Budget 2026 Expectations Live Updates: Demands Of MSMEs, Manufacturing, FMCG, Finance, Real Estate, And Other Sectors

 "As the Union Budget 2026 approaches, infrastructure—especially roads and highways—continues to anchor India’s growth agenda. Road and highway development remains critical to strengthening mobility, freight movement, and regional integration, while also supporting logistics efficiency and long-term climate goals," said  Mohit Jandu, MD, J Infratech. 

According to him, amid global economic uncertainties, we expect continued prioritisation of roads and highways within government capital expenditure, along with enhanced financial support to states and a refreshed National Infrastructure Pipeline.

"There will be a growing focus on end-to-end digital transformation of the national highway network, from planning and Detailed Project Reports to construction, maintenance, and tolling, leveraging digital mapping and validation tools to improve project coordination, speed up approvals, and minimise ecological impact, Jandu noted.   

"Ahead of the Union Budget, we hope to see a strong policy focus on regions like Noida, which are entering a transformative growth phase driven by the Jewar Airport corridor and rapid infrastructure expansion," said Yash Garg, Director, M3M Noida. 

According to him, Improved connectivity over the last few years has significantly reshaped Noida’s real estate landscape, and the next phase of growth should be guided by planned urbanisation, integrated townships, and well-structured mixed-use developments.

"We expect the Budget to introduce enhanced tax benefits for homebuyers in emerging corridors and grant infrastructure status to real estate, enabling access to long-term financing and improving overall investor confidence. Faster, time-bound approval mechanisms and single-window clearances are also critical to ensure timely project execution in fast-developing micro-markets," Garg said.  

Continued investments in metro connectivity, expressways, and sustainable urban infrastructure will help Noida evolve into a self-sustaining economic hub and a globally competitive urban destination, he added. 

 "Ahead of the Union Budget 2026, the education sector is looking for measures that strengthen financial sustainability and enable innovation. One critical step would be the removal of GST on university-related expenses," said Dr Sanjeev Vidyarthi, Provost, Anant National University. 

According to him, since universities are not eligible for input tax credit, GST becomes a direct and non-recoverable cost, placing significant financial strain on institutions.

Rationalising this would allow universities to redirect resources towards improving academic quality, infrastructure, and student outcomes. 

"There is also a strong need for targeted financial support for design education, which plays a vital role in nurturing creative, systematic, and solution-oriented thinking, capabilities that are essential for nation-building. Further, providing seed funding to universities established under the State Private University Act, along with structured support for student start-ups during their academic journey, would significantly strengthen India’s innovation and entrepreneurship ecosystem," said Vidyarthi. 

"As the Union Budget 2026 approaches, India’s manufacturing sector is looking for policy continuity and targeted support that strengthens domestic value creation rather than only scale," said Imran Kagalwala, Co - Founder of Unix India. 

According to him, while initiatives such as Make in India and PLI schemes have accelerated manufacturing capacity, the next phase must focus on deepening localisation, improving supply-chain resilience, and enhancing competitiveness across mid-value manufacturing categories, including electronics and consumer devices. 

"For Micro, or medium-scale brands, the absence of PLI-linked benefits remains a gap due to various criteria, and there is a strong expectation that the Budget will either extend PLI coverage to MSMEs or introduce equivalent support mechanisms to enable their participation in India’s manufacturing growth story," Imran added. 

From the Budget, the industry expects rationalisation of duties on critical components and raw materials where domestic availability remains limited, alongside continued incentives that encourage local assembly, testing, and value addition, he said further. 

“As India’s digital economy matures, Budget 2026is a critical opportunity to strengthen the foundation for scalable, innovation-led growth," said Sonali Chowdhry, CEO-OfficeNet. 

As per Chodhry, the software and technology sector would benefit from sharper R&D-linked incentives that encourage the development of homegrown AI and deep-tech solutions, particularly those that enhance enterprise productivity, compliance, and decision-making.

Targeted R&D tax credits and structured innovation incentives can nudge companies to build and scale domestic platforms rather than rely on imported technologies.

"Equally important is sustained government support for large-scale reskilling and talent development, ensuring the workforce remains future-ready as AI adoption accelerates across enterprises. Encouraging the adoption of foundational enterprise tools such as HRMS for core operational functions can help MSMEs and mid-sized organizations scale efficiently and compliantly. Together, these measures can accelerate digital adoption while positioning India as a global hub for sustainable, innovation-driven software growth," she noted. 

