Union Budget 2026: What corporate leaders across industries expect
Nirmala Sitharaman will present her ninth consecutive budget this year, second only to Morarji Desai, who presented 10 budgets
The Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman, is set to present the budget 2026 on February 1. Sitharaman will present her ninth consecutive budget this year, second only to Morarji Desai, who presented 10 budgets.
Many industry leaders have set high expectations for the budget. Here are some of the expectations by corporate leaders across sectors:
Sector: Real estate
“We are hopeful of a policy environment that supports long-term, sustainable growth across India’s real estate landscape. Streamlined regulations and a stronger focus on ease of doing business can meaningfully improve execution efficiency across both residential and commercial developments, enabling developers to plan and deliver with greater certainty. Continued emphasis on infrastructure-led development and integrated urban planning will be significant for markets such as Kolkata and the wider Eastern India region, where improved connectivity and planned growth can unlock substantial opportunities,” said Karan Agarwal, Director, Srijan Realty.
Sector: Pharmaceuticals
“We expect continued government support for innovation, competitiveness, and sustainability. Incentives and weighted tax deductions for R&D investments in complex generics, injectables, and biosimilars will be key to developing cutting-edge therapies. We advocate for an expansion of Production-Linked Incentives to cover critical intermediates and biosimilars, alongside strategic encouragement of domestic API manufacturing to reduce import reliance and strengthen supply chains,” said Ashok Nair, MD, RPG Life Sciences.
“Furthermore, a strong emphasis on digital health, pharmacovigilance, and digital-first quality systems can be transformative for the sector’s future readiness. Sustainability commitments such as energy efficiency, solvent recovery, and green chemistry are increasingly becoming standard priorities across the industry,” he added.
Sector: F&B
“We would expect the budget for 2026 to review the input credit availability for F&B restaurants, even if it is restricted to a few expenditure heads like Rent & Capital. Further, an incentive structure that is linked to employment generated for freshers to motivate the Industry, as retail is one of the largest employers in India,” said Rajat Agarwal, CEO, Barista Coffee.
Sector: Space
“Strategic incentives for R&D, testing facilities, and collaborative frameworks with global space operators will help startups like ours accelerate technology validation and scale. Strengthening India’s research ecosystem and creating targeted support for space sustainability efforts, including orbital debris mitigation, will enable deeper industry participation, attract global partnerships, and unlock high-value engineering jobs,” said Dr. Chiranjeevi Phanindra, Founder & CEO, Cosmoserve Space.
Sector: Finance
“Strengthening MSME credit penetration through policy support and credit-enabling frameworks will be key to unlocking its full potential. In affordable housing, a sustained focus on housing finance, interest subsidies, and infrastructure-led development can significantly improve home ownership access, while creating positive spillovers across construction and allied industries,” said Rajesh Sharma, Managing Director, Capri Global.
Sector: Automobile
“The budget should digitise vehicle movement, faster inter-state transfers, and technology-enabled compliance across transport networks. For the organised luxury pre-owned car market, future-ready transport infrastructure and seamless policy coordination will be essential to reduce friction, improve turnaround times, and strengthen customer confidence in high-value purchases,” said Himanshu Arya, Founder, Luxury Cart.
Sector: Healthcare
“We recommend formally recognising food and dietary supplements as an integral part of overall wellness, with the potential to improve health outcomes while unlocking significant economic value. The budget should focus on simplifying custom duty structure by rationalising customs duty slabs on imported supplements, ingredients used in nutraceutical, beauty, and personal care, and select consumer durables,” said Rajneesh Chopra, Managing Director, Amway India.
Sector: Textile
“We hope the government prioritises enhanced incentives for sustainable and circular economy initiatives, including tax benefits for companies adopting recycled materials and lower GST slabs on eco-friendly products to make them more accessible to consumers. Additionally, targeted credit support and R&D subsidies for climate-positive startups would accelerate innovation in upcycled textiles,” said Kapil Bhatia, Founder & CEO of UNIREC.
