Union Budget 2026–27: Industry-Led MSME Policy Recommendations

As India moves toward the presentation of the Union Budget 2026–27, the expectations of the MSME sector are no longer fragmented or tentative. They are clear, consolidated, and policy-driven. Through sustained engagement with MSME entrepreneurs, industry bodies, exporters, financial institutions, and policy stakeholders, SMEStreet has gathered a comprehensive set of recommendations that reflect the sector’s on-ground realities and future ambitions.

The central message from industry is unambiguous: MSMEs are seeking structural enablement, not episodic relief. Priority areas include predictable and simplified taxation, faster and cheaper access to credit, rationalised compliance frameworks, stronger export facilitation, and targeted support for technology adoption and skilling. These are not aspirational demands; they are foundational requirements for MSMEs to scale, formalise, and compete in both domestic and global markets.

This SMEStreet Live Budget coverage is anchored in these industry-led inputs. Our focus is to assess the Budget not merely by headline allocations, but by its implementation readiness, policy coherence, and MSME-level impact. We will evaluate how proposed measures translate into liquidity, productivity, employment generation, and long-term enterprise growth.

The Union Budget serves as a policy signal to markets and entrepreneurs alike. For MSMEs, that signal must reinforce confidence, continuity, and clarity. Through this live analysis, SMEStreet aims to bridge the gap between fiscal intent and business reality, ensuring that MSME stakeholders can clearly interpret the opportunities, constraints, and course corrections embedded in the Budget.

As the Finance Minister presents the Budget, SMEStreet will provide real-time policy interpretation, sector-wise impact analysis, and MSME-focused insights—placing India’s entrepreneurial backbone firmly at the centre of the national economic conversation.
To participate in this exercise, please write faiz@smestreet.in with a clear mention of Pre-Budget Recommendations. Stay connected on our LinkedIn, Facebook, and Instagram. 

Jan 31, 2026 13:03 IST
Renewable Energy Expectations #BudgetWithSMEStreet
Mr. Arif Aga, Director at SgurrEnergy stated,

"As India progresses toward its 500GW renewable energy target by 2030, the Union Budget presents an important opportunity to strengthen the foundations for reliable large renewable deployment. Beyond capacity addition, focus must shift to grid readiness, storage integration, domestic manufacturing, and execution quality.

From an industry perspective, continued policy support for transmission infrastructure, including Green Energy Corridor, incentives and emerging technologies and support for FDRE and hybrid projects will be critical for system stability. Greater clarity on long-term market mechanisms for storage, along with streamlined approvals and faster execution timelines, would significantly improve project bankability and delivery certainty.

Equally important is sustained investment in data-driven planning, resource assessment, and independent technical oversight. These elements play a vital role in reducing project risk, improving performance outcomes, and attracting long-term capital into the sector.

A budget that balances scale with reliability and execution discipline will help India maintain momentum while building a power system that is both sustainable and robust over the long term."



Jan 30, 2026 12:49 IST
Electronics Manufacturing Sector's Demands from Union Budget 2026-27 #BudgetWithSMEStreet
Ashok Rajpal, Managing Director, Ambrane India, expressed his expectations from upcoming Union Budget 2026-27 by quoting:
"In the electronics segment, we expect the government to continue its strong push toward building in-house manufacturing capabilities. Policy support is likely to remain focused on encouraging domestic production facilities and strengthening auxiliary ecosystems that support the electronics value chain. This approach aligns well with India’s long-term manufacturing ambitions, especially as electronics has emerged as one of the fastest-growing sectors in the country. The exponential growth witnessed over the past few years reinforces our optimism, with India steadily positioning itself as a global manufacturing hub rather than just a consumption market.
For the broader population, the government has already taken significant steps to boost disposable incomes by extending tax slab benefits up to ₹12 lakh in the previous year. Given this substantial relief, we do not anticipate major additional tax relaxations in the upcoming budget. Instead, the policy focus is expected to shift toward stimulating domestic demand and strengthening self-reliance. Measures aimed at reducing dependence on imports, particularly from select countries, are likely to take precedence. This strategy not only supports local industries but also serves as a safeguard amid ongoing global trade tensions. Overall, the budget narrative appears firmly centered on reinforcing domestic capabilities, boosting internal consumption, and enhancing economic resilience in an increasingly uncertain global environment".