“The deepening credit ecosystem notwithstanding, India’s MSME sector continues to face a significant shortfall in access to formal credit, with the total addressable credit gap estimated at nearly Rs 30 lakh crore,e accounting for close to 24 per cent of the total debt demand," said Akash Jain, CEO, AKME Fintrade Limited.

He emphasised that there is an urgent need to strengthen the credit ecosystem to bridge the gap.

"We believe the upcoming Budget presents an opportunity to strengthen liquidity access for NBFCs and last-mile lenders that serve underserved and semi-urban segments," Jain Noted.

According to Jain, measures such as enhanced refinance windows, partial credit guarantees, and easier access to long-term funds can significantly improve credit flow to MSMEs and retail borrowers.

"On the taxation front, rationalisation of GST on financial services and greater clarity on TDS provisions would help reduce frictional costs and improve operational efficiency. A predictable tax and regulatory environment will enable lenders to focus on innovation, risk management and inclusive growth,"  AKME Fintrade Limited, CEO, said.  

"As we head towards the Union Budget, there needs to be a move from just creating infrastructure to making it more efficient and sustainable. Agriculture, construction, and water industries are all involved with the use of pumping (and motor) systems; however effi­ciency is underserved," said Somen Bajpai, Director & CEO, Aay Bee Engineers. 

According to him, smart incentives for energy-efficient pumping solutions, modernization of age-old infrastructure, and amplification of support for MSME-led indigenous manufacturing have the potential to effectively bring down operational costs, conserve depleting water resources, and enhance long-term productivity.

"That won’t just help India’s infrastructure aims, but also will enhance sustainable, self-reliant industrial growth," Bajpai added. 

"As the Viksit Bharat Shiksha Adhishthan Bill, 2025 raises expectations around compliance and accreditation, it is vital that the Budget also enables smaller universities to participate meaningfully in research," said Prof. P S Sastry, Dean & Distinguished Professor, School of Engineering and Technology, Vidyashilp University.

According to him, even modest, well-structured funding for small research projects and basic lab infrastructure can make a decisive difference.

"Without such support, capable institutions and regional talent risk being inadvertently disadvantaged. Thoughtful funding provisions will ensure that regulatory reform strengthens, rather than narrows, India’s academic and research ecosystem," Sastry added. 

“India is entering a year where cyber risk will be driven less by ‘random attacks’ and more by deliberate exploitation of known weaknesses. Indusface research shows weaponised vulnerability attacks are up 180 per cent on APIs and 44 per cent on web apps, and this trend will intensify as attackers scale automation," said Ashish Tandon, Founder & CEO, Indusface.

According to him, the next wave of exposure will also come from AI adoption, as AI features get embedded into business workflows and customer apps, making it easier for attackers to trick systems into disclosing sensitive, proprietary data.

"2025 was a milestone year for data protection, with DPDP moving closer to operational reality and raising the baseline for accountability. To match these expectations with economic realities, the Budget should enable targeted incentives and financial support for cybersecurity investments," said Tandon. 

"As Budget 2026 approaches, we hope the Government takes measures to further strengthen the credit ecosystem for MSMEs and retail customers, where NBFCs play a critical role in delivering last-mile financing," said Pinank Shah, CEO, Capital India Finance Limited. 

According to him, extending SARFAESI rights to NBFCs across all loan values will help accelerate recovery processes, reinforce credit discipline, and ultimately reduce borrowing costs for customers.

Additionally, Shah demands, launching a dedicated refinance/liquidity window for MSME-focused NBFCs to ensure steady and cost-effective access to funds for underserved segments.

"Improving access to long-term funding for NBFCs financing long-tenor assets, which will help ease asset–liability mismatches and support sustainable balance-sheet growth," he noted.  

As we look toward Budget 2026, there is a strong case for placing preventive healthcare and early diagnostics at the heart of India’s health policy, said Harsh Mahajan, Chair – FICCI Health Services and Founder, Mahajan Imaging & Labs.   

"The 2026 Budget should treat rural India not just as a beneficiary of welfare, but as the primary engine for India's $5 trillion ambition. When we talk about 'Make in India,' we must include 'Make in Rural India," said Prasanna Kumar, CEO & Founder of VilCart.

According to him, by empowering rural SMEs and Farmer Producer Organizations (FPOs) with better credit and infrastructure, we aren't just helping villages—we are securing the next decade of India's GDP growth.

"The goal is a self-sustaining circular economy where rural production meets rural consumption directly," he added. 

