Union Budget 2026 Expectations: Tax Relief, Capex & Fiscal
With the Union Budget 2026 set to be presented on February 1 at 11 am, households, corporates, startups, and financial markets across India are sharpening their expectations. The government is widely anticipated to walk a tightrope between stimulating economic growth through higher capital expenditure and infrastructure spending, while maintaining strict fiscal discipline and keeping the fiscal deficit under control.
Economists and industry leaders expect possible income tax relief for the middle class, targeted incentives for MSMEs, continued focus on manufacturing under the Make-in-India initiative, and higher allocations for roads, railways, defence, renewable energy and digital public infrastructure. Markets will closely watch announcements related to disinvestment, borrowing plans, subsidy rationalisation and long-term reforms aimed at sustaining India’s growth momentum.
Entertainment Industry Pins Hopes on Digital Push and Global Expansion
The entertainment and media sector has also voiced strong expectations from Budget 2026, especially in the areas of digital content creation, animation, gaming, visual effects and regional storytelling.
Commenting on the evolving landscape, Prateek Sharma, Founder, MD & CEO of Studio LSD Ltd, said the industry is being transformed rapidly by technology-led consumption and global streaming platforms.
“The entertainment sector is evolving rapidly, driven by the digital revolution. The upcoming budget is a prime opportunity to double down on this momentum. Building on initiatives like the ‘Create in India’ challenge and the National Centre of Excellence for AVGC, we hope to see further policy support for original IP and regional storytelling. Continued investment in hard infrastructure and co-production incentives will be vital for Indian content to not just scale sustainably, but to truly go global.”
Industry experts believe stronger tax incentives for film production, easier access to financing for creative startups, grants for animation studios, and international co-production treaties could help Indian content creators expand their footprint in overseas markets. Enhanced policy support could also attract foreign investment into India’s rapidly growing digital entertainment ecosystem.
As Budget Day approaches, investors and sectoral leaders will track announcements on taxation, capital spending, structural reforms and industry-specific incentives—factors that could shape market sentiment and economic direction for the coming year.
