Budget 2026: Big Push for Health, Green Growth, EVs and Digital India

Union Budget 2026 May be Released with a Focus on Health, Clean Energy, EVs and Crypto Reforms

As the Union Budget 2026 approaches, various sectors of the Indian economy are eagerly anticipating key policies and fiscal support. The upcoming Budget is expected to include strategic investments, especially given the pressures of rising inflation and the government’s medium-term plans under the ‘Viksit Bharat 2047’ vision. Below is a sector-wise analysis of what stakeholders can expect in the upcoming Budget. 

Health Sector

The health sector Budget 2025 has seen steady upward allocations, focusing on cancer care centers at the district level and on life-saving drugs. For 2026, experts predict that the government may adopt a more comprehensive strategy to address the entire health sector, rather than allocating small amounts of money for just a few initiatives.

Analysts expect an impetus for mission-mode health programs with a clear focus on public health infrastructure, preventive care, and combating non-communicable diseases. All these factors are in line with the government’s thrust on the five-year sectoral plans for attaining sustainable development.

The budget may allocate funds for digital health initiatives, such as telemedicine and health data management systems, under a separate category. It also includes enhanced incentives for domestic pharmaceutical manufacturing and the production of medical devices to reduce import dependency and promote the Make-in-India drive.

Pollution and Clean-Tech: A Green Budget

India’s struggle against urban smog and climate change has become increasingly pressing due to the rising pollution and environmental deterioration. Budget 2026 is likely to enhance the government’s clean-tech plans, with a focus on the incentives granted to the renewable energy, battery production, and electric vehicle sectors in the previous year.

Analysts predict an increase in budgets for pollution control infrastructure at both the industrial and urban levels. This might include air quality monitoring, waste management, and urban green initiatives. Support for battery recycling and critical minerals mining can be expanded to reduce reliance on imports and make the EV value chain more sustainable.

Speculation also exists about the creation of a specific ‘Green Fund’ to provide financing for projects related to climate resilience and clean infrastructure, thereby supporting India’s commitment to achieving Net Zero.

Investments: Strategic Incentives to Boost Growth

Emphasizing ‘5-year strategic plans’ by the government, Budget 2026 is likely to focus on long-term investment frameworks rather than merely annual fixes. The stakeholders anticipate the facilitation of FDI through eased regulations and expanded sectoral access.

The government is likely to announce the setting up of special investment zones, especially for clean technology, health devices, and EV manufacturing. Infrastructure financing mechanisms, such as sovereign funds, infrastructure bonds, and viability gap funding, are also expected to receive a boost to accelerate stalled projects.

Additionally, incentives toward increasing retail and household investments, such as tax benefits on mutual funds or ESG investments, may be in place to deepen the domestic investment base.

Gold: A Cautious Approach

Historically, gold has been a haven for Indian investors and a cultural mainstay; however, its import dependence exacerbates the current account deficit. Analysts expect moderate changes in customs duties or import levies on gold and gold jewelry, with the hope that consumption can be balanced with macroeconomic stability.

The outlook on inflation and fiscal deficit following the budget will also determine gold prices and investor appetite in the months to come.

Electric Vehicles: Building Momentum towards Green Mobility

The Indian electric vehicle ecosystem has greatly benefited from government support through subsidies and favorable policies. The Budget 2026 is likely to further this pro-EV inclination through the provision of incentives for the manufacturing of EVs, especially those belonging to the high-value segment like commercial vehicles, along with the production of batteries.

The charging infrastructure will be supported with significant measures, such as granting accelerated depreciation benefits or offering direct subsidy incentives. Furthermore, the government may implement measures such as rationalizing customs duties or adjusting GST to reduce the upfront cost of EVs for consumers, thereby encouraging e-vehicle adoption among buyers.

Additionally, battery recycling and supply chain localization might diminish reliance on imports, which resonates with India’s larger Atmanirbhar Bharat objectives.

Crypto/Digital Assets: Where is Regulatory Clarity?

Cryptocurrency is a complex and evolving space globally; however, India’s stance so far has been cautious. Budget 2026 may attempt to provide clarity on regulatory and tax frameworks for digital assets, ensuring the sector's stability.

One of the major announcements that could be made in the budget is the formal definition and classification of digital assets, clearer guidelines on the taxation of long-term and short-term capital gains, and revisions to the TDS threshold limits. 

The government may also implement incentives for domestic blockchain innovation to brand India as a hub for emerging technologies while ensuring strict measures against abuse.

The Bigger Picture: Balancing Growth with Fiscal Discipline

The government is expected to adhere to fiscal prudence, keeping the deficit close to 4.4% of GDP while allocating funds to priority sectors. The Union Budget 2026 may be the first step in transitioning from quick fixes to medium-term strategies in the manufacturing, green growth, healthcare, and technology sectors.

It will be a budget that informs investors, businesses, and citizens about how India will build a more self-reliant and sustainable economic future despite global uncertainties.