"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."