LiveBudget 2026 Expectations Live Updates: Here's what industry leaders demand

“India has a once-in-a-generation opportunity to lead the global shift towards ethical, lab-grown diamonds. The government’s decision to recognise lab-grown diamonds as a sunrise sector under Make in India has already delivered strong momentum, and the removal of customs duty on diamond seeds has improved industry margins by 5–8 per cent, allowing faster domestic manufacturing and innovation. In the upcoming Budget, continued policy stability, expanded R&D incentives and easier access to financing for manufacturers will be critical to helping India become the world’s largest hub for sustainable diamond production. With indigenous technology — including initiatives such as the IIT Madras seed programme — India could reduce production costs by 20–30 per cent over the next two years, making lab-grown diamonds more affordable globally while strengthening exports and job creation. Ethical luxury is no longer niche. With the right Budget support, India can define the future of the global diamond industry — not just as a volume leader, but as the world's most trusted source of sustainable, high-quality diamonds,” said Ricky Vasandani, CEO & Co- founder, Solitario.

“Flexible and co-working spaces are fast becoming a bellwether of India’s evolving work culture and the growth of the start-up and GCC ecosystem. In the upcoming Union Budget, the industry looks for formal recognition of flexible workspaces as a distinct real estate category, which would bring much-needed consistency in utilities, taxation, and regulatory treatment. We also expect targeted policy support to strengthen digital infrastructure, incentivise energy-efficient fit-outs, and enable smart building integrations—critical for creating future-ready work environments. 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. Further, integrating flexible workspaces into state-level start-up and GCC policies can play a catalytic role in stimulating demand, boosting entrepreneurship and generating employment, positioning the sector as a key enabler of India’s modern, distributed workforce," said Ritesh Malik, Founder, Innov8.

"As healthcare needs grow more complex, India’s reliance on advanced medical technologies continues to increase, particularly in critical care settings. Nearly 70 per cent of medical devices used in the country, especially across critical care, infusion therapy and advanced medication management, continue to be imported as domestic capabilities evolve. Ensuring timely access to proven global technologies, supported by efficient customs and regulatory processes, is essential for uninterrupted patient care. At the same time, broader insurance coverage for complex and specialised procedures can help make advanced therapies more accessible. Continued investment in reskilling doctors is equally important, so that innovation translates into better clinical outcomes. Together, these measures can meaningfully strengthen India’s healthcare ecosystem,” Shishir Agarwal, President and Managing Director, Terumo India.

“As the Union Budget 2026 approaches, the gems and jewellery industry seeks targeted policy support for a sector that is a major employment generator and export contributor. Rationalising import duties and GST on gold, silver and jewellery is critical to improving cost competitiveness and sustaining demand, especially in a low-margin industry facing rising input costs. A stable, predictable tax framework would boost consumption, enhance export pricing and curb informal trade. Addressing blocked input tax credits on essential services like security, logistics, rentals, insurance and compliance is equally important, as these constraints strain liquidity and raise operating costs. 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.

"As Finance Minister Nirmala Sitharaman prepares to present the Union Budget, the focus will be on building on recent positive momentum to keep insurance products affordable, simple and widely accessible. There is also merit in reviewing certain healthcare-related tax provisions that were framed years ago and may no longer reflect today’s operating realities, particularly in urban healthcare. From an industry perspective, stronger alignment between tax policy, insurance adoption and broader economic priorities will be important. A predictable and simplified framework that supports long-term savings, health protection and financial resilience can benefit both enterprises and individuals. Hospital room rents illustrate this well. Even standard rooms today often exceed older benchmarks and attract GST, leading to higher out-of-pocket costs for patients. Updating such thresholds in line with current healthcare costs can help ease financial strain on households. Alongside this, greater clarity and consistency in the tax treatment of group medical cover can enable MSMEs to extend health security to their workforce, strengthen formal employment and support business continuity across sectors. At the same time, retirement preparedness is emerging as a critical pillar of India’s financial ecosystem. With over 14 crore Indians already above the age of 60 and this population expected to nearly double by 2047, the need for sustained, long-term pension savings is becoming increasingly urgent. 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. Making pension planning more rewarding, flexible and predictable will be essential to ensuring financial independence in later years and aligning India’s pension framework with global best practices," said Sarbvir Singh, Joint Group CEO, PB Fintech.

