Budget
EY India outlines key expectations from Union Budget 2026
NEW DELHI: With the global economy wobbling and capital turning cautious, EY India believes the Union Budget 2026 has a clear job at hand. Keep growth on track, bring certainty to taxes and nudge private investment back into action.
According to EY, the budget should act less like a spreadsheet and more like a roadmap, one that balances fiscal discipline with bold intent. The idea is simple. Predictable policies attract investors, stable taxes reduce friction and targeted incentives help sectors do the heavy lifting.
EY India national tax leader Sameer Gupta, says the next phase of growth will depend on confidence as much as capital. He points to an expanded production linked incentive scheme as a quick win, especially for future-facing sectors such as artificial intelligence, space and robotics. Public investment in these areas, he adds, can crowd in private money and spark innovation.
Tax certainty, however, remains the big ask. Businesses want fewer surprises and smoother compliance, not rule changes that feel like moving goalposts.
Cleaning up indirect taxes
EY has called for practical tweaks to make customs and indirect taxes less of a maze. A one-time dispute resolution scheme under customs law could unlock revenue stuck in litigation, building on the success of earlier settlement programmes.
Extending the validity of customs advance rulings from three to five years would give businesses breathing room and reduce disputes. Simplifying the customs tariff structure, with sector-wise rationalisation and closer alignment to global rates, could also help Indian goods stay competitive abroad.
Direct taxes need calm and clarity
On direct taxes, EY stresses the importance of a smooth rollout of the New Income Tax Act 2025. Clear guidelines and FAQs, it says, are essential to prevent confusion and avoid a fresh wave of litigation.
The firm also wants a steadier tax regime overall, with fewer rate changes and clearer rules. Rationalising TDS is high on the wish list. With dozens of rates currently in play, disputes and refund delays are common. EY suggests trimming this down to three or four rates and exempting GST-backed B2B payments altogether.
To boost manufacturing, EY has backed the return of accelerated depreciation, without triggering minimum alternate tax. It also wants stronger incentives for job creation, proposing a higher salary threshold for employment-linked benefits.
Making India investor-friendly
For foreign investors, EY underlines the need for clear rules on permanent establishment and profit attribution. Codified guidance would reduce uncertainty and ease cross-border tensions. An optional presumptive tax regime for select foreign service providers could further simplify matters.
Other suggestions include rationalising transfer pricing rules, decriminalising minor tax offences in line with Niti Aayog recommendations and bringing clarity to the taxation of digital assets such as cryptocurrencies and NFTs.
Sector-specific nudges
EY’s wish list also dives into sector-specific reforms. Retailers could benefit from digital customs processes linked to GST systems. Aerospace and defence players may gain from wider tax exemptions on training and ground equipment.
The chemical and life sciences sectors are seeking stronger R and D incentives, while technology and telecom firms want easier access to input tax credits and simpler registrations. Financial services players are pushing for extended tax holidays for IFSC units and better pass-through rules for special situation funds.
The bigger picture
In EY India’s view, budget 2026 has the chance to reinforce India’s growth story without flashy gimmicks. A predictable tax framework, steady public investment and targeted sector support could unlock private capital and keep the economy moving, even as global winds remain uncertain.
In short, less noise, more clarity and a steady hand on the tiller.
MUMBAI: Anuj Singhal, managing editor at CNBC- AWAAZ and CNBC BAJAR, operates at the sharp end of India’s business news ecosystem. With over two decades in business journalism, he has earned credibility for decoding policy, markets and macro trends for millions of Hindi-speaking investors. Equal parts newsroom leader and market analyst, he shapes editorial direction while anchoring flagship shows that break down the economy, politics and corporate India in real time.
Known for cutting through jargon and hype, Singhal blends data, discipline and clarity — a mix that has made him one of the most trusted voices in Hindi business news.
In this interaction, he discusses the Union Budget, trade deals, newsroom strategy and what truly moves markets and ratings.
• What was the single most market-moving announcement in this Budget, and why?
The most market-moving element was the clear commitment to fiscal consolidation without compromising capex. The glide path on fiscal deficit reassured bond markets and foreign investors, while sustained public investment kept growth expectations intact. That balance removed a big overhang for both equities and debt.
• Do you see this Budget as growth-oriented, fiscally cautious, or politically calibrated?
