As Finance Minister Nirmala Sitharaman prepares to unveil the Union Budget 2026-27 on February 1, 2026, at 11 AM, industry leaders are pressing for targeted tax and regulatory relief to boost outbound tourism, stimulate housing and home improvement demand, and simplify compliance burdens on MSMEs. With consumer spending remaining a key driver of India’s growth story, these sectors seek measures that enhance affordability, reduce upfront cash outflows, and improve ease of doing business.
Akansha Agarwal, Co-founder & CMO, Int2Cruises:
“As we approach the Union Budget, easing the taxation framework for overseas travel, particularly TCS, is critical for improving affordability and planning confidence among travellers. Under the current structure, overseas tour packages attract 5% TCS up to ₹10 lakh and 20% beyond that, and cruise holidays often cross this threshold once flights, visas and accommodation are bundled. Treating cruise holidays separately from overseas tour packages, similar to international flight tickets, would significantly reduce the upfront cash outflow at the time of booking. This step can encourage earlier bookings and support the long-term growth of India’s outbound cruise travel market.”
Shezaan Bhojani, CEO & Co-founder, DesignCafe:
“As we approach Union Budget 2026, there is a strong expectation for policies that stimulate housing demand and consumer spending while maintaining fiscal discipline. For the organised home interiors and home improvement ecosystem, support through faster regulatory approvals, GST rationalisation on interior and renovation services from 18% to 5%, and targeted incentives for first-time homebuyers could act as key growth enablers. Additionally, encouraging the use of sustainable and certified materials can accelerate the shift toward tech-enabled, organised players. Such measures would strengthen consumer confidence, improve transparency, and generate large-scale skilled employment across design, manufacturing, and execution, contributing meaningfully to India’s urban growth story.”
Ravalnath Shende, Chairman and Managing Director, Shree Refrigerations Limited (SRL):
“The Union Budget 2026 is an opportunity to strengthen the manufacturing ecosystem that underpins defence, infrastructure and core industrial sectors. As national security priorities and industrial growth become increasingly interconnected, sustained policy support for indigenous manufacturing, R&D and energy-efficient technologies will be pivotal to make India’s vision of a self-reliant defense ecosystem. As the demand for HVAC systems is continuously rising, encourages long-term capital investment and support advanced manufacturing can help build scale and operational resilience. A balanced approach that combines fiscal discipline with steady investment in defence-linked manufacturing will not only reduce import dependence but also strengthen India’s position in critical supply chains and enhance the competitiveness of domestic manufacturers in the defence sector.”
Pratik Vaidya, Managing Director and Chief Vision Officer, Karma Management Global Consulting Solutions Pvt Ltd.:
“While India is beginning to put together labour laws into four codes, reform will certainly take a while before the last mile compliance looks easier. This Budget shall have a national digital compliance spine with comprehensive state-wise regulations, best practice templates and single-window workflows for registrations, licences, renewals, returns and inspections. MSMEs need risk-based compliance, not one-size-fits-all forms. Promote self-certification for low-risk sites, create more facilitation centres, and ensure that inspections are predictable with a selection based on data and a level of assurance and proper protections. If the government is going to formalise and strengthen social security coverage, it should ease friction for compliant employers and impose severe punishment on wilful defaulters. Easy transition into compliance would result in better jobs, vendor governance and investor confidence.”
These expert inputs converge on a clear message for the Union Budget 2026: targeted tax relief (TCS on travel packages, GST on home services), streamlined regulatory processes (faster approvals, digital compliance spine), and strategic support for manufacturing and MSMEs can unlock consumer spending, boost outbound tourism, accelerate organised home improvement, and foster self-reliant industrial growth. Such reforms could significantly enhance affordability, employment, and ease of doing business across these interconnected sectors.
Last Updated on: Friday, January 23, 2026 5:19 pm by News Pixel Team | Published by: News Pixel Team on Friday, January 23, 2026 5:19 pm | News Categories: Finance
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