Bengaluru, Feb 1 (.) The union Budget 2026 has drawn measured applause and cautious frowns from market watchers, who see in it both ambition and the ever-present caution that defines Indian fiscal governance.
Akshay Gupta, Director of Prime Securities Ltd, described the budget as a tightrope walk between critical infrastructure imperatives and fiscal prudence. He singled out three clear positives: simplification of income tax assessments, rationalisation of TCS and TDS for overseas transactions and NRI property sales, and an unmistakable push into critical minerals, semi-conductors, agri-infrastructure, and fisheries. Yet, he did not shy away from noting the irritants: a rise in STT in derivatives markets, and other regulatory measures likely to provoke market unease in the short term.
Vishal Goenka, Co-Founder of IndiaBonds.com, took a measured view of the bond market. He welcomed incremental measures, the market-making framework, introduction of bond indices, and incentives for municipal bond issuance raised to INR 100 crore, as nudges that promise more transparency and liquidity.
Streamlining of 15G/15H TDS exemption forms for retail investors, he said, was a small but significant step. Still, he cautioned that the larger-than-expected gross borrowing plan of INR 17.2 lakh crore could rattle investors, even as net borrowing remained within expected limits. All eyes, he noted, will be on the Reserve Bank of India’s forthcoming policy moves.
Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank, echoed concerns on borrowing. She said, “The government has continued to focus on fiscal consolidation. The FY27 fiscal deficit at 4.3% and net borrowing is in line with our expectations. However, the sharply higher than expected gross borrowing of Rs17.2tn is expected to weigh heavily on market sentiments. No buybacks or switches have led to the surprise upside to the gross borrowing.”
Shaishav Dharia, Director of Lodha Green Digital Infrastructure, lauded the government’s long-term vision for India as a global hub for data centres and cloud services.
He called the tax holiday until 2047 for foreign cloud players, combined with safe-harbour clarity, “an unambiguous signal to global investors that India is open, competitive, and stable for long-term digital infrastructure capital.”
Dharia said this policy, together with India’s scale, talent pool, and improving infrastructure, will accelerate hyperscaler investments, create high-quality jobs, and position India firmly on the global data centre map.
The budget, therefore, presents itself as an exercise in duality: a carefully choreographed effort to spur growth while keeping the fiscal leash taut. As always, the proof of prudence will lie in execution and market response in the days ahead.
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