Budget 2026 Preview
The upcoming Budget 2026 is a subject of significant interest, with numerous stakeholders offering insights and predictions. Tax experts are seeking increased
deductions and relief on the 30% tax slab, while industry leaders are urging the government to double infrastructure spending, aiming for Rs 3 lakh crore. The focus appears to be on clarity, faster dispute resolution, and overall ease of doing business. Joint tax filing for married couples might become a reality, and the new tax regime could see home loan and health insurance deductions. Experts highlight the need for clarity across various sectors, including autos, telecom, railways, and defense, with specific reform recommendations from entities like Morgan Stanley. The government's focus is on simplifying provisions, set to be effective from April 1.
Taxation and Reforms
The 2026 budget is expected to bring substantial changes to India's tax landscape. One significant expectation is the potential for joint tax filing for married couples. The new tax regime may also introduce home loan and health insurance deductions, aiming to make it more attractive to taxpayers. Furthermore, experts are advocating for higher deductions and relief within the 30% tax bracket. The overall objective is to simplify tax provisions, making them effective from April 1. These anticipated reforms reflect a broader goal of making the tax system more user-friendly and aligned with the evolving needs of the Indian populace. Tax experts also seek faster dispute resolution mechanisms.
Market Reactions
Market reactions to budget expectations and broader economic trends are varied. In the real estate sector, capital inflows surged, with a 25% increase to reach a record $14.3 billion in 2025, according to CBRE. Luxury housing sales reached a four-year high as Indians increasingly opted for high-end flats. The gold market witnessed fluctuations, with prices crossing Rs 1.55 lakh. Silver ETFs experienced an 8% jump, reflecting record prices. These movements highlight the dynamic interplay between policy changes, investor sentiment, and global economic factors. The market anticipates the budget to bring about significant shifts across sectors, impacting investment decisions and financial strategies.
Investment Perspectives
Investors are closely watching market trends and making strategic decisions. Gold-loan NBFC assets under management (AUM) are projected to cross Rs 4 lakh crore by FY27 due to record gold prices, as indicated by CRISIL. Silver prices have shown remarkable performance, with investments of Rs 1 lakh a year ago generating substantial returns. Flexi-cap funds are gaining popularity, and experts suggest understanding their top schemes. Simultaneously, the market has seen volatility, with the Sensex falling over 1,400 points in two days and Nifty50 below 25,200, prompting investors to assess risks and opportunities. The performance of railway stocks is also in focus ahead of the budget.
Real Estate Dynamics
The real estate sector is exhibiting robust trends, influenced by investment inflows and evolving consumer preferences. Gurugram saw Rs 86,588 crore in real estate investments in 2025, with RERA clearing 131 projects. The demand for industrial and warehousing space in India rose by 16% in 2025 due to significant leasing activities. Luxury housing sales have reached a four-year high, indicative of a shift towards premium properties. In Bengaluru, discussions are underway concerning residency requirements for obtaining a BDA flat. The sector is poised for further growth, driven by infrastructure developments and evolving urban landscapes, with notable activity in high-street retail and destination malls.
Bank and Financial Sector
The banking and financial sector showcases both challenges and opportunities. Several banks released their Q3 results, with Yes Bank reporting a 55.4% year-on-year increase in net profit to Rs 952 crore. HDFC Bank's net profit rose by 11.4% YoY to Rs 18,653.75 crore, and ICICI Bank's net profit fell 4% YoY to Rs 11,317.86 crore. Banks are also adjusting their services, with HDFC Bank changing debit card lounge access rules. Digital payments are rapidly growing, with a 41% CAGR and hitting 22,831 crore in FY25, according to government data. The Integrated Ombudsman Scheme 2026 is scheduled to go live from July 1, enhancing grievance redressal mechanisms in the financial sector.