Jan 30, 2026 12:40 IST
Union Budget 2026–27: Why MSMEs Matter More Than Ever for India’s Growth #BudgetWithSMEStreet
As India heads into the Union Budget 2026–27, this SMEStreet editorial underscores why the upcoming Budget is a critical inflection point for Indian MSMEs amid global economic uncertainty, slowing international trade, and geopolitical volatility. The article highlights persistent challenges faced by MSMEs—ranging from high cost of capital, delayed payments, export competitiveness and technology gaps to compliance fatigue and sustainability pressures. Backed by data and ground-level realities, it presents a clear set of policy-focused recommendations urging the government to shift from short-term relief to long-term capability building. The editorial makes a strong case for positioning MSMEs not merely as beneficiaries of schemes, but as strategic growth partners in India’s journey towards becoming a globally competitive economy.
Read More
Authored by Dr Faiz Askari, Founder & Editor of SMEStreet.in, a senior business journalist and MSME ecosystem thought leader with over a decade of experience covering policy, entrepreneurship, finance, and India’s small business economy.



Jan 30, 2026 12:36 IST
Energy Sector's Expectations from Upcoming Union Budget 2026-27 #BudgetWithSMEStreet
Mr. Kartik Daftari, Managing Director & CEO at Hi-Tech Radiators Pvt. Ltd. Shared his views by mentioning,
"With the upcoming Union Budget 2026, we see a clear opportunity to increase investments in power transmission, grid modernization and energy storage infrastructure. As renewable capacity is scaling quickly, strengthening high-voltage networks and storage-led grid flexibility will enhance the reliability and efficiency of the energy ecosystem. Indian manufacturers can integrate deeper into international supply chains through technology driven capacity development and localization of critical power equipment. Similarly, streamlining regulatory procedures, expanding access to long-term financing and rationalizing indirect taxes will help build businesses with ease. In order to establish India as a competitive hub for next-generation power, we want the forthcoming budget to balance industrial expansion with sustainability goals."



Jan 30, 2026 12:35 IST
Microfinance Sector's Expectations from Budget
Ms. Shubha Bhanu, Associate Partner, MicroSave Consulting (MSC)expressed her expectations from  upcoming Union Budget 26-27.
She said, “In the upcoming Budget, we expect some relief for the microfinance sector, particularly through the introduction of a new credit guarantee scheme that could enable MFIs, especially smaller institutions, to better support their borrowers and expand outreach. This would be timely, given that the sector faced significant stress over the past year due to localised over-indebtedness, regulatory tightening, and pressures on portfolio quality and funding challenges".



Jan 29, 2026 18:17 IST
Chemical Industry's Expectations from Union Budget 2026-27
Mr. Mihir V Shah, Executive Director, Vipul Organics Limited, stated
The consistent policy support extended to manufacturing in recent years has created strong tailwinds for India’s chemical industry, including the dyes and pigments segment. As global customers increasingly seek diversified and dependable sourcing destinations, India is well placed to deepen its role in international supply chains.
The Union Budget can build on this positive momentum through continued investments in chemical park infrastructure, faster environmental approvals, and improved logistics for efficient movement of goods within the country and for exports.
Given the capital-intensive nature of this industry, access to long-term, competitively priced capital remains essential for ongoing investments in technology, safety, and advanced pollution control systems. Encouraging domestic production of key intermediates will further reduce import dependence and enhance value addition within India. Continued policy encouragement for R&D, process innovation, and green chemistry will help manufacturers offer higher-value, customised solutions aligned with evolving global compliance and sustainability expectations.
Stable regulations, simplified compliance processes, and timely GST refunds will meaningfully ease working capital cycles and strengthen investor confidence. With such supportive measures, the chemical sector can expand exports, create skilled employment, and reinforce India’s position as a reliable and responsible global manufacturing partner.



Jan 29, 2026 18:12 IST
Credit Ecosystem's Expectations from Madam Finance Minister Ahead of Budget 2026-27 #BudgetWithSMEStreet
As Budget 2026 approaches, we hope the Government takes measures to further strengthen the credit ecosystem for MSMEs and retail customers, where NBFCs play a critical role in delivering last-mile financing.
Mr. Pinank Shah, CEO, Capital India Finance Limited shared his views on expectations from the budget, by adding, "First, extending SARFAESI rights to NBFCs across all loan values. This will help accelerate recovery processes, reinforce credit discipline, and ultimately reduce borrowing costs for customers.
Second, launching a dedicated refinance/liquidity window for MSME-focused NBFCs to ensure steady and cost-effective access to funds for underserved segments.
Third, improving access to long-term funding for NBFCs financing long-tenor assets, which will help ease asset–liability mismatches and support sustainable balance-sheet growth.
Finally, putting in place policies to further strengthen digital public infrastructure for credit—through consent-based data sharing and interoperable registries—to enhance underwriting quality and enable faster, more informed lending decisions."



