New Delhi: Union Budget 2026 set to lay down India's ‘Reform Express’ path
New Delhi: The Union Budget to be presented by finance minister Nirmala Sitharaman on Sunday is expected to accelerate regulatory reforms by dismantling compliance burdens for citizens, businesses and professionals to drive the “Viksit Bharat” (Developed India) 2047 goal, people familiar with the matter said, attributing it to Prime Minister Narendra Modi’s “Reform Express” focus in recent policy directives.
The regulatory easing may include exemptions from mandatory audits and corporate social responsibility (CSR) rules for small and medium enterprises (SMEs), allowing them to focus on core operations, the people said. While CSR is not mandatory for most micro, small and medium enterprises (MSMEs), it applies if net profit exceeds ₹5 crore. Follow live updates related to Union Budget here.
“Reforms are a work in progress. They may get a mention in the Budget. But this government works 24×7, throughout the year, hence reforms are a continuous process that does not wait for the Budget,” one person said.
The government is also considering easing quality control orders and reducing customs duties on intermediaries to boost MSME competitiveness. Input duties on chemicals, electronic items, electric vehicles and capital goods components may see corrections to aid “Make in India” goods.
The Budget is unlikely to raise customs duty on gold and silver despite a spike in imports, as they enter through official channels.
“Higher duty on gold and silver would unnecessarily encourage smuggling,” a second person said.
India’s gold imports in October 2025 soared over 199% year-on-year to $14.72 billion before falling over 12% to $4.13 billion in December. Cumulative gold imports in the first nine months of fiscal 2026 rose 1.83% to $49.39 billion. Silver imports surged 128.95% to $7.77 billion in the April-December period.
The Budget is expected to realign the customs duty regime with India’s manufacturing growth. Union finance minister Nirmala Sitharaman, in her remarks at the Hindustan Times Leadership Summit on December 6, said that reforming the regime — by lowering rates on select goods, increasing transparency and reducing official discretion — would be the next major reform.
The government may introduce a customs duty amnesty scheme following the success of ‘Sabka Vishwas’ for excise and service tax cases, and ‘Vivad se Vishwas’ for income-tax issues. The government and businesses are embroiled in legacy disputes regarding classification, valuation and rules of origin.
After massive tax reforms in the recent past no major overhaul of the direct or indirect tax rates are expected.
“Investors want policy continuity and a predictable tax regime, which have been achieved over the past few years,” the first person said.
The person noted that corporate tax remains competitive and middle-class tax liabilities have been eased, with income up to ₹12 lakh exempt — and ₹12.75 lakh for salaried persons. Goods and Services Tax (GST) rates were also rationalised in October, making most items — from everyday essentials to automobiles and medicines — cheaper for consumers.
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