Job creation has emerged as the top priority for the upcoming Budget 2026, according to a comprehensive survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI). The survey, which polled 100 companies, provides crucial insights into industry expectations as Finance Minister Nirmala Sitharaman prepares to present the budget on February 1.

Key Budget Priorities Identified

The FICCI survey reveals a clear hierarchy of priorities that businesses want the government to address in the upcoming budget:

Sectoral Focus Expectations

Respondents have clear expectations about which sectors will receive maximum government attention in Budget 2026. Over half of all survey participants believe infrastructure development will be the primary focus area, reflecting the sector's critical role in economic growth.

Export Support Measures in Demand

With global trade facing significant disruptions, particularly due to tariff regimes initiated by major economies, export support has become a critical concern for Indian businesses. The survey identifies specific measures that companies believe will help ease stress on exporters:

Customs Process Improvements

The survey delves deeper into what improvements in customs processes should entail, with respondents providing specific recommendations:

• Easier regulations: Supported by 90% of respondents
• Lower duties: Backed by 69% of participants
• Greater digitisation: Favored by 59% of companies
• Faster rulings and dispute resolution: Desired by 46% of respondents

These findings reflect the business community's focus on operational efficiency and cost reduction in international trade operations. The emphasis on digitisation and streamlined processes indicates industry recognition of technology's role in improving trade facilitation.

Industry Outlook

The FICCI survey underscores the private sector's expectations for Budget 2026 to address both immediate challenges and long-term growth drivers. The prioritization of job creation reflects ongoing concerns about employment generation, while the focus on infrastructure and manufacturing aligns with broader economic development goals. The significant attention to export support measures highlights the need for policy interventions to maintain India's competitiveness in global markets amid evolving trade dynamics.

As the Union Budget 2026 approaches, leaders across the NBFC and microfinance ecosystem are prioritizing liquidity support, stronger risk-sharing frameworks, and policy clarity to sustain credit flow to MSMEs, first-time borrowers, and underserved segments. Industry executives report that while demand for retail and small business credit remains resilient, lenders require structural support to manage funding costs, asset quality pressures, and recovery timelines, particularly in rural and semi-urban markets.

Credit Guarantee Schemes Take Center Stage

Credit guarantees have emerged as the primary demand from industry leaders for supporting micro borrowers and MSMEs. Shubha Bhanu, Associate Partner at MicroSave Consulting (MSC), highlighted expectations for relief measures through new credit guarantee schemes that would help smaller MFIs expand outreach and support borrowers. The microfinance sector has faced significant stress over the past year due to localized over-indebtedness, regulatory tightening, portfolio quality pressures, and funding challenges.

Manish Shah, MD & CEO of Godrej Capital, emphasized that the Budget can support financial deepening by strengthening risk-sharing structures such as credit guarantees and co-lending frameworks, which would help reduce borrowing costs and improve repayment predictability.

Refinance Windows and Long-Term Capital Access

Industry experts expect Budget 2026 to address funding friction by improving access to stable and longer-tenure capital. The following key proposals have been outlined:

Deepak Aggarwal, Co-founder, Co-CEO and CFO of Moneyboxx Finance, called for placing rural and semi-urban MSMEs and first-time borrowers at the center of the inclusion agenda, with NBFCs serving as the primary conduit for formal credit in these markets.

Ravi Narayanan, MD & CEO of SMFG India Credit, identified three structural priorities for Budget 2026-27: liquidity support, recovery mechanisms, and tax relief. He specifically advocated for a dedicated refinance window for NBFCs and expanded credit guarantee coverage to lower funding costs.

SARFAESI Threshold Reduction Gains Momentum

Multiple industry leaders have reiterated demands to lower the SARFAESI Act's minimum loan threshold for NBFCs from ₹20.00 lakh to ₹1.00 lakh to improve recovery efficiency and support asset quality. This reform would restore parity with housing finance companies and strengthen the recovery framework.

Bhupinder Singh, Promoter & CEO of InCred Holdings, described this as a decisive reform that could strengthen India's retail credit ecosystem, which continues to experience structural growth driven by rising consumption and deeper financial inclusion.

Digital Lending Framework and Technology Focus

Fintech-linked lenders and credit platforms expect policy clarity around digital lending with emphasis on transparency and consumer protection. Rohit Garg, CEO of Olyv, called for consistent policy frameworks for digital lending, stronger data infrastructure, and continued emphasis on financial literacy to ensure responsible credit delivery.

Joydip Gupta, APAC Head at Scienaptic, highlighted the importance of managing credit growth sustainably through stronger digital lending infrastructure and analytics-driven credit appraisal, enabling lenders to scale without taking undue risk.

Growth Projections and Recovery Outlook

The sector maintains a cautiously optimistic outlook despite ongoing challenges. Narayanan projected that overall credit demand remains healthy, but the sector is entering a phase of moderated growth.

Additional reform priorities include easing regulations around factoring services and accelerating adoption of TReDS platforms to enable faster working capital cycles for MSMEs, supporting the broader goal of financial inclusion and economic growth.