As the countdown to the Union Budget 2026-27 begins, a sense of optimism is taking hold across India’s industrial and residential landscapes. With real GDP growth estimated at a steady 7.4% for the current fiscal year, industry leaders see this upcoming financial blueprint as a chance to synchronize the nation’s economic momentum with the practical aspirations of middle-class families and the needs of a modernizing manufacturing sector.

The Government’s focus on infrastructure is essential to improving overall economic growth. One key project is the Delhi-Panipat-Karnal Regional Rapid Transit System (RRTS), which is entering a critical stage. This 130km high-speed rail line will link Delhi to Panipat and Karnal in 90 minutes. These projects go beyond transportation, encouraging a new model of growth and turning urban corridors into busy residential and industrial areas.

While physical connectivity expands, there is a shared vision for supporting the financial health of the people moving into these new homes. The Cost Inflation Index (CII) has climbed from 240 in 2014-15 to 376 for the 2025-26 cycle. This shift suggests a natural opportunity to update home loan interest deductions under Section 24(b) to align with today’s market , effectively restoring the level of relief that families relied on a decade ago.

Supporting the Aspirations of Homeowners

Real estate and construction continue to play an outsized role in urban employment and in India’s gross value added. With the government outlining a longer-term vision of a developed economy by 2047, the sector is increasingly viewed as a bridge between infrastructure-led growth and the aspiration of home ownership for middle-income families. 

Mr Ravi Saund, Founding Director of Emperium Group, said the upcoming budget offers a chance to reinforce this link. “Budget 2026 is an opportunity to push the decongestion of major metros by incentivising investment in emerging urban corridors,” he said. “Measures such as rationalising GST or reintroducing input tax credit for under-construction homes would help early investors and support momentum in regions like Panipat and Gurugram. 

“There is also room to better align fiscal benefits with current realities. Enhancing the home loan interest deduction limit from ₹2 lakh to ₹5 lakh would ease pressure on salaried households and help more families move from renting to owning, which remains central to the Housing for All objective.”

Building a Competitive and Sustainable Industrial Future

Manufacturing firms are facing a related set of decisions as export markets place greater emphasis on sustainability benchmarks. For domestic producers, the challenge is increasingly one of cost and timing rather than intent alone. Solar investments have become progressively more viable, with capital requirements expected to settle around ₹3.5 crore per megawatt by 2025. For MSMEs, which account for roughly 45 % of India’s total exports, policy clarity in this area can materially influence how quickly adoption moves from planning to execution.

Commenting on the sector’s expectations, Mr. Divyam Shah, Whole-Time Director and Chief Financial Officer of Euro Panel Products Limited, said,

“The upcoming budget is an opportunity to align industrial growth with environmental responsibility. We expect a clear roadmap that supports domestic manufacturers, especially MSMEs, in shifting their production towards renewable energy. On the operational front, easing norms for domestic players and removing hurdles in GST input credits will be vital to free up working capital. By increasing depreciation benefits and simplifying tax structures, the government can provide the robust support system Indian manufacturers need to scale up and compete in international markets.”

This Union Budget is expected to be a milestone for India’s holistic growth, providing the structural support needed to sustain the current economic momentum. By addressing key areas in urban connectivity, middle-class tax relief, and sustainable manufacturing, the budget can facilitate a new chapter in India’s progressive trajectory toward becoming a $5 trillion economy by 2027.