Tax Regime Shifts
One of the key areas of interest surrounding Budget 2026 is the evolution of the income tax landscape. Discussions include whether the old tax regime will
be phased out, or if the new tax regime will be made more attractive. Experts are suggesting the possibility of higher deductions or relief in the 30% tax bracket within the new regime. Furthermore, there's speculation about the introduction of joint tax filing for married couples. These potential changes aim to simplify the tax process and provide relief to taxpayers. The new tax rules are set to take effect from April 1st, so it’s essential to stay informed about any potential changes to plan your finances accordingly. The industry leaders have also urged the government to double infra spending to Rs 3 lakh crore.
Infrastructure Investment Surge
Industry leaders are pushing for a substantial increase in infrastructure spending within Budget 2026. They are urging the government to double infrastructure investments to Rs 3 lakh crore. This increased investment could have a ripple effect throughout the economy, boosting sectors like auto, telecom, railways, and defense, as flagged by Morgan Stanley. The Economic Survey 2026 further supports this, forecasting a GDP growth of 6.8-7.2% for FY27. This anticipated growth highlights the importance of sustained infrastructure development in India’s economic trajectory. The India-EU Free Trade Agreement is expected to unlock the next phase of expansion.
Gold and Silver Market
Budget 2026 is also drawing attention to the gold and silver markets. Experts anticipate that the budget could introduce measures to make buying gold cheaper and more accessible. There's a buzz about potential changes to import duties or other taxes that could influence the prices of precious metals. The market is already showing signs of significant activity, with silver hitting a new high of Rs 4 lakh. Moreover, the prices of gold are also surging, crossing Rs 1.60 lakh. Investors are actively watching these trends and assessing how the budget might impact the market dynamics. Experts are recommending these stocks for long-term investments.
Economic Outlook and Reforms
The Economic Survey 2026 is poised to play a crucial role, with the release date and time eagerly anticipated. The survey is expected to highlight the government's economic strategies and outline the growth forecast for the upcoming fiscal year. There's a focus on inflation, which is projected to remain benign in FY27 as supply conditions improve and GST cuts take effect. Furthermore, the Economic Survey is anticipated to flag tougher insurance enforcement, with the penalty cap raised 10x to Rs 10 crore. Experts anticipate these measures will help enhance the country's economic stability and growth prospects. The EU firms are also upbeat on India's growth.
Market Reactions and Trends
The stock market is closely watching Budget 2026, with anticipations of key reforms and economic indicators influencing trading activities. The rise in the Sensex and Nifty reflects the positive sentiment among investors. Stocks to watch include Wipro, Vedanta, ITC, and Tata Motors, among others. The market is also seeing sector-specific rallies. Factors driving the market’s recovery include positive expectations from the budget and favorable economic data. Experts are also recommending stocks related to the India-EU trade deal for long-term investments, such as those in the auto, telecom, railways, and defense sectors.
