Budget 2026 Expectations India: Drone PLI 2.0, Tax Reforms, Manufacturing Push, Capex ₹50L Cr (Feb 1 Full Preview)
Industry demands 15% tax new units, drone incentives ₹10K Cr 5yrs, AI R&D boost—fiscal consolidation targets 4.5% deficit post-Q3 M&A surge!

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Union Budget 2026 Expectations: Boost for Drones, Manufacturing Tax Reforms & Capex Push
February 1, 2026 | Presented by FM Nirmala Sitharaman
Industry calls for Drone Shakti ₹10,000 Cr incentive scheme, revival of 15% corporate tax for new factories, higher infrastructure capex & sustained fiscal discipline.
Top Industry Demands for Budget 2026
| Priority | Demand | Details | Expected Impact |
|---|---|---|---|
| 1 | Drone Shakti Incentive | ₹10,000 Cr over 5 years (capex + output linked) | Position India as global civilian drone hub, boost exports & jobs |
| 2 | 15% Corporate Tax Revival | Reintroduce Section 115BAB for new manufacturing units | Attract FDI, spur ₹5+ lakh Cr fresh capex |
| 3 | Infrastructure Capex Boost | ₹50+ lakh Cr allocation push | Drive steel, cement demand & economic multiplier |
| 4 | AI & R&D Incentives | Dedicated fund & enhanced deductions | Strengthen digital sovereignty & innovation |
| 5 | EV Ecosystem Support | Expanded charging infra & incentives | Accelerate green mobility adoption |
| 6 | Fiscal Deficit Target | Around 4.5-5% of GDP | Sustainable debt path with growth focus |
Sector-Specific Wishlist
- Drones & Defence: New Drone Shakti scheme separate from existing PLI to build scale & domestic value addition.
- Manufacturing: Revival of concessional 15% tax rate to attract global companies post-COVID setbacks.
- Infrastructure: Sustained high capex for roads, highways & urban projects.
- AI & Tech: Dedicated R&D funding and incentives for next-gen capabilities.
- EV & Green Mobility: Faster rollout of charging stations nationwide.
Which Budget 2026 Announcement Will Transform India's Manufacturing Story?
Drone Shakti, tax revival or mega capex? Share your predictions!
Watch Live on Feb 1 →
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