Jan 29, 2026 13:03 IST
Budget 2026-27 Recomendations from Real Estate Sector #BudgetWithSMEStreet
Mr. Deepak Chhabra, Founder of 77 Pillar commented
“The Indian real estate sector continues to be driven by strong end-user demand across residential and commercial segments, supported by urbanisation, infrastructure spending and improved access to housing finance. From Union Budget 2026, the industry expects meaningful tax relief for homebuyers, especially an increase in the current ₹2 lakh annual deduction on home-loan interest under Section 24(b) and a separate housing-linked deduction beyond the existing ₹1.5 lakh limit under Section 80C.

Such measures can translate into annual tax savings of ₹50,000 to ₹1 lakh per homebuyer and improve effective housing affordability by nearly 10–15%. Alongside tax reforms, a transparent policy framework that strengthens buyer protection, ensures timely project delivery, and simplifies compliance through digitisation will be crucial. A balanced approach that safeguards homebuyers while enabling credible developers to scale will allow real estate to contribute more strongly to employment generation and long-term economic growth.”



Jan 27, 2026 17:58 IST
Infrastructure Sector Expectations from Budget 2026-27
Mr. Shashank Agarwal, Joint Managing Director, Salasar Techno Engineering Ltd., shares his perspective on the priorities and expectations for the infrastructure sector, and he said:
“India’s infrastructure build-out is central to unlocking productivity, improving logistics efficiency, and converting our population dividend into an economic advantage. As we look to the upcoming Union Budget, Salasar Techno Engineering Ltd. expects a continued and sustained thrust on public capex with multi-year predictability, because long-cycle infrastructure requires stable pipelines not one-time spikes in spending.
While investments in railways, airports and ports are important, the next phase must prioritise roads and urban mobility at scale: decongesting cities, improving traffic flow, building stronger inter-city corridors, and ensuring last-mile connectivity. Faster and safer movement of people and goods is the most direct lever to raise national efficiency and reduce logistics costs.
We also expect ongoing support for power infrastructure, particularly transmission and distribution upgrades, grid resilience, and renewable integration along with measures that improve execution: streamlined approvals, quicker dispute resolution, standardised contract frameworks, and timely release of payments to keep the sector’s working capital healthy.
On telecom and digital infrastructure, recent clarity in public tenders has been helpful. However, we believe the sector now needs clearer visibility on private-side expansion and enabling policies that strengthen competitiveness. A healthier competitive landscape across telecom services as well as tower infrastructure will support innovation, resilience and affordability for consumers. Simplifying Right-of-Way, accelerating fibre densification, and ensuring faster rollouts in both urban and rural India should remain key priorities.
Overall, we look to the Budget for a practical, execution-focused roadmap that keeps India’s infrastructure growth on a high trajectory for several years to come.”



Jan 27, 2026 12:41 IST
Agriculture Sector Expectations from upcoming Union Budget #BudgetWithSMEStreet
Saroj Mahapatra, Executive Director, PRADAN expressed his expectations from the Finance Minister
From the agricultural sector, Saroj Mahapatra, Executive Director, PRADAN, underscores the
importance of strengthening grassroots institutions and production-led clusters to address long-standing
structural challenges in Indian agriculture. He expressed, “While India has made visible strides across
manufacturing, services and technology, agriculture continues to remain the backbone of the economy,
both economically and socially. India’s agriculture continues to be constrained by fragmented
landholdings and weak market linkages. A production cluster approach, supported through institutions
like Farmer Producer Organisations (FPOs), offers a viable pathway to overcome these structural
challenges. Clusters enable aggregation of produce, collective input procurement, shared infrastructure
and stronger bargaining power in markets. Budget 2026 should deepen support for Farmer Producer
Organizations (FPOs), not merely by increasing their numbers, but by strengthening their functionality
so that they can serve as effective platforms for professional management, access to working capital,
market intelligence and post-harvest processing infrastructure.
“An additional opportunity lies in leveraging community institutions such as Self-Help Groups (SHGs) and
Village Organizations (VOs) promoted under the National Rural Livelihoods Mission (NRLM), which can
anchor FPOs at the grassroots and ensure wider farmer participation. Linking clusters to region-specific
crops, allied livelihoods, and agro–climatic suitability can significantly improve income stability and scale
efficiencies.” Mahapatra Added



