assets (VDA). Currently, a flat 30% tax on crypto and a 1% TDS have driven much of the trading volume offshore. Industry experts like Garima Singh of the Global Tokenization Forum warn that India risks “sitting out the blockchain revolution.” The industry is urging the FM to:
- Tier VDA taxes (15% for short-term, 10% for long-term).
- Slash TDS from 1% to 0.1% to restore market liquidity.
- Allow the offsetting of losses against gains—a basic tenet of fair taxation.
Healthcare: Beyond Hospitals to AI and Mental Health
The healthcare sector is calling for a shift from “infrastructure-only” to “outcomes-driven” spending.
- AI Adoption: Industry leaders believe Budget 2026 is the year to bridge the gap between AI capability and last-mile adoption. This requires a regulatory framework that supports privacy-first tools and standardized consent.A potential deep tech venture fund to support startups in AI, robotics, semiconductors, space, and advanced manufacturing can also be considered.
- Mental Health: Kanika Agarwal of MindPeers points out that India’s challenge has moved from awareness to access. The expectation is for funds to be diverted toward preventive care in schools and workplaces, rather than just crisis response in hospitals.
- GST on Medical Training: MedTech innovators like Anuj Chahal are pushing for GST rationalization on high-fidelity simulators. Currently, many locally manufactured “Make-in-India” training tools are excluded from education-linked exemptions.
Powering the Future: EVs and Green Energy
India’s ambitious climate goals are front and center this year. For the Electric Vehicle (EV) industry, the focus is squarely on the battery value chain.
Since batteries account for nearly 50% of an EV’s cost, the industry seeks policy certainty to unlock long-term capital. The goal is to move beyond import substitution to building a durable, localized ecosystem that includes everything from raw material sourcing to circular recycling.
Similarly, in the renewable sector, Kushagra Nandan of LNK Energy stresses that while capacity is growing, the focus must now shift to grid infrastructure and long-duration storage solutions. Without these systemic enablers, the grid may soon reach its limit in absorbing green energy.
Supporting the “Backbone”: MSMEs and Logistics
MSMEs remain the primary engine for job creation, but they face unique hurdles in a digitalizing world.
Logistics and Tech-Enabled Transport
Uttam Digga, CEO of Porter, highlights a critical issue: regulatory interpretation. Traditional Goods Transport Agencies and app-based logistics providers are often treated the same, creating unintended compliance burdens for digital operators. MSMEs, 80% of whom are not GST-registered, cannot claim input tax credit, making any increase in logistics costs a direct hit to their bottom line.
The Staffing and Skills Gap
Neeraj Jain of Quess Corp suggests that growth should be measured by “job readiness” rather than just job numbers. A key demand here is the rationalization of the 18% GST on manpower staffing, which currently acts as a barrier to formal employment and social security coverage.
Agriculture: Pesticides as “Plant Medicine”
In the Agritech sector, the demand is both scientific and fiscal. Dr. R.G. Agarwal of Dhanuka Agritech points out that India spends only 0.7% of its GDP on R&D, far behind global peers.
Furthermore, a significant point of contention is the 18% GST on pesticides. “Pesticides are plant medicines, not luxury goods,” argues Agarwal. Reducing this rate to 5% would align it with essential human medicines and provide immediate financial relief to farmers protecting their livelihoods.
Sector-Specific Snapshots
| Sector | Key Expectation | Industry Voice |
| Consumer Durables | Extension of customs duty relief on Open Cell panels to avoid a 10% rise in TV prices. | Avneet Singh Marwah (SPPL) |
| Gems & Jewellery | Reduction of GST on gold jewellery from 3% to 1.5% to stimulate demand. | Eshwar Surana (Raj Diamonds) |
| Fintech | Waiver of GST on services delivered through BC outlets in rural Bharat. | Anand Kumar Bajaj (PayNearby) |
| Insurance | Updating hospital room rent thresholds for GST exemption to reflect urban costs. | Sarbvir Singh (PB Fintech) |
Conclusion: A Budget for Stability or Boldness?
