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Building momentum for a Viksit Bharat
As India prepares for a defining fiscal moment, the Union Budget 2026–27 is expected to set the tone for the country’s next growth cycle. At a time of shifting global dynamics and evolving domestic priorities, this Budget will be closely watched for clear signals on reform momentum, investment focus, and economic resilience.
Grant Thornton Bharat’s Union Budget expectations bring together perspectives from tax, policy, and industry experts to examine the choices that can sharpen India’s competitiveness, simplify the business environment, and unlock sustainable, inclusive growth. Through insights and real-time analysis, we decode what the Union Budget 2026 could mean for businesses and the broader economic ecosystem.
The upcoming Budget must strengthen the backbone of India’s auto supply chains to withstand global turbulence while accelerating the shift to cleaner, advanced technologies… Budget 2026 is an opportunity to align localisation, MSME support, and clean-mobility goals so India can build resilient, diversified, and future-ready automotive value chains.
Saket Mehra
Partner and Auto & EV Industry Leader, Grant Thornton Bharat
With the implementation of the expected credit loss (ECL) underway, minimising the value of loss given default (LGD) becomes crucial for banks to keep ECL provisions under check. Reforms in debt recovery rules and the SARFAESI Act are necessary to ensure asset recoveries are maximised and the impact of ECL is minimised.
Vivek Iyer
Partner and Financial Services Risk Leader, Grant Thornton Bharat
The budget-making process has become more methodical and precise over the last decade, clearly signalling the government’s expenditure priorities. This year, we expect a continued focus on capital expenditure, labour-intensive sectors, and emerging areas like IT and AI to support growth.
Rishi Shah
Partner and Economic Advisory Services Leader, Grant Thornton Bharat
Funding hesitance in infrastructure stems less from growth prospects and more from policy uncertainty and other non-commercial risks. An INR 25,000-crore risk guarantee fund would act as effective credit enhancement, and a public-private partnership structure can balance efficiency with governance.
Vivek Iyer
Partner and Financial Services Risk Leader, Grant Thornton Bharat
Budget 2026 is expected to boost pharmaceuticals through expanded PLI schemes, export incentives, and tariff support to strengthen supply chains and global competitiveness. The sector is likely to be positioned as a key growth engine, with a strong focus on R&D, innovation, and affordable care for NCDs.
Bhanu Prakash Kalmath
Partner and Healthcare Industry Leader, Grant Thornton Bharat
Pharmaceutical industry requires significant investment in manufacturing infrastructure and specialised machinery. Inclusion of ITC on capital goods within the refund formula, particularly for exports of goods and services, would support manufacturing activity and help reduce long-term working capital constraints.
Bhanu Prakash Kalmath
Partner and Healthcare Industry Leader, Grant Thornton Bharat
We don’t really foresee any significant changes in this year’s budget, for salaried classes, considering the overhaul of slabs rates done last year in the new tax regime. More than 75% of taxpayers had already moved to the new regime even before the slab rejig, and that number is expected to have increased sharply since Budget 2025.
Richa Sawhney
Partner, Tax, Grant Thornton Bharat
As India positions itself for stronger global integration, a predictable and investment-friendly indirect tax framework anchored in clarity, consistency and digital certainty will be essential. The Budget has the potential to convert the reform trajectory into meaningful, sector-wide ease of doing business.
Manoj Mishra
Partner and Tax Controversy Management Leader, Grant Thornton Bharat
End use-based exemptions may also be brought in to ensure benefits are passed on to targeted businesses. Additionally, streamlining of the remaining eight tariff slabs, in continuation to the previous budget, is also expected to further streamline the customs tariff structure. Integration of ICEGATE, Risk Management System and EDI system into a single platform, which is already on the cards, will streamline data flow and risk-based clearances.
Krishan Arora
Partner and India Investment Advisory Leader, Grant Thornton Bharat
Wealth tax is unlikely to be introduced at this point. There are easier ways of taxing the super-rich. For instance, introducing gift tax. Some learnings from jurisdictions like the US show that a one-time gift tax combined with estate tax has been working. But the basic exemption limits are extremely high. So, if such taxes are introduced in India, it is expected that it will be with very high exemption limits.
Riaz Thingna
Partner, Tax Planning & Optimisation, Grant Thornton Bharat
Budget 2026 can accelerate India’s shift from traditional outsourcing to innovation-led growth. With tech exports already at $224 billion and domestic demand expanding steadily, we need a sharper policy focus on commercialising R&D, funding next-generation digital capabilities, and building a resilient cloud and data-centre backbone.
Raja Lahiri
Partner and Technology Industry Leader, Grant Thornton Bharat