Jan 27, 2026 12:39 IST
Insurance sector Expectations from Union Budget 26-27 #BudgetWithSMEStreet
Prantik Mitra, Director – Client Advisory Group at Alliance Insurance Brokers comments
Highlighting how recent reforms have set the stage for broader financial protection and what the
industry expects next, Prantik Mitra, Director – Client Advisory Group at Alliance Insurance Brokers
shared his perspective on the insurance sector, "In 2025, India’s insurance ecosystem underwent a
structural transformation starting with Sabka Bima Sabki Raksha reforms unlocking 100 % FDI which will
enhance capital availability, global competitiveness and product diversity. Exemptions from GST on
individual life and health premiums will accelerate consumer access, regulatory efficiency and
transparency. Looking ahead to Budget 2026, the insurance sector expects policies that build on strong
reform momentum of 2025 and translate into wider and more effective protection for citizens. A key
expectation is higher and clearly defined tax incentives for pure protection products, especially term life.
Separating tax benefits for protection from savings-linked insurance would help close India’s protection
gap, attract first-time buyers and encourage people to prioritise risk cover over investment-oriented
policies. The industry also looks forward to progress on composite licensing, which would allow insurers
to offer life, health and general insurance under a single framework and can improve efficiency, reduce
operational cost and support the development of simpler, bundled products that are easier for
customers to understand and afford. A Budget focused on affordability, trust and access can help
advance the vision of Insurance for All by 2047."



Jan 24, 2026 15:39 IST
Digital Advancement for Productivity Multiplier Gap: Budget 2026-27 Expectation #BudgetWithSMEStreet
Sachin Alug, CEO, NLB Services, commented on how the Technology can fill the Productivity Multiplier Gap
“As India strengthens its position as the world’s fourth-largest economy, industry expectations for this Budget center on digital advancement and bridging the 'Productivity Multiplier Gap.' To become a global technology hub, policies on AI infrastructure and PLIs for emerging sectors will be vital. From the employment standpoint, we hope to see enhanced tax credits for corporate R&D in AI-skilling, allowing firms to transition our 370 million-strong youth cohort into high-value roles. We anticipate this will catalyse immediate demand for AI Governance Architects, Prompt Engineers, VLSI Design Lead, and Cybersecurity Risk Managers. Simultaneously, the sustained CAPEX in the National Semiconductor Mission and green energy will require a new breed of 'multiplier talent.
From the FY27 budget, the industry is not just anticipating fiscal support, but clarity on where sustainable jobs will come from over the next five years. Strong signalling for manufacturing, healthcare, BFSI, logistics, and digital services can directly influence hiring confidence, while predictable policy frameworks will help companies plan long-term workforce expansion.”



Jan 22, 2026 09:50 IST
Expectations from the Agriculture Space #BudgetWithSMEStreet
Mr. Prateek Rastogi, Co-Founder & CEO of Better Nutrition expressed  his views by saying:
"Last year’s Budget clearly recognised agriculture as India’s first growth engine, with strong investments in productivity, seed innovation, and sustainable farming. That foundation is critical. But India’s next leap must go beyond yield and move toward nutrition as an outcome.
Today, we don’t suffer from a lack of food. We suffer from a lack of nutrients in our food. As the government continues to invest in seed systems and farm innovation, the real opportunity in this Budget is to mainstream biofortified seeds and nutrition-focused agriculture as part of national policy. This would allow India to address iron, zinc and micronutrient deficiencies at the source, through everyday staples rather than costly downstream interventions.
Supporting startups and farmer networks that grow, test and process nutrient-rich crops will not only improve public health but also create a higher-value market for farmers through better price realisation and assured demand. A nutrition-led agricultural strategy can become one of India’s most powerful tools for long-term food security,  healthcare savings and rural prosperity."



