Ahead of the Union Budget 2026, HDFC Bank Independent Director Keki Mistry shared his views on corporate expectations in an exclusive conversation with Anil Singhvi.
He highlighted that this year’s budget is likely to focus on boosting domestic economic growth, creating jobs, supporting the manufacturing sector, and encouraging investments in key sectors.
Focus on Domestic Growth and Job Creation
Mistry said the current global economic scenario, including high tariffs and uncertainties, requires the government to pay greater attention to the domestic economy. “The budget will be growth-oriented. It is very critical to create jobs.
The manufacturing sector will get benefits, and consumption will also receive certain encouragement. The rural economy, which is always an important part of the economy, will get support,” he said.
Support for Export-Oriented and Manufacturing Sectors
On sectors affected by global challenges, particularly exports, Mistry noted the need for specific incentives. “Export-related sectors such as textiles and jewellery have been largely affected. Some additional incentives can be provided.
For manufacturing, we can encourage growth through changes in the Production-Linked Incentive (PLI) schemes or through investment allowances. Measures like accelerated depreciation or other incentives can encourage more manufacturing, which will in turn create jobs,” he explained.
Technology and Job Market Challenges
Mistry also emphasised the role of technology in shaping the future job market. “At some point, artificial intelligence will come in a big way. When AI is introduced extensively, there could be pressure on jobs. It is very critical to create jobs now to ensure we can navigate the introduction of artificial intelligence in a big way,” he added.
Reforms, Ease of Doing Business, and Capital Markets
Regarding reforms and ease of doing business, Mistry said significant progress has been made, but there is scope for further simplification. “There are already several initiatives on ease of doing business taken by various regulators, whether it is RBI, SEBI, or IRDA. However, if we can simplify processes related to starting new plants, buying machinery, or acquiring land, it will be very helpful,” he said.
Mistry also discussed expectations around capital markets and taxation. He said stability in tax policies is crucial to encourage long-term investment. “Taxation reforms have been implemented over the past few years.
For capital markets, it is important to have long-term stability. Investors should not have to rethink their strategy every year. A system where capital gains are taxed at a lower rate in the first year, slightly higher in the next two or three years, and progressively thereafter will encourage long-term equity investment,” he explained.
Real Estate, Rural Development, and Long-Term Budget Goals
On the real estate sector, which has faced challenges in recent times, Mistry highlighted the need for increased tax benefits. “The interest deduction limit for housing loans has been kept at a certain level for a very long time. With inflation rising, this limit needs to be enhanced,” he said. He added that such measures could revive demand and make housing more affordable for end-users.
Mistry’s discussion also underlined the broader goal of balancing growth, job creation, and investment while addressing global challenges. “The budget needs to create an environment that supports both domestic and export-oriented sectors. It should encourage manufacturing and job creation, while also supporting rural development and technological adoption,” he said.
He concluded that the Union Budget 2026 should focus on long-term reforms rather than short-term fixes. “We need consistent policies, especially in capital markets and taxation. Clear and stable rules will encourage both domestic and foreign investment. At the same time, support for sectors like manufacturing, real estate, and rural development will help sustain economic growth,” Mistry added.
The discussion with Keki Mistry highlighted corporate India’s expectations from the upcoming budget, including growth-oriented policies, targeted incentives for key sectors, long-term reforms in taxation and capital markets, job creation strategies, and measures to support real estate and rural development.
The Union Budget 2026 is expected to be announced today by Finance Minister Nirmala Sitharaman
Doonited Affiliated: Syndicate News Hunt
This report has been published as part of an auto-generated syndicated wire feed. Except for the headline, the content has not been modified or edited by Doonited
