Budget 2026 Expectations Live: What to Look Forward to in Markets, Taxes, and Key Sectors 

Budget 2026: Real Estate Industry Seeks Tax Relief and Policy Stability

The real estate sector has called for tax relief measures and stable, long-term policy support to sustain housing demand and boost investment ahead of the Union Budget 2026. According to a News18 report, industry stakeholders have urged the government to rationalise stamp duty, provide income tax benefits for homebuyers, and extend incentives for affordable housing to improve affordability and revive end-user demand. 

Developers have also sought clarity on capital gains taxation and GST rationalisation on construction materials. They have also called for continued support for infrastructure development to lower project costs and improve project viability. The sector is looking for consistency in regulatory policies and faster approvals to enhance the ease of doing business and attract both domestic and foreign investment. Industry leaders believe that targeted fiscal support in Budget 2026 could accelerate urban housing supply, strengthen allied industries such as cement and steel, and contribute meaningfully to employment generation and economic growth. 

Budget 2026: Equity Investors Seek Lower LTCG Tax and STT 

Ahead of the Union Budget 2026, equity market participants have called for reducing the Long-Term Capital Gains (LTCG) tax and the Securities Transaction Tax (STT) to boost investor participation and improve market depth. According to a Moneycontrol report, market experts and investor associations believe that the current LTCG tax structure and high STT increase transaction costs and discourage long-term savings through equities. 

Industry voices have urged the government to rationalise capital gains taxation to make Indian markets more attractive compared to global peers. A lower LTCG tax could encourage long-term holding and improve retail participation. This could channel more household savings into productive financial assets. Similarly, a cut in STT is expected to enhance liquidity, reduce trading friction, and support higher volumes, especially in the derivatives and cash segments. These measures, investors argue, would strengthen India’s capital markets as the economy targets higher growth and deeper financialisation. 

Income Tax Union Budget 2026 May Grant Infrastructure Status To Aircraft 

The Union Budget 2026 may consider granting infrastructure status to aircraft under asset category, industry sources said the Hindu Business Line. 

The move aims to support growth in India’s aviation sector by easing financial challenges.  This would allow airlines to obtain more affordable financing when purchasing an aircraft, allowing airlines to access loans at lower interest rates and from more lenders. If this happens, the loans for aircraft acquisition will come under Priority Sector Lending (PSL), which comes under the Reserve Bank of India (RBI). And under PSL guidelines, the banks must ensure that loans are extended to identified sectors.  

Infrastructure access was given to commercial shipping vessels in the previous budget. Start-up airlines and small-capacity operators with limited access to credit could benefit from this move.  

Budget 2026: Focus to Be on GDP Growth, Capex, and Fiscal Deficit

Morgan Stanley expects the government to cap the fiscal deficit at 4.2% of GDP in FY27, compared with the targeted 4.4% in FY26. Union Budget is expected to aim at maintaining its consistency as the fourth largest economy in the world, despite the ongoing geopolitical tensions, trade-war and tariff threats from the U.S, as per news reports.   

According to a Mint report, Morgan Stanley estimates that the new 4.2% target would help in pushing the central government debt down to around 55.1% of GDP from an estimated 56.1% in FY26. So, over the medium term, the investment banker expects the government to reduce its debt-to-GDP ratio to about 50% by FY31. The Union Budget 2026 would focus on capital expenditure to support job creation, social sector spending, and a renewed push in structural reforms.  

Stay Tuned for Live Union Budget 2026 Updates!

Union Budget 2025 to be presented February 1, 2026, on Sunday.