Consumer outlook for the upcoming 2026 Union Budget reflects measured realism after a strong sense of satisfaction from the previous edition, said Kantar in the fifth edition of its annual India Union Budget Survey released on Wednesday.
The Union Budget for FY27 will be announced on Sunday.
“Beyond taxation, sentiment reveals growing caution, shaped by concerns around economic slowdown, income stability and future preparedness. Inflationary pressures, job security worries, and global uncertainties continue to influence household decision-making, leading to more restrained spending and a greater focus on financial stability over discretionary growth,” stated the release by Kantar.
According to the market researcher, demand for further personal tax reforms remains steady, particularly among middle-class households.
Key expectations include increasing the standard deduction from ₹75,000 to ₹1 lakh, and enhanced Section 80 deductions & rebates on medical and health insurance, the survey pointed out.
“Optimism around long-term economic ambitions, including India’s $5 trillion economy target, has softened, alongside moderated expectations from the startup ecosystem,” it added.
Meanwhile, over one-third of the surveyed 3,846 Indians (36 per cent) cite job layoffs as a key worry, reflecting growing unease around income stability and long-term preparedness.
According to the survey, consumers are calling for stronger regulatory frameworks, enhanced upskilling initiatives, and clearer policy direction as India rapidly transitions toward a cashless digital economy and with an AI-enabled future looking not so distant anymore.
“Over the past few years, the consumer sentiment has shifted from optimism to a more pragmatic outlook. Concerns around inflation and job security persist, now compounded by global uncertainties and geopolitical tensions… there is a clear expectation for the government to engage more closely with the middle class and taxpayers through targeted reforms, stronger economic safeguards and transparent communication,” said Deepender Rana, executive managing director- South Asia at Kantar.
1. Views on US tariffs remain divided: 58% either confused or pessimistic about impact
2. 51% view global geopolitical conflicts as threat to economic growth and stability
 "Consumers view upcoming Budget 2026-27 with caution: Kantar Survey")
