As the Finance Ministry enters the final stages of preparing the Union Budget 2026, the chorus of expectations from India Inc. reveals a significant shift in tone. In previous years, the demands were often centered on immediate relief packages or broad-stroke stimulus.
This year, however, the narrative is far more nuanced. Captains of industry across sectors—from heavy logistics and manufacturing to luxury retail and fintech—are asking for structural maturity rather than populist fireworks. The overarching theme is a desire for policy stability, operational easing, and a pragmatic roadmap to the nation’s ambitious climate goals.
A primary focus this budget season is the urgent decarbonization of the logistics sector. While the electric vehicle narrative often dominates the headlines, the heavy transport industry is pragmatically looking toward Liquefied Natural Gas (LNG) as the immediate bridge to a cleaner future. Long-haul trucking remains the backbone of the Indian economy, yet it is also a significant contributor to carbon emissions. Industry leaders are arguing that waiting for battery technology to mature for heavy payloads is not a viable strategy. Instead, they are pushing for fiscal recognition of LNG as a critical transition fuel.
Deepak Acharya, CEO, INOX India Limited, articulates this specific need for a fiscal bridge.
“As India intensifies its focus on cleaner and more efficient freight mobility, we look forward to the upcoming Union Budget recognizing LNG as a critical transition fuel for long-haul transportation. While LNG trucks offer significant economic and environmental advantages, their adoption continues to face challenges such as higher upfront vehicle costs, limited refueling infrastructure, and fuel pricing complexities arising from multi-layered taxation.
From the Budget, there is a strong expectation of targeted fiscal measures that can bridge this cost parity gap, including rationalization of GST, accelerated depreciation benefits, and direct purchase incentives for LNG-powered heavy vehicles. Equally important will be policy support to accelerate the development of LNG refueling corridors through viability gap funding, concessional financing, and strategic land allocation along national highways.
A forward-looking Budget that prioritizes uniform taxation, competitive fuel pricing, and infrastructure-led growth can significantly boost LNG adoption across logistics fleets. This will not only reduce freight emissions and operating costs but also strengthen India’s energy security, support domestic manufacturing of cryogenic equipment, and contribute meaningfully to the nation’s long-term decarbonization goals.”
This push for sustainability is not limited to logistics. The broader industrial economy is also seeking a framework that rewards green resilience. Manufacturers are looking for the government to underwrite the initial costs of adopting energy-efficient technologies, arguing that climate leadership comes with a price tag that the private sector cannot bear alone.
Deepak Pahwa, Chairman, Pahwa Group & Managing Director, Bry-Air, highlights this need for a supportive ecosystem.
“The upcoming budget is expected to give a decisive push towards achieving India’s ambitious climate goals. In the pursuit, the policies should focus on industrial economy hinging on green and resilient infrastructure. Initiatives for boosting sustainable manufacturing, adoption of energy-efficient technologies and decarbonizing the industry should form the core of the framework.
Accordingly, it is expected that the upcoming budget will table fiscal incentives for promoting green industry delving deep into pioneering environmental control solutions. Investments in climate-robust infrastructure for reducing emissions across the production cycles will aid in fortifying global competitiveness of the industry. Altogether, prioritizing operational efficiency, circular models and optimal resource utilization will help mitigate the carbon footprint of the industries and instate their climate leadership globally.”
While the large industrial players focus on long-term climate goals, the Small and Medium Enterprises (SME) sector is fighting a more immediate battle for survival. For many manufacturing SMEs, the current Goods and Services Tax (GST) structure presents a severe liquidity challenge. Manufacturers often find themselves in the unenviable position of funding the tax liability upfront upon raising an invoice, while actual payments from buyers may take months to materialize. This mismatch drains working capital and acts as a brake on growth.
A. Vikram Joshe, Founder, WAE Corp., presents a candid view from the factory floor.
“As a manufacturing SME, our foremost expectation from the Budget is a fundamental correction in how GST is imposed. Today, manufacturers are forced to act as financiers to the tax system—paying GST upfront after investing capital in raw materials, production, and compliance, while payment from buyers is realised months later. This structure severely strains working capital and penalises those who actually create goods and jobs. GST must move to a buyer-paid or cash-realisation basis for SMEs. If the intent is to strengthen manufacturing, liquidity cannot be drained at the factory gate. Relief here would immediately unlock growth, improve compliance, and reduce dependence on debt.”
In contrast to the calls for reform in manufacturing, the consumer-facing luxury automobile sector is asking for something simpler: silence. In high-ticket markets where consumer sentiment is fragile and driven by confidence, constant tinkering with tax rates can be detrimental. The pre-owned luxury car market, which is rapidly organizing, relies heavily on predictability.
Himanshu Arya, Founder, Luxury Cart, explains the value of consistency.
“Ahead of the Budget, I don’t think the industry is looking for anything dramatic. What matters more is that there are no surprises. In the pre-owned luxury car space, clarity around taxation and ownership transfers makes a real difference to day-to-day transactions. Buyers are already careful with their decisions, especially in a high-value category like this. When rules keep changing, people tend to pause rather than move ahead. The resale market does play a role in keeping cars in use for longer, but it works best when the ground rules are clear. When there is consistency, businesses know how to operate and customers feel comfortable taking a call in their own time, without feeling pushed or held back.”
Finally, the budget expectations extend to the human capital that powers these industries. In the fast-evolving fintech sector, the challenge is no longer just about finding bodies to fill seats but about finding quality talent that can navigate the intersection of finance, technology, and compliance.
Gaurav Sharma, Chief Human Resources Officer, Balancehero India, points to the need for specialized skilling.
“Ahead of the Union Budget, there is a growing need to move the focus from job creation in numbers to building high-quality, future-ready roles. In fintech and digital lending, organisations need talent that understands both digital systems and evolving compliance requirements. Higher fund allocation to Skill India programmes, particularly for digital and compliance-focused roles, along with incentives for startups that collaborate with academic institutions, can help create a more prepared workforce. A budget that supports such measures while enabling startups to generate sustainable employment will be critical for responsible growth in the digital economy.”
As the clock ticks down to February 1, the Finance Minister faces the complex task of weaving these diverse threads—green transition, tax rationalization, policy stability, and high-end skilling—into a coherent economic tapestry.
