The Union Budget 2026-27, to be presented by Finance Minister Nirmala Sitharaman on February 1, 2026, at 11 AM, is highly anticipated as India pushes toward Viksit Bharat and Atmanirbhar Bharat. Industry leaders from diverse sectors are voicing expectations for targeted reforms, including GST rationalisation, customs duty reductions, PLI scheme expansions, infrastructure capex, R&D incentives, and measures to boost consumption, manufacturing localisation, and sustainability. These align with priorities like reducing import dependence, enhancing export competitiveness, supporting rural and Tier-II/III growth, and accelerating green transitions.
Consumer Durables Sector: Boosting Demand and Localisation
Jasraaj S. Kalra, Managing Director, Noble Group, highlights the need for stable taxation to drive consumption alongside localisation for scale.
“The consumer durables sector expects the Union Budget 2026–27 to boost consumption through stable taxation and income-led demand measures, while simultaneously enabling scale manufacturing through localisation of components and electronics. A demand-driven approach supported by strong domestic supply chains will allow Indian manufacturers to expand capacity, improve efficiencies, and reduce import dependence.”
Paints Industry: Infrastructure Push and Tax Relief for Growth
Kuldip Raina, Managing Director & CEO, Shalimar Paints, stresses sustained support for housing, infra, and rural upgradation.
“Sustained government support for housing, infrastructure and manufacturing continues to shape the growth trajectory of the paints industry. The Union Budget 2026 is expected to further strengthen this momentum by supporting real estate growth in Tier II and Tier III cities, which will drive the consumption of interior and exterior paints. Increased CAPEX on infrastructure will directly increase the demand for industrial and protective coatings. Public infrastructure spending on roads, bridges, railways, industries and airports will require specialized water-based and solvent-based coatings such as road marking paints, heat protectant coatings and anti-rust coatings.
From an industry standpoint and under the Make in India push, rationalized taxes and customs duties are expected to enable paint manufacturers to better innovate products, increase expenditure on R&D, invest higher capital in manufacturing and reduce cost of production. Rationalized customs duties on raw materials such as titanium dioxide, resins, pigments and additives will reduce input costs and improve value for money for end-users. If the budget continues with favourable measures that support household demand through reduced GST and tax relief, the industry can see a reduced repainting cycle and higher consumption of premium paints. With a lower tax burden on income, higher disposable incomes among individuals can increase spending on quality of life, directly impacting manufacturing demand and premiumization.
In a highly competitive market, the real impact will depend on how effectively companies differentiate themselves through faster innovation, deeper investment in manufacturing and R&D, and the ability to deliver consistent value for money at scale. With government target spending in rural India, there is strong potential for the upgradation of raw, unpainted and limewashed walls to durable interior and exterior applications using economic emulsion and distemper coatings. Translating this potential into outcomes will require policymakers to enable access and the industry to work together to build trust, distribution and relevance on the ground, ensuring measurable transformation across rural India and more inclusive growth for the paints industry and the economy.”
LNG as Transition Fuel: Fiscal Incentives for Adoption
Mr. Deepak Acharya, Chief Executive Officer, INOX India Limited, calls for measures to overcome adoption barriers in freight mobility.
“As India intensifies its focus on cleaner and more efficient freight mobility, we look forward to the upcoming Union Budget recognizing LNG as a critical transition fuel for long-haul transportation. While LNG trucks offer significant economic and environmental advantages, their adoption continues to face challenges such as higher upfront vehicle costs, limited refueling infrastructure, and fuel pricing complexities arising from multi-layered taxation.
From the Budget, there is a strong expectation of targeted fiscal measures that can bridge this cost parity gap, including rationalization of GST, accelerated depreciation benefits, and direct purchase incentives for LNG-powered heavy vehicles. Equally important will be policy support to accelerate the development of LNG refueling corridors through viability gap funding, concessional financing, and strategic land allocation along national highways.
A forward-looking Budget that prioritizes uniform taxation, competitive fuel pricing, and infrastructure-led growth can significantly boost LNG adoption across logistics fleets. This will not only reduce freight emissions and operating costs but also strengthen India’s energy security, support domestic manufacturing of cryogenic equipment, and contribute meaningfully to the nation’s long-term decarbonization goals.”
Nutraceuticals: Building on GST Reforms for Wellness and Exports
Rajneesh Chopra, Managing Director, Amway India, advocates integrated support for the sector.
“Amway Complements Government’s Bold GST Reforms, Advocates Integrated Policy Support for India’s Growing Nutraceutical Sector
“The 2025 GST rationalization was a gamechanger for India’s nutraceutical sector, delivering simplified tax structures and providing significant relief to consumers, and we commend the government for this bold reform. As India advances towards Atmanirbhar Bharat, Budget 2026 presents a timely opportunity to further strengthen the overall health and wellbeing ecosystem. We recommend formally recognising food and dietary supplements as an integral part of overall wellness, with the potential to improve health outcomes while unlocking significant economic value. The budget should focus on simplifying custom duty structure by rationalising customs duty slabs on imported supplements, ingredients used in nutraceutical, beauty and personal care, and select consumer durables. Such measures would enhance India’s trade competitiveness, boost local manufacturing and exports aligning with the “Make in India” initiative. This should be complemented by Production-Linked Incentive (PLI) schemes, targeted tax benefits, and export-linked incentives to support global expansion.
To enable grassroots entrepreneurship, the Budget should consider introducing lower income tax slabs for small businesses like direct sellers/ distributors, sole proprietors, similar to the fiscal support extended to start-ups through deferred taxation, thereby enabling millions, including women and those in smaller towns, to participate meaningfully in the formal economic growth and drive more inclusive development.
