Union Budget 2026 Sectoral Expectations: Big Changes Coming or More of the Same?

As India gears up for the Union Budget 2026 on February 1, excitement is palpable among investors, businesses, and everyday citizens. Finance Minister Nirmala Sitharaman’s ninth straight Budget presentation comes at a time when the economy shows resilience despite global headwinds like rupee pressures and foreign outflows.

This Budget is a roadmap for Viksit Bharat amid strong GDP momentum and calls for inclusive growth. Today we will unpack what experts predict, from tax relief to stability, and Modi 3.0 priorities.

Fiscal Targets

Fiscal discipline guides India’s Budget 2026 outlook, with economists projecting an FY27 deficit of around 4.2-4.3% of GDP, down from FY26’s targeted 4.4%, to build bond market trust amid global uncertainties like commodity spikes. This glide path assumes 10.5-11% nominal GDP growth, balancing consolidation with steady expansion as per SBI Research and ICRA forecasts.

Taxpayers and Households

Middle-class people top the wishlist, craving simpler slabs and exemptions in the new regime. There are broad expectations for relief under Sitharaman’s steady hand overhauls, but practical tweaks for households. Think easier compliance amid fiscal goals; it’s the common thread in live updates.

Infrastructure and Logistics 

Logistics craves centre stage as India’s growth engine. Industry voices call for doubled infra outlays to ₹3 lakh crore, building on FY26’s ₹1.5 lakh crore state loans for highways, urban transit, and smart cities. Leaders like Logistics Sector Skill Council CEO Ravikanth Yamarthy stress skill upgrades, tech adoption, and sustainability to boost Atmanirbhar Bharat competitiveness.

Real Estate and Construction Demands

Property players urge interest-free loan hikes and Credit Linked Subsidy Scheme (CLSS) revival for homebuyers. Construction eyes steady capex from FY26’s ₹11.21 lakh crore base, eyeing private spending, exports, and defence needs in airports, rail, and freight corridors. Green procurement by MoRTH, railways, and CPWD could slash emissions without cost spikes, aligning with Net Zero 2070.

Manufacturing and Electronics 

Factories want sustained PLI focus and mega clusters blending OEMs, EMS, and suppliers. Defence manufacturing pushes for a 30% capex share to spark self-reliance. Consumer durables seek policy stability on solar PV, motors, and lighting—customs tweaks on raw materials to cut imports and build resilience.

Green Energy and Tech Priorities

Renewables demand backward integration incentives alongside data centres. Fintech eyes growth funds, GST rationalisation, R&D tax perks, and cybersecurity norms for consumer trust. Automation, AI, and electric gear top material handling wishes for efficient warehouses.

Health, Insurance, and Beyond

Healthcare and insurance hope for tax deduction hikes and new regime extensions. Defence, MSMEs, agriculture, and the digital economy round out the plays; think job schemes and structural spending. 

Conclusion

The Union Budget 2026 on February 1 could define FY27’s trajectory. For investors and businesses, it’s a cue to watch key announcements closely, positioning for opportunities in high-potential areas. Whether you’re tracking market impacts or policy shifts, this Budget shapes the year ahead.

Source: News18