Industry seeks policy stability, tax simplification and execution focus from Union Budget 2026: Grant Thornton Bharat survey

New Delhi: Indian industry is looking for policy stability, predictable taxation and stronger execution rather than headline-grabbing announcements from Union Budget 2026, according to a pre-budget expectations survey by Grant Thornton Bharat.

The survey, conducted ahead of the budget, indicates that with the economy expected to grow 6.5–7 per cent in FY26, businesses want continuity in policy direction to sustain momentum built on public capital expenditure, which has risen to more than three times its FY20 level. As this investment cycle matures, respondents emphasised the need to crowd in private investment through clarity, simplification and confidence in medium-term policy signals .

Fiscal discipline with growth focus

Industry respondents supported a calibrated fiscal approach, favouring growth-oriented public spending even as fiscal consolidation continues. Around 35 per cent said growth and employment should be prioritised even if deficit reduction slows, while 28 per cent preferred a balanced approach between fiscal discipline and growth. Only 26 per cent argued for strict fiscal prudence to sustain investor confidence, highlighting a nuanced expectation from Budget 2026 .

Innovation, R&D and infrastructure priorities

On innovation, businesses called for sector-specific innovation funds and weighted tax deductions for R&D, both emerging as top policy asks. Public–private partnerships in research were also strongly supported, indicating industry appetite for collaboration once core incentives are in place.

For infrastructure, the survey underscored that policy certainty matters more than incremental incentives. A stable tax regime for InvITs, REITs and infrastructure bonds was seen as the single most important driver to accelerate long-term infrastructure investment. In terms of sectoral priorities, renewable energy and storage topped the list, followed by urban infrastructure and transport and logistics .

Execution and ease of doing business

Execution emerged as a central theme, with digitised project-tracking dashboards, performance-linked incentives and improved inter-ministerial coordination identified as critical to timely completion of projects. On ease of doing business, companies want simplified compliance and licensing and time-bound service delivery from public authorities, placing process efficiency ahead of dispute resolution measures .

Trade, customs and tax reforms

Exporters called for a simpler and more predictable export-incentive framework, followed by faster conclusion of free trade agreements. In customs, alignment with global standards and reduced duties on strategic manufacturing inputs were seen as key to improving competitiveness.

On taxation, businesses flagged concerns around the transition to the New Income Tax Act, seeking extended timelines, early guidance and dedicated support channels. For individual taxpayers, lower tax rates or wider slabs under the new tax regime emerged as the top demand, reflecting continued expectations of relief on take-home pay.

GST reforms, meanwhile, are expected to focus on simplified input tax credit rules and a more stable rate structure, as compliance complexity and uncertainty continue to weigh on businesses .

Clean energy and green finance

With India targeting 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070, respondents identified tax credits for green capital expenditure and low-carbon R&D as the most effective fiscal lever to accelerate the clean-energy transition. Concessional tax regimes for green bonds and ESG-linked finance were also seen as important enablers.

Summing up the findings, the survey notes a clear shift in industry expectations away from big-ticket announcements toward clarity, predictability and execution, with Budget 2026 being viewed as a signal of India’s medium-term economic intent rather than a one-year policy statement.