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

“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.