Taxation in Focus
Budget 2026 is a key topic of discussion, with tax experts actively seeking several crucial changes. There's a strong push for enhanced deductions, particularly
those impacting the 30% tax slab. The real estate sector is seeking tax relief and stable policies to foster growth. Discussions around joint taxation for married couples and potential adjustments to income tax slabs are also gaining traction, as taxpayers and experts evaluate strategies for optimized financial planning and ease of doing business. Clarity in tax regulations and faster dispute resolution mechanisms are seen as key improvements for business operations. Moreover, the evolution of the new vs. old income tax regimes will be a key aspect of discussion.
Economic Sector Hopes
Numerous sectors are expressing specific demands for the upcoming budget. The auto industry is pressing for incentives related to electric vehicles (EVs), seeking clarity on Goods and Services Tax (GST) to boost recovery after the GST 2.0-led changes. In the real estate sector, there is a call for tax relief and stable policies. The manufacturing sector and core industries would benefit from supportive financial measures. Government staff are also looking forward to announcements that impact their benefits, while stakeholders are looking for the government to manage fiscal deficits. The Indian economy's performance and growth forecasts play a pivotal role in shaping investment decisions and industry outlook.
Market & Industry Outlook
Market analysts and financial institutions are providing insights into the economic climate. Morgan Stanley has highlighted critical reforms across the automotive, telecom, railways, and defense sectors. Global agencies like Moody's have revised India's growth forecast to 7.3% for the fiscal year 2026. The real estate sector is showing signs of confidence, with office occupancy expected to cross 80% by 2027 in Delhi-NCR, according to recent reports. The core industries in India recorded a growth of 3.7% in December 2025. Financial institutions' performance, such as HDFC Bank, with its net profit increase to Rs 18,653.75 crore, gives an indication about the industry performance. The financial market activity, including IPOs like Bharat Coking Coal and the NSE IPO, will also be closely watched.
Investment & Trends
Investment trends and emerging opportunities are major aspects of the budget discussion. Capital inflows into India's real estate sector saw a 25% surge, reaching a record $14.3 billion in 2025, according to CBRE reports. The surge in silver prices, reaching Rs 3 lakh per kg, has led to increased investor interest in silver ETFs. Additionally, the recent rise in gold prices, crossing Rs 1.55 lakh, is also a focal point. Flexi-cap funds are gaining popularity in the investment landscape. Furthermore, the growth in digital payments, indicated by a 41% CAGR, and the expansion of India's forex reserves, rising by $392 million to $687.2 billion, showcase the ongoing economic expansion.
Policy & Reforms
Several policy changes and reforms are anticipated. The Reserve Bank of India (RBI) launched the Integrated Ombudsman Scheme 2026, which will be operational from July 1st, 2026. The government may aim to cap the fiscal deficit at 4.3% and promote debt consolidation. The new income tax provisions are intended to be effective from April 1st. Additionally, the government is considering changes to the existing tax regimes, including the possibility of phasing out the old tax regime. Furthermore, the focus on infrastructure development is highlighted by the announcement of a mega project to cover 535 km in under 3 hours.