Jan 22, 2026 09:27 IST
Smart Mobility Industry's Demands from the Union Budget 2026-27
Ms. Madhumita Agrawal, Founder & CEO of Oben Electric shared her expectations by adding
"Oben Electric views the Union Budget 2026-27 as a vital opportunity to strengthen India’s electric mobility journey. While 2025 was a landmark year with EV sales reaching a record 2.3 million units, anchored by 1.28 million two-wheelers, the industry’s long-term health depends on structural tax reforms. A primary concern for domestic manufacturers is the inverted tax structure. While finished EVs attract a 5% GST, the raw materials sourced to build these vehicles are taxed at 18%. This 13% disparity traps vital working capital across the industry, driving up production costs and straining liquidity. Aligning the GST on all EV components to a uniform 5% is essential to support domestic manufacturing and make 'Make-in-India' EVs more affordable for the mass market. Furthermore, we believe the next wave of adoption will be led by electric motorcycles. While scooters have seen early success, motorcycles dominate with nearly 70% of India’s two-wheeler landscape but remain significantly under-electrified. To achieve our national 2030 targets, the budget should introduce targeted subsidies and demand incentives specifically for electric motorcycles. Prioritizing this dominant segment will unlock the next level of mass-market electrification and move India closer to a truly self-reliant EV ecosystem."



Jan 22, 2026 09:25 IST
Electronics Manufacturer's Expectations from Union Budget 2026-27
Mr. Shishir Gupta, Co-founder & CEO of Oakter stated,
"We at Oakter expect the Union Budget 2026–27 to strengthen India’s ambition to become a global hub for original design manufacturing and electronics innovation, not just assembly-led production. For companies building products from concept to scale in India, the priority must be design-linked incentives, deeper component localisation, and easier access to working capital. Expanding and refining PLI support for ODM-led manufacturing, alongside targeted incentives for batteries, power electronics, IoT hardware, and semiconductor-linked supply chains, will significantly improve global competitiveness. The Budget should also focus on lowering the cost of manufacturing through stable GST structures, faster input tax credits, and infrastructure support for automated factories. This will enable Indian manufacturers to move up the value chain, create IP-driven products for global markets, and position India as a trusted source of world-class, innovation-led electronics manufacturing."



Jan 22, 2026 09:23 IST
Budget 2026-27 Expectations from AI Sector #BudgetWithSMEStreet
Mr. Vikram Labhe, Founder & CEO, Melooha commented,
"We at Melooha view the Union Budget 2026–27 as a pivotal moment to accelerate India’s leadership in AI-driven consumer platforms and data-led digital services. As AI adoption deepens across sectors, policy emphasis on applied AI, scalable cloud infrastructure, and sovereign data ecosystems will be critical to building globally competitive digital-first businesses. Support for multilingual AI, vernacular computing, and responsible data frameworks can unlock mass-market personalisation at scale, particularly across India’s diverse user base. Incentives for AI-led SaaS innovation, digital skilling, and cross-border service exports will enable Indian platforms to expand globally while remaining rooted in trust and compliance. Simplified regulations and tax rationalisation for digital-native companies can further strengthen India’s position as a hub for next-generation AI-powered consumer technology."



Jan 21, 2026 11:15 IST
Detailed Exclusive Report: Union Budget 2026–27 Expectations for India’s Textile Export Economy
Industry-led expectations from Union Budget 2026–27 to support textile exporters facing US tariffs: cluster packages, labour solutions, easier credit, logistics upgrades and tax relief.
Read Here



Jan 20, 2026 18:31 IST
Expectations from EV Industry #BudgetWithSMEStreet
"An Atmanirbhar EV future depends as much on battery safety, traceability, and compliance as it does on production-linked incentives"
"The Budget should expand PLI support from capacity creation to regulatory readiness, covering battery testing, traceability and lifecycle compliance. As EV battery regulations evolve, MSMEs need credit guarantees, simplified digital compliance and export promotion support to invest in safety, certification and traceability. These measures are critical to reduce import dependence and build a credible, Atma nirbhar EV ecosystem"- Rahul Gautam,  Co- Founder of Exeliq Tech Solutions- an EV-focused Automotive Testing Solutions provider company



Jan 20, 2026 18:26 IST
#BudgetWithSMEStreet Expectations from EV Industry from Union Budget 2026-27
Mr. Kunal Arya, Co-founder & MD, Zelio E Mobility shared his views by saying: 
“We at Zelio E-Mobility believe India’s electric mobility transition will be driven primarily by two-wheelers, where affordability, daily usability, and scale are the most critical factors. Ground-level adoption trends show that sustainable EV growth depends more on long-term structural enablers than short-term subsidies, making policy stability increasingly important for manufacturers. The Union Budget 2026–27 should prioritise deeper localisation through component-specific PLI support for battery cells, controllers, and power electronics to reduce import dependence and strengthen Make in India. Rationalising GST on electric two-wheelers and enabling priority-style, low-cost financing can accelerate mass adoption more effectively than one-time incentives. A clear national charging roadmap, including a target of 50,000 public charging points by 2027 and mandatory chargers at highways and fuel stations, along with longer-tenure capital, will be essential to building a scalable and resilient EV ecosystem.” 



