The Union Budget 2026-27, to be presented by Finance Minister Nirmala Sitharaman on February 1, 2026, at 11 AM (a historic Sunday presentation), is generating strong pre-budget expectations from infrastructure, agriculture, manufacturing, automotive mobility, organic wellness startups, tourism, and hospitality sectors. As India targets Amrit Kaal, Net Zero, Viksit Bharat, and global manufacturing leadership, leaders are calling for sustained capex on sustainable infrastructure, GST rationalisation, higher R&D funding, incentives for green practices, skilling reforms, and sector-specific support to drive employment, sustainability, competitiveness, and inclusive growth.
Road Infrastructure: Shift to Sustainable Kilometres and Stronger PPPs
Mr. Dheeraj Panda, Managing Director, Ammann India, emphasizes aligning highways with global standards for longevity and clean energy integration.
“To achieve Amrit Kaal and Net Zero goals, India’s highways must quickly align with global standards in policy and in execution. Roads are the foundation of development, so a steady highway capex is encouraging; but the real shift now should be towards ‘sustainable kilometres’ with roads built using advanced technology and materials that allow highways to last 20 years or more. Stronger PPP and InvIT frameworks can help crowd in private investment, which must be channelised towards technology that supports clean energy corridors and renewable integration. From an industry perspective, discussions around potholes should have been long behind us; the focus now must be on building highways that perform reliably over decades, with lower lifecycle costs and significantly reduced maintenance.”
Agriculture & Agri-Innovation: Boost R&D Funding and Lower GST on Pesticides
Dr. R.G. Agarwal, Chairman Emeritus, Dhanuka Agritech Ltd, highlights the need for increased R&D investment and tax relief for farmers.
“We often talk about strengthening India’s innovation ecosystem, but the reality is that India still spends only about 0.7% on research and development. Countries like China, Israel, the US and many European nations invest much more. If we genuinely want scientific progress and global competitiveness, R&D funding has to increase. Earlier, private-sector research was encouraged through income-tax deductions, which are no longer available. We hope this budget restores strong support for R&D for both public institutions and industry.
Pesticides are not luxury products. They are plant medicines and a form of crop insurance for farmers. Yet they attract 18% GST, similar to luxury items. Just as the GST on essential human medicines was reduced, we urge the government to bring the GST on pesticides down to 5%, so farmers are not overburdened.
At the same time, we recognise that several promises from the last Budget have moved from announcement to action. Other initiatives are underway, and the intent is positive. The key focus now should be execution and real impact at the farm level.”
Furniture & Manufacturing: Rationalised Duties and Incentives for Competitiveness
Andre Eckholt, Managing Director – Hettich India, SAARC, Middle East & Africa, seeks measures to counter rising costs and support Make in India.
“As India moves towards becoming a global manufacturing hub, the upcoming Union Budget 2026 presents a vital opportunity to further strengthen the furniture and manufacturing sectors. However, key challenges such as rising raw material costs and logistics expenses continue to impact competitiveness. We believe addressing these concerns through rationalized duties, stable input costs, and incentives for value-added manufacturing will be critical. We also hope to see continued focus on infrastructure, skill development, and ease of doing business, which are essential for long-term growth. A supportive budget can accelerate local manufacturing and strengthen India’s position as a reliable production hub for domestic and export markets. The Make in India initiative and sustained policy support can help domestic manufacturers scale up, innovate, and compete globally.”
Automotive & Mobility: Push for Circular Economy and Vehicle Recycling
Kartick Nagpal, President, Rosmerta Technologies Limited, advocates policy support for end-of-life vehicle frameworks to enhance safety and sustainability.
“A Budget-led push for the circular economy in mobility can create a virtuous cycle for the automotive sector and the economy at large. Supporting formal vehicle recycling and structured end-of-life frameworks helps phase out older and unsafe vehicles along with promoting replacement demand. This in turn leads to improved safety on the road as well as reduces emissions.
To accelerate this transition, it is important that the Budget focuses on enabling policy clarity along with ease of compliance, and financial viability across the recycling and vehicle fitness ecosystem. This is likely to encourage adoption among people. A coordinated focus on circularity, road safety, and vehicle fitness can deliver sustainable growth, cleaner air, safer roads, and employment generation for the country.”
