As India Inc. anticipates the unveiling of Budget 2026, expectations are high for measures that will sustain economic growth, boost self-reliance, and shield the nation from global headwinds. Finance Minister Nirmala Sitharaman is set to present the Union Budget 2026-27 on February 1st, and the corporate sector is keenly observing, especially amid rising global uncertainty and tariff-related concerns.

Economic Context

India's economic growth has been robust, with projections indicating a healthy 7% expansion in the financial year 2026-27, even amidst external uncertainties. This growth momentum is expected to be fueled by factors such as controlled inflation, moderate interest rates, and a reduced tax burden. The Indian economy has demonstrated resilience, with a GDP growth of 7.4% estimated for the current fiscal year.

However, various agencies predict a slight moderation. The United Nations projects India's growth to be around 6.6% in 2026, while the IMF forecasts 6.4% for 2026-27. Despite these variations, India is expected to remain the fastest-growing major economy, driven by strong domestic demand and strategic investments.

Corporate India's Wish List

Corporate India is seeking a "boring and predictable" budget that prioritizes simplification and long-term reforms. Key expectations include tax relief, policy clarity, and growth-focused measures. Several sectors have specific demands:

• Infrastructure and Logistics: Continued investment in infrastructure development, technology-driven storage solutions, and streamlined logistics are crucial. Focus should shift from capacity creation to smarter, technology-driven solutions.
• MSMEs: Enhanced credit support, reduced regulatory friction, and targeted incentives for technological adoption are vital for strengthening competitiveness and boosting job creation in the MSME sector. Liquidity and refinance support are also essential for MSME financing.
• Digital Finance: Prioritizing last-mile digital finance over headline adoption is necessary, with an emphasis on deepening the impact of digital payments in rural and semi-urban areas.
• Travel and Tourism: The budget presents an opportunity to accelerate growth in India's travel and tourism sector.
• Manufacturing: Further steps towards manufacturing self-reliance are anticipated. The Production-Linked Incentive (PLI) schemes are expected to drive manufacturing expansion, particularly in sectors like electronics, automobiles, and pharmaceuticals.
• Insurance: Policy support to boost insurance reach and resilience is expected, as the industry shifts towards a more disciplined growth phase. A composite insurance licensing framework is suggested to enable scale and operational efficiency, along with rationalization of GST and tax benefits.
• Agriculture: Strengthening agricultural infrastructure, improving access to finance, and encouraging crop diversification are key expectations. Investments in storage and processing can help stabilize prices and farmer incomes.
• Tech Sector: The tech sector is eyeing policy continuity, digital transformation, and mobilization of private investment. The focus is on sustaining reform momentum while navigating global economic headwinds.

Challenges and Opportunities

Despite a positive outlook, India faces challenges such as global trade tensions, potential impacts of US tariff policies, and China's economic slowdown. Diversifying export markets and carefully managing global and domestic risks are crucial.

The budget is seen as an opportunity to address these challenges and further strengthen India's economic resilience. Policy reforms supporting demand and credibility, domestic demand boosts, and fiscal consolidation are vital for sustaining growth.

Conclusion

Budget 2026 is expected to build upon the government's vision of "Viksit Bharat" by 2047. It is likely to focus on long-term growth, infrastructure development, and improved access to finance, particularly for MSMEs and the agricultural sector. The budget's success will depend on its ability to balance fiscal discipline with growth-oriented measures, reduce friction in existing systems, and promote inclusive and sustainable development.