Industry expectations from Union Budget 2026

“The logistics and infrastructure sectors are currently at a defining juncture, presenting a distinct chance to greatly improve India’s competitiveness and foster long-term growth. Government initiatives like the National Logistics Policy, PM Gati Shakti, and the establishment of dedicated freight corridors reflect a robust commitment to enhancing supply chains and national connectivity. Furthermore, investments in multimodal transport, logistics parks, and economic corridors are establishing the groundwork for a more efficient and resilient ecosystem. As we approach Budget 2026, it is crucial to sustain this momentum through strategies that expedite infrastructure implementation, lower logistics costs to align with global standards, and facilitate seamless multimodal integration. Equally vital is a strong emphasis on technology-driven modernization, which includes digital platforms, automation, and data-informed planning, along with incentives for sustainable logistics practices such as green infrastructure and energy-efficient transport. Additionally, focusing on capacity building in Tier II and Tier III regions will further promote inclusive growth, job creation, and MSME involvement. A progressive budget that aligns policy objectives with effective execution on the ground can unlock new opportunities for businesses and communities, alleviate structural bottlenecks, improve connectivity, and firmly establish logistics as a cornerstone of India’s economic progress and a crucial driver of national development.”
Gregory Goba Ble, Head of UPS India and Director of MOVIN Express

“To have the government be more all-in and to be more invested both in letter, money and spirit, for that matter, as far as the ecosystem is concerned. The Government set aside a budget for Rs. 10,300+  Crore to boost the India AI mission over 5 years might not be sufficient for scaling up the AI powered ecosystem. We need to treat AI as a future technology and treat it like Infrastructure to ensure better accessibility to funding.
We would also like to highlight that if the government is more invested in the business then the ecosystem will be primed to support the startups. If a startup gets the 1st set of funding from the government and they need to scale up, going back to the government is not an option. The startup has to depend on VC’s. Therefore, we would like the Government to set up funds to facilitate the funding for scaling up particularly for the startups with a proven track record for performance.
AI startups we can allocate only 10 to 15 percent budget allocated for AI R&D, which is not sufficient to scaleup. Moreover, currently we use the GPUs that are not in India we're always living on borrowed technology and have to pay substantial amount for the same. With the high velocity of AI startups in the country, we need to build that capability inside India – a budget allocation for the same will be a great trigger for future growth. If the government is backing an initiative it is going to be the nation's competitive advantage.
The Centre must fully commit to AI startups in Budget 2026 with enhanced funding and security measures to power India's deep-tech ecosystem.”
Varun Kashyap and Sridevi Reddy, Co-Founders, Zithara.AI

“Medical inflation continues to be one of the biggest challenges facing India’s healthcare system, projected at 11.5%–14%, among the highest in Asia. While measures such as the removal of GST on insurance premiums and allowing 100 percent FDI in insurance can improve affordability and sector resilience, rising medical costs continue to put pressure on Indian households.
As the Union Budget 2026–27 approaches, there is an opportunity to strengthen healthcare affordability through higher public health spending and a sharper focus on prevention. Currently, public health expenditure in India remains below global benchmarks and even short of the National Health Policy target of 2.5% of GDP in 2025. Enhancing the budgetary outlay for public health would strengthen primary care networks, expand preventive services, and relieve financial stress on citizens.
At the same time, policy measures that encourage preventive healthcare can significantly lower long-term treatment costs. Industry reports indicate that preventive care reduces hospitalisations and improves health outcomes. Introducing separate and enhanced tax benefits for OPD services and preventive health screenings, beyond the current limits under Section 80D, would encourage wider adoption of preventive care.
With India’s ageing population and rising burden of chronic diseases, a prevention-led approach, supported by budgetary reforms, can play a critical role in improving health outcomes in the country.”
Srikanth Kandikonda, Chief Financial Officer, ManipalCigna Health Insurance

“As work patterns evolve and India’s urban workforce becomes increasingly mobile, we expect the upcoming Union Budget to formally recognise organised corporate and employee transportation as a vital productivity enabler. With hybrid work models, late-hour shifts, and business travel on the rise, reliable and compliant chauffeur-driven mobility has become integral to ensuring workforce efficiency, safety, and continuity. From the Budget, there is a strong expectation of policy support that encourages a shift from unorganised transport to technology-led, professionally managed mobility solutions particularly those that prioritise chauffeur training, service standards, and regulatory compliance. At the same time, we look forward to targeted and higher incentives to accelerate the transition to clean mobility in corporate fleets. Incentivising EV adoption in commercial, high-usage fleets where fuel savings and emission reductions per rupee of incentive are significantly higher than private vehicles can deliver faster and more meaningful environmental impact.
A Budget that reinforces road safety, fleet-ready charging infrastructure, and a hospitality-led approach to mobility where customer experience, accountability, and consistency are central will help build a safer, greener, and more resilient corporate mobility ecosystem for India’s future.”  
Rajesh Loomba, CMD, ECOS (India) Mobility & Hospitality Limited.

"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.” 
Deepak Acharya, Chief Executive Officer at INOX India Limited.