As the FY 2025-26 comes to an end, industry leaders are looking forward to the Union Budget 2026. Industry leaders across sectors are closely watching policies to shape growth, investment, and employment in the year ahead. It is pertinent to note that the 2026 budget comes against the backdrop of the new reforms in the labour codes, and a lot of discussions and debates around the safety of the gig workers
Amid such a scenario, the HR leaders and policymakers are looking for ways to be laid out by Finance Minister Nirmala Sitharaman to help companies align with the new labour codes for better compliance
However, the expectations and impact vary from industry to industry. From tax reforms and infrastructure spending to skilling and innovation, here’s what experts from multiple industries have shared about their expectations from the Union Budget 2026:
- Raghu Pareddy, CEO & Founder, Wissen Technology (IT & Digital Transformation)
As India prepares the upcoming Union Budget 2026, the technology and startup ecosystem is expecting strong policy support and fiscal measures to accelerate innovation, deepen digital infrastructure, and strengthen global competitiveness. Continued focus on AI, data centres, semiconductor design, and R&D incentives will help build long-term digital resilience, while large-scale upskilling initiatives can address the growing tech talent gap. A forward-looking budget that treats technology as a core economic enabler will be critical in positioning India as a global hub for innovation and digital services. An understanding to enhance funding for deep-tech, AI, data, and cybersecurity startups, rationalised tax and ESOP reforms, and simplified compliance will be the key to enabling sustainable growth.
- Piyush Bagaria, Co-Founder, SalarySe (Fintech)
“As India readies for Budget 2026-27, it has become paramount that fiscal reforms are introduced proactively for the benefit of not only achieving macroeconomic stability but also for making the Indian workforce empowered as well. Open fiscal policies that outline pragmatic fiscal programming for managing deficits, combined with strategic public spending will allow for greater confidence among investors. Giving importance to governance that focuses on technology, green economic systems, and equal fiscal models will allow us to fortify the foundation of our economy. At SalarySe, it has become our primary concern that fiscal reforms that spread focus on spreading transparency, skill-building values, and equal opportunities, combined with greater use of credit on UPI, will help initiate earning for India’s workforce.”
- Sonal Arora, Country Manager, GI Group Holding (Staffing)
“We hope that the Union Budget 2026 will build on the initiatives taken in 2025 and earlier years to further incentivise new employment creation, particularly in manpower-intensive sectors such as Manufacturing, BFSI, GCCs, Retail, E-commerce, and Logistics, as well as in new-economy industries like EVs and Renewable Energy.
At a policy level, the push on skilling and employability needs to intensify, with sharper alignment to industry needs. At the same time, the industry across sectors would benefit from further improvements in ease of doing business and regulatory simplification.
There also needs to be a much stronger policy push to increase women’s participation in the
workforce, both for new entrants and for retention. Even today, only about one-third of working-age women are part of the labour force, despite recent improvements. The 2026 budget should consider targeted incentives for companies that hire and retain women, along with support for flexible work models and childcare infrastructure. Focused skilling programs for women across sectors will also be critical. This is one of the fastest ways to unlock both inclusive growth and large-scale job creation.”
- Kumar Anubhav, Founder, Bridgers (Public Relations & Communications Startup)
We’ve proven that talent isn’t exclusive to metro cities. For the 2026 Union Budget, I am looking for policy interventions that incentivise decentralised employment. We need tax benefits for startups that actively hire from Tier-2 and Tier-3 cities, effectively redistributing economic growth. If we want ‘Viksit Bharat,’ the budget must bridge the digital and infrastructural gap between India and Bharat, allowing founders to build diverse, remote-first teams without operational friction
- Meghna Agarwal, Co-Founder, IndiQube (Commercial Real Estate)
“It’s a well-known fact that if India’s female labour force participation rate reached 50%, in line with global counterparts. Budget 2026 has the opportunity to give impetus in this direction and treat women not as a special category but as a core economic growth engine. The focus should be on building systems that allow women to participate, lead and scale at parity.
Despite women owning nearly 20% of MSMEs in India, they receive less than 7% of formal credit, highlighting a significant scale gap. Addressing access to growth capital beyond early stages through targeted credit guarantees and incentives for institutional funding can unlock scaling and job creation.
Equally critical is sustained investment in skilling, childcare infrastructure and flexible work models. Studies consistently show that the availability of childcare and flexible work options can improve women’s workforce participation by over 10% points. Simplified compliance and incentives for gender diverse leadership can further amplify outcomes, creating long-term and economy-wide impact.”
TPB Opinion
Some common themes that the market experts shared were the need for skill development, policies for better AI readiness, mobilisation of talent beyond the Tier-1 cities, and increased women’s participation in the workforce
- Skills, digital transformation, AI and employability
In terms of skill development, it is crucial to focus beyond large-scale training announcements. The focus needs to shift towards industry-aligned curricula, apprenticeship-led learning, and continuous reskilling for mid-career professionals
As AI, automation, and data-driven roles expand, the 2026 Budget is expected to strengthen frameworks that ensure skills remain relevant, transferable, and future-proof, particularly for young entrants and transitioning workers.
But in addition to skills, TPB is also looking forward to the finance minister making announcements about policies for better compliance with AI in the age of digital transformation
- Focus on MSMEs
In December 2025, Shobha Karandlaje, Minister of State for MSMEs, stated during a Parliament session that about 24,000 MSMEs closed between July 2020 and November 2025. Notably, this happened at the cost of 1,61,580 jobs across the country. With those alarming numbers, expectations from the FM are that she will announce policies for boosting the operations of MSMEs.
MSMEs continue to be India’s largest employment generators, yet they remain the most vulnerable to regulatory complexity and credit constraints. Industry leaders are looking for targeted interventions that simplify labour compliance, improve access to affordable credit, and support technology adoption at scale. Strengthening MSMEs through tax reliefs, digital enablement, and skilling support could have a multiplier effect on employment, regional development, and supply chain resilience.
- Taxation
Simplified tax structures, relief for startups and MSMEs, clarity on ESOP taxation, and incentives for R&D and innovation are seen as critical to improving ease of doing business. For the workforce, measures that enhance disposable income, encourage formalisation, and support benefits such as skilling allowances or childcare-linked tax incentives could directly impact participation and productivity.
Though the government brought about major changes in the tax slab last year. TPB looks forward to the Union Budget 2026 for policies to boost the financial knowledge of the workers, with a focus on women.
- Formalisation of labour
Notably, the government has been highly vocal about the formalisation of labour. In 2024, FM Sitharaman managed to engage the Indian HR fraternity with the announcement of the Employment Linked Incentive (ELI) Scheme. Also, multiple times during Parliament sessions and other Budget sessions in the past, the FM has spoken about registration of labour on the EPFO portal.
With that history, the Union Budget 2026 has the opportunity to connect these intentions with impact, enabling future-ready skills without widening access gaps and ensuring that growth remains both scalable and inclusive. If these priorities are addressed with clarity, this budget could mark a significant shift in how India prepares its workforce for the years to come.