As Ajay Kumar Yadav of Wise Finserv puts it, “Markets are not seeking dramatic announcements. They are looking for reassurance.” The recurring theme across all sectors for Budget 2026 is predictability. Whether it is the stability of renewable energy payments, the consistency of GST 2.0, or the clarity of the New Income Tax Rules, India Inc. is asking for a roadmap that prioritizes execution over intent.
With FM Sitharaman set to take the stage on Sunday, the nation awaits a budget that balances the aspirations of a young, digital-first population with the grounded realities of its farmers and small business owners.
Union Budget 2026 Live Updates: Bonds, Infrastructure, and the Final Countdown
The gears of the Indian economy are shifting into high gear as the Budget Session of Parliament officially commenced today, January 28, 2026. With the traditional ‘Halwa Ceremony’ concluded at North Block, the “lock-in” period for officials has begun, marking the final stage of drafting the Union Budget 2026-27.
Finance Minister Nirmala Sitharaman is set to make history on Sunday, February 1, by presenting her ninth consecutive budget—a record-breaking feat that places her just one step behind Morarji Desai’s all-time tally. In a rare move, the Indian stock markets (NSE and BSE) will remain open for a special Sunday session to allow for real-time price discovery as policy shifts are announced
Bond Markets: A Call for “Equity-Like” Participation
The bond market is looking for more than just fiscal deficit targets this year; it is looking for a seat at the retail table. Nikhil Aggarwal, Founder & Group CEO of Grip Invest, emphasizes that the budget could be a “catalyst” for bond adoption.
“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,” Aggarwal noted.
The “Niti Aayog” Wishlist:
- Tax Parity: A recent Niti Aayog report highlighted that slab-rate taxation on interest and unfavorable capital gains treatment are major deterrents. Investors are hoping for a flat 20% tax rate to bring bonds at par with other asset classes.
- Democratizing Access: With retail participation still below 2%, the industry is calling for standardized digital disclosures, real-time data infrastructure, and a further reduction in minimum investment amounts for high-rated issuers.
- Reducing Bank Reliance: Strengthening the bond market will allow infrastructure and MSMEs to access scaleable, market-based financing.
️ Infrastructure: From Spending Spikes to Stable Pipelines
For the infrastructure sector, the keyword for 2026 is “Predictability.” Shashank Agarwal, Joint Managing Director of Salasar Techno Engineering Ltd, argues that long-cycle projects cannot survive on one-time spikes in spending.
Strategic Priorities:
- Urban Mobility: Decongesting cities and improving last-mile connectivity is seen as the most direct lever to lower India’s logistics costs.
- Power & Grid Resilience: Beyond generation, the focus must shift to transmission upgrades and grid integration for renewables.
- Digital Infrastructure: While public tenders have provided clarity, the sector seeks policies that strengthen private-side expansion, fiber densification, and faster rural rollouts.
- Execution Excellence: Agarwal stresses the need for streamlined approvals and the timely release of payments to maintain healthy working capital across the sector.
Important Dates to Remember
The road to the 2026 Budget follows a strict, high-stakes schedule:
- January 28 (Today): Parliament Session begins with President Droupadi Murmu’s address.
- January 29 (Thursday): The Economic Survey of India will be tabled, providing a comprehensive report card on the economy.
- February 1 (Sunday): Union Budget 2026-27 presentation by FM Nirmala Sitharaman at 11:00 AM.
- February 1 (Sunday): Special live trading session on NSE and BSE (9:15 AM to 3:30 PM).
The Halwa Ceremony & The Ninth Budget
On Tuesday, the Finance Minister participated in the Halwa Ceremony, a colonial-era tradition where a sweet dish is served to the staff who will remain “locked in” the North Block basement until the budget is presented to maintain absolute secrecy.
This budget arrives at a pivotal moment. With the Indian economy aiming for 7.6% growth despite global geopolitical volatility, Sitharaman’s ninth straight budget is expected to balance fiscal prudence with aggressive growth-oriented reforms.
Disclaimer: This information is based on various inputs from news agency.