With the Union Budget 2026-27 presentation by Finance Minister Nirmala Sitharaman scheduled for February 1, 2026, at 11 AM, industry leaders from sustainable food systems, plastics recycling, green energy, hospitality & tourism, and unmanned aerial vehicles (UAVs) are urging targeted fiscal and policy measures to accelerate sustainability, domestic manufacturing, and sector-specific growth.
Expectations include incentives for public-private partnerships in smart proteins and biomanufacturing, zero-rating GST on plastic waste/recycling inputs, deeper support for compressed biogas (CBG) and green hydrogen, tax rationalisation and infrastructure investment for hospitality, and expanded PLI schemes along with government procurement mandates for UAVs to strengthen self-reliance and export potential.
Sneha Singh, Managing Director, GFI India:
“This year’s Budget comes amidst rising demand for affordable, high-quality protein that is produced sustainably and meets the nutritional needs of our population. For smart proteins to achieve price parity and global competitiveness, we hope to see incentives for public-private partnership models that lower capital risk, alongside institutional procurement pilots to increase market access. Building on National Missions for pulses, oilseeds and high-yield seeds, the Budget should expand investment in agricultural R&D for underutilised pulses and indigenous crops, as well as dedicated processing infrastructure for plant-based value chains that will in turn enhance farmer incomes. Continued rollout of the BioE3 policy and RDI Fund must prioritise multi-year investment in shared biomanufacturing infrastructure and R&D. Coupled with targeted investment in Bio-AI, digital bioprocessing, and workforce skilling, India can accelerate its path towards a $300 billion bioeconomy and bring fermentation-derived proteins and cultivated meat to global and domestic markets. As we move towards a ‘Viksit Bharat’, the Union Budget 2026–27 presents a timely opportunity to invest in the future of our food and catalyse India’s leadership in smart proteins.”
Sushil Kumar Aggarwal, Chairman and Whole-Time Director, AVRO India Limited; National President, AIPMFMA; Chairman, CII Western U.P Zone:
“India’s formal recycling ecosystem remains constrained by a policy framework that has not kept pace with sustainability goals. High GST on plastic waste, scrap, recycling machinery, and inputs continues to make compliant recycling financially uncompetitive. The Union Budget must prioritise zero-rating GST on plastic waste, scrap, and recycling equipment, along with a meaningful reduction in GST on recycled plastic granules, to incentivise their use in long-life and durable products. Without correcting these cost distortions, the transition from virgin to recycled plastics will remain limited. Fiscal reform without regulatory certainty will not deliver scale. EPR cannot work unless it is clear, stable, enforceable, and fully traceable, and the Budget must decisively strengthen EPR guidelines to ensure accountability across the value chain and give recyclers the confidence to commit long-term capital. Equally critical is the introduction of a dedicated technology upgradation fund and targeted subsidies for advanced recycling processes and automation, which will allow Indian recyclers to improve efficiency, meet global quality benchmarks, and make EPR compliance commercially viable at scale.”
Surbhi Puri, Director, Green Power International:
“The year 2025 was significant in India’s journey to achieve Net Zero carbon emissions by 2070 while fostering sustainable and inclusive development. This year, we took some active measures to make India a Green Hydrogen hub and accelerate the transition to renewable energy. From the upcoming budget, we expect to strengthen these efforts through targeted support for research and development, skilling of the workforce, and incentives for domestic manufacturing. India has an estimated compressed biogas (CBG) potential of approximately 62 MMT per annum, derived from a wide range of biomass feedstocks. However, as of late 2025, installed CBG production capacity stood at only about 0.8 million kg per day (roughly 315,000 tonnes per year). This significant gap is attributable to multiple constraints, including inefficiencies in biomass aggregation and logistics, high capital and financing costs, limited adoption of mature technologies, and underdeveloped gas distribution infrastructure. The upcoming Union Budget should look at addressing this gap. Further reduction in customs duty on imported machinery would help lower overall project costs and accelerate the deployment of advanced technologies that support the transition to lower carbon emissions across the sector. In addition, establishing a single-window clearance framework for the installation of gensets, by integrating applicable environmental, electrical, and local authority approvals, would significantly reduce project lead times and compliance burdens for investors.”