Jan 20, 2026 18:18 IST
Union Budget 2026-27 Expectations from Technology Sector #BudgetWithSMEStreet
Mr Gaurav Sharma, Chief Human Resources Officer, True Balance (Balancehero India & True Credits) said:
“Ahead of the Union Budget, there is a growing need to move the focus from job creation in numbers to building high-quality, future-ready roles. In fintech and digital lending, organisations need talent that understands both digital systems and evolving compliance requirements.
Higher fund allocation to Skill India programmes, particularly for digital and compliance-focused roles, along with incentives for startups that collaborate with academic institutions, can help create a more prepared workforce. A budget that supports such measures while enabling startups to generate sustainable employment will be critical for responsible growth in the digital economy.”
Satish Sureddi, CFO, QualiZeal stated:
"With India’s real GDP projected to grow at a robust 7.4% in FY 2025–26, driven by strong growth in professional services, the Union Budget 2026 must now focus on converting this momentum into sustained global leadership. At QualiZeal, we see an urgent need to address the structural gap in talent supply. With demand for AI-skilled professionals expected to cross 1.25 million by 2027, the Budget must prioritise high-quality technical skilling for India’s over 5 million-strong tech workforce.
While over ₹1.75 lakh crore in investments under the PLI scheme has helped anchor India’s manufacturing base, the next frontier is IP-led innovation. To bridge the gap between India’s current R&D spending of around 0.6–0.7% of GDP and global benchmarks, the Budget should introduce targeted innovation-linked incentives. Equally critical is national resilience. With climate-related risks posing a growing threat to economic output and agriculture continuing to support around 46% of the workforce, integrating digital engineering into green infrastructure and supply chain modernisation is no longer optional. It is a core economic imperative."
Mr. Vikram Labhe, Founder & CEO, Melooha mentioned:
“We at Melooha view the Union Budget 2026–27 as a pivotal moment to accelerate India’s leadership in AI-driven consumer platforms and data-led digital services. As AI adoption deepens across sectors, policy emphasis on applied AI, scalable cloud infrastructure, and sovereign data ecosystems will be critical to building globally competitive digital-first businesses. Support for multilingual AI, vernacular computing, and responsible data frameworks can unlock mass-market personalisation at scale, particularly across India’s diverse user base. Incentives for AI-led SaaS innovation, digital skilling, and cross-border service exports will enable Indian platforms to expand globally while remaining rooted in trust and compliance. Simplified regulations and tax rationalisation for digital-native companies can further strengthen India’s position as a hub for next-generation AI-powered consumer technology.” said Mr. Vikram Labhe, Founder & CEO, Melooha”



Jan 20, 2026 18:16 IST
Budget 2026-27 Expectations from Education Sector #BudgetWithSMEStreet
Usha Iyer, Principal & Director, The Green School Bangalore (TGSB) stated:
“As we approach the Union Budget on 1st February 2026, there is strong hope that education will receive focused and future-ready support. The education sector requires enhanced budgetary allocation to strengthen foundational learning, teacher training, and infrastructure—especially for affordable private schools that play a critical role in last-mile education delivery.
Key expectations include increased funding for early childhood education, special incentives for green and sustainable school campuses, and greater support for inclusive education covering children with special needs. Rationalisation of GST on educational services and learning materials would significantly ease financial pressure on schools and parents alike.
There is also a need for policy-backed investment in skill-based learning, digital infrastructure, and teacher upskilling aligned with NEP 2020. Encouraging public–private partnerships, offering tax incentives for education-driven CSR initiatives, and simplifying compliance frameworks would empower schools to focus on learning outcomes rather than administrative burdens.”
A budget that prioritises equity, quality, and sustainability in education will be an investment in India’s long-term social and economic growth.”



