Tax insight

India Budget 2026: Impact on foreign investors and multinationals

Insight
5 minute read
February 04, 2026

What happened?

India’s Finance Minister presented the Union Budget for 2026–27 (Budget 2026) on February 1, 2026. The budget continues the government’s development agenda, with an emphasis on manufacturing, the ‘Make in India’ initiative, employment-led development, human capital investment, energy security, export promotion, and innovation.

On the tax front, the Finance Minister announced a commitment that the new Indian income tax law will take effect on April 1, 2026. The implementing tax rules and prescribed forms are to be notified shortly.

The tax proposals aim to attract global business and investment, strengthen the information technology (IT) sector as India’s growth engine, and simplify and rationalize tax provisions coupled with measures to reduce tax litigation and enhance certainty.

Why is it relevant?

Following Parliamentary consideration and enactment, the Budget 2026 proposals are expected to become effective April 1, 2026, or on other dates for specific proposals.

Action to consider

Companies should assess the potential impact of these measures and incorporate them into their strategic and operations planning in India.