The Centre is expected to finalise the date for the Union Budget 2026 today, with the decision likely to be taken by the Cabinet Committee on Parliamentary Affairs (CCPA). While February 1, 2026, falls on a Sunday, the government is yet to officially confirm whether Finance Minister Nirmala Sitharaman will present the Budget on that day or shift it to the following Monday.
If presented as expected, Budget 2026 would be Sitharaman’s ninth Union Budget, continuing a consumption-led growth strategy seen in recent years, including last year’s income-tax relief measures and GST rationalisation.
Key Focus Areas Expected in Budget 2026
Based on industry consultations and expert commentary, Budget 2026 is expected to focus on policy measures aimed at sustaining growth while maintaining fiscal discipline. Key areas under discussion include:
- Fiscal and policy support to sustain growth
- Strengthening India’s defence ecosystem
- Support for MSME growth and employment generation
- Boost to education and skilling initiatives
- Strengthening agriculture and the fertiliser ecosystem
- Focus on tourism and hospitality development
Exporters and MSMEs Seek Immediate Policy Support
Industry bodies, including ASSOCHAM, have urged the government to announce targeted policy support to stimulate exports and employment. Their recommendations include:
- Stricter enforcement of MSME payment timelines
- Faster GST and tax refunds
- Targeted relief for tariff-impacted sectors such as textiles, gems and jewellery, and seafood
Capex, Asset Monetisation and Infrastructure Reforms in Focus
ASSOCHAM has also emphasised the need to balance fiscal consolidation with growth by:
- Prioritising high-quality capital expenditure in logistics, transport, power transmission, renewable energy and industrial corridors
- Strengthening asset monetisation through streamlined approvals, regulatory certainty and transparent valuation frameworks to attract long-term private investment
Income Tax Changes Likely to Be Limited
Experts believe the Budget may avoid major changes to income-tax law, as the new Income Tax Act, 2025, is scheduled to come into force from April 1, 2026. Tax professionals have suggested that the government should instead focus on improving tax administration, dispute resolution mechanisms and compliance efficiency rather than introducing fresh amendments.
NBFCs Call for Liquidity Support and Tax Relief
The NBFC sector has urged the government to focus on three structural priorities:
- Enhanced liquidity support
- Stronger recovery mechanisms
- Targeted tax relief
Industry leaders have recommended a dedicated refinance window for NBFCs, similar to the National Housing Bank (NHB), along with expanded credit-guarantee coverage for MSMEs to improve credit flow.
Tourism Sector Pushes for Skilling Reforms
The tourism and hospitality sector is expecting the government to prioritise long-pending skill reforms, including:
- Industry-aligned curricula
- Modern digital and AI-enabled training modules
- Regional hospitality skill centres in high-potential states
Stronger public-private partnership (PPP) models are also being sought to improve hands-on training, employability and wage growth.
Education and Skilling Sector Seeks Financial Relief
Students and working professionals continue to face cost barriers to upskilling. Stakeholders are calling for:
- Targeted tax incentives for professional and skill-based courses
- Lower GST on EdTech services
- Easier access to education loans
- Higher public investment in digital learning infrastructure
A more accessible and future-ready learning ecosystem is seen as critical for building India’s skilled workforce.
Focus on Agriculture and Fertiliser Ecosystem
The fertiliser industry has highlighted the need for policies that ensure affordability, access and innovation. Industry participants have called for a balanced approach to import duties, infrastructure development and incentives for sustainable fertiliser technologies to reduce dependence on volatile global supply chains and strengthen domestic agricultural productivity.
Conclusion
While the official date and final policy announcements for Union Budget 2026 are awaited, industry expectations point towards a Budget focused on capex-led growth, MSME support, skilling, infrastructure reforms and fiscal prudence, with limited tax-law changes ahead of the new Income Tax Act’s implementation.
