What is the story about?
As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026, India Inc is looking for policy clarity and targeted fiscal support to sustain growth momentum amid rising input costs, global uncertainty and the need for deeper domestic capacity building.
From infrastructure and housing to clean energy, healthcare, manufacturing and financial services, industry leaders are urging the government to shift from intent-led policy signalling to faster execution and cost rationalisation.
The backdrop is broadly supportive. The Economic Survey 2025 pointed to strong macroeconomic fundamentals, steady public capex and improving private investment sentiment. Yet, in real terms, several sectors are grappling with bottlenecks that threaten project timelines, affordability and global competitiveness - areas where Budget 2026 is expected to play a decisive role.
Also read: What it would take for India to be a high-income country by 2047
Infrastructure and real estate
Infrastructure and real estate, which remain central to job creation and urban expansion, are among the most vocal. Developers say that while project pipelines across roads, metros, airports and housing remain robust, execution challenges are intensifying.
Aparna Reddy, Executive Director at Aparna Enterprises Ltd, notes that escalating prices of steel, cement, aluminium and other construction inputs, along with prolonged land acquisition negotiations and approval delays, are pushing up project costs and slowing delivery. These pressures are particularly acute in tier-2 and tier-3 cities, where affordability is critical to sustaining demand.
Industry expectations from the Budget include GST rationalisation on key construction materials, incentives to boost domestic manufacturing of inputs, and dedicated funding to fast-track land acquisition and municipal clearances. Strengthening mechanisms such as the Urban Challenge Fund and the SWAMIH fund is also seen as crucial to reviving stalled housing projects and unlocking private capital for urban infrastructure.
Closely linked to infrastructure is the mining and critical minerals sector, which is gaining strategic importance as India looks to reduce import dependence in clean energy, defence and advanced manufacturing.
Read more: Budget 2026 needs to be more than Aatmanirbhar
Dr Hanuma Prasad Modali, Managing Director and CEO of Deccan Gold Mines Ltd, argues that Budget 2026 must focus on execution certainty, particularly in speeding up land and forest approvals, without compromising environmental safeguards. He also flags the need to allow extraction and sale of associated minerals without additional fiscal burdens, wider access to high-quality geological data, and rationalised import duties across critical mineral concentrates to improve supply-chain resilience during the transition phase.
Finance sector
On the financing side, NBFCs are positioning themselves as key enablers of inclusive growth, especially for MSMEs and first-time borrowers. Abhimanyu Munjal, MD & CEO of Hero FinCorp, says the Budget should continue to strengthen liquidity access and long-term capital availability for NBFCs while maintaining a balanced regulatory environment.
Simpler compliance and incentives for digital lending, he believes, can deepen credit penetration and support entrepreneurship and employment across semi-urban and underserved regions.
Energy
Energy transition is another major theme shaping pre-Budget expectations. With India targeting 500 GW of non-fossil fuel capacity by 2030, the solar manufacturing ecosystem is seeking targeted policy support.
Prashant Mathur, CEO of Saatvik Green Energy, highlights the need for an enhanced PLI scheme focused on upstream solar manufacturing of polysilicon, ingots and wafers, to reduce dependence on imports, particularly from China.
Industry players are also calling for accelerated depreciation on manufacturing equipment, preferential lending and lower corporate tax rates to improve capital efficiency and attract long-term investments.
Parallelly, traditional energy and mining companies are looking for regulatory simplification and green technology incentives. Sanjay Choudhari, Chairman of SBL Energy, stresses that streamlined approvals, single-window clearances and rationalised duties on critical materials could unlock private investment and improve India’s global competitiveness while supporting sustainable industrial growth.
Healthcare and Pharma Industry
In healthcare, expectations are shaped by rising lifestyle diseases, growing out-of-pocket expenses and the need to shift from reactive to preventive care. Dr Mukesh Batra, Founder-Chairman Emeritus of Dr Batra’s Healthcare, points out that while allocations to the health ministry have risen steadily, Budget 2026–27 must focus equally on implementation effectiveness and outcome assessment.
Greater integration of preventive and alternative systems of medicine, including AYUSH, supported by research and transparent regulation, is seen as essential to addressing chronic disease burdens. Industry stakeholders are also pushing for expanded insurance coverage for preventive care, investments in digital health infrastructure and community clinics to bridge access gaps beyond metros.
