Digital Payment Resilience
The rapid expansion of digital payments in India has prompted a shift in focus toward long-term sustainability and resilience. Mr. Deepak Chand Thakur,
Chairman and Managing Director of NPST, highlighted that UPI, processing over 228.3 billion transactions in 2025, is now integral to daily economic activity. He noted that while the zero MDR framework encouraged widespread adoption, the increasing volume and complexity of transactions necessitate funding models. These models would enable payment service providers to continually invest in infrastructure, security, and innovation, ensuring the continued growth and reliability of digital payment systems across the nation. This approach aims to secure the digital payment ecosystem's ongoing development and trustworthiness.
MSME Support Needed
The insurance industry is seeking significant reforms within the 2026 Union Budget to foster sector expansion and support the Indian economy. A major expectation is the provision of GST relief on health and other employee insurances for MSMEs. These businesses are significant employers, particularly within the lower-income segments. MSMEs commonly utilize employee benefits, such as Group Health Insurance, to draw in and retain talent. Current GST regulations pose a burden, as MSMEs cannot claim input credit for the GST paid on these insurance premiums. While a complete waiver might be challenging for all businesses, the government could offer some relief to MSMEs. This could indirectly benefit the budget and the country over the medium to long term. Covering the lower-income segment through MSMEs reduces dependence on government subsidies and schemes for healthcare or assistance in case of a breadwinner's death or disability. According to Sajja Praveen Chowdary, Director, Policybazaar for Business, this is crucial.
Tax Reform Demands
The new tax regime, despite simplifying personal taxation, has yet to fully meet expectations regarding take-home pay. According to a pre-Budget survey by Grant Thornton Bharat, 44% of respondents desire lower tax rates or wider slab intervals to make the new regime more attractive for salaried taxpayers. Another 26% of respondents favor the introduction of limited deductions, while 16% support a progressive standard deduction linked to salary levels. This data suggests that taxpayers value simplicity, but not at the cost of essential reliefs like health and retirement savings. The focus is on adjustments that ensure fairness and adequately reflect the diverse needs of taxpayers. The demand for tax reforms reflects a desire for a system that provides both ease of use and the ability to maintain financial security, indicating that the government should consider these aspects when preparing the Union Budget 2026.
Market Stability Sought
Given global uncertainties and moderate earnings, the expectations surrounding Budget 2026 emphasize stability and a clear fiscal direction. Ajay Kumar Yadav, CFPCM, Group CEO & CIO, Wise Finserv, reflected this sentiment, stating that markets are not seeking dramatic announcements but rather reassurance. He further added that the budget needs to be clear, indicating that targeted fiscal support, continued infrastructure spending, and policy certainty are more crucial than headline-grabbing moves. This outlook underscores the need for a cautious and strategic approach to the budget. The emphasis on reassurance, clear fiscal planning, and specific investments will provide the confidence and stability necessary for sustainable growth, especially during challenging economic times. The goal is to provide a sense of security and clarity to maintain investor confidence in the Indian market.
