As the Union Budget 2026 approaches, expectations are high across key sectors. The energy sector is poised for a significant shift towards a gas-based economy, with a focus on sustainable energy solutions. The education sector is looking for enhanced budgetary allocation to strengthen foundational learning and infrastructure, aligning with the National Education Policy 2020. Meanwhile, the hospitality and tourism sector is seeking policy prioritization and investment incentives to unlock its vast potential for growth and job creation. Here’s a snapshot of what these sectors are looking for:*
*Energy sector*:
*Baroruchi Mishra, Group CEO – Nauvata Energy Transition (NET) Enterprise*
India needs to make a very concerted effort to move towards a gas economy – increase production of methane and hydrogen from all sources (fossil based, biogenic and coal gasification), while managing the CO2 intensity of producing them through CCUS (Carbon Capture, Utilization and Storage). For one, it would help us lower the carbon intensity by 30-50% compared to fossil fuel use, and for two, the biogenic and coal gasification sources are in abundance in India! This compensates for the limitations in our geological reserves of fossil fuels and/or the green energy requirements for Green Hydrogen.
A. BioLNG is a direct replacement of LNG imports with a potential to save $1-3 billion per annum in importation bills.
Earmark a fund of $2 billion for viability gap funding, a subsidy scheme, and R&D for BioLNG from CBG.
Incentive widespread Hub and Spoke model set-ups, with 10-15 CBG plants feeding into a single BioLng facility in remote areas of India which have high recyclable vegetation covers but are not served by natural gas pipeline networks. Using Iso-containers, the BioLNG can be transported by trucks to locations with high demand or directly supplied to the LNG import terminals with a low-carbon premium on their sale price. BioLNG bunkering of ships will attract premium prices from international ship owners.
Extend PLI scheme for manufacture of cryogenic equipment for BioMethane liquefaction to BioLNG. Ability to liquefy small volumes of gas can directly help with monetizing stranded natural gas reserves in remote areas (like in the North-East) through the LNG route.
Put into place credit guarantee schemes and bring “CBG to BioLNG” under priority sector lending with an appropriate level of risk guarantee from government entities like SIDBI/IREDA.
Bring BioLNG into long distance transportation decarbonization road map with the right level of incentivization for LNG trucks.
CCS – Enabling- policy frameworks for CCS will help with continued use of fossil fuels and indeed make coal gasification, which has a very low CO2 capture cost but very high CO2 volumes, an environmentally acceptable enterprise. This would help with monetizing our huge coal reserves.
A clear funding envelops for CCS, like 45Q in the US, should be announced in the budget – higher subsidy for geological storage and lower for CO2-EOR or ECBM with CO2. $40/tonne for geological storage and $30/tonne for CO2 EOR/CO2-ECBM would help instigate CCS projects’ development. All projects need to implement global standards for MRV (Measurement, Reporting and Verification).
Synchronise CCUS with coal gasification / synthetic natural gas; provide similar subsidies till the technology improves to reduce cost and the eco-system for coal-gasification becomes widespread.
Declare a MtCO2/year CCS target at the country level for 2030, 2035 and 2040.
Earmark funds ($200-250 mln) to create shared CO2 back bone – starting with CO2 carrier pipeline in the West Coast in areas with high point sources of CO2.
Earmark $20 mln for a task force of industry experts with international CCS projects’ exposure to prove up Project Level geological storages and frame projects around them.
Announce streamlining of policy frame works /regulations on long-term liabilities for CO2 storage.
*Education Sector*
*Usha Iyer, Principal & Director, The Green School Bangalore (TGSB)*
As we approach the Union Budget on 1st February 2026, there is strong hope that education will receive focused and future-ready support. The education sector requires enhanced budgetary allocation to strengthen foundational learning, teacher training, and infrastructure—especially for affordable private schools that play a critical role in last-mile education delivery.
Key expectations include increased funding for early childhood education, special incentives for green and sustainable school campuses, and greater support for inclusive education covering children with special needs. Rationalisation of GST on educational services and learning materials would significantly ease financial pressure on schools and parents alike.
There is also a need for policy-backed investment in skill-based learning, digital infrastructure, and teacher upskilling aligned with NEP 2020. Encouraging public–private partnerships, offering tax incentives for education-driven CSR initiatives, and simplifying compliance frameworks would empower schools to focus on learning outcomes rather than administrative burdens.
A budget that prioritises equity, quality, and sustainability in education will be an investment in India’s long-term social and economic growth.
*Hospitality & Tourism sector*
*Prathima Manohar, Director, Paradise Group, GoodPass and co-curator of One-TAC Udupi circuit*
Tourism is one of India’s most underleveraged growth and job-creation engines. While tourism contributes 9–10% of global GDP, India – despite its cultural and geographic depth attracts just 11 million foreign visitors annually. By comparison, Barcelona alone receives over 15 million inbound tourists a year. This gap reflects not a lack of demand, but a persistent failure of policy prioritisation and destination development.
First, India needs a single-window clearance system for tourism and hospitality projects. Today, fragmented approvals across land, environment, local bodies, and utilities delay projects by 24–36 months, raising capital costs in a sector where margins are already low.
Second, tourism jobs are among the strongest bottom-of-the-pyramid employment multipliers. The sector already supports over 40 million jobs, many of them local, dignified, and inclusive; absorbing women, youth, and informal workers into the formal economy at scale.
Third, capital-intensive hospitality projects require renewed investment incentives. Restoring GST input tax credits and offering targeted income-tax rebates, particularly for rural and Tier 2/3 destinations, would unlock long-term capital and accelerate supply beyond metros.
Finally, public investment in destination infrastructure and placemaking is not discretionary….it is economic strategy. If India seeks inclusive growth, tourism must be treated not as consumption, but as nation-building infrastructure.
