"As Make in India enters a decisive phase, the Union Budget 2026 presents an important opportunity to further strengthen India�s manufacturing sectors. To take this momentum to the next level, the Budget should expand and refine the PLI framework across key industries and extend incentive timelines to provide greater certainty for long-gestation manufacturing investments. A supportive and predictable policy environment can accelerate local manufacturing and reinforce India�s position as a reliable production hub for both domestic and export markets. Sustained policy support under the Make in India initiative will enable domestic manufacturers to scale up, innovate, and compete globally"

"Global investors allocate capital based on dollar returns adjusted for risk, not on long term narratives. On that score, Indian equities have struggled to match key global markets, with higher volatility and weaker risk adjusted outcomes over time. Domestic retail flows have helped stabilise markets, but sustained foreign participation will depend on policy choices. The upcoming Budget has an opportunity to improve India's appeal through more predictable regulation, lower transaction and tax frictions, and greater currency stability. The bigger concern is not capital exiting India, but global capital simply choosing to look elsewhere."

"As the Union Budget 2026 approaches, the travel and tourism sector looks forward to policies that can further strengthen domestic tourism in India. One of the key areas that needs attention is tourism infrastructure development. Better roads, improved rail and air connectivity, and enhanced facilities at tourist destinations can make travel easier and more affordable for Indian travellers. Another important expectation from the Budget is greater clarity on GST rules for hotel room tariffs, especially since pricing often fluctuates based on demand and seasonality. Clear and practical guidelines will help reduce confusion for both hotels and travel platforms, ensure fair taxation, and allow businesses to adopt flexible pricing without compliance challenges. With focused investments in infrastructure and simplified GST regulations, the government can create a more supportive environment for the tourism industry."

"In manufacturing sector, where continuous machinery upgrades and technology adoption are essential, higher depreciation allowances can accelerate modernization, improve productivity, and strengthen quality standards, helping Indian manufacturers compete globally. Additionally, consistent policy support for MSMEs, easier access to finance, and incentives linked to manufacturing efficiency will be crucial in strengthening India�s industrial base and enabling sustainable long-term growth."

"In the times of global economic uncertainty, Education sector is expected to work as an anchor supporting growth with innovation-led and indigenous solutions. Rupee depreciation and rising overseas education cost has already started influencing education planning. Global mobility trends in 2025 show a decline in the number of students going for education oversees. Budget 2026 therefore needs to allocate funds for strengthening domestic higher education capacity and improving global benchmarking of Indian institutions. One of the key developments in recent years is the rise in Gross Enrolment Ratio (GER) in higher education from 23.7 % to 28.4 %. Increased funding for student support, hostels, and digital infrastructure. Strengthening scholarship and financial aid mechanisms is equally critical to ensure that affordability does not become a barrier to access. Enhanced need-based and merit-based scholarships, expanded fellowships for research scholars, and targeted support for students from economically weaker sections, underserved regions, and first-generation learners will be essential to sustain GER growth and promote inclusive higher education. Budget 2026 is also expected to further create a provision for the establishment and scaling up of large multidisciplinary higher education institutions (MHEIs), particularly in underserved regions, in-line with NEP 2020 targets. Increase in student enrolments has simultaneously led to increase in faculty requirements across disciplines. Budget 2026 is expected to address this structural need through the creation of new faculty positions and improved service conditions with emphasis on continuous faculty development, global exposure, and incentives for research and innovation. Another major allocation expected in Budget 2026 is on skill sector particularly in high-end and emerging technologies. With rapid adoption of artificial intelligence, data science, cybersecurity, semiconductors, fintech, climate technologies, and advanced manufacturing, educational institutions require targeted funding for specialised laboratories, curriculum redesign and industry-embedded programs. With focussed planning and fund allocation for improving access, quality, and relevancey of education, Budget has the potential to accelerate creation of AtmaNirbhar Bharat and can make India a preferred global destination for higher education.

MRIIRS, on Removal of the "Accreted Income" Tax on Educational Institutions Adapting to NEP 2020, said, "With the implementation of NEP 2020, the structure of the education sector, its competitive framework and forms of organization are poised for a change. However, under the Income-tax Act, 2025, Section 352 (corresponding to Section 115TD of the Income-tax Act, 1961) remains a draconian provision to levy tax at the maximum marginal rate (MMR), i.e., approximately 35% to 42.74% including surcharge and cess on educational institutions converting from a tax-exempt form to a non-exempt form. This is called tax on "accreted income". Accreted income is computed as the fair market value of total assets minus liabilities as on the date of conversion, and the entire amount is deemed to be taxable income of the institution in the year of conversion. Such a huge liability can make institutions financially unviable. Taxation on accreted income is fundamentally inconsistent with the vision of the National Education Policy (NEP) 2020, which explicitly encourages ?greater institutional autonomy and flexibility, new models of governance and ownership, the entry of foreign universities, including on a for-profit basis, and large-scale private investment in higher education to improve quality, scale, and global competitiveness. Section 352/115TD effectively locks institutions into legacy structures, discourages consolidation, deters global partnerships, and penalises institutions that seek to adapt to evolving regulatory and policy frameworks. In the forthcoming Budget, we hope that conversion of form and merger of educational institutions would be granted full exemption or a safe harbour, subject to conditions ensuring continued deployment of assets within the education sector."

