Fiscal and Economic Outlook
The fiscal landscape of India is a central focus, with states' consolidated fiscal deficit serving as a key indicator of economic health. Experts are keen
to see policies that improve the quality of economic growth, suggesting a move towards sustainable and inclusive development. Stakeholders are hoping for strategies to secure energy independence and strengthen critical national infrastructure. A crucial element in this discussion is the potential recalibration of the Electric Vehicle (EV) Production Linked Incentive (PLI) scheme by the Centre, which could boost research and development along with domestic manufacturing. Simultaneously, there's a need to address the impact of international trade policies, such as potential tariffs, aiming to mitigate any negative effects. Furthermore, the strengthening of farmers' incomes remains a priority, reflecting the government's commitment to the agricultural sector's well-being. This multifaceted approach suggests a budget aimed at achieving broad-based economic stability and progress.
Sector-Specific Demands
Different sectors have specific requests for the upcoming budget. The gems and jewellery sector is calling for cuts in Goods and Services Tax (GST) and duty reforms. The real estate segment is looking forward to favorable policies. The consumer durables sector hopes for specific measures. The electric vehicle (EV) sector has its own set of expectations from the budget. The education sector is seeking measures that would boost its growth and overall development. The hospitality and foodservice sector also wants relevant measures to encourage more growth. Healthcare MSMEs are seeking specific provisions and focus on making tree farming predictable. The luxury automobile segment and the home décor and furniture sector have their own requirements, indicating that the budget is expected to address varied industry needs. These requests highlight the diverse economic interests hoping to be addressed in the new budget.
Taxation and Financial Reforms
Taxation and financial reforms are central to Budget 2026 discussions. Taxpayers' expectations are high, prompting an examination of current income tax slabs under both the old and new tax regimes. The potential rehauling of capital gains tax is being considered to restore overall confidence in the market. The strengthening of farmers' incomes is a key focus area, indicating a push for rural economic empowerment. MSMEs seek enhanced credit facilities, reflecting a need for financial support to boost the sector. MMTC-PAMP is seeking relief for refiners in the upcoming budget. These measures collectively aim to create a more stable and supportive financial environment.
Infrastructure and Growth
The budget is expected to emphasize infrastructure development and broader economic growth. 'Housing for All' remains a priority, with calls for higher allocations under the Pradhan Mantri Awas Yojana-Urban (PMAY-Urban). A fundamental rethinking of infrastructure projects is deemed necessary to ensure effective and sustainable development. The aim is to build native recycling, refining, and recovery capabilities. There's a strong focus on empowering new entrepreneurs, indicating an intent to foster innovation and job creation. The goal is to make India a global hub for next-generation biotherapies, signifying a focus on advanced technologies and research. These strategies are all aimed at achieving the Viksit Bharat dream.
