Union Finance Minister Nirmala Sitharaman conducted a comprehensive pre-Budget consultation meeting with States and Union Territories with legislatures in New Delhi, as part of the preparatory process for the Union Budget 2026-27. The high-level consultation brought together key state leadership and senior finance officials to discuss budgetary priorities and recommendations.

Key Participants and Attendance

The consultation meeting witnessed significant participation from state leadership across the country. Minister of State for Finance Pankaj Chaudhary joined the proceedings alongside Sitharaman.

Government Representation

The meeting included comprehensive representation from the Ministry of Finance, with Secretaries from three key departments participating in the consultation process:

• Department of Economic Affairs
• Department of Expenditure
• Department of Revenue

This multi-departmental approach ensures that various aspects of fiscal policy and budgetary considerations are adequately addressed during the consultation process.

Budget Timeline and Significance

The government has confirmed its commitment to presenting the Union Budget on February 1, maintaining the established timeline. The Union Budget for 2025 was presented on February 1, and the Budget for 2026 is scheduled for the same date.

The upcoming Budget presentation will mark a significant milestone for Sitharaman, as it will be her ninth consecutive Union Budget presentation, highlighting her sustained leadership in India's fiscal policy formulation.

Consultative Process Framework

These pre-Budget meetings represent a crucial component of the government's consultative approach to budget preparation. The sessions are designed to gather comprehensive views and suggestions from States and Union Territories, ensuring that regional perspectives and priorities are incorporated into the national budgetary framework. This collaborative approach strengthens the federal structure by providing states with a platform to contribute to national fiscal policy discussions.

Industry leaders across real estate, insurance, FMCG, infrastructure, telecom, biotechnology and hospitality sectors are calling for targeted fiscal support, tax rationalization and faster policy execution ahead of Union Budget 2026. The collective demand centers on sustaining India's growth momentum amid global uncertainty through ease of doing business measures, affordability initiatives and long-term policy visibility.

Real Estate Sector Seeks Growth-Focused Incentives

Real estate developers are prioritizing policy continuity and buyer-friendly measures, particularly for the National Capital Region (NCR) market. The sector's key demands focus on supporting residential and commercial activity through multiple policy interventions.

Ashish Agarwal, Director at AU Real Estate, emphasized that stable policies and growth-focused incentives will be crucial for sustaining momentum in the NCR luxury housing market. He noted that increasing incomes, wider global exposure and preference for secure, amenity-rich communities are driving demand for premium homes.

Parvinder Singh, CEO of Trident Realty, highlighted that infrastructure bottlenecks and approval delays remain key challenges. The sector is also pushing for easier access to home loans and incentives for first-time buyers to support long-term demand.

Senior Living Recognition Sought

The upcoming Budget presents an opportunity to formally recognize senior living as a distinct real estate category. Anil Godara, Founder and Managing Director of J Estates, said the aging population requires well-designed, secure retirement communities with appropriate policy support including GST rationalization and clear guidelines.

Insurance Industry Demands Enhanced Tax Benefits

Insurance companies are advocating for deeper tax incentives and broader risk coverage to improve market penetration. The sector's expectations span health insurance, agricultural insurance and life insurance reforms.

Subrata Mondal, Managing Director and CEO of IFFCO-TOKIO General Insurance, welcomed recent GST rationalization on health insurance but emphasized that current income-tax deduction limits under Section 80D do not reflect rising medical inflation. He suggested doubling the deduction would encourage households to opt for adequate health cover.

Sharad Mathur, MD and CEO of Universal Sompo General Insurance, said achieving 'Insurance for All by 2047' requires shared digital infrastructure and sustained funding for insurance literacy programs.

FMCG and Telecom Sectors Eye Growth Support

FMCG players remain optimistic about continued consumption support through policy measures. Praveen Jaipuriar, CEO of CCL Products (India) Ltd, noted that GST rationalization in 2025 helped improve affordability and demand across key consumer categories. The sector is also highlighting the role of Free Trade Agreements in boosting export competitiveness.

The telecom sector seeks targeted support for transitioning toward AI-native networks. Industry leaders are calling for strengthened production-linked incentives for indigenous manufacturing and capex support for next-generation infrastructure to boost India's self-reliance and global competitiveness.

Hospitality and Coworking Sectors Push for Industry Status

The hospitality sector continues advocating for comprehensive infrastructure status beyond current partial recognition. Shwetank Singh, Executive Director of Chalet Hotels Limited, emphasized that infrastructure classification unlocks soft financing and rationalized costs, while bringing tourism into the concurrent list can improve Centre-State coordination.

Coworking operators are pushing for tax rationalization to support India's hybrid work transition. Sanjay Chatrath, Co-founder and Managing Partner of Incuspaze, said lowering GST on coworking services and allowing full input tax credit on fit-outs would improve cost efficiency.

Infrastructure and Cement Outlook

Infrastructure spending remains a key growth lever for the cement sector. Maitri Vira, Assistant Vice President and Sector Head at ICRA, expects sustained government focus on infrastructure, rural economy and affordable housing to support cement demand growth of 6-7 percent in FY2027. Rural housing and infrastructure account for over half of cement consumption, making increased allocations toward roads, railways, metros and urban infrastructure critical for volume visibility.

As Budget 2026 approaches, industry expectations reflect a clear demand for policy continuity, targeted tax relief and infrastructure-led growth. The government's response to these sectoral demands will significantly influence investment sentiment and economic momentum in the coming year.