Real Estate Hopes
The real estate sector is keenly awaiting Budget 2026, hoping for significant tax relief and consistent policies. Industry leaders are advocating for measures
to boost the sector's growth. Reports suggest capital inflows into the real estate sector surged 25% to a record $14.3 billion in 2025. Furthermore, the stabilization of real estate sentiment in Q4 2025 indicates a positive outlook, aided by office demand and funding prospects. In Gurugram, real estate investments in 2025 reached a massive Rs 86,588 crore, illustrating the sector's robust momentum. Additionally, the government's focus on infrastructure development and urban planning is expected to further fuel real estate expansion across the nation. Therefore, the sector’s hopes rest on the government's ability to create a conducive environment for sustainable growth and investment.
Tax Regime Shifts
The upcoming Budget 2026 is poised to bring notable changes to the income tax landscape, including a potential rollout of a new tax law effective from April 1, which aims to simplify provisions. There's also speculation about whether the old tax regime will be phased out, alongside discussions on new versus old income tax slabs that taxpayers should be aware of. Taxpayers can also look forward to knowing about the potential of joint tax filing for married couples. Experts and analysts have proposed that the new tax regime should be made more attractive by the government. The budget is also likely to touch upon the government’s efforts to cap the fiscal deficit, with ICRA suggesting a possible 4.3% target, which demonstrates fiscal discipline and medium-term debt consolidation measures. The upcoming budget will give further clarity on the tax rules, ensuring a more transparent and structured framework for taxpayers.
Economic Outlook
The Indian economy is on a positive trajectory, with SBI Research projecting it to become an upper-middle-income country by 2030, achieving a $5-trillion economy within the next two years. Furthermore, the IMF has upgraded India's growth forecast to 7.3% for 2025, even in the face of global trade and tariff tensions. Financial experts are optimistic, as Elara Capital has set a FY27 Nifty target of 30,000, indicating strong earnings potential. Additionally, Moody’s forecasts India’s growth at 7.3% in FY26. These positive indicators highlight the country’s strong economic fundamentals and its ability to withstand global uncertainties. The government is also emphasizing digital payment methods, as seen in the DIGIDHAN Mission, which has driven a 41% CAGR, with digital payments reaching 22,831 crore in FY25. This shows how crucial digital innovation is in fostering financial inclusion and economic expansion.
Market Trends
The stock market has exhibited volatility, with the Sensex experiencing significant fluctuations and the Nifty nearing the 25,200 mark. Simultaneously, there's considerable interest in flexi-cap funds, due to their potential benefits. The real estate market also shows signs of resilience with stable sentiment, as office demand and financial factors drive the sector’s optimism. Also, the rise in silver prices and the record highs in gold have drawn attention from investors. The anticipation surrounding the NSE IPO and the Bharat Coking Coal IPO indicate active interest in new market opportunities. The performance of various companies like Hindustan Zinc and Yes Bank has also influenced market sentiments. Overall, these market dynamics provide key insights for investment strategies and economic analysis.
Other Key Highlights
Budget 2026 will also touch upon several other significant aspects of the Indian economy. The government may introduce measures to support MSMEs and critical minerals to boost trade resilience. Regarding central government staff, the launch of a new salary account is expected, which includes loan, insurance, and card benefits. Moreover, with the integration of EPF withdrawals via UPI by April, EPFO subscribers will experience direct bank transfers without the hassle of filing claims. Banks may also have adjusted their operations, potentially implementing a four-day work week due to employee strikes. In addition, there is speculation on the introduction of joint tax filing for married couples. These developments show the government’s ongoing effort to enhance financial accessibility, streamline processes, and bolster economic sectors across the country.
