Union Budget 2026: Finance Leader Share Budget Expectations
The most anticipated fiscal event of the year is fast approaching. Finance minister Nirmala Sitharaman will present a record ninth consecutive Budget on February 1.
As the Union Budget 2026 nears, industry leaders are observing attentively for policy initiatives that can promote ongoing growth, enhance the ease of business operations, and bolster India’s standing in the global marketplace. From achieving infrastructure status and rationalizing GST to promoting skill development, providing sustainability incentives, and enhancing connectivity, leaders from various industries have outlined their main anticipations.
Below are their perspectives on what Budget 2026 should achieve for the different sectors.
Arpit Jain, Joint MD, Arihant Capital Markets
“The 2026-27 Budget needs to clearly pivot towards capex-led growth, which was relatively absent in the last Budget, which focused largely on consumption. The need of the hour is to encourage both government and private sector capex. We are already seeing early signs of this in the metal sector. Some tax relief measures for sovereign funds investing in India could also serve as a strong catalyst. Financials and pharma remain well placed, while metals may continue to perform but are running a bit ahead of fundamentals. The global environment, however, remains uncertain and needs to be closely monitored.”
Devansh Lakahni, Director, Startup Fundraising Expert & Investment Banker, Lakhani Financial Services
“One of our top expectations from Budget 2026 is a meaningful reform in ESOP taxation. Today, employees are taxed twice - first when they exercise their stock options (even if they haven’t made any money yet), and again when they sell them. For early-stage startup teams, this creates a significant cash flow burden, with tax bills often exceeding Rs.2–5 lakh or more on notional gains. This structure severely undermines the core purpose of ESOPs - to reward and retain talent willing to take early-stage risk.”
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“Unless taxation is deferred until the point of sale, ESOPs will remain an ineffective and unfair tool for employee ownership in startups. Lastly, we strongly urge the government to align capital gains tax treatment for unlisted shares with that of listed ones. Startups are riskier, less liquid, and demand longer holding periods - yet are taxed more harshly. Correcting this imbalance is critical to encourage private capital into India's innovation economy.”
Chakrivardhan Kuppala, Co-Founder and Director, Prime Wealth Finserv
“We keep talking about how young India is, but not enough people are saving for retirement. Most people just depend on EPF, and that’s not going to be enough in the long run. The extra Rs.50,000 deduction for NPS hasn’t changed in years. With prices going up and people living longer, the Budget should increase that limit to Rs.1 lakh. It’ll help people think more seriously about saving for their future.”
“Also, there is still a lot of confusion about the new tax regime. Many people switched to it last year, thinking it would be easier, but then realized they couldn’t claim anything - not for home loan interest, not for insurance, not even for NPS. People are asking, is this just an option, or is this the future? So, if it’s going to replace the old one, the government needs to say it clearly - and also include basic things people rely on to plan their finances.”
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Aditi Singh, Chief Strategy Officer, Satin Creditcare Network
“As India looks ahead to the Union Budget, there is an expectation that policy priorities will continue to balance fiscal discipline with inclusive growth. For institutions operating at the grassroots, sustained focus on rural livelihoods, women entrepreneurship, and MSME resilience remains critical. Higher budgetary support for credit-linked social security programs, faster transmission of policy rate changes, and continued emphasis on housing and clean energy can help deepen last-mile economic participation."
"Equally important is a supportive regulatory environment for NBFCs, enabling them to complement banks in expanding responsible credit access across semi-urban and rural regions. A growth-oriented budget focused on consumption, employment, and inclusion would help sustain overall economic confidence.”
Rohit Garg, Founder and CEO, Olyv
“As India’s credit ecosystem evolves, the focus in this Budget should be on deepening trust, transparency, and access within the formal lending system. Clear and consistent policy frameworks for digital lending, stronger data infrastructure, and continued emphasis on financial literacy can go a long way in ensuring credit reaches the borrowers responsibly. A Budget that strengthens collaboration between fintechs and regulated lenders, while keeping consumer protection at the core, will be key to building a resilient and inclusive financial system.”
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Pramod Kathuria, Founder & CEO, Easiloan
“Union Budget 2026 is expected to bring great sertability and clarity for residential borrowers. Continued infrastructure spending supports housing demand, while homebuyers look for predictability in tax provisions and interest-related incentives when making long-term purchase decisions. Measures that rationalize deductions and reduce policy uncertainty can further strengthen confidence, particularly among first-time and end-use homebuyers.”