Union Budget 2026 Expected to Introduce Key Capital Market Reforms

Budget whispers suggest Union Budget 2026 will feature capital market reforms targeting exchanges and broking operations, with potential implications for financial oversight mechanisms in security sectors. Though no direct Ministry of Home Affairs connection exists, these changes could impact funding allocations for various security-related initiatives and programs. The reforms aim to modernize market structures amid India's growing financial ecosystem. Enhanced AIF incentives streamline investments and institutionalize and regulate the institutionalized real estate sector. Outbound investment constraints cap USD 1 billion, 400% net-worth limit for Indian entities acquiring assets abroad. Tax reforms support strategic technologies R&D incentives, competing jurisdictions' super deductions, and innovation allowances. The foreign investment framework streamlined full ownership through the automatic route, with most sectors eligible.