With Finance Minister Nirmala Sitharaman scheduled to present the Union Budget 2026-27 on Sunday, February 1, 2026, at 11 AM in Parliament the first Sunday presentation in recent history leaders from microfinance, digital payments, skilling, and medical devices are urging targeted reforms to enhance credit access for MSMEs, strengthen fintech ecosystems, boost affordable digital education, and support domestic manufacturing in critical sectors.
Avinash Kumar, COO, DJT Microfinance:
“As we look toward Union Budget 2026, we anticipate a strategic focus on expanding affordable credit for MSMEs and the underserved. Microfinance institutions are the engine of rural demand; however, to scale effectively, we need a significant reduction in funding friction and the removal of operational bottlenecks. We call for dedicated refinance windows to lower costs for NBFCs and a simplified, extended MUDRA framework to ease balance sheet stress. Ultimately, aligning fiscal policy with RBI’s digital norms and streamlining compliance will be the key to fostering borrower trust and empowering low-income entrepreneurs.”
Kunal Jhunjhunwala, Founder, airpay:
“As India enters Budget 2026, fintech and digital payments must move beyond prioritizing scale to focus on resilience, compliance, and the depth of adoption. The policies in place will not only determine the growth trajectory of the next phase but also influence the digital infrastructures that will be built under regulation, as well as the compliance facilitation and interoperability among the various payment channels that will be established. While MSMEs will be able to utilize support from policies on onboarding, payment-linking to credit, and last-mile digitization to speed up formalization and reap the consequent productivity benefits in these sectors, more regulatory clarity on cross-border payments will be crucial in making Indian firms engaged in international trade more. The government should also push for the adoption of cutting-edge technologies, such as AI-based risk management and fraud detection, to build trust, resilience, and productivity across India’s financial ecosystem, thereby securing sustainable growth in the upcoming phase of the digital economy.”
Pankaj Jathar, Chief Executive Officer, NIIT Limited:
“AI and digital are no longer peripheral skills; they are the core gateway to jobs and competitiveness. As digital learning continues to play a central role in India’s skilling journey, improving affordability will be key to unlocking its full potential. Today, most online courses fall under the 18% GST bracket, which impacts price accessibility at scale. Rationalising GST on verified digital learning programmes to a 5% bracket would make high-quality AI-enabled education more affordable, accelerate widespread adoption, and empower training providers and startups to scale sustainably in support of India’s talent ambitions. At the same time, the nation must invest more in people. As a skilling-first enabler, we urge the government to set a clear target of 6% of GDP for education, to be delivered through higher absolute allocations that prioritise digital infrastructure, public–private skilling partnerships, and hard-to-reach geographies. India’s skilling gaps are well identified now, and this is a crucial time where we need a national push that combines fiscal incentives for low-cost digital learning with a sustained increase in public education investment to deliver both equity and economic returns.”
Kumar Binit, CEO, airpay money:
“As the Union Budget approaches, it is evident that the financial behaviour of young, digitally confident Indians is evolving rapidly. The latest consumer insights indicate that the use of digital payments for offline purchases has increased from 48% in 2024 to 56% in 2025, suggesting that money management is taking a digital-first approach. At the same time, it is reported that 65% of young professionals want to have their first credit card application completed before starting their first job, with the main reason being that they want to manage their living expenses, earn rewards, and establish a good credit history early on. This trend not only indicates growing consumer participation but also points to the financial wellness aspect, which needs to be addressed more urgently. Budget 2026 can be an important factor by making compliance easier, promoting responsible credit use, and providing tax benefits for long-term savings, thereby allowing people to adopt good financial practices right from the start of their earning journey. If the right policies are in place, India will be able to turn the rising digital adoption into deeper financial education, greater inclusion, and long-term economic stability.”
Rajiv Nath, Forum Coordinator, Association of Indian Medical Device Industry (AiMeD):
“2025 has been a year of steady progress and purposeful engagement for India’s medical devices sector. We commend the Government of India for its continued focus on strengthening the MedTech ecosystem through sustained policy dialogue and the growing recognition of medical devices as a strategic pillar of healthcare delivery and economic resilience. This year witnessed deeper engagement on the Medical Devices Policy 2023, alongside constructive discussions on regulatory predictability, domestic manufacturing capacity, and the urgent need to reduce import dependence in critical device segments. For Indian manufacturers, particularly MSMEs, 2025 has laid the groundwork for a more balanced and enabling operating environment—one that prioritises quality, affordability, and trust while encouraging innovation and global competitiveness. At AiMeD, our efforts have remained centred on advocating a level playing field, ethical procurement practices, and policy frameworks that support sustainable growth across the value chain. As we step into 2026, the focus must shift decisively towards consistent policy execution and deeper industry–government collaboration. Key steps include raising tariffs to 10–15% from the current 7.5% to support domestic manufacturing, adopting quality‑based criteria in public procurement with preference for ICMED certification over foreign approvals, updating labelling norms to disclose domestic content percentages, and incentivising suppliers with over 50% local value addition. These reforms, coupled with measures to enhance global competitiveness, can help India translate its capability, capacity, and credibility into lasting outcomes—positioning our nation as a leading global MedTech hub.”
These expert voices highlight a unified priority for the Union Budget 2026: deliver enhanced credit access for MSMEs and underserved segments, regulatory clarity for fintech and digital payments, GST rationalisation on digital skilling to improve affordability, and tariff adjustments along with quality-based procurement to bolster domestic medical device manufacturing. Such measures could accelerate financial inclusion, skill development, digital resilience, and self-reliance in critical sectors, supporting India’s broader economic and social goals.
Last Updated on: Friday, January 23, 2026 5:58 pm by Monisha Angara | Published by: Monisha Angara on Friday, January 23, 2026 5:58 pm | News Categories: News
About The Author
