By Govindraj Ethiraj

The Union Budget 2026 is scheduled for presentation on February 1.

Notably, the date falls on a Sunday.

As far as political signaling goes, it is a potent one. It suggests an India that is open for business 24x7, even requiring the stock markets to break their weekend silence for a full trading session.

Yet, for the global financial community, the success of this Budget will be measured by more than a working Sunday.

The true test lies in the "morning after" sentiment.

Will the broader investor class see a decisive break from the country’s linear progression in economic policy, or will they see some truly radical and memorable moves?

India must decide if it is ready to sprint onto the global stage or if it will continue "feeling for the stones" while crossing the proverbial river of economic transition.

Momentum Meets Hesitation

Budgets are inherently about tangibles, but the 2026 iteration calls for a powerful and clear vision that transcends the minutiae of tax code amendments.

Traditionally, Budget speeches serve as political theater—a chance for the government to wax eloquent on past achievements.

To be fair, the last year has been momentous.

Despite global volatility triggered by policy shifts in Washington, India’s domestic "growth cocktail" looks remarkably cheerful: Consumption taxes have moderated, inflation is low and interest rates are holding at supportive lows.

Furthermore, India has shown surprising resilience against the trade headwinds generated by US President Donald Trump.

Even with tariffs currently at 50%—and the looming threat of an additional 25% on nations trading with Iran—Indian GDP growth remains steady to strong, depending on how you read the numbers.

However, a troubling paradox persists: despite these robust macro numbers, private investment remains tepid.

Both global and domestic players are hesitating to sign up for fresh capital expenditure. Growth is present, certainly, but it is not yet meeting the soaring ambitions of a nation seeking to lead the century.

The Missing Catalyst

For three decades, Indian industry has been offered "reform" in small, cautious doses.

Since the 1991 Budget by then finance minister and later prime minister Manmohan Singh—which dismantled the "License Raj" and lowered tariff walls—the word "reform" has been used so often it has lost its edge.

In 2026, we find ourselves grappling with echoes of those same 1991 challenges: high tariff barriers and a stifling regulatory environment.

Businessman Sanjaya Mariwala told me on The Core Report, "India’s labor codes were supposed to simplify the system, yet companies are still drowning in more than 8,600 annual compliance requirements. In the United States, where I also operate, that number is 35."

Tariffs Choking Trade

One illustration is India’s import tariff regime.

A scathing new report from the Global Trade Research Initiative (GTRI) exposes a system that is as inefficient as it is obstructive.

India’s merchandise trade has crossed $1.16 trillion and nearly 29% of gross domestic product flows through customs clearances.

In that context, says GTRI, even modest inefficiencies now impose economy-wide costs, raising input prices, delaying shipments and weakening export competitiveness at a time when global companies are reassessing sourcing locations amid geopolitical fragmentation.

Furthermore, custom duties now account for a meager 6% of gross tax revenue, and the distribution is absurdly skewed: 90% of import value is concentrated in fewer than 10% of tariff lines.

Meanwhile, the bottom 60% of tariff lines generate less than 3% of customs revenue.

In short, the government is exerting massive administrative effort for negligible fiscal gain. And Indian businesses are facing the brunt of it.

The GTRI’s recommendation is common sense: Move to zero duty on industrial raw materials and intermediates immediately.

Stop the "inverted duty" that taxes inputs more heavily than finished products.

So while the Sunday presentation is a nice nod to the work ethic, the Budget must present a powerful vision to truly unshackle Indian business. And build on the announcements in recent months.

The ultimate goal should be so ambitious that by the time the 2027 Budget arrives, the word "reform" is no longer necessary because the structural work is finally complete.

And perhaps, once the heavy lifting is done, we can all go back to taking our Sundays off.

India Energy Week returns for its 4th edition from 27–30 January 2026 in Goa, held under the patronage of the Ministry of Petroleum & Natural Gas and co-organised by FIPI and DMG Events.

As India advances its role in the global energy transition, the event will bring together policymakers, industry leaders and innovators to shape practical pathways toward a secure, sustainable and affordable energy future.

IEW 2026 will spotlight India’s leadership in balancing energy access with decarbonisation, while showcasing strategic investments, emerging technologies and global partnerships driving the next era of energy progress.

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Rs 22.20-crore

That’s the penalty India’s aviation regulator Directorate General of Civil Aviation (DGCA) has imposed on IndiGo, along with issuing warnings to senior executives and directing the airline to remove the head of its operations control from duty.

Context: India’s largest carrier cancelled about 4,500 flights in early December due to poor pilot roster planning, DGCA said. A regulatory probe found multiple deficiencies after stricter pilot rest and duty norms came into force, citing IndiGo’s focus on maximising crew and aircraft utilisation at the expense of operational resilience.

Setting: IndiGo said its board and management are committed to fully complying with the regulator’s orders. The airline added that an in-depth review of its internal processes is underway to ensure it emerges stronger from the disruption.

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