As the Union Budget 2026 approaches, India’s middle class is not expecting sweeping tax cuts or dramatic policy announcements. Instead, it is seeking stability — steady incomes, controlled inflation, and policies that ease the cost of everyday living, from housing and healthcare to basic household expenses.
To understand these expectations, IndiaToday.in spoke to Anuj Mundhra, Founder, Chairman and Managing Director of Nandani Creation Limited (Jaipur Kurti); Vijay Raundal, Managing Director of Teerth Realties; and Ranjit Jha, MD & CEO of Rurash Financials.
For middle-income households, purchasing power begins with stable employment and manageable inflation. Anuj Mundhra believes these should be central to Budget 2026. He notes that once economic confidence improves, discretionary spending — including on ethnic wear — rises naturally, benefiting artisans, weavers and MSMEs across the value chain.
He also stresses the need for policy support at the grassroots level to help maintain price stability. “That is crucial for value-for-money consumption while preserving quality and craftsmanship,” he says.
Housing continues to be one of the biggest challenges for the middle class, with property prices and construction costs steadily rising.
Vijay Raundal says affordability today goes beyond ownership to long-term sustainability. “Rising prices have made affordable housing increasingly out of reach for working families,” he explains. He hopes Budget 2026 will focus on faster approvals, mass housing projects and improved infrastructure in peripheral areas.
Raundal also highlights the need for rental housing schemes, redevelopment of older housing stock and public-private partnerships to expand supply without compromising quality. “Quality homes closer to economic centres can significantly reduce commute times and improve quality of life,” he adds.
From a financial planning standpoint, the middle class is entering Budget 2026 on relatively stable ground, says Ranjit Jha.
“The government has already offered meaningful relief by raising the tax-free income threshold to over Rs 12 lakh under the new tax regime and lowering GST on select items,” he notes. As a result, expectations this year are more measured. “People are now looking for price stability and long-term savings rather than aggressive tax cuts.”
Jha believes meaningful reform is still possible through clearer land titles, simplified ownership documentation and better regulatory clarity. On home loans, he expects interest rates to remain guided by inflation trends and RBI policy rather than budget announcements. “With inflation under control, rate stability appears more likely than further cuts,” he says.
Despite broader economic stability, daily inflation continues to weigh heavily on middle-class budgets.
“Fuel prices, LPG cylinders, milk, dairy products and essential vegetables have a direct impact on household expenses,” Jha says. “Managing these costs matters far more to families than headline inflation figures.”
Rising essential costs have made middle-class consumers more cautious. Mundhra explains that spending on clothing is largely event-driven — festivals, weddings and family occasions — and is often deferred when budgets tighten.
“There is a clear shift towards planned, need-based purchases,” he says. “Consumers want quality, but only when it feels worth the price.”
Taken together, the middle class is seeking a balanced Budget 2026 — one that protects jobs, keeps essential costs in check, improves access to housing and supports value-conscious consumption.
For millions of households, the true measure of the budget will not be headline announcements, but whether it makes daily life more affordable and more stable.