Jan 20, 2026 18:15 IST
Union Budget 2026-27 Expectations from Hospitality & Tourism Sector
Prathima Manohar, Director, Paradise Group, GoodPass and co-curator of One-TAC Udipi Circuit commented: 
“Tourism is one of India’s most underleveraged growth and job-creation engines. While tourism contributes 9–10% of global GDP, India - despite its cultural and geographic depth attracts just 11 million foreign visitors annually. By comparison, Barcelona alone receives over 15 million inbound tourists a year. This gap reflects not a lack of demand, but a persistent failure of policy prioritisation and destination development.
First, India needs a single-window clearance system for tourism and hospitality projects. Today, fragmented approvals across land, environment, local bodies, and utilities delay projects by 24–36 months, raising capital costs in a sector where margins are already low.
Second, tourism jobs are among the strongest bottom-of-the-pyramid employment multipliers. The sector already supports over 40 million jobs, many of them local, dignified, and inclusive; absorbing women, youth, and informal workers into the formal economy at scale.
Third, capital-intensive hospitality projects require renewed investment incentives. Restoring GST input tax credits  and offering targeted income-tax rebates, particularly for rural and Tier 2/3 destinations, would unlock long-term capital and accelerate supply beyond metros.
Finally, public investment in destination infrastructure and placemaking is not discretionary....it is economic strategy. If India seeks inclusive growth, tourism must be treated not as consumption, but as nation-building infrastructure.”



Jan 20, 2026 18:14 IST
Budget Expectations from Energy Sector
Expectations from Mr Baroruchi Mishra, Group CEO - Nauvata Energy Transition (NET) Enterprise
“India needs to make a very concerted effort to move towards a gas economy - increase production of methane and hydrogen from all sources (fossil based, biogenic and coal gasification), while managing the CO2 intensity of producing them through CCUS (Carbon Capture, Utilization and Storage). For one, it would help us lower the carbon intensity by 30-50% compared to fossil fuel use, and for two, the biogenic and coal gasification sources are in abundance in India! This compensates for the limitations in our geological reserves of fossil fuels and/or the green energy requirements for Green Hydrogen.
A. BioLNG is a direct replacement of LNG imports with a potential to save $1-3 billion per annum in importation bills.
Earmark a fund of $2 billion for viability gap funding, a subsidy scheme, and R&D for BioLNG from CBG.
Incentive widespread Hub and Spoke model set-ups, with 10-15 CBG plants feeding into a single BioLng facility in remote areas of India which have high recyclable vegetation covers but are not served by natural gas pipeline networks. Using Iso-containers, the BioLNG can be transported by trucks to locations with high demand or directly supplied to the LNG import terminals with a low-carbon premium on their sale price. BioLNG bunkering of ships will attract premium prices from international ship owners.
Extend PLI scheme for manufacture of cryogenic equipment for BioMethane liquefaction to BioLNG. Ability to liquefy small volumes of gas can directly help with monetizing stranded natural gas reserves in remote areas (like in the North-East) through the LNG route.
Put into place credit guarantee schemes and bring “CBG to BioLNG” under priority sector lending with an appropriate level of risk guarantee from government entities like SIDBI/IREDA.
Bring BioLNG into long distance transportation decarbonization road map with the right level of incentivization for LNG trucks.
CCS - Enabling- policy frameworks for CCS will help with continued use of fossil fuels and indeed make coal gasification, which has a very low CO2 capture cost but very high CO2 volumes, an environmentally acceptable enterprise. This would help with monetizing our huge coal reserves.
A clear funding envelops for CCS, like 45Q in the US, should be announced in the budget – higher subsidy for geological storage and lower for CO2-EOR or ECBM with CO2. $40/tonne for geological storage and $30/tonne for CO2 EOR/CO2-ECBM would help instigate CCS projects’ development. All projects need to implement global standards for MRV (Measurement, Reporting and Verification).
Synchronise CCUS with coal gasification / synthetic natural gas; provide similar subsidies till the technology improves to reduce cost and the eco-system for coal-gasification becomes widespread.”
Declare a MtCO2/year CCS target at the country level for 2030, 2035 and 2040.
Earmark funds ($200-250 mln) to create shared CO2 back bone – starting with CO2 carrier pipeline in the West Coast in areas with high point sources of CO2.
Earmark $20 mln for a task force of industry experts with international CCS projects’ exposure to prove up Project Level geological storages and frame projects around them.
Announce streamlining of policy frame works /regulations on long-term liabilities for CO2 storage.”