India Inc gears up for the upcoming Budget 2026 when Finance Minister Nirmala Sitharaman will unveil the new set of fiscal interventions and policy announcements in the Parliament on Feb, 1, 2026. Ahead of the much-anticipated event, market experts seek efficient government capex, low interest costs and push deregulation across various sectors.
In an exclusive interaction with NDTV Profit on Jan. 7, 2026, Ajay Srivastava, MD, Dimensions Consulting has highlighted that India’s main challenge in 2026 is the efficiency of government spending including capex. The market veteran has warned that foreign capital inflows to India may stay muted this year as well due to the country’s pertinent ‘health hazard’
‘No Clean Air’: How will FII/FDI inflows sustain?
‘When we talk of FIIs, FDI coming in, let’s understand how the investments enter because environmentally, we have a problem,” said Srivastava. He referred to the rising levels of AQI and pollution which has made daily life difficult across metropolitan cities. The living quality has drastically come down over rising cases of respiratory diseases, allergies, and low immunity levels reported by individuals across all age groups in Delhi, Mumbai.
Srivastava asks, ”How do you convince a foreigner to invest and live in this country if this is what we present?” The market expert seeks a more efficient government capex from Budget 2026, which is ”accountable and in-line with strengthening the living standard of this country”.
”Economics will work if you are healthy. Otherwise, what’s the point if having money in the bank, if you can’t breathe clean air? I am a citizen so I have no choice”, he said. However, the government has a discretion of FDIs investment to come or not, according to the market veteran.
”Unfortunately, this has become a big criterion because when we talk to all companies overseas who say how to bring people in this country if you have a health hazard sitting out there,” said Srivastava. ”So, we are looking at efficiency of government spending, resolving the environmental crisis and better city infrastructure more than everything else,” he added.
Referring to the government, Srivastava claimed, ”You got to get capital and get people to stop taking money out of this country.” According to the expert, that’s the real issue and a challenge for India in 2026.
Budget 2026: Deregulation on the cards?
Interest costs is the biggest component of our budget and the biggest component of what’s holding back growth, according to Srivastava. ”The current interest cost does not leave much scope for Indian corporates to produce goods which are globally competitive,” he said. With Budget 2026, the Centre is expected to deepen its push for deregulation across sectors.
The market expert sees deregulation in two aspects. Improving PSUs and better convenience of business in the country. He seeks lower interest costs for corporates to come down, especially at a time when the state government is borrowing at a rate of 7.7%. ”At this rate, what do you expect the corporates to do?,” he told NDTV Profit.
. Read more on Budget by NDTV Profit.