As India heads into Union Budget 2026, industry leaders across sectors are calling for focused reforms to sustain growth momentum, unlock private investment, and address long-standing structural gaps. From MSMEs and startups to large enterprises, the consensus is clear: policy certainty, simplified taxation, and targeted incentives will be critical to support India’s next phase of economic expansion.
With the Budget scheduled to be presented on February 1, stakeholders have outlined priorities spanning women-led entrepreneurship, green finance, GST reforms, and demand stimulation—areas they believe can materially improve ease of doing business and global competitiveness.
Women-led enterprises seek targeted funding support
Despite accounting for nearly 20 percent of India’s MSMEs, women-led businesses continue to face disproportionate challenges in accessing capital. Industry leaders note that funding constraints persist across venture capital, private equity, and traditional banking channels.
Devita Saraf, Chairperson and CEO of The Vu Group, highlighted the need for Budget-backed incentives to encourage greater investor participation in women-led enterprises. According to her, targeted tax benefits and confidence-building measures could help unlock capital flows and correct structural imbalances that limit women entrepreneurs’ ability to scale.
Such interventions, industry voices argue, would not only promote inclusion but also unlock underutilised economic potential within India’s MSME ecosystem.
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Expanding priority sectors and green finance
Financial institutions are also pushing for a broader definition of priority sectors to reflect emerging economic realities. PD Singh, CEO for India and South Asia at Standard Chartered, called for green energy, electric vehicles, and sustainability-linked research and development to be formally included within priority lending frameworks.
While private investment continues to flow into these areas, Singh cautioned that global overcapacity—particularly from China—and geopolitical uncertainty are making investors more selective. Long-term policy stability, he noted, will be essential to attract sustained international capital and reduce risk perceptions.
He also pointed to the opportunity to leverage intellectual property developed offshore by Indian entrepreneurs and integrate it into domestic manufacturing, aligning with India’s broader industrial and self-reliance goals.
GST 3.0 and customs reforms back in focus
Tax reform remains a recurring theme in pre-Budget discussions. MS Mani, Partner at Deloitte India, emphasised the need for a comprehensive overhaul of the Customs Act and faster progress towards GST 3.0.
He suggested extending GST to petroleum products and real estate to simplify compliance and improve India’s global ease-of-doing-business rankings. Mani also underscored the importance of calibrated tariffs that protect domestic industries without distorting long-term competitiveness, especially as global trade patterns remain volatile.
Boosting consumer demand and simplifying regulation
Industry leaders also stressed that sustained economic growth will ultimately depend on reviving and maintaining consumer demand. Mainak Dhar, Managing Director of McCain Foods India, said affordability, innovation, and last-mile infrastructure would be key to unlocking demand-led growth across sectors.
Echoing the call for clarity and consistency, Santosh Iyer, MD and CEO of Mercedes-Benz India, outlined three Budget priorities: strong execution of existing policies, regulatory simplification, and continuity in reform direction. He noted that visible progress on earlier allocations—particularly in decarbonisation and infrastructure—would significantly boost investor confidence.
A balancing act for Budget 2026
As expectations build, industry leaders acknowledge that Budget 2026 will need to balance fiscal discipline with growth-oriented reforms. Targeted support for MSMEs, women entrepreneurs, green finance, and tax simplification could play a decisive role in shaping India’s path towards its $5 trillion economy ambition.
For businesses across the spectrum, the upcoming Budget is seen not just as a fiscal exercise, but as a signal of India’s long-term policy intent.