Organic Wellness Startups: GST Rationalisation and Green Innovation Support
Radhika Iyer Talati, Founder, Anahata Organic, shares dual perspectives from startup and D2C/retail angles.
Startup Ecosystem POV: “From a startup perspective, Budget 2026 presents an opportunity to meaningfully support India’s growing organic and wellness innovation ecosystem by prioritising GST rationalisation on natural and health-focused products, along with stronger incentives for R&D in plant-based and preventive health solutions. Startups working at the intersection of sustainability, wellness, and indigenous knowledge need predictable policies, faster access to innovation funding, and dedicated green innovation support to scale responsibly. Recognising organic and preventive health-led businesses as priority sectors would not only boost consumption but also align entrepreneurship with long-term public health and environmental resilience.”
Retail / D2C / E-commerce POV: “As a brand that manufactures and directly retails organic beauty, wellness, and herbal products, we see Budget 2026 as a chance to strengthen affordability and conscious consumption through GST rationalisation on natural products and tax incentives for sustainable packaging. Support for green manufacturing, circular economy practices, and eco-friendly supply chains can help D2C brands scale without compromising values. With consumers increasingly choosing fewer, more intentional products, policies that reward sustainability, local manufacturing, and value-driven purchasing will help build resilient, future-ready retail ecosystems.”
Tourism & Hospitality: Skilling Reforms, GST Relief, and Tier-2/3 Growth
Leaders from the sector stress workforce development, tax incentives, and infrastructure to sustain momentum.
Mrs. Jyoti Mayal, Chairperson, Tourism and Hospitality Skill Council: “As we look forward to the Union Budget 2026, we expect the government to prioritise long-pending skilling reforms that can truly strengthen India’s tourism and hospitality workforce. The sector urgently needs industry-aligned curriculum, modernised training with digital and AI-integrated modules, and regional hospitality skill centres that expand access, especially across high-potential states. Streamlined apprenticeship pathways and stronger PPP models can significantly boost hands-on training, employability, and wage growth for youth.
With targeted budgetary support towards curriculum modernisation, digital skilling, apprenticeships, and quality assurance, India can reduce persistent skill gaps and raise service standards across the sector. We also hope for continued focus on MSME support, sustainable tourism, infrastructure enhancement, and ease of doing business, all of which are essential to unlocking new destinations and strengthening India’s global tourism competitiveness. A future-ready, industry-trained workforce remains central to achieving Tourism Vision 2047.”
Dr. Vikram Kamat, Founder, VITS Hotels and Resorts: “2025 has been a strong year for the hotel industry, driven by rising domestic travel, improved occupancy levels, and greater preference for branded hospitality. However, challenges such as high operational costs, talent shortages, and increasing compliance burdens continue to impact profitability. While government initiatives have supported tourism growth, the sector now needs deeper reforms. In the Union Budget 2026, we expect rationalization of GST, incentives for green and tech-enabled hotels, easier access to credit for expansion, and focused skill development. Strengthening infrastructure and promoting new tourist circuits will further accelerate demand and enable the industry to sustain its positive momentum.”
Mr. Amit Kumar Singh, Founder & Managing Director, OPO Hotels & Resorts: “For the hospitality sector, Budget 2026 should prioritise measures that support growth, job creation, and regional tourism development. We expect enhanced tax incentives for hotel infrastructure, especially in Tier 2 and Tier 3 markets, where demand is rising. A reduction in GST for budget and mid-scale hotels will significantly boost domestic travel and improve operating margins for small and mid-sized operators. Additionally, easing credit access for hotel renovations and brownfield conversions can accelerate organised growth. Strengthening last-mile connectivity and promoting digital tourism initiatives will further enhance India’s hospitality ecosystem.”
As the Union Budget 2026 nears, these industry insights highlight a consensus on accelerating sustainable infrastructure, innovation through R&D and skilling, green transitions in mobility and manufacturing, tax relief for essentials, and workforce development in tourism/hospitality. Targeted reforms could significantly enhance India’s road networks, agricultural resilience, manufacturing edge, environmental goals, and service sector competitiveness, supporting long-term inclusive and sustainable growth toward Viksit Bharat.
Last Updated on Friday, January 23, 2026 9:15 pm by Startup Times
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