Union Budget 2026: Industry looks for policy stability and credible execution: survey
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As India heads into the Union Budget 2026-27, industry expectations are increasingly centred on policy continuity, credibility, and execution rather than headline-grabbing announcements, says Grant Thornton Bharat’s Pre-Budget Survey 2026, released recently.
Set against global economic uncertainty and a calibrated fiscal consolidation path targeting a deficit of about 4.4 per cent of GDP, the Budget is being viewed as a signal of India’s medium-term economic intent.
With the economy expected to grow at around 6.5 to 7 per cent in FY26 and central government capital expenditure now more than three times its FY20 level, companies planning long-term investments are seeking stable policy frameworks, practical incentives, and smoother implementation.
On fiscal strategy, the survey reflects support for a balanced approach.
While 35 per cent of respondents believe growth and employment should take precedence even if fiscal consolidation slows, 28 per cent favour balancing deficit control with growth-oriented spending. Another 26 per cent stress strong fiscal prudence to maintain investor confidence.
In trade policy, a simplified and predictable export incentive framework is the top priority for 40 per cent of respondents, followed by the completion of free trade agreements with key partners.
Businesses also want a smoother transition to the New Income Tax Act, with extended timelines, relaxed penalties, and clearer support mechanisms.
For salaried taxpayers, lower tax rates or wider slab intervals are seen as the most effective way to improve the appeal of the new tax regime. On innovation, sector-specific funds and weighted tax deductions for research and development are preferred tools.
Infrastructure investment priorities highlight renewable energy and storage, urban infrastructure, and transport and logistics. Respondents also emphasised the need for regulatory clarity, streamlined compliance, and predictable tax and customs frameworks.
Richa Sawhney, Partner, Tax at Grant Thornton Bharat, said the survey shows a consistent demand for clarity and predictability across tax, trade, and customs to support long-term business decisions.
(IANS inputs)