As India approaches Union Budget 2026-27 amid global economic uncertainty, industry leaders across crypto, startup, healthcare, and financial services sectors are unified in their call for policy clarity, regulatory stability, and enhanced focus on technology-driven growth over populist measures.

Crypto Industry Seeks Regulatory Framework

The digital asset ecosystem awaits clear regulatory direction in the upcoming budget. Raj Karkara, COO of ZebPay, emphasised that Budget 2026-27 represents a critical juncture for India's crypto industry, with stakeholders prioritising a consistent regulatory framework to build investor confidence and enable businesses to operate within defined parameters.

Key taxation concerns dominate industry expectations:

Karkara highlighted that clearer policy direction could unlock India's Web3 innovation potential and strengthen the country's position in the global crypto economy, particularly with enhanced AML measures already implemented through FIU registration.

Startup Ecosystem Demands Simplified Compliance

Venture capital leaders acknowledge recent policy initiatives while emphasising execution challenges. Archana Jahagirdar, Founder and Managing Partner at Rukam Capital, noted that measures such as the ₹1 lakh crore RDI Fund and state-level startup policies in Delhi and Karnataka have helped bridge the research-commercialisation gap.

The startup community expects Budget 2026-27 to address several key areas:

• Simplified compliance procedures
• Clearer tax frameworks for startups
• Enabling dual listing mechanisms
• Incentivising domestic capital participation at early stages

Jahagirdar stressed that founders require stability and market access rather than frequent policy changes to convert government intent into sustainable long-term outcomes.

Healthcare Sector Advocates Preventive Care Focus

Healthcare industry leaders are pushing for a structural shift towards preventive care in Budget 2026-27. Lavanya Shastri, Founder & CEO of Adivaa, highlighted that rising lifestyle-related health issues necessitate policy attention beyond traditional hospital and medicine-focused approaches.

The healthcare sector's budget expectations include:

Sajeev Nair, Founder and Chairman of Vieroots, and Masaharu Morita of NURA AI Health Screening Centre support this preventive care approach, arguing that early detection and preventive measures can reduce long-term healthcare costs while easing pressure on tertiary care infrastructure.

Financial Services Focus on Trust and Fiscal Discipline

The BFSI sector emphasises continuity and fiscal responsibility in Budget 2026-27. Ravindra Rai, MD & CEO of BOBCARD Limited, identified sustained emphasis on digital payments, cybersecurity, and secure financial infrastructure as critical for strengthening trust in digital credit adoption.

Rai also advocated for policy support enabling alternative credit assessment models using transaction and cash-flow data to integrate underserved consumers into the formal credit system.

Saurav Ghosh, Co-founder of Jiraaf, highlighted investor focus on fiscal consolidation and deficit guidance. According to Ghosh, a credible pathway towards lower deficits can help maintain stable bond yields and enable corporates to access debt markets with greater confidence.

Industry Consensus on Stability

Across all sectors, the common theme emerging ahead of Union Budget 2026-27 is the preference for policy stability and regulatory clarity over short-term incentives. Industry leaders emphasise that consistent frameworks and technology-focused growth strategies will better serve India's long-term economic interests than populist measures, particularly given the current global economic uncertainties.

India's Union Budget 2026 is expected to prioritise defence-led capital spending while maintaining fiscal discipline, according to a budget preview by Motilal Oswal. The brokerage anticipates the February 1 exercise will focus on defence and allied industries, infrastructure-linked manufacturing, power, electronics, pharmaceuticals and critical minerals, while keeping revenue expenditure under control.

Fiscal Deficit and Growth Projections

Motilal Oswal expects the gross fiscal deficit to decline marginally to 4.3% of GDP in FY27 from 4.4% in FY26, marking a shift towards using debt-to-GDP as the primary fiscal anchor. The budget framework assumes nominal GDP growth of approximately 10.1%, providing limited room for growth support without compromising fiscal consolidation.

Capital Expenditure Focus

The brokerage forecasts capital expenditure to rise 10.3% year-on-year to ₹12.40 trillion in FY27, maintaining its share at around 3.1% of GDP. Defence and allied industries are expected to lead this capex push, with the Defence Acquisition Council already approving capital acquisition proposals worth ₹790.00 billion in its winter session.

The FY26 year-to-date defence approvals of approximately ₹3.30 trillion represent nearly double the budgeted defence capital outlay for the year. Other priority sectors include nuclear energy, electronics manufacturing, power, pharmaceuticals and strategic investments in critical minerals.

Revenue Projections and RBI Dividends

On the revenue front, Motilal Oswal projects steady growth with direct taxes expected to track nominal GDP growth, reaching ₹25.70 trillion in FY27. Indirect taxes, including GST collections, are likely to grow at a slower pace. Non-tax revenues will play a crucial role, with dividends from the RBI and public sector undertakings estimated to rise to ₹3.80 trillion in FY27, supported by RBI's dollar sales boosting central bank profitability.

Borrowing Requirements and Bond Yield Outlook

Despite marginal deficit improvement, borrowing requirements remain elevated. The Centre's gross market borrowings are forecast at ₹16.50 trillion in FY27, with net borrowings of ₹11.90 trillion. State governments are expected to add ₹13.20 trillion in gross borrowing, taking aggregate Centre plus state gross borrowing to ₹29.70 trillion.

This heavy supply, combined with subdued demand from banks, insurers and foreign investors, is likely to keep the 10-year government bond yield in the 6.5% to 6.7% range through FY27.

Investment Themes and Market Outlook

Motilal Oswal views Budget 2026 as a reaffirmation of existing strategy rather than a policy pivot. For equity investors, preferred themes remain defence and allied industries, infrastructure-linked manufacturing, power, electronics, pharmaceuticals and critical minerals. The budget arrives after a normalisation in government capital spending execution and cooling investor enthusiasm for capex-linked sectors, making it a test of policy credibility for sustaining India's capex-led growth narrative.