"As India positions itself as a global knowledge and innovation hub, the upcoming Union Budget must prioritise strengthening higher education capacity. Key focus areas include enhanced funding for faculty development and research through targeted support for upskilling, doctoral training, and competitive research grants. Equally important is modernising academic infrastructure. A mandated allocation of 10% of CSR funds towards State Private and Deemed Universities operating without subsidies can significantly accelerate the adoption of smart classrooms, digital libraries, AI-enabled learning platforms, and advanced laboratories. The Budget should also ensure a level playing field for private universities by extending regulatory and policy parity with international campuses in India. Improved student access through expanded need-based scholarships, affordable education loans, and support for first-generation learners is critical to raising enrolment and retention. Finally, incentives for structured industry-academia partnerships, apprenticeships, and live projects will be essential to enhance graduate employability and build a future-ready workforce."

"Education plays an important role in developing the capacity of human resources in any nation. It is rightly called a �merit good� in economics, because it shapes the future and destiny of the nation. The Union Budget is a crucial tool to guide and shape education in India. While developed countries spend over 10 per cent of GDP on education, India, as an emerging economy with a demographic dividend, allocates only around 4 to 5 per cent. Budget allocations show a focus on school education, reflecting NEP 2020 priorities, while higher education receives selective support. With high GDP growth, rising digital divides, skill gaps among graduates, and the goal of Viksit Bharat 2047, the upcoming budget must increase allocations for education, bridge the digital divide, match learning with market-relevant skills, and ensure long-term human resource development. These steps are essential to strengthen India�s global identity and sustainable economic growth."

"The Union Budget 2026 is an opportunity to strengthen the manufacturing ecosystem that underpins defence, infrastructure and core industrial sectors. As national security priorities and industrial growth become increasingly interconnected, sustained policy support for indigenous manufacturing, R&D and energy-efficient technologies will be pivotal to make India's vision of a self-reliant defence ecosystem . As the demand for HVAC systems is continuously rising, encourages long-term capital investment and support advanced manufacturing can help build scale and operational resilience. A balanced approach that combines fiscal discipline with steady investment in defence-linked manufacturing will not only reduce import dependence but also strengthen India's position in critical supply chains and enhance the competitiveness of domestic manufacturers in the defence sector."

"While India is beginning to put together labour laws into four codes, reform will certainly take a while before the last mile compliance looks easier. This Budget shall have a national digital compliance spine with comprehensive state-wise regulations, best practice templates and single-window workflows for registrations, licences, renewals, returns and inspections. MSMEs need risk-based compliance, not one-size-fits-all forms. Promote self-certification for low-risk sites, create more facilitation centres, and ensure that inspections are predictable with a selection based on data and a level of assurance and proper protections. If the government is going to formalise and strengthen social security coverage, it should ease friction for compliant employers and impose severe punishment on wilful defaulters. Easy transition into compliance would result in better jobs, vendor governance and investor confidence."

"India's education sector is at an important juncture, with nearly 50 percent of the country's 1.4 billion population under the age of 25. This demographic dividend calls for sustained and strategic investment. The target of increasing the Gross Enrolment Ratio from 28.4 percent to 50 percent by 2035 reflects a commitment to expanding access. Continued progress will depend on faster implementation of NEP 2020, supported by teacher training, institutional capacity building, and outcome-driven reforms. It will also require universal digital infrastructure to bridge the urban-rural divide, deeper collaboration between industry and academia, and sustained investment in skills development and research. Together, these measures can strengthen India's human capital and support the transition towards a knowledge-driven economy, contributing to the goal of Atmanirbhar Bharat. "

"India's education budget should recognise learning as economic infrastructure. The focus must shift to preparing students for evolving jobs through flexible curricula, industry-linked programs, and regional skill ecosystems. Funding choices should reflect India's scale and diversity, ensuring quality education reaches beyond metros without widening inequality. "

"While the India Skills Report 2026 shows graduate employability has risen to 56.35%, the gap between academia and industry remains stark. With ?500 crore already allocated for AI Centres of Excellence, Budget 2026 must now incentivize 'Last-Mile Skilling'. We need a tax holiday for EdTech firms that specifically bridge the deficit in the 16% of our workforce entering the gig economy, ensuring degrees translate into dignity."

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.

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 ?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. 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.

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 ?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 ?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 realised 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.

