Budgetary Insights for Key Industries

Agri and Allied (Fertilisers)

The government is anticipated to allocate approximately Rs 1.68 lakh crore to fertiliser subsidies, ensuring timely disbursement and manageable subsidy receivables for the industry. Expectations include Rs 1.75 lakh crore in subsidies for FY26, a reduction in import duty on phosphoric acid and rock phosphate, and support for organic fertiliser production.

Auto and Auto Components

Electric Vehicle (EV) adoption remains a high priority, with expectations of incentives for charging infrastructure to drive its expansion. The industry also hopes for a simplified GST framework, incentives for EV deployment, tax benefits for hybrids, and revised PLI scheme guidelines.

Financial Services

The banking sector has experienced strong performance, with robust asset quality, profitability, and capital buffers. Banking and NBFCs anticipate measures to improve deposit inflows, expand credit flow to key sectors, and address regulatory differences between the two entities.

Hospitality & Tourism

The sector looks forward to infrastructure status for the hotel industry and industry status for travel and tourism. It expects tax breaks and incentives for sustainable tourism, GST rationalisation, and reforms to support overall growth.

Pharma and Healthcare

CareEdge Ratings predicts sustained growth for the pharmaceutical sector. Expectations include increased healthcare budget allocation, reduced GST on health insurance premiums, R&D incentives, and support for domestic healthcare device manufacturers.

Real Estate

The industry seeks prioritization of affordability through measures such as reintroducing CLSS and tax holidays for developers. Higher deductions on home loan interest and principal, and lower GST rates for construction materials can boost demand and sustain long-term growth.

Thermal Power, Distribution and Transmission

Electricity could be brought under the GST regime to enhance tax efficiency and affordability. The budget is expected to focus on transmission capacity expansion, loss reduction measures, and promotion of energy efficiency and smart technology in the sector.

Renewable Power

India aims for 500 GW of non-fossil fuel capacity by 2030. The industry expects extension of ISTS charge waiver, increased investment in green energy corridors, rationalization of GST on RE components, support for offshore wind development, and promotion of research and innovation.

Roads & Highways

Infrastructure development will remain a priority, with increased budgetary allocation, a shift to BOT-Toll models, and greater emphasis on asset monetisation. Addressing project award slowdowns, execution challenges, and land acquisition issues will be crucial for sector efficiency.

Sugar and Allied Sector

Expectations include increased Minimum Support Price (MSP) for sugar, relaxation of export restrictions, revised ethanol procurement prices, and inclusion of sugar businesses in the 'Priority Sector' category to enhance credit access.

Telecom Sector

The industry anticipates PLI schemes for domestic telecom equipment manufacturing, tax holidays for data centers, and clarification on income taxation for non-resident telecom operators to promote sustainable growth.

Textile

The industry expects reintroduction of interest equalisation for exports, a PLI scheme for cotton-based fabrics and apparel, and reduction in BCD rates on raw materials used in MMF fibre production.

Steel

India aims to become a global leader in steel production. Expectations include measures to promote domestic steel consumption, address import dependency, and support the 'Make in India' initiative.