“India’s crypto conversation has largely focused on enforcement and taxation, but the next phase needs to address market structure and sustainability. The real question for Budget 2026 is not whether virtual digital assets should exist, but how regulated activity can be kept onshore, transparent, and economically viable. Today, compliant Indian participants face friction that often pushes volumes offshore, weakening oversight rather than strengthening it. Budget 2026 should therefore focus squarely on VDAs. One meaningful step would be to rethink transaction-level taxation. The current withholding mechanism adds operational burden without materially contributing to revenues. A more effective alternative would be a VDA transaction tax, similar to the securities transaction tax in capital markets that achieves traceability while also generating predictable revenue. Such a structure would help bring volumes back to spot markets, reduce excessive reliance on high-risk derivatives, and introduce greater stability into a growing ecosystem that is increasingly intersecting with mainstream finance,” said Manhar Garegrat, Country Head - India, Liminal Custody.

"India’s VDA (Virtual Digital Asset) ecosystem is at a pivotal stage, with growing adoption across the country. However, the current tax framework presents challenges for retail participants by taxing transactions without recognising losses, creating friction rather than fairness. A reduction in TDS on VDA transactions from 1 per cent to 0.01 per cent could improve liquidity, ease compliance, and enhance transparency while preserving transaction traceability. Raising the TDS threshold to Rs 5 lakh would help protect small investors from disproportionate impact. Introduced in 2022 as a stand-in for regulation at that time, VDA taxation has since been complemented by strong oversight from FIU-IND and improved compliance. This Budget presents a great opportunity to revisit the framework in a manner beneficial to both investors and the government. We remain hopeful that the government will recognise this gap and consider reviewing the current framework soon," said Ashish Singhal, Co-founder, CoinSwitch.

"With the Union Budget 2026 set to be introduced, we at BIT Mesra look forward to measures that enhance investment in research, innovation, and digital infrastructure. Emphasis on funding for higher education, especially in emerging domains such as artificial intelligence, clean energy, and advanced manufacturing will be critical to building future-ready talent. Additionally, continued support for start-up incubation and industry-academia collaboration can further allow students and researchers to shape ideas into scalable, real-world solutions. At the same time, focused allocations for scholarships and skill development will help ensure equitable access to quality education across regions. Today, more students in India study in private universities and colleges than in government-funded institutions. Hence, the government must provide them with identical opportunities and support in the forthcoming budget," said Prof. Indranil Manna, Vice Chancellor, Birla Institute of Technology, Mesra.

"Oben Electric views the Union Budget 2026-27 as a vital opportunity to strengthen India’s electric mobility journey. While 2025 was a landmark year with EV sales reaching a record 2.3 million units, anchored by 1.28 million two-wheelers, the industry’s long-term health depends on structural tax reforms. A primary concern for domestic manufacturers is the inverted tax structure. While finished EVs attract a 5 per cent GST, the raw materials sourced to build these vehicles are taxed at 18 per cent. This 13 per cent disparity traps vital working capital across the industry, driving up production costs and straining liquidity. Aligning the GST on all EV components to a uniform 5 per cent is essential to support domestic manufacturing and make 'Make-in-India' EVs more affordable for the mass market. Furthermore, we believe the next wave of adoption will be led by electric motorcycles. While scooters have seen early success, motorcycles dominate with nearly 70 per cent of India’s two-wheeler landscape but remain significantly under-electrified. To achieve our national 2030 targets, the budget should introduce targeted subsidies and demand incentives specifically for electric motorcycles. Prioritizing this dominant segment will unlock the next level of mass-market electrification and move India closer to a truly self-reliant EV ecosystem," said Madhumita Agrawal, Founder & CEO of Oben Electric.

“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. This differential complicates pricing and weakens the viability of models such as Battery-as-a-Service and battery swapping, which are critical to lowering upfront costs for commercial users. 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," Kunal Mundra, Founder and CEO, Astranova Mobility.

"What is really holding startups back today is not their intent or innovation—it is survival within a complex compliance and funding environment. Access to credit remains fragmented and difficult, especially for those at early-stage businesses doing meaningful work. Without uncomplicated and more predictable mechanisms of financial support, many up and coming startups cannot survive. Another important reform is to increase the threshold for GST registration from Rs 20 lakh to a minimum of Rs 1 crore. With inflation and operational realities, Rs 20 lakh is no longer a meaningful benchmark. The compulsion to comply at so early a stage diverts valuable time, energy, and resources from building the business. Monthly filings, penalties, and high interest for delayed payments are disproportionately punitive for small enterprises and crippling at times. True ‘ease of doing business’ would finally come when compliance systems support growth rather than overwhelm it. A higher threshold and rationalised penalties will enable startups to focus on innovation, employment, and value creation,” Avinash Deshmukh, COO of iThrive. 

