Budget 2026: Middle Class Income Tax Surprise? FM Bets Big on Consumption Revival

• Finance Minister Nirmala Sitharaman will present her ninth Union Budget on February 1, focusing on reviving consumption in a slow global environment.
• Key areas of focus are expected to include fiscal and policy support, defense, MSMEs, railways, infrastructure, and green transition.
• Industry seeks policy stability, tax certainty, reduced litigation, and clear pathways for private investment, especially in emerging technologies.
• Healthcare sector calls for policy support for domestic production of advanced medical equipment to reduce costs and enhance supply reliability.
• The AI ecosystem expects financial support for data centers, including tax exemptions and duty waivers, and a compute-credit scheme for startups.

Why It Matters: Budget 2026 aims to boost consumption and support key sectors like MSMEs, railways, and healthcare through targeted policies.