According to him, the strong emphasis laid down by the government on capital expenditure, modern corridors for transport, and the transformation of urban centers have already created encouraging momentum in the construction ecosystem, and we believe that the forthcoming announcements will reinforce the infrastructure story of India.

“India’s office market is entering a decisive phase where growth is no longer defined by square footage alone. What I’m seeing on the ground is a clear shift towards flexible formats, greener buildings, technology-led workplaces, and expansion beyond metros. Global Capability Centres are diversifying their locations, companies are prioritising sustainability, and employees expect smarter, more agile work environments," said Koheli J Puri, Founder and MD of StudioXP.

"Budget 2026 has the opportunity to turn this momentum into long-term capacity building through policy clarity, ESG incentives, digital infrastructure, and easier approvals. If aligned well, it can help India move from rapid office expansion to a future-ready workspace ecosystem that supports jobs, productivity, and sustainable urban growth,"  Puri added. 

"India’s ambition to emerge as a global education destination will be shaped not only by physical expansion or international collaborations, but by how effectively students and families are supported in navigating choice within an increasingly complex education ecosystem," said Ganesh Kohli, Founder of IC3 Movement. 

“As India moves toward its goal of becoming a global higher education hub, Budget 2026 must prioritise the systems that turn student interest into lasting outcomes. Attracting international students is only the first step; what truly matters is whether institutions can deliver recognised qualifications, research exposure, and credible career pathways at scale. International credentials do not create value on their own unless they are supported by strong industry linkages, employer recognition, and on-ground student success frameworks," said Aritra Ghosal, Founder and CEO, OneStep Global.

“As India moves toward its ambition of hosting over one million international students by 2047, Budget 2026 becomes a decisive moment to shift from policy intent to on-ground delivery. The NITI Aayog roadmap makes it clear that growth without quality will not build a sustainable global reputation, and this must be reflected in how funding and incentives are designed," said Tripti Maheshwari, Co-Founder & Director, Student Circus. 

"The total allocation for the broader WASH (Water, Sanitation, and Hygiene) sector as a proportion of GDP slightly decreased to 0.23% in 2024-25 (Budget Expectations) from 0.26 per cent in 2023-24." Meera Mehta, CRDF Professor Emeritus and Sr Advisor CWAS, CEPT University, and a member of the NFSSM Alliance. 

She demands that the Union Budget must anticipate a far more complex urban sanitation landscape, as more information will emerge from the house listing operations in 2026.

"In the 2026 budget, we hope to see continued policy support for the premium housing segment across India. This becomes especially important for Tier 2 cities, where a lifestyle transformation is underway. Active home buyers are demanding larger living spaces, upscale amenities, and gated community environments that match metro standards," said Parvinder Singh, CEO, Trident Realty.

"With the elderly population of the country poised to grow 300 percent by 2030, there is an increasing need for well-designed, secure, and supportive communities for seniors. Incentives for developers, GST rationalisation, and clear policy guidelines can help formalise and expand this category," said Anil Godara, Founder and Managing Director, J Estates.

"The NCR area remains the backbone of North India's real estate sector, majorly contributing to residential and commercial development. From the 2026 budget, we are expecting policy interventions to fix infrastructure bottlenecks, streamline approval processes, and expedite environmental clearances," said Aman Sharma, Founder and Managing Director, Aarize Group.

"We look forward to a continued policy stability and growth-focused incentives for the NCR luxury housing market in pre-budget expectations for 2026. Increasing incomes, wider global exposure, and a desire for safe, amenity-rich communities are the demand-driving factors for premium homes in the NCR," Ashish Agarwal, Director, AU Real Estate.

"As we approach the Union Budget 2026, the focus must clearly shift toward long-term growth driven by policy stability, simplified but effective compliance, and stronger supply chains to bridge the gap between urban and rural. Rationalisation of processes such as tax deduction at source can ease operational complexity for the food and FMCG sector," said Amit Anand, Managing Director, Apis India.

According to him, while global trade developments, including India-EU engagement, reflect India’s deeper integration with international markets, key agri-products such as honey remain outside these trade frameworks.

"With this exclusion, the budget’s role in strengthening overall infrastructure to enable domestic business spread and export readiness becomes even more critical. A growth-oriented budget and measurements that increase the disposable income of households can help Indian brands scale responsibly while strengthening domestic consumption and global competitiveness," Anand added.

