Pre-Budget 2026 Expectations: Industry Leaders Call for Structural Reforms and Long-Term Vision

Jan 28: The Union Budget 2026 needs structural reforms which extend beyond small policy adjustments according to educational and insurance and agricultural industry leaders. These industries establish the basic framework which sustains India’s economic development through their impact on human capital and financial security and rural livelihood and inclusive development. The stakeholders consider Budget 2026 to be an important chance which will enable them to enhance three main economic areas.

Prantik Mitra, Director – Client Advisory Group at Alliance Insurance Brokers

Highlighting how recent reforms have set the stage for broader financial protection and what the industry expects next, Prantik Mitra, Director – Client Advisory Group at Alliance Insurance Brokers shared his perspective on the insurance sector, “In 2025, India’s insurance ecosystem underwent a structural transformation starting with Sabka Bima Sabki Raksha reforms unlocking 100 % FDI which will enhance capital availability, global competitiveness and product diversity. Exemptions from GST on individual life and health premiums will accelerate consumer access, regulatory efficiency and transparency. Looking ahead to Budget 2026, the insurance sector expects policies that build on strong reform momentum of 2025 and translate into wider and more effective protection for citizens. A key expectation is higher and clearly defined tax incentives for pure protection products, especially term life. Separating tax benefits for protection from savings-linked insurance would help close India’s protection gap, attract first-time buyers and encourage people to prioritise risk cover over investment-oriented policies. The industry also looks forward to progress on composite licensing, which would allow insurers to offer life, health and general insurance under a single framework and can improve efficiency, reduce operational cost and support the development of simpler, bundled products that are easier for customers to understand and afford. A Budget focused on affordability, trust and access can help advance the vision of Insurance for All by 2047.”

Saroj Mahapatra, Executive Director, PRADAN

From the agricultural sector, Saroj Mahapatra, Executive Director, PRADAN, underscores the importance of strengthening grassroots institutions and production-led clusters to address long-standing structural challenges in Indian agriculture. He expressed, “While India has made visible strides across manufacturing, services and technology, agriculture continues to remain the backbone of the economy, both economically and socially. India’s agriculture continues to be constrained by fragmented landholdings and weak market linkages. A production cluster approach, supported through institutions like Farmer Producer Organisations (FPOs), offers a viable pathway to overcome these structural challenges. Clusters enable aggregation of produce, collective input procurement, shared infrastructure and stronger bargaining power in markets. Budget 2026 should deepen support for Farmer Producer Organizations (FPOs), not merely by increasing their numbers, but by strengthening their functionality so that they can serve as effective platforms for professional management, access to working capital, market intelligence and post-harvest processing infrastructure.

“An additional opportunity lies in leveraging community institutions such as Self-Help Groups (SHGs) and Village Organizations (VOs) promoted under the National Rural Livelihoods Mission (NRLM), which can anchor FPOs at the grassroots and ensure wider farmer participation. Linking clusters to region-specific crops, allied livelihoods, and agro–climatic suitability can significantly improve income stability and scale efficiencies.” Mahapatra Added

Sanjay Laul, Founder of MSM Unify

Addressing expectations from the education sector, Sanjay Laul, Founder of MSM Unify, calls for a long-term, development-oriented budgetary approach to strengthen India’s higher education ecosystem and global competitiveness: “As India gears up for the Union Budget 2026, higher education should be considered a long-term investment rather than a short-term expenditure. The country, which has the largest youth populations globally, needs a three-year structured development-oriented budget plan that unifies higher education with skill development, employability and the creation of sustainable jobs instead. Public education spending has been gradually increasing, but it is still far from the 6% of GDP target set by NEP 2020, thus, restricting India’s potential to create international-standard institutions.

The dramatic increase in studying abroad costs, now ranging from ₹1.2 crore to ₹1.5 crore mainly due to rupee depreciation and tougher visa policies, has only made it clearer that India needs to work on its higher education sector. The presence of foreign universities will certainly enrich Indian education space but the Government needs to further provide impetus to their growth through fiscal incentives. The Budget should also dedicate to building stronger Indian institutions by investing in the physical facilities, hiring world faculty, creating curriculum in line with industries, research grants and offering financial assistance to students. Budget 2026 should not only make announcements but also provide continuous fiscal support that is able to scale up and retain talent and place India as a credible global education center.”, Laul Added

Industry leaders are urging Budget 2026 to move beyond headline announcements and deliver sustained reforms through targeted tax incentives and GST rationalisation and stronger grassroots institutions and increased public investment. The proper policy interventions will enable these sectors to achieve inclusive growth while they improve financial and social security and create jobs and enhance India’s position in the global economic and development landscape.