EY India anticipates that the Union Budget 2026 will prioritise continuity in economic growth, strengthen tax certainty, and channel investments into high-potential sectors. According to the firm, the Budget is expected to build a predictable and stable policy environment anchored in fiscal discipline, which will support private investment and reinforce India’s competitive position globally.

A key expectation is that the government will continue public investment and targeted structural reforms aimed at boosting investor confidence and encouraging greater private-sector participation. EY India further expects the Budget to concentrate on sectors with strong future growth prospects, thereby helping India communicate a clearer and more compelling economic narrative on the international stage.

One of the important proposals highlighted is a possible expansion of the Production-Linked Incentive (PLI) scheme. The coverage may be widened to include new-age technology sectors such as artificial intelligence, robotics, and space technology, accompanied by continued infrastructure spending in these areas. Such initiatives are likely to accelerate innovation and strengthen India’s technological capabilities.

EY India also stresses that tax certainty and simplified compliance procedures will be crucial for attracting investment into emerging industries. Greater clarity in the interpretation and application of tax laws is expected to reduce disputes, create a smoother regulatory experience for businesses, and support foreign and domestic investor sentiment. A transparent and stable taxation framework, the firm notes, will help stimulate private-sector expansion and improve long-term investment flows.

Overall, EY India believes that these combined measures could enhance India’s growth trajectory over the medium term, reinforce macroeconomic stability, and improve the country’s attractiveness as an investment destination.

Summary

• EY India expects Budget 2026 to emphasise:
  • growth continuity
  • tax certainty
  • investment promotion
• Focus on high-potential sectors to strengthen India’s global economic positioning
• Budget likely to maintain fiscal discipline and predictable policy framework
• Continued public investment + structural reforms to boost private-sector participation
• Possible PLI expansion into AI, robotics, and space sectors
• Tax clarity and simplified compliance expected to reduce disputes and support investors
• Measures seen as strengthening medium-term growth and investor confidence

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