Budget expectation Highlights: FM Sitharaman to present budget today | Industry’s key expectations

Sajai Singh, Partner - JSA Advocates & Solicitors: “A possible 11% increase in capital expenditure to ₹11.11 lakh crore is a very welcome step. This is likely to generate additional employment, particularly across three key sectors—construction, transportation and logistics.

The MSME sector could benefit from further support to enable job creation. For instance, easier access to finance, such as lower interest rates and fewer regulatory requirements, would be helpful. While the Pradhan Mantri MUDRA Yojana is already in place, the government could consider increasing loan limits or reintroducing the Interest Equalisation Scheme. Similar measures, including tax breaks and incentives, would also benefit start-ups.

The Employment Linked Incentive (ELI) Scheme is a particularly positive intervention, as it not only encourages employment generation but also emphasises employability and social security across sectors. A strong push for manufacturing is essential if India is to build global competitiveness and reduce reliance on China, and the ELI moves us in the right direction.

The National Centres of Excellence for Skilling are another positive initiative for skill development. Schemes such as the National Apprenticeship Promotion Scheme and the Craftsman Training Scheme also merit mention. With appropriate skilling and apprenticeship opportunities, the incoming workforce becomes more employable across industries.

Any development in the infrastructure space will contribute to job creation. Government allocations for industrial parks and the promotion of public–private partnerships would be appreciated. If the government is looking to raise productivity, sectors such as tourism, agri-processing, horticulture, and floriculture could be considered for additional allocations. For rural employment, enhanced funding for MGNREGA may also be considered.”

J.K. Arora, Chairman & Managing Director, SOM Distilleries & Breweries Ltd said: "The Indian alco-beverage manufacturing sector continues to operate within a highly complex and fragmented regulatory environment. While premiumisation and organised retail are driving demand, manufacturers across India face a key structural challenge which is the absence of GST input credit on raw materials, packaging, capital goods, and services. GST paid on inputs such as malt, molasses, bottles, labels, machinery, logistics, and advertising becomes a direct cost, increasing production expenses and impacting competitiveness for manufacturing-led companies nationwide."

S Paramasivan, Managing Director, Afcons Infrastructure Ltd said: "The Government’s sustained focus on capital expenditure (capex) has played a critical role in supporting economic growth, employment generation, and asset creation across sectors. Continued emphasis on infrastructure investment in the forthcoming Budget is important to maintain growth momentum and realise the Government’s vision for 2047.

This capex thrust should be complemented by implementing long‑pending reforms in taxation, financing, along with contract and dispute‑resolution frameworks. These measures will significantly enhance execution efficiency and capacity in the infrastructure sector and help create and consolidate globally competitive Indian construction players."

Deepak Chhabra, Founder – Holy Hotels said: "As we look ahead to the Union Budget 2026, the online hotel and alternative accommodation booking ecosystem is expected to receive targeted tax relief to further strengthen India’s domestic and destination-led travel growth. The sector is seeking meaningful GST rationalisation on hotel room tariffs, along with restoration or introduction of input tax credit benefits and simpler compliance norms for small and mid-sized accommodation providers.

Such measures can deliver an effective 5–10% reduction in overall tax burden, helping lower room prices by ₹300–₹700 per night for travellers while improving margins and sustainability for operators. This will be especially impactful for budget and mid-scale properties and for homestays and BnBs across Tier-II and Tier-III cities.

As a travel-tech platform like Holy Hotels, focused on simplifying hotel and BnB bookings and preparing to expand into flight bookings, we also expect continued government support for digital travel platforms, integrated booking ecosystems, and skill development across tourism services. A future-ready budget that combines tax relief, digital infrastructure investment, and tourism-focused incentives will enhance customer choice, improve transparency, and make travel more accessible for Indian travellers.”

Dr. C Vinod Hayagriv, Managing Director & Director Of C. Krishniah Chetty Group Of Jewellers said:"India’s gems and jewellery sector is navigating the dual pressure of elevated gold and silver prices and slowing volume growth, making the Union Budget a timely opportunity to restore momentum through pragmatic reforms. My recommendations in an unbiased productive manner are- First, a reduction in gold import duty to 3 percent which would immediately ease cost pressures on an essential product consumed across income segments, while reviving livelihoods across the value chain from goldsmiths to manufacturers.

And second, offering a greater transparency through the publication of gold bar numbers on accessible customs department portals, enabling verification of duty-paid imports and strengthening formal compliance. Another important area in these turbulent lower sales turnovers for the jewellery industry is permitting more beneficial inventory management as current high gold & silver rates have in many cases inflated inventory values thereby mandating income tax on notional values.

Unprecedented world events are impacting many small & medium jewellery businesses (manufacturing & distribution) making higher capital requirements, interest costs, lower income thus adversely impacting manufacturing activity."

Shivam Hingorani, Founder, Ace blend said: "A big win last year was seeing significant GST reduction in the nutrition space. With our upcoming Union Budget, we hope to see this momentum build with stronger and more efficient compliance and certification frameworks. This will make it much easier for consumers to trust science-backed nutrition brands.

The wellness industry is projected to cross USD 370 billion by 2028 in India. This is a clear reflection of India becoming a health-conscious country, making the budget a key opportunity for us to create more meaningful impact on public health. By aligning innovation with clear regulatory standards, everyone wins."