Budget 2026 expectations from industry leaders in India

India’s Finance Minister Nirmala Sitharaman is set to present a record ninth consecutive budget on Sunday, i.e. February 1, 2026. Union Budget 2026-27 is critical because it comes at a time when India is the fastest-growing major economy and is handling geopolitical and the ongoing tariff war started by US President Donald Trump. 

Here is what a few industry leaders want from the government…

1) Tax benefits for health and term insurance : There is also a strong case to recognise preventive healthcare and OPD expenses within the tax framework, as early intervention reduces long-term treatment costs and overall system strain.We hope Budget clarity supports efficient, tech-led distribution,” says Rakesh Goyal, Director, Probus.

2) Integrate flexible workspaces into state-level start-up : A single-window clearance mechanism, faster project approvals and the inclusion of co-working spaces within Smart City and urban development programmes can significantly ease operational bottlenecks and accelerate supply. And, integrating flexible workspaces into state-level start-up and GCC policies can play a catalytic role in stimulating demand,  distributed workforce,” says Ritesh Malik, Founder, Innov8

4) Simplified ITC provisions: Simplified ITC provisions would unlock working capital and accelerate formalisation. The industry also recommends capping digital payment charges at a fixed rupee value to encourage digital adoption for high-value transactions. Finally, enabling compliance for MSMEs through simplified returns and harmonised reporting would support productivity, scale and long-term growth,” said Parag Shah, CEO, Kisna Diamond & Gold Jewellery.

5) Make pension planning more rewarding: Strengthening participation in the National Pension System by extending tax benefits under the new tax regime to both salaried and self-employed individuals, and by delinking employer participation from the employee’s tax benefit to allow voluntary contributions up to the defined threshold, can encourage disciplined retirement savings, says Sarbvir Singh, Joint Group CEO, PB Fintech.

6) Align GST at 5 per cent across EVs and core components: The intent behind India’s EV policy is clear, but parts of the current GST framework are misaligned with that ambition. While electric vehicles are taxed at 5 per cent, batteries continue to attract an 18 per cent rate.  Aligning GST at 5 per cent across EVs and core components would create clarity, reduce total cost of ownership, and remove a structural friction that is holding back adoption in the very segments where scale matters most,” said Kunal Mundra, Founder and CEO, Astranova Mobility.