union budget
Finance Minister Nirmala Sitharaman presented the country’s economic survey in Parliament before the Union Budget to be presented on 1 February 2026. According to this survey, the country’s GDP growth is estimated to be between 6.8 to 7.2 percent in the financial year 2026-27. However, this is slightly less than the estimated rate of 7.4 percent for the current financial year. The Economic Survey is presented every year before the Budget and prepares the basis for the policies of the next financial year. Along with this, Finance Minister Nirmala Sitharaman also gave information about the trade deal with America in the Economic Survey. Union Budget 2026 is not far away and it will be presented on 1 February. There are many expectations in different sectors and industries before the budget. Everyone’s eyes are on which sectors the government gives relief and incentives this time.
What to expect from Budget 2026?
Rating agency ICRA estimates that the government can limit the fiscal deficit to 4.3% in FY 2027. Further tax relief, limited increase in railway budget and help for sectors (such as textiles) affected by US tariffs are expected.
electronics sector
The industry wants the problems related to GST to be removed and temporary duty relief on essential parts, so that manufacturing in India can become cheaper and stronger. Besides, there is demand for logistics and trade support to increase exports.
renewable energy
The green energy sector hopes that the government will bring clean and easy policies and give more budget for domestic production. There is a demand to promote solar, automation and new technology.
NBFC and MSME
The NBFC sector wants infrastructure projects to be implemented faster and MSMEs to get more credit support. Small businessmen will benefit from this.
stock market and tax
Investors want Securities Transaction Tax (STT) to be reduced or abolished. There is also a demand for relief in capital gains tax for small investors.
export sector
It is expected from the government that the scope of the Export Promotion Mission will be expanded and small exporters will get help through loan guarantee and cheaper interest rates.
Gold and investment
There is a demand to simplify the tax rules on gold ETFs and physical gold and to reintroduce Sovereign Gold Bond (SGB).
EV, Startups and Tech
There is a demand for more subsidy to the EV sector and 5% GST on all parts. Startups want easy tax rules, ease of funding and less compliance.
Health, Education, Agriculture
The health sector wants more budget, focus on women’s health and serious diseases. There is hope of digital classroom and GST relief in education. The agriculture sector is demanding strong support to FPOs. Overall, every sector is expected to get relief from Budget 2026. Now it remains to be seen how much the government fulfills its expectations on 1st February.