One of the most urgent expectations from the real estate sector is a long-overdue revision of what qualifies as �affordable housing'. The current price cap of ?45 lakh may have been appropriate a few years ago, but in most urban and even Tier-2 cities, it no longer reflects ground realities. The gap between government definitions and actual market prices means that many genuine homebuyers- especially first-time and middle-income buyers - are unable to access benefits like reduced GST rates, interest subsidies, or additional tax deductions under Section 80EEA. A more realistic cap in the range of ?75�90 lakh, possibly with city-specific thresholds, would make these policies actually usable. We're also hoping to see a revision in the ?2 lakh limit on home loan interest deductions under Section 24(b), which hasn't changed since 2015 despite significantly higher EMIs. Now raising it to 4�5 lakh would reflect the real financial burden buyers face today, especially in markets where even modest homes cost ?1 crore or more. Finally, transaction costs remain high - between stamp duty and registration charges (which range from 7.5% to 12% depending on the state) and 18% GST on construction contracts. For genuine end users, these layers add up. A recalibrated approach that includes rationalising GST for under-construction properties and encouraging states to lower stamp duties for first-time buyers could have a much greater impact than launching new schemes.

Rationalizing Power Costs and Ensuring Reliable Supply Despite serving the nation for over three decades, the telecom industry remains unrecognized as an industry by the Ministry of Power, continuing to bear the burden of commercial tariffs. Mr. Manoj Kumar Singh, Director General, DIPA explains, "Electricity tariffs across states impose a huge financial burden on infrastructure providers, estimated at nearly ?7,200 crore annually." DIPA strongly urges the implementation of industrial tariffs for telecom towers across India, recognizing their critical role in nationwide digital connectivity. This reform would significantly reduce operational costs and enable greater investment in network expansion and modernization at a much faster pace. � Smart Metering and Billing Reforms Smart metering remains a major gap, with only about 22 percent nationwide installation and around 21 percent coverage across telecom towers. The extension of the RDSS timeline from 31 March 2026 to 31 March 2028 highlights the delay of deployment. DIPA recommends: Priority implementation of smart meters for the telecom sector Absence of composite billing causes higher operational costs, duplicate processes, delayed reconciliation, and disputes. Composite Billing adoption would streamline billing, improve transparency, reduce administrative overheads, and generate operational savings for DISCOMs and State Governments. � Green Energy Access and Renewable Integration The Green Energy Open Access Rules, 2022 enable renewable energy uptake, but high transmission charges, cross-subsidy surcharges, and other levies restrict telecom sector participation despite net-zero commitments by 2070. Nil transmission charges for LT captive consumers would accelerate green energy adoption, energy transition towards self-reliance, in line to the PM Surya Ghar Yojana. DIPA urges, "PM Surya Ghar Yojna may be extended to all the LT Captive consumers exemptive of tariff charge." � Inclusion of Petroleum Products and Diesel under GST Framework Currently, petroleum products like petrol, diesel, and natural gas remain outside the GST ambit, with legacy taxes such as VAT, central sales tax, and central excise duty continuing to apply. The non-availability of credit on legacy taxes results in a cascading effect, leading to higher costs for end products and services. DIPA urges the inclusion of petroleum products under GST, with input tax credit allowed for petroleum products used for industrial purposes. This reform would eliminate tax cascading, reduce operational costs, and improve the competitiveness of the telecom sector. � RoW is the backbone of speedy rollouts. DIPA urges, "Free of charges RoW should be enabled for shared infrastructure." Batteries play an enabling role in renewable energy adoption by mitigating intermittency and availability challenges. DIPA urges they must be incentivised to support new battery technologies at the last mile (end users) such as telecom towers and EVs.

The real estate industry is counting on the Union Budget 2026 to bring about substantial, future-oriented reforms. Infrastructure development and transport connectivity will be the areas where we see the government's support most vigorously. One of the ways the government will support the real estate sector is through tax breaks, an improved CLSS framework, and more explicit norms for affordable housing. In addition, the industry is anticipating incentives for green building, a simplified GST structure and better access to housing finance, which would relieve liquidity problems. We urge the government to consider lowering the GST on luxury housing from the current 10-12%. Such a move will not only enhance the buyer's mood but also attract essential investments. The proper policy support can help the Indian real estate landscape to grow faster, become more sustainable and develop smart cities that are ready for the future. We are still convinced that the Budget 2026 will bring about long-term stability in the sector and take it to new heights.

"As we approach the 2026 Budget, India's hospitality sector waits with measured optimism. We've created 46.5 million jobs and are projected to support 64 million by 2035, yet do not get classified as infrastructure which is a looming constraint on scale. The 2025-26 Union Budget extended infrastructure status to hotels in 50 select destinations, but the sector needs comprehensive recognition. Infrastructure classification unlocks soft financing, lower utility tariffs and rationalized property taxes, support that is routinely granted to highways and ports, but withheld from hotels despite equivalent capital intensity. Equally critical is bringing tourism into the concurrent list. Policy coordination between center and states has long remained fragmented. To ensure seamless implementation across diverse destinations, tourism, and by extension, hospitality requires constitutional alignment within shared legislative space. This will further help in the holistic development of the destination giving a seamless experience to the traveller. The pathway to $1 trillion contribution to the GDP from the sector would then be closer to reality."