Union Budget 2026-27: Focus on Demand, Investment, and Jobs

As preparations for the Union Budget 2026-27 begin, early signs suggest a plan to boost domestic demand, encourage private investment, and create jobs, according to a report by Motilal Oswal Financial Services (MOFSL). The firm has picked five stocks – in auto, agriculture, defense, financials, and infrastructure – that they believe will offer good returns for investors.

The budget is expected to simplify income tax, GST, and customs rules to make it easier to do business and help control spending. it will also likely offer specific support for agriculture, small businesses (MSMEs), manufacturing, infrastructure, defense spending, electric vehicles (EVs), and renewable energy through loans and incentives,” said research analysts Sneha Podcasts and Rekha Jaat.

The government is expected to heavily invest in areas like highways, logistics, defense, rail freight, and connectivity. This will be paired with programs to improve skills, help rural areas grow, empower women, encourage the use of Artificial Intelligence (AI), address climate change, and expand digital finance, all to support IndiaS future economic growth.

The finance ministry began working on the 2026-27 budget on October 9, as announced by the Department of Economic Affairs (DEA).

These preparations are happening while facing new challenges, including a 50% increase in US tariffs on many Indian goods and other global economic issues. These challenges could slow India’s growth and impact jobs, leading to calls for more support for exporters.