Pharmaceutical manufacturers, meanwhile, are urging the government to place innovation and R&D at the centre of healthcare policy. Arushi Jain, Director at Akums Drugs & Pharmaceuticals, notes that India’s pharma R&D spending remains a fraction of that in the US and China, limiting the country’s ability to move up the value chain. Beyond tax incentives for R&D, the industry is seeking budgetary support for advanced manufacturing, digital quality systems and stronger regulatory capacity to ensure faster, predictable approvals for complex and innovative therapies.
Tourism and hospitality
The hospitality and tourism sector, which has benefited from improved infrastructure and rising domestic travel, is also eyeing policy relief. Davinder Juj, General Manager at Eros Hotel, says expanding the harmonised infrastructure list, operationalising the Urban Challenge Fund and rationalising GST on hospitality services could significantly boost private investment, job creation and India’s global tourism appeal.
Retail industry
For retail and consumer-facing industries, demand stimulation remains a priority. Liberty Shoes’ Executive Director Anupam Bansal emphasises the need for measures that enhance disposable incomes while easing access to affordable financing for retailers. Gunjan Shah, MD & CEO of Bata India, adds that continued GST rationalisation and stronger ‘Make in India’ incentives for domestic manufacturing are essential to meeting rising consumption without stoking inflation.
Export-oriented sectors, particularly apparel and textiles, are seeking policy continuity and trade facilitation. Sanjay Gandhi, Group CFO of Pearl Global Industries, says progress on free trade agreements with key markets such as the UK and EU could help Indian exporters address duty disadvantages and compete more effectively in global supply chains.
Faster duty remission, sustained support for PM MITRA and investments in logistics and skilling are seen as critical to capturing global sourcing opportunities as demand stabilises.
As Budget 2026 approaches, a common thread runs across sectors: the need to reduce friction, whether through cost rationalisation, faster approvals, improved access to capital or regulatory predictability.
Industry leaders are not calling for sweeping giveaways, but for targeted interventions that align fiscal policy with execution efficiency. If delivered, they believe the Budget could accelerate project delivery, improve affordability, strengthen domestic manufacturing and position India for resilient, inclusive growth in the years ahead.
From infrastructure and housing to clean energy, healthcare, manufacturing and financial services, industry leaders are urging the government to shift from intent-led policy signalling to faster execution and cost rationalisation.
The backdrop is broadly supportive. The Economic Survey 2025 pointed to strong macroeconomic fundamentals, steady public capex and improving private investment sentiment. Yet, in real terms, several sectors are grappling with bottlenecks that threaten project timelines, affordability and global competitiveness - areas where Budget 2026 is expected to play a decisive role.
Also read: What it would take for India to be a high-income country by 2047
Infrastructure and real estate
Infrastructure and real estate, which remain central to job creation and urban expansion, are among the most vocal. Developers say that while project pipelines across roads, metros, airports and housing remain robust, execution challenges are intensifying.
Aparna Reddy, Executive Director at Aparna Enterprises Ltd, notes that escalating prices of steel, cement, aluminium and other construction inputs, along with prolonged land acquisition negotiations and approval delays, are pushing up project costs and slowing delivery. These pressures are particularly acute in tier-2 and tier-3 cities, where affordability is critical to sustaining demand.
Industry expectations from the Budget include GST rationalisation on key construction materials, incentives to boost domestic manufacturing of inputs, and dedicated funding to fast-track land acquisition and municipal clearances. Strengthening mechanisms such as the Urban Challenge Fund and the SWAMIH fund is also seen as crucial to reviving stalled housing projects and unlocking private capital for urban infrastructure.
Closely linked to infrastructure is the mining and critical minerals sector, which is gaining strategic importance as India looks to reduce import dependence in clean energy, defence and advanced manufacturing.
Read more: Budget 2026 needs to be more than Aatmanirbhar
Dr Hanuma Prasad Modali, Managing Director and CEO of Deccan Gold Mines Ltd, argues that Budget 2026 must focus on execution certainty, particularly in speeding up land and forest approvals, without compromising environmental safeguards. He also flags the need to allow extraction and sale of associated minerals without additional fiscal burdens, wider access to high-quality geological data, and rationalised import duties across critical mineral concentrates to improve supply-chain resilience during the transition phase.
