Budget 2026: Industries look for predictability, investment push, and targeted support

As the Union Budget 2026–27 approaches, scheduled for February 1, industry leaders are urging the government to focus on policies that drive long-term growth, investment, and inclusion, rather than short-term

headlines. Across sectors—from fintech and FMCG to real estate and healthcare—the message is clear: stability, clarity, and targeted support are the need of the hour.

Global competitiveness and trade reforms in focus
Rahul Ahluwalia, Founder-Director, Foundation for Economic Development, said 2026 is likely to bring high policy uncertainty globally, with both geopolitical and trade tensions affecting growth. “Improving India’s competitiveness, across ease and cost of doing business, is critical. Customs reforms hinted by the FM would be an important step, while supporting last year’s reform initiatives would signal policy consistency,” he noted.

Piyush Doshi, Operating Partner, Foundation for Economic Development, added that last year’s focus on consumption and tax relief leaves little room for new tax tweaks. “The challenge now is to boost investments and jobs, particularly in manufacturing. The budget should build on deregulation, deepen customs reforms, liberalise FDI, and push asset monetisation, with a focus on sectors like tourism and labour-intensive manufacturing,” he said.

Real estate finds growth in Tier II & III cities
Real estate developers are looking for policy continuity. Yashank Wason, MD, Royal Green Realty, highlighted that Tier II and III cities are increasingly competing with metros, offering better infrastructure and spacious homes at reasonable prices. “Further tax incentives, GST clarity, and policy support will help sustain long-term investments and improve lifestyles outside metros,” he said.

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Sidharth Chowdhry, MD, Dalcore, added that premium markets like Gurugram would benefit from rationalised stamp duty, enhanced home loan benefits, and easier access to low-cost financing. “Infrastructure status benefits and targeted fiscal support can make high-quality projects viable while boosting investor confidence,” he said.

Healthcare spending still below target
Prashant Krishnan, CEO, TI Medical, flagged that India’s public health spending remains under 2% of GDP, below the 2.5% target of the National Health Policy. “Additional budgetary support and prioritising Made-in-India medical devices will reduce out-of-pocket costs, drive innovation, and strengthen India’s MedTech competitiveness,” he said.

FMCG, rural demand, and MSMEs
Nikhil Doda, COO, Lahori Zeera, noted GST mismatches that increase costs for manufacturing and marketing. “Input tax credits on services and machinery cannot be fully utilised, raising working capital needs. Budget support should boost rural and semi-urban demand through infrastructure, agriculture, and employment programs, while strengthening MSMEs and local manufacturing,” he said.

Startups and fintech: growth with predictability
Nischal Shetty, Founder, WazirX, said startups are “instruments of nation-building,” particularly in emerging sectors like crypto.

Fintech leaders echoed the need for structural clarity. Matías Gainza Eurnekian, CEO, Federal Card Services, highlighted incentives for advanced manufacturing, local production, and continued PLI support as crucial to scaling digital payments. Dilip Modi, CEO, Spice Money, stressed strengthening rural fintechs and non-bank business correspondents to deepen financial inclusion, alongside clear regulations and operational transparency.

Women, youth, and financial inclusion
Prachi Kaushik, Founder, Vyomini Social Enterprise, called for policies prioritising women and youth, with investments in skill-building, entrepreneurship, and livelihood programs. Sarika Shetty, CEO, RentenPe, suggested recognising rent as a legitimate credit signal to unlock financial access for millions, leveraging digital payments and tenancy reforms.

Policy predictability over one-off announcements
Sanjaya Mariwala, Executive Chairman, OmniActive Health Technologies, argued that frequent changes in incentives, tax structures, and schemes create hidden costs. “Industry needs multi-year frameworks with clear progress reporting. Predictability backed by accountability will sustain long-term economic momentum,” he said.

Industry leaders across sectors agree that Budget 2026 should focus on targeted reforms, fiscal predictability, and sector-specific support. From boosting manufacturing and rural demand to enabling fintech growth, supporting women-led enterprises, and strengthening Tier II/III real estate, the focus should be on translating policy signals into long-term economic outcomes rather than short-lived announcements.