With the Union Budget 2026-27 set to be presented on February 1, 2026, industry leaders, tax professionals, and entrepreneurs are sharing focused expectations. The upcoming fiscal roadmap is anticipated to prioritize tax simplification, fiscal discipline, inclusive growth, financial inclusion, health coverage expansion, and support for emerging sectors like hardware manufacturing. These pre-budget insights reflect a collective call for policies that boost consumption, savings, investor confidence, rural livelihoods, preventive healthcare, and balanced job creation amid India’s journey toward Viksit Bharat.
Direct and Indirect Tax Reforms: Simplification, Predictability, and Capital Gains Stability
Tax experts emphasize the need for a fairer, more predictable direct tax regime alongside continued GST streamlining to enhance household consumption, savings, and business ease.
Shubham Gupta, CFA and Co-founder of Growthvine Capital, highlights key priorities:
“As we get closer to the 2026 Union budget, the focus of both taxpayers and businesses is on developing a fairer, more simplified, and predictable direct tax regime, many believe will improve household consumption and savings. The indirect tax approach is one where GST continues to be simplified further and the use of inputs for business can be performed with minimal friction. So, along with a long-term commitment to developing the economy through infrastructure, there will need to be a stable and accountable fiscal structure in place that continues the work done toward a fiscally balanced organization and keeping prices low will restore investor confidence. Furthermore, the importance of supporting economic development and productivity with investments in infrastructure, especially in Roads, Transport, and Public Digital Infrastructure, as well as Manufacturing, through these long-term investments, provide job creation and ultimately economic growth. Lastly, for investors, there needs to be a sustainable capital gains tax structure. Furthermore, there should be no additional increase in capital gains tax rates and a review of the STT (Securities Transaction Tax) since it may no longer be serving its intended purpose.”
Prashant Mishra, founder and CEO of Agnam Advisors and a SEBI Registered Investment Advisor, suggests targeted relief measures:
“Here is what I as an SEBI Registered Investment Advisor think government should focus on: Simplifying the new tax regime by integrating key deductions such as housing loan interest, medical insurance under Section 80D (raised to Rs 50,000 for self/family and Rs 1 lakh for seniors), and a potential 25% slab for Rs 30-50 lakh earners would ease compliance burdens and provide equitable relief amid rising living costs. These changes would empower families to allocate more towards productive investments rather than litigation-prone structures. Enhancing retirement savings deductions and incentives for green projects or AIFs in GIFT City aligns with sustainable, long-term strategies tailored for HNIs. Rationalising surcharges, extending tax-neutral LLP reorganisations, and clarifying TDS on partners remuneration would streamline family office operations, fostering smoother wealth transfers across generations. Family-centric boosts, like higher allowances for elderly and child care, address demographic shifts, unlocking productivity for working professionals. Overall, these measures could catalyse private capital into nation-building while reinforcing India’s appeal as a wealth management hub. The government has a pivotal opportunity to balance fiscal prudence with progressive reforms that sustain investor confidence and economic momentum.”
These recommendations aim to reduce compliance friction, support middle-class and HNI investments, and maintain fiscal stability.
Deepening Financial Inclusion and Responsible Credit Access
Leaders in fintech, microfinance, and consumer lending call for stronger digital infrastructure, transparency, and support for last-mile credit delivery.
Mr. Rohit Garg, Founder and CEO of Olyv, stresses trust and collaboration:
“As India’s credit ecosystem evolves, the focus in this budget should be on deepening trust, transparency, and access within the formal lending system. Clear and consistent policy frameworks for digital lending, stronger data infrastructure, and continued emphasis on financial literacy can go a long way in ensuring credit reaches the borrowers responsibly. A budget that strengthens collaboration between fintechs and regulated lenders, while keeping consumer protection at the core, will be key to building a resilient and inclusive financial system.”
Ms. Aditi Singh, Chief Strategy Officer at Satin Creditcare Network Ltd., highlights grassroots priorities:
“As India looks ahead to the Union Budget, there is an expectation that policy priorities will continue to balance fiscal discipline with inclusive growth. For institutions operating at the grassroots, sustained focus on rural livelihoods, women entrepreneurship, and MSME resilience remains critical. Higher budgetary support for credit-linked social security programmes, faster transmission of policy rate changes, and continued emphasis on housing and clean energy can help deepen last-mile economic participation. Equally important is a supportive regulatory environment for NBFCs, enabling them to complement banks in expanding responsible credit access across semi-urban and rural regions. A growth-oriented budget focused on consumption, employment, and inclusion would help sustain overall economic confidence.”
Boosting Health Insurance Penetration and Preventive Care
The health insurance sector seeks incentives to expand coverage, especially among middle-income groups and seniors, while shifting focus toward prevention.
Arun Ramamurthy, Co-founder of Staywell.health, advocates targeted measures:
“Health insurance penetration in India is currently limited, even with the increasing expense of health care services. Encouragement of health insurance through greater penetration of health insurance products in India, particularly by middle-income and elderly people, will be critical in the Union Budget of 2026–27 to enhance the ways in which healthcare is financed and accessed through expansion and support of health insurance. Providing additional tax benefits on premiums paid for health insurance policies may create an economic incentive for many families to obtain and retain comprehensive health insurance coverage. Providing pre incentives for users of health insurance policies through the creation of preventative wellness programs and preventative healthcare services for health insurance policyholders may shift the focus of many healthcare policyholders from treatment to prevention of illness. Focusing on prevention of illness may lead to lower, long-term overall claims costs and greater overall community health. Investment into the digital health infrastructure for quick access to healthcare services, including the digitalisation of historical claims processing, digital health records, and the ability to share health information electronically, will enhance customer experience and increase trust within the health insurance sector in India. As such, any and all policy-related support provided to develop low-cost health insurance products for older adults and people with chronic diseases will support them to access quality healthcare without the burden of high financial costs. Finally, partnerships between private insurers, public health care providers, and government agencies will assist in expanding coverage for all individuals in India, in improving the quality and availability of healthcare services in India, and in providing more sustainable funding for healthcare services.”
Supporting Hardware Startups for Balanced Job Creation
Amid evolving employment patterns, there’s a push to bolster hardware innovation for diversified job opportunities.
Kulpreet S. Sahni, Founder and CEO of Chiltier (Tech), makes the case for targeted support:
“As the Union budget approaches, there may be a compelling argument for more focus to be placed on hardware startups. More jobs can be created in this sector, as software companies face employee layoffs. The sector provides jobs in areas such as original design engineering and semi-skilled workers with shop floor experience, which is very important for a country like India. It will allow us to shift more rapidly towards a better-balanced economy with respect to the workforce, avoiding over reliance on University education as a means of stable employment.”
As the Union Budget 2026-27 draws near, these expert perspectives offer a roadmap for reforms that can drive tax efficiency, inclusive finance, better health outcomes, and sustainable job growth positioning India for resilient, broad-based economic progress.
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