Rahul Deb Banerjee, Chief Operating Officer, The Clarks Hotels & Resorts:
“Beyond its steady growth, the hospitality and tourism industry has emerged as a key contributor to India’s economic development, accounting for approximately 7–8% of GDP. Over the past few years, the sector has witnessed expansion across multiple segments, including experiential and domestic travel, religious tourism, destination weddings, MICE, and medical tourism. This positive momentum presents an opportunity to further strengthen the sector through continued policy facilitation, including infrastructure status, tax rationalisation, and capital investment support. As travel demand continues to rise, affordability and accessibility remain important considerations for sustaining growth. Air connectivity and last-mile transportation play a vital role in enabling tourism flows, particularly during peak travel periods. Measures aimed at fare rationalisation, review of ATF taxation, and greater consistency in local transport pricing would help enhance destination accessibility and support overall demand across tourism and hospitality markets. The industry also sees strong potential in accelerated development of tier-2 and tier-3 cities. Enhanced regional connectivity and targeted infrastructure investments in these markets can unlock new tourism circuits and broaden economic participation. Continued support in areas such as capital investment incentives, interest support mechanisms, technology adoption, and sustainable practices would further reinforce the sector’s growth trajectory and its contribution to employment and economic expansion.”
Ankit Mehta, CEO, ideaForge Technology Pvt. Ltd.:
“As the Union Budget approaches, it is evident that the UAV sector stands at a pivotal juncture. The Defence Procurement Manual 2025’s ‘build here, buy here’ emphasis has catalysed domestic manufacturing, where we are witnessing renewed momentum through increased defence allocations. To further catalyse India’s ambition as a global UAV hub, it is necessary that the budget addresses both opportunities and emerging regulatory challenges. Announcement of INR 1 Lakh crore RDI fund signalled that the government is serious about strengthening R&D in the country and developing cutting-edge technologies and intellectual properties. As a deeptech organisation committed to serious in-house R&D, we welcome this move and urge the government to expedite the execution of the scheme and disbursement of funds in this and the coming financial year. The drone domain today is utility-focused, where customers invest basis mission capability and reliability. While the recent Rationalisation and clarification on GST rates have helped to consolidate the progress that the industry has made and will make Indian products more competitive, the budget 2026 should expand the incentivisation framework for the industry through introducing the PLI 2.0 that rewards domestic component and UAV systems manufacturers to help with creating a robust domestic ecosystem that boosts greater assurances of cybersecurity and strategic autonomy. While drones have captured the national narrative and remain at the center stage of modern-day defence strategy, it is imperative that the government plays the role of principal demand generator if we want to increase the adoption of the technology and make India a global drone hub. Introduction of Central Sector schemes across sectors like agriculture, urban planning, utilities, mining, etc., to make drones mandatory for security, governance & compliance, and infrastructure monitoring will be crucial to accelerate the adoption. It would be crucial to carve out dedicated budgets in both capital and revenue, procurements of various departments and functions of the government to boost drone adoption and technology building. We hope that the Budget 2026 will make announcements on this front and position India as a defence technology exporter where ‘Make in India’ truly means ‘Made for the World’.”
These expert insights highlight a consistent theme for the Union Budget 2026: deliver targeted incentives, GST rationalisation, infrastructure investment, and regulatory clarity to advance sustainable food systems, circular economy practices, green energy transitions, tourism recovery, and emerging technology ecosystems like UAVs ultimately supporting India’s goals of self-reliance, net-zero ambitions, and inclusive economic growth.
Last Updated on: Tuesday, January 27, 2026 9:57 am by Monisha Angara | Published by: Monisha Angara on Tuesday, January 27, 2026 9:57 am | News Categories: News
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