Hyderabad, Jan 11 (.) The Indian flexible workspace industry has urged the Government of India to introduce supportive policy measures and rationalise GST in the ensuing union Budget 2026 to sustain its rapid growth and strengthen India’s position as a global business hub.
The flexible office market in India, valued at USD 5.99 billion in 2025, is projected to reach USD 11.39 billion by 2030, growing at a compound annual growth rate (CAGR) of 13.72%.
Industry estimates suggest that the total stock of flexible office space in the country will cross 100 million square feet by 2026–27, driven by increasing adoption from startups, large enterprises, Global Capability Centers (GCCs), and multinational companies embracing asset-light and agile operating models.
To maintain this growth momentum, industry stakeholders are seeking GST rationalisation, regulatory clarity, and improved ease of doing business in the forthcoming Budget.
“India’s flexible workspace sector is becoming a critical enabler for global businesses, particularly Global Capability Centers and digitally driven enterprises,” said Ms. Archana Naidu, Board Member and Head of Business, iKeva.
In union Budget 2026, the industry expects clear policy support through tax reforms, streamlined regulations, and incentives that encourage expansion into emerging cities.
She added that GST rationalisation on flexible workspace services, clarity on satellite communication (SatCom) spectrum policies to support high-speed digital integration, and targeted incentives forTier 2 and Tier 3 city expansion would be crucial for ensuring sustainable growth and global competitiveness.
The industry has outlined key expectations from the Budget, including treating flexible workspace services as essential business infrastructure rather than hospitality for taxation purposes, faster regulatory approvals for new centres, and incentives for green buildings and advanced technologies such as AI- and IoT-enabled offices.
According to industry leaders, supportive measures in Budget 2026 would further enhance India’s attractiveness as a destination for global businesses, accelerate digital transformation, and promote sustainable, employment-generating growth across the flexible workspace ecosystem.
These measures, will further strengthen India’s attractiveness as a destination for global businesses, accelerate digital transformation, and promote sustainable, asset-light growth models across the flexible workspace ecosystem, she added.
. KNR ARN