The Budget 2026: Preview
As Budget 2026 approaches, one thing is becoming clear. The policy narrative is shifting from capacity creation to operational competitiveness.
Industry expectations suggest the government is preparing a budget that strongly favours manufacturers and exporters, but with a critical caveat. Incentives alone won’t matter unless long-standing execution bottlenecks are fixed.
Industry Expectations
Customs & Trade Simplification
A major expectation is the rationalisation of customs duties, potentially cutting slabs from eight to four or six. The goal:
Reduce compliance friction
Fix duty inversions where inputs cost more than finished goods
Improve export price competitiveness
This directly strengthens Make in India against imports.
PLI Expansion into Next-Gen Manufacturing
Industry expects PLI schemes to expand into:
Industrial automation & robotics
Green-tech manufacturing
Electronics and advanced components
The emphasis is shifting from “more factories” to smarter, more productive factories.
Corporate Tax & Investment Push
There’s strong demand to extend the 15% concessional tax rate for new manufacturing units, especially to unlock stalled private investments and greenfield projects.
Infrastructure, Logistics & Export Support
Continued high capex (₹11.21 lakh crore expected) for railways, renewables, ports, and digital infrastructure
Faster logistics through freight corridors, port-led development, and GatiShakti-style integration
Export-facing relief to cushion global tariff shocks and accelerate FTAs
The focus is clear: lower logistics costs, faster movement, and predictable trade.
What Will Decide The Success
The real test of Budget 2026 won’t be announcements; it will be execution.
Manufacturers are watching closely for:
Faster MSME payment cycles (especially from PSUs)
API-driven customs systems and digital invoice tracking
Time-bound dispute resolution (Customs Amnesty Scheme)
Clear long-term signals for green steel, energy storage, and advanced materials
These reforms unlock cash flow, reduce uncertainty, and enable scale.