Union Budget 2026: In order to promote early-stage companies and guarantee long-term development, entrepreneurs from a variety of industries have urged the government to declare greater incentives, better access to funding, and simpler compliance rules as the Union Budget 2026 is scheduled to be announced on Sunday, February 1.

Industry executives said that while there are a number of government programs in place, there are still implementation gaps, especially with regard to finance availability, taxes, and regulatory compliance, which continue to pose difficulties for small businesses.

The CEO and co-founder of the electric mobility firm Emobi, Bharath Krishna Rao, emphasized the need of specific incentives and assistance connected to real car sales.Manufacturing skills may be greatly enhanced by extending subsidies and giving startups tailored assistance based on real car sales, particularly for smaller and growing businesses. Startups would be able to invest in technology, increase manufacturing, and develop long-term operational capability thanks to such policies.

He went on to say, “Central government programs like CGTMSE, MUDRA, and PMEGP are meant to increase loan availability, but their efficacy is still constrained by the ongoing collateral restrictions that banks and NBFCs apply. Only a limited percentage of bids are accepted, limiting the flow of institutional capital to startups even with government-backed assurances.

In order to guarantee that lending institutions properly acknowledge and use government-backed guarantee mechanisms, he urged for more precise and consistent regulations.

Startups in impact-driven and social industries are also anticipating targeted assistance.

According to ParentVerse founder and CEO Abhinav Rao Kuchipudi, early-stage firms want improved incentives, streamlined regulatory procedures, and easier access to grants and capital.

“We anticipate improved incentives for early-stage startups, streamlined compliance procedures, and improved access to funding and grants for impact-driven ventures,” he said. Growth would be further accelerated by tax incentives for entrepreneurs that invest in women-led businesses, family-focused innovation, and tech-enabled education.

Additionally, Kuchipudi encouraged the government to prioritize digital-first parenting solutions, mental health, and early childhood development in the next budget.

He said that more funding for parental education, mental health awareness, and child well-being will contribute to the development of a resilient next generation.

According to Devashish Sharma, co-founder and CEO of Taggd, the Union Budget 2026 presents a chance to improve employer confidence, worker preparedness, and labor reforms.

“The Union Budget 2026 presents a lucrative opportunity to strengthen the trifecta of labor reforms, workforce readiness, and employer confidence,” he said. The labor changes that have been put into place are beginning to make compliance easier and enhance worker protection. However, whether or whether organizations feel safe enough to employ and engage in skilling and reskilling will determine the significant effect. By boosting employer-led training and encouraging technology adoption without interfering with employee work, the next budget may build on these gains.

Complex compliance and dispersed access to capital are significant obstacles for entrepreneurs, according to Avinash Deshmukh, COO of the health and wellness firm iThrive.

“Survival in a complex funding and compliance environment is what is really holding startups back today, not their intent or innovation,” he said. Credit availability is still dispersed and challenging, particularly for those working in start-up companies. Many emerging firms cannot thrive without simple, more reliable sources of funding.

Raising the GST registration requirement from Rs 20 lakh to at least Rs 1 crore is another significant adjustment. Rs 20 lakh is no longer a useful benchmark due to inflation and practical realities.

All things considered, entrepreneurs anticipate that the Union Budget 2026 would allay these worries and provide a more encouraging environment for innovation, the creation of jobs, and long-term development.