As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026 on February 1, expectations from across industries are steadily building. From personal income tax relief to a sharper focus on artificial intelligence and higher capital spending, stakeholders are hoping the Budget will address slowing private investment and global uncertainty while keeping India’s growth engine running.
This year’s Budget will also be a personal milestone for Sitharaman, who is set to become the first woman finance minister to present nine consecutive Union Budgets. Ahead of the speech, sectors including infrastructure, real estate, MSMEs, healthcare, education and technology have laid out their wish lists, seeking targeted policy support rather than sweeping overhauls.
Read More :- Budget 2026 Expectations: The Section 87A Tax Relief That Cut Income Tax to Zero
Infrastructure and real estate push
The real estate sector is looking for long-pending structural reforms. Key demands include granting ‘industry’ status, introducing a simplified single-window clearance system and speeding up digitisation of land records. Developers argue these changes would ease access to institutional funding and reduce project delays.
On the infrastructure front, industry leaders are urging a strong increase in capital expenditure. Higher public spending, they say, would support job creation, improve competitiveness and crowd in private investment at a time when global growth remains uncertain.
Income tax relief in focus
After last year’s move to make annual income up to ₹12 lakh tax-free under the new tax regime, taxpayers are hoping for further relief in Budget 2026-27. Proposals under discussion include extending the home loan interest deduction of up to ₹2 lakh to the new regime and allowing deductions of up to ₹50,000 on medical insurance premiums.
There is also growing demand for raising the standard deduction under the new tax regime from ₹75,000 to ₹1 lakh, a move that could provide immediate relief to salaried individuals and boost consumption.
Healthcare, pharma and AI
Healthcare is expected to be a major beneficiary of the government’s AI push. Policymakers are exploring support for AI-led diagnostic tools, including machine-learning models that can analyse X-rays and medical imaging to enable early disease detection.
The broader goal is to bridge the gap in doctor availability, especially in rural areas, while lowering diagnostic costs. The pharmaceutical and MedTech industries are also calling for tax rationalisation and a structured funding framework to deepen research and development and support high-value therapies.
MSMEs seek easier credit
Micro, small and medium enterprises continue to flag challenges in accessing formal credit. Despite improvements in the lending ecosystem, industry estimates suggest a credit gap running into tens of lakh crore rupees.
MSME leaders are pushing for enhanced refinance windows, partial credit guarantees and easier access to long-term funds. Simplifying GST on financial services and providing clarity on TDS provisions are also seen as steps that could reduce compliance friction and improve business sentiment.
Read More :- SBI IMPS transfers to get costlier from February 15, 2026: What changes for customers
Education and skills alignment
Education stakeholders want focused investment in strengthening India’s higher education ecosystem to reduce the outflow of students to foreign universities. Rather than just expanding capacity, experts argue the Budget should encourage closer alignment between academia and industry to keep pace with changing job roles and skill requirements.
Technology and capital markets
The technology sector is seeking sustained policy support for artificial intelligence, including grants and incentives that encourage wider adoption across industries. Capital market participants, meanwhile, are watching closely to see if the government revisits securities transaction tax and capital gains tax, as post-tax returns remain a growing concern for investors.
Agrochemicals and farm tech
The agrochemical industry has called for a reduction in import duty on pesticides from 10 per cent to 5 per cent. Industry representatives say lower duties would help farmers access newer and more efficient crop protection technologies at affordable prices.
As Budget Day approaches, the common thread across sectors is clear: targeted relief, steady public spending and a forward-looking push on technology. Whether the government can balance fiscal discipline with these expectations will set the tone for India’s growth story in the year ahead.
