Union Budget 2026: GCC Leaders Seek Tax Incentives and Talent Push While Circular Economy Players Demand GST Relief for Recycling
With Finance Minister Nirmala Sitharaman scheduled to present the Union Budget 2026-27 on Sunday, February 1, 2026, at 11 AM the first Sunday presentation in recent history India’s Global Capability Centres (GCCs), commercial real estate, and circular economy sectors are pressing for targeted reforms to sustain high-value growth, expand beyond metros, and advance sustainability goals.
India’s GCC ecosystem, now home to over 1,800 centres employing more than 2 million professionals and contributing around $65–68 billion in revenue (with projections reaching $150–200 billion by 2030), continues its shift from cost arbitrage to capability-led innovation in AI, engineering, R&D, and product development. Recent policy signals, including the national GCC framework announced in Budget 2025 to promote Tier-2/3 expansion, have accelerated momentum, but industry leaders stress the need for execution through standardised tax incentives, GST clarity on cross-border services, workforce upskilling in emerging tech, and infrastructure support to counter competition from low-tax jurisdictions.
In parallel, the circular economy and hard-to-abate sectors (steel, aluminium, automotive) face challenges in formalising recycling, vehicle scrapping, and decarbonisation amid GST distortions (e.g., on recycled materials and battery services) and upcoming global mechanisms like the EU’s Carbon Border Adjustment Mechanism (CBAM). Stakeholders seek GST rationalisation, incentives for traceable recycling, outcome-based decarbonisation support, and robust MRV (measurement, reporting, verification) frameworks to enhance resource efficiency, domestic supply chains, and trade competitiveness.
Lalit Ahuja, Founder & CEO, ANSR, called for a predictable, competitive policy environment to position India as the preferred GCC destination.
“For India to convert its strong GCC momentum into sustainable, long-term global investments, the Union Budget must address predictability, competitiveness, and talent enablement. Key policy priorities should include a clear, nationwide tax incentive framework for GCCs, with extended and standardised benefits for IP creation, R&D, and high-end services delivered out of India similar to regimes in Singapore and Ireland to help reverse the trend of incremental offshoring to low-tax jurisdictions. Additionally, greater GST clarity on cross-border services through a definitive, uniform framework for inter-company global service transactions would eliminate ambiguity that currently adds to compliance costs and slows scaling. Budget allocations for targeted workforce upskilling and reskilling programmes aligned to GCC demand, particularly in AI, software engineering, data sciences, and cloud, will help build a strong talent pipeline for the 2+ million professionals already employed in India’s GCC landscape. Further, capital expenditure support for scaling GCC centres, including matching support for technology infrastructure and real estate, can accelerate growth in Tier-2 and Tier-3 locations. Collectively, these measures would strengthen India’s value proposition and send a clear signal to global CEOs that the country is committed to being the preferred GCC destination for next-generation capability building.”
Aditya B. Yamsanwar, Director, Team One Architects, highlighted the link between GCC expansion, urban infrastructure, and commercial real estate readiness in non-metro areas.
“The 2025 Union Budget’s announcement of a national framework to promote GCC growth in emerging locations marked a clear strategic shift beyond metros, accelerating state-wise participation and reinforcing India’s move from cost arbitrage to capability-led leadership. This policy alignment around infrastructure readiness, talent mobility and ease of operations—has already translated into strong GCC expansion, making these centres the single largest driver of Grade-A office absorption across key cities. To make non-metro talent truly GCC-ready, Budget 2026 must pivot from intent to execution by enabling urban-scale development—planned business districts, ESG-compliant Grade-A offices, mobility, housing and ecosystem anchors that create employment density. Integrating GCC objectives with Smart Cities investments in transit, utilities and digital infrastructure can help convert today’s momentum into structurally sustained, infrastructure-backed growth.”
“Recent urban infrastructure allocations and the transition of SEZs into more flexible, services-led ecosystems have pushed Indian cities into a more infrastructure-ready phase, supporting resilient Grade-A office absorption and enabling non-traditional business districts to gain traction. As cities expand mobility networks, modernize utilities and unlock underutilized land, commercial districts are becoming more predictable, investment-ready and globally competitive. Budget 2026 has the opportunity to accelerate this momentum by deepening capital investment in city-scale planning, prioritising transit-led business corridors and enabling integrated development frameworks that can help tier-2 markets mature into future-ready GCC and innovation hubs. The next phase of commercial real estate growth will be defined less by cyclical demand and more by execution at scale — where policy, infrastructure and design align to create durable, long-term value.”
Nitin Chitkara, CEO, Meta Materials Circular Markets (MMCM), urged treating circularity as essential infrastructure for resource efficiency and environmental leadership.
“As India moves towards becoming a developed nation, circularity must be treated as core economic infrastructure, not a side policy. True superpower status will not be defined only by financial growth, but also by clean air, clean water, and resource efficiency. This Budget presents a critical opportunity to accelerate a high-circularity ecosystem by rationalising GST on products and services pertaining to recycled materials, an example being the government-issued Certificates of Deposit on end-of-life vehicles. Incentivising formal, traceable recycling will not only strengthen domestic supply chains but also position India as an emerging environmental superpower.”
Yashodhan Ramteke, CEO, EcoGuard Global, focused on supporting early movers in hard-to-abate sectors and building carbon market resilience against global trade pressures.
“India’s hardest-to-abate sectors such as steel, cement, aluminium, chemicals, and power are at the centre of the country’s carbon market transition, but they are also absorbing disproportionate technology, capital, and data risks in the early years of compliance. These industries are being pushed to invest in efficiency upgrades, process changes, and emissions measurement well before carbon prices are fully visible or stable. That creates pressure. Time-bound fiscal incentives tied to verified emissions cuts, strong MRV deployment, and outcome-based decarbonisation support can close this gap. The goal is simple. Early movers should not be punished for acting first. Decarbonisation should reinforce industrial competitiveness rather than erode it.”
“From 2026 onward, carbon intensity will increasingly function as a trade parameter rather than a sustainability disclosure, particularly with mechanisms like the EU’s Carbon Border Adjustment Mechanism coming into force. For Indian exporters, competitiveness will depend on the ability to provide granular, verified emissions data with clear audit trails that link carbon performance to physical goods. A well-structured domestic carbon pricing and measurement ecosystem can soften CBAM exposure, reduce the risk of double taxation, and help Indian industry compete in carbon-constrained markets. Policymakers should focus on alignment. India’s carbon market architecture must meet global standards for verification and traceability so that decarbonisation becomes a trade advantage instead of a trade barrier.”
These aligned expert perspectives reflect a unified call for the Union Budget 2026 to deliver execution-focused reforms: standardised incentives and talent support for GCCs in Tier-2/3 cities, infrastructure alignment for commercial real estate and innovation hubs, GST rationalisation for recycled materials and circular processes, and targeted decarbonisation aid to safeguard competitiveness amid global carbon regulations. Such measures could accelerate inclusive growth, enhance self-reliance, and position India as a leader in high-value capabilities and sustainable development.
Last Updated on: Thursday, January 22, 2026 1:09 pm by Republic Post Team | Published by: Republic Post Team on Thursday, January 22, 2026 1:09 pm | News Categories: Business, News
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