Finance sector
On the financing side, NBFCs are positioning themselves as key enablers of inclusive growth, especially for MSMEs and first-time borrowers. Abhimanyu Munjal, MD & CEO of Hero FinCorp, says the Budget should continue to strengthen liquidity access and long-term capital availability for NBFCs while maintaining a balanced regulatory environment.
Simpler compliance and incentives for digital lending, he believes, can deepen credit penetration and support entrepreneurship and employment across semi-urban and underserved regions.
Energy
Energy transition is another major theme shaping pre-Budget expectations. With India targeting 500 GW of non-fossil fuel capacity by 2030, the solar manufacturing ecosystem is seeking targeted policy support.
Prashant Mathur, CEO of Saatvik Green Energy, highlights the need for an enhanced PLI scheme focused on upstream solar manufacturing of polysilicon, ingots and wafers, to reduce dependence on imports, particularly from China.
Industry players are also calling for accelerated depreciation on manufacturing equipment, preferential lending and lower corporate tax rates to improve capital efficiency and attract long-term investments.
Parallelly, traditional energy and mining companies are looking for regulatory simplification and green technology incentives. Sanjay Choudhari, Chairman of SBL Energy, stresses that streamlined approvals, single-window clearances and rationalised duties on critical materials could unlock private investment and improve India’s global competitiveness while supporting sustainable industrial growth.
Healthcare and Pharma Industry
In healthcare, expectations are shaped by rising lifestyle diseases, growing out-of-pocket expenses and the need to shift from reactive to preventive care. Dr Mukesh Batra, Founder-Chairman Emeritus of Dr Batra’s Healthcare, points out that while allocations to the health ministry have risen steadily, Budget 2026–27 must focus equally on implementation effectiveness and outcome assessment.
Greater integration of preventive and alternative systems of medicine, including AYUSH, supported by research and transparent regulation, is seen as essential to addressing chronic disease burdens. Industry stakeholders are also pushing for expanded insurance coverage for preventive care, investments in digital health infrastructure and community clinics to bridge access gaps beyond metros.
Pharmaceutical manufacturers, meanwhile, are urging the government to place innovation and R&D at the centre of healthcare policy. Arushi Jain, Director at Akums Drugs & Pharmaceuticals, notes that India’s pharma R&D spending remains a fraction of that in the US and China, limiting the country’s ability to move up the value chain. Beyond tax incentives for R&D, the industry is seeking budgetary support for advanced manufacturing, digital quality systems and stronger regulatory capacity to ensure faster, predictable approvals for complex and innovative therapies.
Tourism and hospitality
The hospitality and tourism sector, which has benefited from improved infrastructure and rising domestic travel, is also eyeing policy relief. Davinder Juj, General Manager at Eros Hotel, says expanding the harmonised infrastructure list, operationalising the Urban Challenge Fund and rationalising GST on hospitality services could significantly boost private investment, job creation and India’s global tourism appeal.
Retail industry
For retail and consumer-facing industries, demand stimulation remains a priority. Liberty Shoes’ Executive Director Anupam Bansal emphasises the need for measures that enhance disposable incomes while easing access to affordable financing for retailers. Gunjan Shah, MD & CEO of Bata India, adds that continued GST rationalisation and stronger ‘Make in India’ incentives for domestic manufacturing are essential to meeting rising consumption without stoking inflation.
Export-oriented sectors, particularly apparel and textiles, are seeking policy continuity and trade facilitation. Sanjay Gandhi, Group CFO of Pearl Global Industries, says progress on free trade agreements with key markets such as the UK and EU could help Indian exporters address duty disadvantages and compete more effectively in global supply chains.
Faster duty remission, sustained support for PM MITRA and investments in logistics and skilling are seen as critical to capturing global sourcing opportunities as demand stabilises.
As Budget 2026 approaches, a common thread runs across sectors: the need to reduce friction, whether through cost rationalisation, faster approvals, improved access to capital or regulatory predictability.
Industry leaders are not calling for sweeping giveaways, but for targeted interventions that align fiscal policy with execution efficiency. If delivered, they believe the Budget could accelerate project delivery, improve affordability, strengthen domestic manufacturing and position India for resilient, inclusive growth in the years ahead.
