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For NRIs, Budget 2026 could shape decisions related to cross-border taxation, real estate investments, startup funding, and long-term portfolio planning
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While the final details will be known on February 1, the emerging themes point to stability, investment-led growth, and a sharper focus on innovation and jobs
As India prepares to unveil its Union Budget for 2026–27 on February 1, expectations are building among UAE-based NRIs, investors, and business leaders. The Budget comes at a time of persistent global uncertainty, marked by geopolitical tensions and trade disruptions, even as India continues to project relative economic resilience, reported gulfnews.com.
For Indians living and working in the UAE, the Budget’s significance lies in its impact on taxation, investment opportunities, job creation, and long-term policy stability. Early signals from policymakers and industry experts suggest that Budget 2026 will focus on fiscal discipline, higher investment, support for emerging sectors, and employment generation.
Fiscal discipline and stability
The government is expected to remain committed to fiscal consolidation under the broader “Viksit Bharat” roadmap. The report quoted Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister, who said, “the fiscal deficit and debt-to-GDP ratio will continue to guide Budget planning. India has reduced its fiscal deficit significantly since the pandemic, bringing it down from nearly 9% to about 4.8% this year, with a target of around 4.4% in the coming years.”
Central government debt currently stands at just over 56% of GDP, while combined central and state debt is close to 80%. Projections suggest this could decline gradually by the end of the decade, reinforcing confidence in India’s macroeconomic stability. For overseas investors and NRIs, this signals continuity rather than abrupt policy shifts.
Investment push and productivity
Sustaining growth of 7–8% will require a stronger investment cycle. Economists estimate that India needs to raise its investment rate from about 30% to nearly 35% of GDP. Alongside higher public and private investment, improving capital efficiency and productivity through technology and innovation remains a key priority.
This focus points to continued government support for infrastructure, manufacturing, and technology-driven sectors—areas closely tracked by UAE-based investors.
Managing global risks
With geopolitical tensions and tariff uncertainties weighing on the global economy, India is expected to deepen its emphasis on self-reliance while remaining open to foreign capital. Reforms undertaken over the past decade—ranging from GST and tax restructuring to labour codes and FDI liberalisation—are likely to be built upon to attract private investment and enhance competitiveness.
What businesses want
Professional services firms have outlined several expectations from Budget 2026. There are calls to expand the Production-Linked Incentive (PLI) scheme to emerging areas such as artificial intelligence, robotics, space, and advanced manufacturing. Tax experts are also seeking smoother implementation of the New Income Tax Act, fewer rate changes, simplified TDS rules, and rationalisation of customs duties.
Relief for individuals and employment focus
Tax advisory firms suggest that salaried taxpayers may look for enhanced standard deductions and greater flexibility in filing revised or belated returns, especially for those with cross-border income. On employment, business leaders continue to stress job creation, skill development, and incentives for companies hiring in underdeveloped regions.
