EY India projects that the upcoming Union Budget 2026 will emphasise investment in sectors with the highest growth potential and provide tax certainty, thereby enhancing India's overall ability to tell its own story about its economy on a global basis. As a result of this emphasis on sectors that have the highest growth potential, the anticipated Budget will create a predictable policy framework founded on tax certainty and fiscal discipline. According to EY India, a predictable policy framework and a disciplined fiscal approach will fund private investment and enhance India’s ability to compete with the rest of the world. The anticipated Budget is also expected to provide sustained public investment combined with strategic reforms to create an environment that will foster confidence among investors and increase participation by the private sector. According to EY India, one area of focus in the Budget could be to expand the scope of the Production-Linked Incentive (PLI) programme to include investment in new technology sectors such as artificial intelligence (AI), robotics, and space, and to provide for continued public infrastructure investment in these areas.
EY India also believes that ensuring certainty around taxes and improving procedures for complying with tax laws will be essential to promote investment in developing sectors, where greater clarity in relation to the application of taxation law will help reduce disputes and create a smoother operating experience for businesses. An unambiguous taxation framework will help drive private sector expansion and provide stability for foreign investment over the long term. EY India believes that advocating these efforts will likely elevate India's growth prospects over the medium term and enhance its appeal as a place to invest.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.