As preparations gather pace for the Union Budget 2026, industry stakeholders are calling for targeted policy measures to strengthen innovation, manufacturing, and technology adoption across key sectors, including pharmaceuticals, automation, education, and healthcare.
Industry bodies have urged the government to introduce globally competitive research and development incentives and stronger fiscal support for clinical research. These steps, they argue, are essential to help India’s pharmaceutical industry transition into an innovation-led sector valued at around USD 120–130 billion by 2030, with a longer-term ambition of USD 450 billion by 2047.
“The industry seeks globally competitive R&D incentives that align with India’s innovation ambitions, enhance the scientific ecosystem, and support the transition from a volume-driven model to an innovation-led pharmaceutical sector,” said Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance. He also highlighted the need for GST rationalisation, restoration of weighted R&D deductions, and simpler compliance and regulatory frameworks in the Budget for FY 2026-27.
The upcoming Budget has also drawn expectations from the manufacturing and automation ecosystem. “With Union Budget 2026 approaching, this momentum can be further fuelled by continued policy support of manufacturing-based R&D, wider automation, and greater indigenisation of hardware, software, and systems integration,” said Prateek Jain, Co-Founder & COO, Addverb. He noted that India is moving from automation deployment to automation IP design and ownership.
From an energy and sustainability perspective, Gurvinder Gandhi, CFO, Mitsubishi Electric India, stressed the importance of efficiency-focused technologies. “There should be focus on technologies that address air quality and energy efficiency across industries,” he said, pointing to the growing industrial automation market estimated at USD 19.71 billion in 2026.
Education leaders are also looking for a future-focused push. “A forward-looking budget embedding AI into the education ecosystem will be critical in building globally competitive institutions and future-ready talent,” said Dr Subir Verma, Director, FORE School of Management.
Healthcare stakeholders echoed similar views on domestic manufacturing. Vipul Jain, CEO, CK Birla Hospitals, said policy incentives for local production of advanced medical equipment could lower costs, improve supply resilience, and expand access to quality care.
Meanwhile, the Union Budget 2026 will be presented on February 1 at 11 am. The Budget Session of Parliament will begin on January 28 and run in 2 phases until April 2, following approval from President Droupadi Murmu.
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