As the Union Budget 2026 approaches, expectations from India’s middle class are notably restrained. Instead of headline-grabbing tax cuts or dramatic policy shifts, households are looking for predictability, affordability and economic stability that directly impacts their daily lives.
From steady employment and controlled inflation to easier access to housing, healthcare and essential goods, the focus is firmly on sustainable living rather than short-term relief.
To gain deeper insight into these expectations, the source spoke with Anuj Mundhra, Founder, Chairman & Managing Director of Nandani Creation Limited (Jaipur Kurti); Vijay Raundal, Managing Director of Teerth Realties; and Ranjit Jha, MD & CEO of Rurash Financials.
For the middle class, disposable income growth begins with job stability and manageable inflation. According to Anuj Mundhra, this must be a core priority for Budget 2026.
“Once economic confidence improves, spending on ethnic wear will rise naturally. This has a cascading impact, benefiting artisans, weavers and MSMEs connected to the sector,” he notes.
India’s consumption-led growth model depends heavily on middle-income households. When inflation moderates and income visibility improves, discretionary spending follows, supporting both organised retail and traditional supply chains.
Mundhra highlights the importance of bottom-up policy support.
“Encouraging local production, easing compliance for smaller retailers and improving access to funding can help maintain price stability. That is crucial for value-for-money consumption while preserving quality and craftsmanship.”
Simpler compliance frameworks and easier credit access could help small businesses absorb cost pressures without passing them fully on to consumers.
Housing affordability continues to be one of the most pressing concerns for middle-income families as land prices, construction costs and financing expenses rise.
Vijay Raundal explains that affordability today goes beyond ownership alone.
“Rising property prices and construction costs have made affordable housing less accessible for working middle-class families,” he says.
Raundal believes policy action is needed across multiple fronts.
Faster project approvals
Expansion of mass housing projects
Infrastructure development in peripheral urban zones
“But beyond that, there is strong hope for rental housing schemes, renewal of older housing stock and public-private partnerships that increase supply without sacrificing quality.”
He also emphasises the importance of proximity to workplaces.
“Reducing long commute times can significantly improve quality of life for middle-class workers.”
From a financial planning perspective, expectations from Budget 2026 are cautious rather than aggressive, says Ranjit Jha.
“The government has already provided meaningful relief by increasing the tax-free income threshold to over Rs 12 lakh under the new tax regime and lowering GST on select items,” he explains.
With major structural tax changes already in place, middle-class anxiety around personal taxation has eased.
“As a result, concerns around high personal taxation have eased.”
“People are looking for policy consistency, price stability and gradual improvements in housing, healthcare and long-term savings rather than aggressive tax cuts,” Jha adds.
On home loan interest rates, Jha does not expect major budget-led interventions.
“With inflation under control, rate stability seems more likely than further cuts,” he says.
Borrowing costs will continue to depend primarily on inflation trends and RBI policy decisions.
However, Jha sees scope for deeper reforms in real estate governance.
“Clear land titles, simpler ownership documentation and regulatory clarity can go a long way in improving ease of home ownership. Structural reforms matter more than short-term incentives.”
Despite macroeconomic stability, daily expenses remain the biggest stress point for middle-class families.
“Fuel prices, LPG cylinders, milk, dairy products and essential vegetables directly affect household budgets,” Jha says.
“Managing these costs matters far more to families than headline inflation numbers.”
Controlling everyday inflation directly impacts savings, consumption behaviour and overall quality of life.
Rising essential costs have made middle-class consumers far more selective, particularly in categories such as apparel.
Mundhra explains:
“Clothing purchases by the middle class are largely event-driven, i.e., festivals, weddings and family occasions. These are among the first expenses to be deferred when household budgets come under pressure.”
“There is a clear shift towards value sensitivity. People want quality, but only if it feels worth the price.”
Consumers are increasingly prioritising durability, utility and pricing over impulse buying.
Taken together, expectations from Budget 2026 point towards practical governance rather than populist measures. The middle class wants:
Job security and income stability
Control over essential inflation
Better access to affordable and rental housing
Structural reforms that simplify daily life
For millions of Indian households, the success of Budget 2026 will be judged not by big announcements, but by whether it makes everyday living more affordable, predictable and secure.