With Finance Minister Nirmala Sitharaman set to present the Union Budget 2026-27 on February 1, 2026, at 11 AM, leaders from fintech, crypto, D2C wellness, paints, and manufacturing are calling for tax rationalisation, regulatory clarity, and sustained policy support to boost consumer confidence, startup scaling, domestic production, and innovation amid India’s consumption-led growth.
Expectations include reducing TDS on VDA transactions and revisiting crypto taxation for liquidity and compliance, extending PLI incentives to consumer/wellness categories with simpler GST for D2C brands, rationalised duties on raw materials for paints and manufacturing, and continued focus on housing/infrastructure to drive demand in Tier-2/3 markets.
Ganesh Sonawane, Co-founder & CEO, Frido:
“The 2025 Union Budget supported consumer sentiment by reinforcing purchasing power. With ‘GST 2.0’ moving toward rate rationalisation and simpler slabs, the market received a clearer, more predictable tax environment. That combination helped brands pass on efficiencies more confidently, making everyday spending feel lighter and driving steadier consumption. To keep this momentum going, the emphasis now should be on creating an environment where Indian D2C brands can build and scale from within the country with confidence. Consistent tax policies, simpler GST compliance, and better access to working capital, along with extending PLI incentives to a wider set of consumer and wellness categories, can encourage brands to invest deeper in local manufacturing, product quality, and supply chains. For ergonomics and wellness brands like ours, this stability allows a sharper focus on thoughtful design and long-term consumer value, while strengthening India’s manufacturing ecosystem and keeping high-quality products accessible for everyday consumers.”
Ashish Singhal, Co-founder, CoinSwitch:
“India’s VDA ecosystem is at a pivotal stage, with growing adoption across the country. However, the current tax framework presents challenges for retail participants by taxing transactions without recognising losses, creating friction rather than fairness. A reduction in TDS on VDA transactions from 1% to 0.01% could improve liquidity, ease compliance, and enhance transparency while preserving transaction traceability. Raising the TDS threshold to ₹5 lakh would help protect small investors from disproportionate impact. Introduced in 2022 as a stand-in for regulation at that time, VDA taxation has since been complemented by strong oversight from FIU-IND and improved compliance. This Budget presents a great opportunity to revisit the framework in a manner beneficial to both investors and the government. We remain hopeful that the government will recognize this gap and consider reviewing the current framework soon.”
Gaurav Garg, Research Analyst, Lemonn Markets Desk:
“The Union Budget 2026 is expected to be a cautious, tightly balanced budget focused more on strategic prioritisation than big announcements. With tax revenues under pressure due to last year’s income-tax relief, the government’s major focus will be to fund rising needs, especially defence, renewable energy, and semiconductors—without breaking fiscal discipline. Instead of aggressive public spending, this year’s budget will likely rely on a recovery in consumption and private investment to drive growth, while keeping overall capex growth moderate. Defence, green energy, urban infrastructure, and manufacturing will see clear preference, while health, education, and traditional infrastructure get only incremental increases. Overall, Budget 2026 will emphasise disciplined spending, targeted capital allocation, and private-sector crowding.”
Kuldip Raina, Managing Director & CEO, Shalimar Paints:
“Sustained government support for housing, infrastructure and manufacturing continues to shape the growth trajectory of the paints industry. The Union Budget 2026 is expected to further strengthen this momentum by supporting real estate growth in Tier II and Tier III cities, which will drive the consumption of interior and exterior paints. Increased CAPEX on infrastructure will directly increase the demand for industrial and protective coatings. Public infrastructure spending on roads, bridges, railways, industries and airports will require specialized water-based and solvent-based coatings such as road marking paints, heat protectant coatings and anti-rust coatings. From an industry standpoint and under the Make in India push, rationalized taxes and customs duties are expected to enable paint manufacturers to better innovate products, increase expenditure on R&D, invest higher capital in manufacturing and reduce cost of production. Rationalized customs duties on raw materials such as titanium dioxide, resins, pigments and additives will reduce input costs and improve value for money for end-users. If the budget continues with favourable measures that support household demand through reduced GST and tax relief, the industry can see a reduced repainting cycle and higher consumption of premium paints. With a lower tax burden on income, higher disposable incomes among individuals can increase spending on quality of life, directly impacting manufacturing demand and premiumization. In a highly competitive market, the real impact will depend on how effectively companies differentiate themselves through faster innovation, deeper investment in manufacturing and R&D, and the ability to deliver consistent value for money at scale. With government target spending in rural India, there is strong potential for the upgradation of raw, unpainted and limewashed walls to durable interior and exterior applications using economic emulsion and distemper coatings. Translating this potential into outcomes will require policymakers to enable access and the industry to work together to build trust, distribution and relevance on the ground, ensuring measurable transformation across rural India and more inclusive growth for the paints industry and the economy.”
These expert perspectives converge on a clear agenda for the Union Budget 2026: rationalise taxes (TDS on crypto, GST on consumer goods), extend manufacturing incentives (PLI to wellness/D2C), ensure policy continuity for infrastructure and housing, and support fintech/digital asset growth with balanced regulation collectively boosting consumer spending, startup scaling, domestic production, and India’s position as a competitive, inclusive economy.
Last Updated on: Tuesday, January 27, 2026 11:44 am by BUSINESS SAGA TEAM | Published by: BUSINESS SAGA TEAM on Tuesday, January 27, 2026 11:43 am | News Categories: Business Saga News
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