CA Srishti Gosavi, a finance content creator, said: As expected, after last year’s mega direct tax overhaul that made income up to ₹12.75 lakh effectively tax-free under the new regime, this Budget 2026 feels more like stability than shock relief, there’s no change in income tax slabs or major new rate cuts, which will be a bit of a let-down for the salaried middle class expecting fresh relief. The STT increase has slightly let-down the active traders which can be seen in through market crashes. On direct taxes, the focus seems to be on simplification, compliance ease and predictability, not headline-grabbing cuts-something many taxpayers might quietly appreciate over time.
TCS relief for travelers & students – sharp reduction in TCS on overseas tour packages, education and medical remittances to just 2 %, making foreign trips and overseas expenses significantly more affordable upfront. All said, this feels like a measured, pragmatic budget, not spectacular, but one that keeps the tax regime stable while trying to balance revenue and growth.
Mohammed Salman, Co-founder of Tint Tone and Shade Interiors adds: Today’s Union Budget for FY2026-27 prioritises macro-economic stability, infrastructure expansion, and MSME support but it mostly sidesteps sector-specific fixes for industries like residential interior design that operate at the intersection of services, execution and home-buyer expectations.
Capital Expenditure (Capex): ₹12.2 lakh crore – The government has increased capex sharply from ₹11.2 lakh crore in FY26 to ₹12.2 lakh crore for FY27. This signals continued infrastructure build-out, urban connectivity, and logistics – all of which indirectly boost housing demand across India. Better connectivity means more housing supply and renovation activity, and that feeds directly into our interiors funnel.
Fiscal Deficit: Targeted ~4.3% of GDP – The government remains committed to fiscal discipline, tightening the deficit from ~4.4% in FY26 to around 4.3% of GDP. While this is positive for macro stability, it limits room for major new spending, especially in social infrastructure, skills and sector-specific incentives.
Gross Market Borrowing: ₹17.2 lakh crore – Borrowing is set to rise to ₹17.2 lakh crore in FY27, up from an estimated ₹14.8 lakh crore this year. While this ensures funding for capex, it also puts pressure on debt dynamics and interest rates – with implications for business financing costs.
MSME Growth Fund: ₹10,000 crore – A dedicated ₹10,000 crore fund to support MSME expansion is a welcome announcement. Interior design firms – many of which are MSMEs managing design teams, vendor networks, and execution workflows – often face cash-flow mismatches and working capital stress. If channelled effectively, this fund can improve access to structured credit and reduce project delays.
Tax & GST Momentum (Indirect): GST collections estimated ~₹11.8 lakh crore in FY26 – GST continues to grow, but there is no sector-specific rationalisation for GST on interiors. Today, customers incur GST on materials, fittings, appliances and again on services, which adds to the final bill without adding value. A simpler, bundled tax treatment would have had a powerful impact on affordability and transparency in our sector.
Where Budget 2026 shines: – Stable macro outlook – Infrastructure-led growth that supports housing demand – MSME liquidity & credit support
Where it misses the mark: – No clear tax rationalisation for residential interiors – No dedicated workforce skilling spend for finishing trades (carpenters, installers, supervisors) – No direct incentive for technology adoption (ERPs, project management tools, digital workflows)
In a country where ~70-80% of homeowners first experience design services through renovations and custom interiors, addressing these structural pain points would materially improve both business efficiency and consumer trust.
In essence, Budget 2026 lays a stable national growth path, but the micro friction points faced by execution-led, delivery-driven firms like ours remain unaddressed. The next phase of policy focus needs to recognise residential interiors as a core part of the housing value chain, not an afterthought.