New Delhi | India Inc is entering the Union Budget season with cautious optimism and sharp strategic expectations as Finance Minister Nirmala Sitharaman prepares to table the Union Budget 2026–27 on Sunday, February 1, at 11:00 AM IST—the first time a full Union Budget will be presented on a Sunday.
Against the backdrop of global economic uncertainty, including potential tariff pressures from the United States, shifting trade equations, and India’s long-term ambition of Viksit Bharat 2047, industry leaders are urging the government to prioritise structural reforms, fiscal prudence, and growth-oriented investments rather than short-term populist measures.
The forthcoming Economic Survey, to be released on January 31, is expected to peg India’s GDP growth at around 7.3–7.4 per cent for the current fiscal, reinforcing expectations of a budget that strengthens resilience while unlocking private investment and job creation.
Focus on Infrastructure and Capital Expenditure
A continued push on infrastructure and capital expenditure remains the top demand across sectors, with industry leaders stressing that public capex has been a key driver of economic momentum.
Sunil Nair, CEO of Ramky Infrastructure Ltd., said,
“The expectation is not just for sustained spending, but for a strategic pivot towards sustainable urban transformation. Infrastructure investment must align with long-term national priorities and the vision of Viksit Bharat@2047.”
Echoing similar sentiments, Akshat Seth, Managing Director and CEO of BirlaNu, noted,
“As India accelerates investment in infrastructure and urban development, the true measure of Budget 2026 will lie not just in the scale of allocation, but in the reliability of execution and the longevity of assets being created.”
MSMEs Seek Protection and Policy Stability
Micro, Small and Medium Enterprises (MSMEs), particularly in labour-intensive sectors such as textiles, leather, and gems and jewellery, are seeking safeguards against external shocks and tariff uncertainties.
Industry body FICCI has called for a comprehensive support package to cushion MSMEs from global trade disruptions, while ASSOCHAM emphasised the need for easier credit, GST simplification, and faster payments.
An ASSOCHAM statement highlighted that MSMEs require
“urgent policy support to drive employment and exports, including cash-flow-based lending and incentives for timely settlement of dues.”
Manufacturing, Make in India, and Tax Certainty
Manufacturers are pushing for expansion of Production-Linked Incentive (PLI) schemes, tariff rationalisation, and localisation incentives to strengthen India’s global competitiveness.
FICCI has suggested the creation of a mega electronics manufacturing cluster to co-locate OEMs, EMS firms, and component suppliers, helping India move up the value chain.
On taxation, industry leaders are looking for clarity ahead of the rollout of the New Income Tax Act, 2025, effective from April 1, 2026.
Experts from Deloitte India observed that the budget could
“lay down important markers for competitiveness, productivity, and long-term fiscal resilience.”
FICCI has also urged the government to simplify customs duties by converging multiple slabs into three uniform rates to significantly reduce compliance costs.
Green Energy, EVs, and Emerging Sectors
The renewable energy and green transition agenda is another area where expectations are running high.
Vasudha Madhavan, CEO and Founder of Ostara Advisors, said,
“The Union Budget 2026 offers an important opportunity to advance India’s green energy transition. Expectations go beyond renewable capacity expansion to include green hydrogen, energy storage, grid modernisation, and industrial decarbonisation.”
In logistics and warehousing, regulatory predictability remains a key concern.
Anshul Singhal, Chairman of ASSOCHAM’s National Council on Logistics and Warehousing, stated,
“As the sector scales, continued efforts to streamline environmental clearances and bring predictability to regulatory frameworks will be critical for timely project execution.”
Digital Finance and New-Age Growth Drivers
With India’s digital economy expanding rapidly, stakeholders are also looking for measures to deepen digital finance, strengthen cybersecurity, and support innovation in BFSI and fintech.
Matías Gainza Eurnekian, CEO of Federal Card Services (FCS), said,
“India’s payments landscape is entering its next phase of expansion, supported by rising consumer incomes, growing spending power, and rapid digital adoption.”
Cautious Optimism Ahead of Budget Day
Overall, the mood across Corporate India reflects measured optimism—a hope that Budget 2026–27 will provide a clear, credible roadmap for growth, resilience, and private-sector-led expansion in an increasingly volatile global environment.
As pre-budget consultations conclude, markets and industry alike await concrete signals when the Finance Minister rises to present the budget on February 1, a moment expected to set the economic tone for the year ahead.
