Sector Wishlist Decoded: Budget 2026 Expectations Across Key Industries

As India prepares for Union Budget 2026, several sectors have laid out their wishlist to accelerate growth, improve competitiveness, and strengthen long-term economic momentum.

From real estate and EVs to defence, renewable energy, healthcare, and fintech, each sector is expecting targeted policy support, tax rationalisation, and capital allocation reforms.

Here’s a detailed breakdown of sectoral expectations based on insights presented in Sector Wishlist Decoded – Budget 2026 Edition .

1️. Real Estate

Key Expectations:

• Grant ‘Industry Status’ to reduce borrowing costs
• Increase Section 24(b) tax benefits to ₹5 lakh
• Revive 80EEA tax benefits
• Rationalise GST on construction materials
• Lower GST for under-construction properties

Impact Outlook:

Lower borrowing costs and tax incentives may revive housing demand, reduce homebuyer burden, and stimulate affordable housing growth.

Keywords: real estate budget 2026, housing tax benefits, Section 24b increase, GST on property India

2️. Electric Vehicles (EVs)

Key Expectations:

• Extension of FAME-II subsidies
• Simplification of SVB norms
• Removal of provisional duty
• Expansion of charging infrastructure (target: 50,000 by 2027)

Impact Outlook:

Policy clarity and infrastructure expansion may accelerate EV adoption and strengthen India’s green mobility ecosystem.

Keywords: EV subsidy budget 2026, FAME extension, EV charging infrastructure India

3️. Infrastructure

Key Expectations:

• Maintain 15%+ YoY capital expenditure growth
• Higher allocation to roads, railways, urban development & data centres
• Incentives for PPP models
• Tax holidays for logistics parks

Impact Outlook:

Continued infra push supports GDP growth, job creation, and manufacturing competitiveness.

Keywords: infrastructure budget 2026, capex allocation India, logistics parks tax benefits

4️. Technology & IT

Key Expectations:

• GPU subsidies for AI R&D
• Incentives for indigenous Large Language Models (LLMs)
• Increased cybersecurity funding
• Sovereign data policies for data centres

Impact Outlook:

Encouraging AI research and digital sovereignty may strengthen India’s global tech positioning.

Keywords: AI budget 2026 India, cybersecurity funding, data centre policy India

5️. Renewable Energy

Key Expectations:

• Higher PLI incentives for solar modules & green hydrogen
• GST cuts on clean tech (solar PV, wind turbines)
• Low-rate green financing

Impact Outlook:

Renewable incentives can boost domestic manufacturing and accelerate India’s energy transition.

Keywords: renewable energy budget 2026, green hydrogen policy, solar PLI India

6️. Manufacturing & MSMEs

Key Expectations:

• Expanded PLI schemes for electronics & EVs
• 100% depreciation on new machinery
• Enhanced CGTMSE cover up to ₹20 crore

Impact Outlook:

Supportive policies can improve MSME liquidity and strengthen Make in India initiatives.

Keywords: MSME budget 2026, CGTMSE expansion, PLI scheme India

7️. Fintech

Key Expectations:

• UPI 24x7 expansion to boost DPI
• Tax rebates on digital transactions
• MSME credit guarantees via fintech platforms

Impact Outlook:

Digital payment expansion and credit access can improve financial inclusion.

Keywords: fintech budget 2026, UPI expansion, digital payment tax rebate

8️. Agriculture

Key Expectations:

• ‘One Nation One Fertiliser’ pricing
• Crop insurance premium subsidies
• Digital marketplaces for farmers

Impact Outlook:

These measures can stabilise rural incomes and improve agricultural productivity.

Keywords: agriculture budget 2026, crop insurance subsidy, digital agri marketplace

9️. Defence

Key Expectations:

• 75% indigenisation targets
• Export incentives for drones
• R&D funds for next-gen defence tech

Impact Outlook:

Defence modernisation and export promotion may boost domestic manufacturers.

Keywords: defence budget 2026 India, defence indigenisation, drone export incentives

10. Healthcare

Key Expectations:

• Enhanced Ayushman Bharat coverage (₹5 lakh increase)
• Faster hospital empanelment
• Reduced GST on medical services
• PLI for medical devices
• Vaccine innovation incentives

Impact Outlook:

Healthcare expansion improves accessibility and supports domestic manufacturing.

Keywords: healthcare budget 2026, Ayushman Bharat update, medical device PLI

11. Oil & Gas

Key Expectations:

• Rationalisation of crude oil cess
• Removal of 2.5% LNG import duty
• GST reduction on natural gas & CNG

Impact Outlook:

Cost rationalisation can support domestic energy affordability and infrastructure expansion.

Keywords: oil and gas budget 2026, LNG import duty removal, natural gas GST cut

FAQs – Budget 2026 Sector Outlook

1. Which sector may benefit most from Budget 2026?

Infrastructure, defence, and renewable energy could see strong allocation support.

2. Will EV subsidies continue?

Industry expectations suggest possible extension to sustain adoption.

3. How can MSMEs benefit?

Enhanced credit guarantees and depreciation benefits may improve liquidity.

4. Why is capital expenditure important?

Higher capex stimulates GDP growth, employment, and private investment.

5. How does Budget impact stock markets?

Sector-specific allocation often influences stock price movement in related industries.