Finally, dedicated budgetary support for clinical research and evidence-based nutrition will be crucial to strengthening consumer trust and enhancing the global credibility of Indian-made supplements, firmly positioning India as a trusted, science-led hub for preventive health and long-term well-being.””
Pharmaceuticals: From Volume to Value with Innovation Support
Mr. Mohan Jain, Director, Naprod Life Sciences Pvt Ltd., emphasizes scaling specialty manufacturing and resilience.
“As we approach Union Budget 2026, the pharmaceutical sector looks forward to policy measures that strengthen India’s position as a global hub for high-quality, specialty medicines. Continued focus on advanced manufacturing—particularly in complex therapy areas like oncology, injectables, and critical care—will be pivotal for sustaining India’s trust capital across regulated and emerging markets.
From an industry standpoint, the biggest lever is to make compliance-led manufacturing easier to scale—through sharper support for technology upgradation, quality infrastructure, and R&D. A meaningful step would be to strengthen innovation incentives, including a more competitive R&D tax framework, while also expanding manufacturing-linked support to critical inputs such as APIs to improve supply-chain resilience.
Equally important is improving export competitiveness by easing structural friction points—faster trade facilitation and a GST/ITC framework that reduces working-capital lock-ups for export-oriented manufacturers. Better access to affordable credit and continued momentum on export credit support can further enable responsible capacity expansion without diluting quality benchmarks.
A forward-looking budget that prioritises innovation, manufacturing resilience, and ease of doing business will help Indian pharma move from ‘volume to value’—and reinforce India’s role as a trusted global partner in delivering affordable, life-saving therapies.”
Railway Technology: Sustained Support for Modernisation and Green Innovation
Gaurav Lath and Nitin Jain, Joint Managing Directors, Concord Control Systems Limited, praise ongoing efforts and seek continued incentives.
Gaurav Lath: “As we approach Union Budget FY27, the railway technology sector stands at an exciting threshold, thanks to the visionary leadership driving India’s rail revolution. We commend the government’s tireless efforts in prioritizing safety, security, and innovation across the ecosystem, evident in groundbreaking initiatives like green hydrogen adoption and Kavach 4.0.
We appreciate Union Minister Ashwini Vaishnaw’s focus on policy-driven growth, including infrastructure investment, manufacturing and innovation support, inclusive development, and regulatory simplification. The sector strongly supports this approach, which will create a stable, predictable environment to scale homegrown technologies and attract global investment.
The sector seeks sustained policy support to scale from pilots to commercial green hydrogen infrastructure for railways. Long-term policy visibility, paired with targeted incentives for indigenous R&D in advanced electronics, will supercharge homegrown players like us Concord Control Systems Limited. Strengthened public-private partnerships, swift technology validation, and streamlined certification, building on the government’s robust frameworks therefore will fast-track innovations.
These steps will further cement Atmanirbhar Bharat, and position India as a rail tech superpower. We’re confident this budget, under Hon’ble Finance Minister’s guidance, will deliver that transformative foundation.”
Nitin Jain: “As we approach the Union Budget FY27, the Indian rail and mobility ecosystem stands at a critical inflection point where scale, safety, and sustainability must advance together. Continued and enhanced capital allocation towards railway modernisation, indigenous technology development, and next-generation propulsion systems will be essential to meet India’s long-term freight and passenger mobility goals. Focused support for safety-critical systems, automation, and digitalisation will further strengthen operational efficiency across the rail network.
From an industry perspective, targeted incentives for domestic manufacturing of high-value electronics, embedded systems, and clean mobility solutions along with support for hydrogen and alternative energy adoption, will accelerate innovation while reducing import dependence. Policy clarity on long-term procurement, faster approvals for advanced technologies, and strengthened R&D incentives will enable companies like ours to invest with greater confidence in globally competitive solutions developed in India.
We appreciate the government’s sustained commitment to infrastructure-led growth and the ‘Make in India’ vision, which has empowered Indian companies to deliver world-class, mission-critical technologies. With continued policy support in FY27, the industry is well-positioned to contribute meaningfully to India’s ambitions of safer railways, greener transportation, and leadership in future mobility solutions.”
Fertilisers and Agriculture: Strengthening Domestic Capacity
Mr. Nishant Kanodia, Chairman, Matix Fertilisers and Chemicals, underscores balanced support for self-reliance.
“India’s agricultural momentum has been strongly supported by the government’s sustained focus on fertiliser availability, affordability and domestic capacity creation. As urea demand continues to grow with higher cropping intensity, a balanced approach that combines assured supply with progressive strengthening of domestic manufacturing remains important.
Continued policy support for timely capacity addition, predictable access to key inputs and investment friendly frameworks will help deepen self reliance over time, reduce external vulnerabilities and support farmer productivity. At Matix Fertilisers and Chemicals, we are aligned with the government’s vision of Viksit Bharat, and remain committed to efficient production, responsible nutrient use and dependable supply to farmers, particularly across eastern and north eastern India.”
As the Union Budget 2026 approaches, these pre-budget insights reflect a consensus on accelerating inclusive growth through tax reforms, infrastructure investment, green initiatives, and sector-specific incentives. Stakeholders across consumer durables, paints, energy transition, nutraceuticals, pharma, railways, and fertilisers seek policies that enhance competitiveness, innovation, and sustainability to propel India’s economic ambitions.
Last Updated on Friday, January 23, 2026 8:12 pm by Startup Magazine Team
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