As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026-27 on February 1, 2026, industry leaders across diverse sectors are sharing their pre-budget expectations. The budget, to be delivered on a Sunday for the first time in history, is anticipated to focus on tax stability, affordability, financial inclusion, infrastructure push, and support for MSMEs amid India’s growth trajectory toward Viksit Bharat.
Stakeholders emphasize policy measures to address input cost volatility, GST rationalization, easier access to credit, and long-term incentives for sustainable development in employment-intensive sectors.
Tax Stability and Support for Chocolate and Confectionery MSMEs
Jacob Joy, Founder of Jakobi Chocolatier and Director of JJ Confectionery Pvt. Ltd., highlights the need for policy clarity: “As we head into Budget 2026, the Indian chocolate and confectionery sector is looking for policy clarity that enables long-term planning rather than short-term fixes. One of the most important expectations is tax stability. Maintaining the 5% GST rate for the next few years would give MSMEs the confidence to invest, scale manufacturing, and build brands sustainably.”
He adds emphasis on input costs and domestic production: “Input cost volatility, especially cocoa, remains a key challenge. Rationalising customs duties during global price spikes and exploring a commodity stabilisation mechanism could go a long way in protecting domestic manufacturers… Chocolate is a high-employment, women-led MSME category with strong export potential. With the right policy support in Budget 2026, India can create globally competitive chocolate brands rooted in quality, craft, and origin.”
Rationalizing GST on Digital Learning and Upskilling Financing
Arjun Nair, Co-founder of Great Learning, calls for affordability in education: “Under India’s GST framework, core educational services offered by institutions are exempt, but many online courses, coaching programmes and digital learning offerings continue to attract the standard 18 per cent GST… That’s why the continued 18 per cent GST on standalone digital learning services deserves a more balanced, calibrated view, one that keeps access and affordability at the centre.”
He further stresses learner financing: “Alongside tax policy, easier access to affordable learner financing, including lower-interest education loans for upskilling, can make a real difference. When learning is both accessible and affordable, digital education can scale in a way that is sustainable, inclusive, and truly impactful.”
Affordable Housing, Tax Relief, and Industry Status for Real Estate
Mr. Sarveshaa SB, Chairman & MD of BHADRA Group, outlines priorities for the sector: “As Union Budget 2026-27 approaches, the real estate sector is looking for a clear roadmap that keeps the current upswing going while making homeownership more affordable and projects easier to deliver. Tax and GST relief are at the top of our expectations, with a strong need for higher deductions on home loan interest under Section 24 and a more rational GST structure on construction inputs and under-construction homes, especially for first-time and affordable homebuyers.”
He continues: “The industry is also seeking simpler, more predictable capital gains rules to draw in long-term domestic and global capital… Moreover, the long-awaited recognition of real estate with formal ‘industry status’, combined with a sustained push on urban infrastructure, logistics and smart cities and faster single-window digital approvals, will be key to unlocking lower-cost finance, speeding up project timelines, and spreading growth beyond just Tier 1 cities.”
Policy Support for Microfinance and Financial Inclusion
Dr Alok Misra, CEO & Director of Microfinance Industry Network (MFIN), focuses on operational and funding challenges: “The microfinance sector touching lives of nearly 30 crore low income people needs policy support in the form of robust KYC framework for accurate borrower verification and responsible credit reporting… The other area requiring policy support is availability of stable funding mechanism. High dependence of NBFC-MFIs on bank funding leads to sudden drying up of funds and affects financial inclusion.”
He notes sector progress and hopes: “We remain hopeful for an early announcement on the proposed credit guarantee scheme for microfinance, which will further strengthen lender confidence and start a virtuous cycle for the sector.”
Incentives for Infrastructure, Manufacturing, and Green Steel
Mr. Manish Garg, CEO of Interarch Building Solutions Ltd, emphasizes targeted support: “As India approaches the 2026 Union Budget, the government has a strategic opportunity to amplify India’s infrastructure-led growth engine and the manufacturing renaissance that is powering it… Budget support must go beyond headline spending figures to targeted incentives that ease access to long-term capital, promote green and advanced steel production, and accelerate workforce skilling especially in fabrication and specialised construction trades.”
He adds: “Strengthening programs such as PLI schemes, rationalising duty frameworks on critical inputs and promoting sustainability-aligned technologies will enhance India’s attractiveness as a global manufacturing hub.”
With the Union Budget 2026 just days away, these expectations reflect a collective call for balanced reforms that boost consumption, employment, inclusion, and competitiveness while ensuring fiscal prudence and sector-specific relief. The announcements will be crucial in sustaining India’s economic momentum amid evolving global and domestic challenges.
Last Updated on Wednesday, January 28, 2026 4:44 pm by Startup Times
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