The Indian real estate sector has demonstrated exceptional resilience and momentum recently, driven by robust demand, rising aspirations, and supportive government-led initiatives, positioning it as one of the most dynamic and fastest-growing markets globally. As the country prepares for the Union Budget 2026, the real estate sector is hopeful for progressive reforms that could benefit homebuyers and the industry. 

"The sector is keen on policies that will address both the challenges faced by developers and the evolving needs of homebuyers.  As India's economy continues to grow, there is an increasing interest among homebuyers to continue to invest in residential real estate for long-term returns. However, affordability remains the biggest challenge for a large section of the population. Hence there should be expansion in the definition of affordable housing in urban areas as this would expand the benefits for homebuyers, thereby boosting the end-user demand. There is a strong case for interest subsidy for first-time homebuyers who currently fall outside the affordable housing benefits as this will boost sales to a great extent. The real estate sector is also seeking rationalisation of GST on under-construction homes and quicker approvals to reduce project delays. The government should raise the deduction limit for interest payment on home loans from the existing Rs 2 lakh a year to Rs 5 lakh, which will add momentum to the housing sector," said Ramani Sastri - Chairman & MD, Sterling Developers Pvt. Ltd.

“India’s macroeconomic outlook remains cautiously optimistic. Domestic demand continues to hold up, inflation is under control and public capital expenditure continues to be a key growth driver, even as global markets remain volatile. With shifting geopolitics reshaping trade, energy costs and capital flows, our ability to rely on internal consumption will be integral for medium-term economic stability. Within this context, affordable housing, more specifically home financing, deserves policy attention. Home loans are long-term commitments that reflect confidence in income stability. For first-time and affordable homebuyers, predictable EMIs, clear tax benefits and easier access to credit matter far more than short-term interest rate movements. Enhancing deductions on home loan interest and principal repayment, restoring higher limits for self-occupied homes and offering targeted tax relief to first-time buyers can improve affordability without increasing property prices. Such budget measures can help revive genuine demand," said Atul Monga, Co-Founder and CEO, BASIC Home Loan.

"First, extending SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) rights to NBFCs across all loan values. This will help accelerate recovery processes, reinforce credit discipline, and ultimately reduce borrowing costs for customers. Second, launching a dedicated refinance/liquidity window for MSME-focused NBFCs to ensure steady and cost-effective access to funds for underserved segments. Third, improving access to long-term funding for NBFCs financing long-tenor assets, which will help ease asset–liability mismatches and support sustainable balance-sheet growth. Finally, putting in place policies to further strengthen digital public infrastructure for credit—through consent-based data sharing and interoperable registries—to enhance underwriting quality and enable faster, more informed lending decisions," said Pinank Shah, CEO, Capital India Finance Limited.

“With Budget 2026 approaching, we expect the government to place rural and semi-urban MSMEs and first-time borrowers at the centre of its financial inclusion agenda. NBFCs have become the primary conduit of formal credit in these markets, supporting agri-allied businesses, services, and small manufacturing units. Establishing a structured refinance mechanism for MSMEs and priority-sector lending would ensure uninterrupted and affordable credit for rural and semi-urban entrepreneurs. Policy clarity around recovery mechanisms and simplified compliance norms are equally critical to sustain lending momentum without increasing borrower stress. Achieving regulatory and tax parity with banks will enable NBFCs to deploy capital more efficiently at the grassroots. Budget 2026 must acknowledge the systemic role NBFCs play in rural and semi-urban India’s growth story and strengthen them accordingly,” said Deepak Aggarwal, Co-founder, Co-CEO, and CFO of Moneyboxx Finance Limited.

"As India prepares for the Union Budget 2026–27, the real estate sector looks forward to policy measures that strengthen urban resilience, sustainability, and long-term capital efficiency. Continued focus on infrastructure-led urban development, faster project clearances, and easier access to institutional financing will be crucial for responsible developers. Incentivising green and biophilic developments, renewable energy integration, and resource-efficient construction can accelerate the transition towards future-ready cities. Additionally, targeted demand-side support for homebuyers and regulatory clarity on taxation will help maintain market momentum while ensuring balanced growth across residential and mixed-use developments,” Kirthi Chilukuri, Founder & Managing Director, Stonecraft Group.

"As India’s travel industry continues with its robust recovery, we expect budget 2026 to rationalise GST for the sector. It is also important to make compliance more seamless, improve credit access so that financing can become easier. Addressing these will benefit both consumers and businesses, as travel and hospitality will become more affordable for them, businesses can get a change to innovate and grow and there will be healthy competition in the market. The government’s further support for sustainable tourism, heritage circuits, and domestic travel promotion will be critical in diversifying demand across regions. The government has already demonstrated strong intent through sustained investments in infrastructure, destination branding, and tourism-led regional development. Building on this momentum in Budget 2026 can help India unlock significantly higher economic value, employment generation, and inclusive growth through tourism," Dr Vikas Katoch, Founder and CEO Adotrip.

