Union Budget 2026 Expectations: Data Centres, Labour Reforms, Infrastructure, Manufacturing, and Investment Climate Insights from Industry Leaders
The Union Budget 2026-27, set to be presented by Finance Minister Nirmala Sitharaman on February 1, 2026, at 11 AM IST (her ninth consecutive Budget), arrives as India pushes toward its Viksit Bharat goals amid strong economic momentum. With the Budget Session underway since January 28, 2026, leaders from digital infrastructure, facility management, pre-engineered buildings, and financial markets are sharing pre-budget expectations focused on enabling digital growth, labour code implementation, manufacturing incentives, green technologies, and investor-friendly policies.
These quotes highlight interconnected priorities: treating data centres as national digital infrastructure, full compliance with labour reforms, targeted support for steel and construction, and stable tax frameworks to attract long-term capital.
Digital Infrastructure Leaders Seek National Status for Data Centres and Power Support
Mr. Bimal Khandelwal, CEO, STT GDC India, stated: “As India accelerates its digital and AI ambitions, we are expecting the upcoming Union Budget to focus on three critical enablers: (1) Elevating data centres from infrastructure status to actually treating them as an End-to-End National Digital Infrastructure with coherent policies on power access, renewable integration, land availability and faster time-bound approvals across central, state and local authorities (2) Strengthening the country’s power transmission backbone, and (3) Providing policy certainty for renewable energy adoption at scale. Given the central role of digital infrastructure in India’s economic and strategic ambitions, these enablers will be critical to sustaining long-term growth and strengthening India’s global competitiveness.”
Facility Management Sector Welcomes Labour Codes, Calls for Collaborative Compliance
Deepak K Jain, Group CFO, Tenon Group, noted: “The implementation of all four Labour Codes is a positive and progressive step for India’s workforce, particularly for labour-intensive sectors such as Facility Management and Security Services. The globally aligned and unambiguous definition of wages and social security provisions brings clarity, consistency, and improved governance, benefiting employees across the value chain.
From a CFO and employer perspective, the industry is committed to full compliance and transparent implementation of these reforms. For the framework to deliver its intended outcomes effectively, it is equally important that all stakeholders in the ecosystem including clients align with the compliance requirements embedded in the Codes. A collaborative approach across employers, clients, and regulators will help ensure seamless implementation while sustaining service quality and operational stability.”
Pre-Engineered Buildings and Manufacturing Push for Capital Access and Green Incentives
Mr. Manish Garg, CEO, Interarch Building Solutions Ltd., highlighted: “As India approaches the 2026 Union Budget, the government has a strategic opportunity to amplify India’s infrastructure-led growth engine and the manufacturing renaissance that is powering it. Domestic steel demand is projected to remain robust, reflecting significant infrastructure and manufacturing activity. For sectors like pre-engineered buildings and heavy manufacturing, Budget support must go beyond headline spending figures to targeted incentives that ease access to long-term capital, promote green and advanced steel production, and accelerate workforce skilling especially in fabrication and specialised construction trades. Strengthening programs such as PLI schemes, rationalising duty frameworks on critical inputs and promoting sustainability-aligned technologies will enhance India’s attractiveness as a global manufacturing hub.”
Investment Banking Calls for Predictable Taxes and Startup Support
Mr. BL Bajaj, Founder and Managing Director, Dynamic Orbits, observed: “As India progresses toward its aspiration of becoming a USD 5 trillion economy, the Union Budget presents a meaningful opportunity to strengthen confidence across financial markets and reinforce the country’s appeal to global investors. Stable, growth-oriented financial policies, supported by a more rational and predictable capital gains and corporate tax framework, can encourage long-term investment and attract patient, high-quality capital. Greater clarity and efficiency in regulations governing foreign investments and outbound capital flows will be critical, especially as we continue to attract over USD 80 billion in foreign direct investment. With over 200,000 recognised startups driving innovation across the country, targeted policy measures are needed to support the startup ecosystem, including stronger incentives for private equity and venture capital. Taken together, these steps can enhance the ease of doing business for cross-border transactions, strengthen India’s credibility as a global investment hub, and support sustainable economic growth.”
As Union Budget 2026 approaches on February 1, 2026, these expectations converge on themes of strategic infrastructure enablement (especially digital and power), seamless regulatory implementation, targeted incentives for manufacturing and skilling, and predictable policies to draw quality investments. Announcements in these areas could accelerate India’s digital transformation, workforce formalization, industrial competitiveness, and position as a preferred global investment destination in the coming fiscal year.
Last Updated on: Wednesday, January 28, 2026 11:16 pm by Republic Post Team | Published by: Republic Post Team on Wednesday, January 28, 2026 11:08 pm | News Categories: News
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