Budget 2026 : What To Expect On Taxes, Growth And Key Sectors

23rd January 2026 at 6:27 PM

2 minutes read

New Delhi : Union Finance Minister Nirmala Sitharaman will present the Union Budget 2026-27 on February 1, 2026, marking her ninth consecutive Budget and the third full Budget of the Narendra Modi-led NDA 3.0 government. The Budget will be tabled on a Sunday, an uncommon occurrence in recent years. Even as the government prepares for Budget 2026-27, several announcements made for the agriculture sector in the previous Budget remain unimplemented.

These include raising the loan limit under the Modified Interest Subvention Scheme from Rs 3 lakh to Rs 5 lakh for loans taken through Kisan Credit Cards (KCC), launching a Mission for Cotton Productivity, and setting up a National Mission on High-Yielding Seeds and much more. Madhumita Agrawal, Founder & CEO of Oben Electric said: “Oben Electric views the Union Budget 2026-27 as a vital opportunity to strengthen India’s electric mobility journey.

While finished EVs attract a 5% GST, the raw materials sourced to build these vehicles are taxed at 18%. This 13% disparity traps vital working capital across the industry, driving up production costs and straining liquidity. Aligning the GST on all EV components to a uniform 5% is essential to support domestic manufacturing and make ‘Make-in-India’ EVs more affordable for the mass market.

To achieve our national 2030 targets, the budget should introduce targeted subsidies and demand incentives specifically for electric motorcycles. Prioritizing this dominant segment will unlock the next level of mass-market electrification and move India closer to a truly self-reliant EV ecosystem. Dr. Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries Ltd said: “As we look ahead to the Union Budget 2026, we are optimistic about a renewed emphasis on meaningful ease of doing business, particularly through faster approvals and more streamlined regulatory processes that can unlock private investment.

In the context of evolving global trade challenges, policy measures that support exports and deepen India’s integration into global supply chains will be increasingly important. For the automotive and tyre sectors, policy continuity that enhances affordability and supports rural incomes can sustain demand and create strong multiplier effects across the economy. A forward-looking, investment-led Budget will play a key role in accelerating India’s manufacturing growth and reinforcing investor confidence.”