 "As Union Budget 2026 approaches, India must prioritize digital innovation and sustainability in inland container logistics to support rising exports and the $2 trillion ambition," said Dhruv Taneja, Founder & Global CEO, MatchLog.

"The consistent policy support extended to manufacturing in recent years has created strong tailwinds for India’s chemical industry, including the dyes and pigments segment," said Mihir V Shah, Executive Director, Vipul Organics Limited. 

According to him, as global customers increasingly seek diversified and dependable sourcing destinations, India is well placed to deepen its role in international supply chains. 

"The Union Budget can build on this positive momentum through continued investments in chemical park infrastructure, faster environmental approvals, and improved logistics for efficient movement of goods within the country and for exports," Shah noted.  

 
"Given the capital-intensive nature of this industry, access to long-term, competitively priced capital remains essential for ongoing investments in technology, safety, and advanced pollution control systems. Encouraging domestic production of key intermediates will further reduce import dependence and enhance value addition within India. Continued policy encouragement for R&D, process innovation, and green chemistry will help manufacturers offer higher-value, customised solutions aligned with evolving global compliance and sustainability expectations," he further said. 
 

“As the Union Budget gets closer, investors should pay more attention to the policy signals about stability, taxes, and long-term wealth creation than to the big news stories," said Anand K Rathi, Co-Founder of MIRA Money. 

According to him, a tax system that is easy to understand, especially when it comes to capital gains and debt taxes, helps people plan with confidence and develop portfolios that are in line with real, inflation-adjusted returns.

"For high-net-worth individuals and others who want to make money, the capacity to efficiently spread capital across stocks, bonds, and other types of assets is much more important than short-term rewards," Rathi added

A Budget that simplifies compliance, reduces uncertainty, and rewards patient, goal-based investing will strengthen household participation in markets and support sustainable wealth creation over the long run, he noted.

“As private credit AIFs increasingly become a large stakeholder in India’s corporate bond markets, bringing tax parity for private credit vehicles and faster tax assessments are relevant asks in the Union Budget 2026," said Vineet Sukumar, Founder and Managing Director of Vivriti Capital and Co-Chair of IVCA’s Credit and Special Situations Council. 

According to him, currently, investors in credit AIFs are taxed on notional income, unlike debt mutual funds, where taxation applies only at redemption.

"Correcting this anomaly and shifting to taxation on realised income would create a level playing field between debt mutual funds and AIFs and encourage deeper participation in private credit," said Sukumar.  

"There is also a strong case for harmonising tax rates in Indian funds for domestic investors with those applicable to global investors, which are typically around 10% (for most Western European economies). Such parity would meaningfully unlock Indian capital and significantly accelerate the fund flow to private credit AIFs," he added. 

"As we look to this year’s Budget, the most important question isn’t just how much is allocated to climate and development priorities, but how much is translated into real outcomes on the ground. Recent World Bank analysis estimates India will need over USD 2.4 trillion by 2050 to build climate-resilient infrastructure, highlighting that the scale of investment far exceeds current financing and requires stronger delivery systems," said Founder of Climate Asia.  

"As Make in India enters a decisive phase, the Union Budget 2026 presents an important opportunity to further strengthen India’s manufacturing sectors. To take this momentum to the next level, the Budget should expand and refine the PLI framework across key industries and extend incentive timelines to provide greater certainty for long-gestation manufacturing investments," said Andre Eckholt, Managing Director, Hettich India - SAARC, Middle East & Africa. 

According to him, a supportive and predictable policy environment can accelerate local manufacturing and reinforce India’s position as a reliable production hub for both domestic and export markets.

"Sustained policy support under the Make in India initiative will enable domestic manufacturers to scale up, innovate, and compete globally," Eckholt added.  

 “For entrepreneurs building long-term businesses, policy stability matters far more than short-term incentives. This Budget should reinforce ease of doing business through predictable taxation, simplified compliance, and smoother access to growth capital—especially for mid-sized and scaling enterprises," said Soumik Bandyopadhyay, Founder & Director, Soumik Bandyopadhyay Advisors Pvt. Ltd. 

According to him, frequent regulatory changes increase uncertainty and divert founder attention away from innovation and execution.

"A confidence-driven policy environment allows entrepreneurs to invest, expand operations, and create jobs without constantly recalibrating for regulatory risk," Bandyopadhyay noted.  

"India’s startup and business ecosystem will thrive when policy frameworks reward consistency, transparency, and long-term thinking. A Budget that focuses on stability and execution will strengthen entrepreneurial confidence and support sustainable economic growth," he said further.