This Budget is growth-led but fiscally disciplined. It avoids overt populism, stays within macro guardrails, and prioritises medium-term competitiveness over short-term optics. Politically, it is restrained; economically, it is deliberate. The message is clear: stability over spectacle.
• How is CNBC-AWAAZ programming different, especially in decoding trade deal impact?
CNBC-AWAAZ goes beyond headline reaction. We translate policy into portfolio impact — sector by sector, stock by stock.
On trade agreements, our focus is on:
-Earnings visibility
-Export competitiveness
-Currency implications
-Margin sustainability
We don’t treat trade deals as political milestones. We decode them as profit-and-loss events for corporate India and map them to FY earnings trajectories.
• Which sectors look like clear winners and laggards over the next 12–18 months?
The next 12–18 months favour sectors aligned with structural spending and supply-side strengthening.
– Clear beneficiaries:
Capital goods and infrastructure
Manufacturing linked to export chains and PLI ecosystems
Power, defence, and logistics
– Relative laggards:
Consumption segments dependent on immediate demand revival
Businesses facing margin pressure from global volatility or pricing power erosion
This is not a momentum-driven market environment. It is execution-driven. Balance-sheet strength and order visibility will matter more than narrative.
• One headline to sum up this Budget 2026 for India Inc?
“Steady Hands, Long-Term Vision: A Budget That Rewards Discipline Over Drama”.
• What editorial filters do you apply before calling something ‘market-positive’ or ‘negative’?
We apply three structured filters:
– First: Earnings translation — does this materially change earnings visibility or cash flow outlook?
– Second: Time horizon — is the impact immediate, cyclical, or structural?
– Third: Valuation context — good news priced in or not.
If a policy doesn’t move earnings or risk perception, we don’t oversell it.
• How has business news consumption changed around big policy events?**
There has been a clear behavioural shift. They’re less interested in what was said, more in what it means for their money. There’s also a clear shift toward second-screen consumption, with digital platforms complementing live TV. The audience seeks sharper accountability. Viewers no longer accept broad optimism or pessimism — they want frameworks, numbers, and sector mapping.
• CNBC-AWAAZ decisively outperformed on Budget Day. What editorial and distribution choices mattered most?
Three deliberate strategic choices:
– Preparation depth:
We build scenarios months in advance — deficit ranges, sectoral incentives, tax calibrations — so we’re ready with analysis the moment numbers are announced.
– Language of impact:
We translate macro policy into investor-friendly Hindi without diluting complexity. That bridges accessibility and sophistication.
– Integrated distribution:
Television, YouTube, and digital platforms operate as one editorial grid, not parallel silos. This ensures continuity of narrative.We stayed analytical while others stayed reactive.
• How different is your YouTube audience from your TV audience?
The behavioural differences are subtle but important. TV audiences prioritise authority, structured debate, and context. YouTube audiences want speed, clarity, and actionable insights — often sharper, sometimes more opinionated. However, both share one expectation: accuracy. The format evolves; the trust benchmark does not.
• How do you retain viewers after the budget speech ends?
By shifting from announcements to implications.Retention comes from shifting the narrative from announcement to implication. We break down sectoral breakouts, stock-level impact, and what to do next. The speech is just the trigger; analysis is the destination.
• Is Budget Day your biggest traffic day?
It is one of the biggest — but more importantly, it is among the deepest in engagement. Viewers spend longer durations, revisit segments, and seek follow-up programming. That indicates behavioural trust, not just traffic.
• What’s the first thing you personally track on Budget Day — the speech or the markets?
The markets. They’re the fastest truth-teller. The speech explains intent; markets reveal interpretation.
• Your personal Budget-day ritual?
Early morning prep, minimal distractions, and once the speech begins, complete immersion. For me, Budget Day is less about reaction and more about reading between the lines.
• What drove your Budget-day ratings dominance, and how are Budget and trade deals shaping markets now?
Our dominance came from credibility, consistency, and clarity.
As for markets, both the Budget and recent trade deals are reinforcing a narrative of policy stability and global integration, which supports valuations even amid global volatility.
For Singhal, the market is the final judge. Policies can promise and speeches can persuade, but prices reveal what investors truly believe. As India’s investor class grows more informed and more demanding, business journalism is shifting from commentary to calibration. The premium is on clarity, context and credibility. In a landscape flooded with noise, the real edge lies in interpretation. In the end, the markets listen to numbers, not narratives , and Singhal’s craft is helping viewers tell the difference.