"India’s AI (Artificial Intelligence) future will not be decided by intent alone, but by execution at scale. We have world-class talent and applied engineering strength, yet innovation is slowed by uncertain data rules, limited compute access, and infrastructure bottlenecks. The single most transformative move is to make compute, power, and trusted datasets predictable, affordable, and widely available. Couple that with outcome-based procurement and targeted compute credits linked to real deployments. When policy enables speed, not friction, India can shift from experimentation to enterprise-grade AI leadership across industry and government," said Anand Mahurkar, Founder and CEO of Findability Sciences.

The broad expectation from the upcoming Budget is continued support for India’s growth priorities with a strong focus on implementation. With large infrastructure projects already identified, timely execution, smoother coordination, and reduced approval friction will be key to ensuring that spending translates into durable assets that improve productivity, particularly in logistics and connectivity. 

"From an NBFC ecosystem perspective, industry discussions have centred on incremental enabling measures rather than headline announcements—such as improving operational efficiency in funding flows, making refinancing channels more accessible, and providing a level playing field in the use of SARFAESI—while staying aligned with responsible lending and strong underwriting practices. MSME credit typically strengthens when infrastructure momentum and funding stability for lenders improve together, especially in semi-urban and rural clusters. Given the importance of exports for MSMEs to diversify and scale, targeted budgetary support can play a meaningful role in strengthening the sector while maintaining a prudent, customer-centric approach to lending,” said Umesh Revankar, Executive Vice Chairman, Shriram Finance.

As we approach Budget 2026, the real estate sector stands at a position of balanced growth and structural maturity. With policy reforms and demand consolidation over recent years, the sector today is fundamentally more resilient and investment-friendly. 

"From the upcoming Union Budget, we expect continued emphasis on urban infrastructure and connectivity-led development, which are key enablers for regional housing demand, particularly in growth corridors such as Dwarka Expressway and Golf Course Extension Road. A push for faster approvals, digital compliance, and single-window clearances can significantly improve execution timelines and unlock project efficiency. Stable interest rates and sustained public capital expenditure will further support absorption, while measures that enhance liquidity access, housing finance inclusion, and incentivise green construction can create long-term value across the ecosystem. Overall, the sector looks forward to a policy roadmap that ensures ease of doing business, supports sustainable urbanisation, and strengthens investor and home-buyer confidence alike,” said Manik Malik, CEO, BPTP.

Customs arrears continue to form a significant portion of indirect tax pendency. As of December 2024, a total of 72,592 Customs cases were pending, involving recoverable arrears of Rs 24,016.20 crore.  

Interest and Penalty generally triple the Duty demand in Customs. Say a Duty demand is Rs 100, then the total demand will be Rs 300 approx. For bona fide mistakes, it's a huge cost to incur, especially in these geo-politically stressful times for businesses. There are a number of cases which are bona fide mistakes, like classification cases, where the importers have already started using the right HSN Codes and Custom Duty Rates post SCN/ Order, but for past periods are contesting the cases due to the high impact of interest and penalty, pleading a genuine error.

"In such cases, the Amnesty Scheme under Customs allowing importers to settle disputes by paying the principal customs duty, with the government waiving interest and penalty, would be the right First Step by The Government to initiate Customs Reforms as promised by the Hon'ble Finance Minister," said Vivek Jalan, Partner at Tax Connect Advisory Services, A Multi-disciplinary PAN India Taxation Firm.

The short-term and long-term capital gain space has been simplified to a large extent in the Finance Act (No 2) of 2024. As those reforms are settling down, there are certain ancillary reforms which arise out of them and which are expected in this budget.

"Gold and Silver prices are shooting up every day. However, in case these asset classes are sold between one and two years, then they are taxed as short-term capital gains at 20 per cent. This is in contrast to listed securities, which would be taxed at 12.5% during the same period as long-term capital gain. This unevenness in treatment of different asset classes is due to the fact that the holding period for the purpose of computing capital gains is different for different asset classes, i.e. 12 months and 24," said Vivek Jalan, Partner at Tax Connect Advisory Services, A Multi-disciplinary PAN India Taxation Firm.

Since the indexation has already been withdrawn for all asset classes, including property, there is not much reason to keep such unevenness and corresponding complexity. It is thus expected that the holding period for the purpose of computing capital gains for all asset classes may be set as 12 months in the Union Budget 2026.