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