Ahead of the Union Budget 2026, India's financial services sector is advocating for strategic measures to ease capital constraints and improve access to liquidity. With a surge in demand across Tier 2 and Tier 3 markets, industry leaders emphasize that the next phase of growth hinges on credit quality, institutional resilience, and effective last-mile delivery.
Manish Shah, MD & CEO of Godrej Capital, highlighted the industry's expectations, stating, "As India enters the next phase of financial penetration, the focus must shift from mere credit expansion to improving the quality, accessibility, and sustainability of finance." He suggested that the Union Budget 2026 could play a pivotal role by deepening domestic liquidity and strengthening risk-sharing mechanisms such as credit guarantees and co-lending frameworks to benefit MSMEs and emerging entrepreneurs.
The sector is looking forward to a budget that ensures policy continuity and fosters a future-ready financial ecosystem. Key priorities identified by experts include stabilizing credit availability and promoting sustainable lending practices to drive long-term economic momentum and financial inclusion across the country.