As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026-27 on February 1, 2026, at 11 AM, industry leaders from manufacturing, automotive recycling, organic wellness, tourism, and hospitality are calling for targeted reforms to strengthen domestic production, sustainable practices, workforce skilling, and regional growth.
Key expectations include rationalised duties and stable input costs for furniture/manufacturing, policy clarity and financial viability for vehicle recycling/circular mobility, GST rationalisation on natural/organic products with R&D incentives for startups, industry-aligned skilling and curriculum modernisation for tourism/hospitality, and enhanced tax incentives, credit access, and green support for hotels in Tier-2/3 markets.
Andre Eckholt, Managing Director – Hettich India, SAARC, Middle East & Africa:
“As India moves towards becoming a global manufacturing hub, the upcoming Union Budget 2026 presents a vital opportunity to further strengthen the furniture and manufacturing sectors. However, key challenges such as rising raw material costs and logistics expenses continue to impact competitiveness. We believe addressing these concerns through rationalized duties, stable input costs, and incentives for value-added manufacturing will be critical. We also hope to see continued focus on infrastructure, skill development, and ease of doing business, which are essential for long-term growth. A supportive budget can accelerate local manufacturing and strengthen India’s position as a reliable production hub for domestic and export markets. The Make in India initiative and sustained policy support can help domestic manufacturers scale up, innovate, and compete globally.”
Kartick Nagpal, President, Rosmerta Technologies Limited:
“A Budget-led push for the circular economy in mobility can create a virtuous cycle for the automotive sector and the economy at large. Supporting formal vehicle recycling and structured end-of-life frameworks helps phase out older and unsafe vehicles along with promoting replacement demand. This in turn leads to improved safety on the road as well as reduces emissions. To accelerate this transition, it is important that the Budget focuses on enabling policy clarity along with ease of compliance, and financial viability across the recycling and vehicle fitness ecosystem. This is likely to encourage adoption among people. A coordinated focus on circularity, road safety, and vehicle fitness can deliver sustainable growth, cleaner air, safer roads, and employment generation for the country.”
Radhika Iyer Talati, Founder, Anahata Organic:
“From a startup perspective, Budget 2026 presents an opportunity to meaningfully support India’s growing organic and wellness innovation ecosystem by prioritising GST rationalisation on natural and health-focused products, along with stronger incentives for R&D in plant-based and preventive health solutions. Startups working at the intersection of sustainability, wellness, and indigenous knowledge need predictable policies, faster access to innovation funding, and dedicated green innovation support to scale responsibly. Recognising organic and preventive health-led businesses as priority sectors would not only boost consumption but also align entrepreneurship with long-term public health and environmental resilience.”
“As a brand that manufactures and directly retails organic beauty, wellness, and herbal products, we see Budget 2026 as a chance to strengthen affordability and conscious consumption through GST rationalisation on natural products and tax incentives for sustainable packaging. Support for green manufacturing, circular economy practices, and eco-friendly supply chains can help D2C brands scale without compromising values. With consumers increasingly choosing fewer, more intentional products, policies that reward sustainability, local manufacturing, and value-driven purchasing will help build resilient, future-ready retail ecosystems.”
Mrs. Jyoti Mayal, Chairperson, Tourism and Hospitality Skill Council:
“As we look forward to the Union Budget 2026, we expect the government to prioritise long-pending skilling reforms that can truly strengthen India’s tourism and hospitality workforce. The sector urgently needs industry-aligned curriculum, modernised training with digital and AI-integrated modules, and regional hospitality skill centres that expand access, especially across high-potential states. Streamlined apprenticeship pathways and stronger PPP models can significantly boost hands-on training, employability, and wage growth for youth. With targeted budgetary support towards curriculum modernisation, digital skilling, apprenticeships, and quality assurance, India can reduce persistent skill gaps and raise service standards across the sector. We also hope for continued focus on MSME support, sustainable tourism, infrastructure enhancement, and ease of doing business, all of which are essential to unlocking new destinations and strengthening India’s global tourism competitiveness. A future-ready, industry-trained workforce remains central to achieving Tourism Vision 2047.”
Dr. Vikram Kamat, Founder, VITS Hotels and Resorts:
“2025 has been a strong year for the hotel industry, driven by rising domestic travel, improved occupancy levels, and greater preference for branded hospitality. However, challenges such as high operational costs, talent shortages, and increasing compliance burdens continue to impact profitability. While government initiatives have supported tourism growth, the sector now needs deeper reforms. In the Union Budget 2026, we expect rationalization of GST, incentives for green and tech-enabled hotels, easier access to credit for expansion, and focused skill development. Strengthening infrastructure and promoting new tourist circuits will further accelerate demand and enable the industry to sustain its positive momentum.”
Amit Kumar Singh, Founder & Managing Director, OPO Hotels & Resorts:
“For the hospitality sector, Budget 2026 should prioritise measures that support growth, job creation, and regional tourism development. We expect enhanced tax incentives for hotel infrastructure, especially in Tier 2 and Tier 3 markets, where demand is rising. A reduction in GST for budget and mid-scale hotels will significantly boost domestic travel and improve operating margins for small and mid-sized operators. Additionally, easing credit access for hotel renovations and brownfield conversions can accelerate organised growth. Strengthening last-mile connectivity and promoting digital tourism initiatives will further enhance India’s hospitality ecosystem.”
These expert insights converge on a clear agenda for the Union Budget 2026: rationalise GST on key inputs and services, incentivise circular economy and sustainable practices, boost skilling and workforce readiness, and provide policy stability with infrastructure support to accelerate manufacturing self-reliance, wellness innovation, tourism expansion, and hospitality growth in emerging markets.
