Budget 2026: Just one week remains until Finance Minister Nirmala Sitharaman presents the Union Budget 2026 in Parliament on Sunday, February 1. As the Budget speech approaches, industry observers and stakeholders are eager to see the government’s plans for the Indian economy.
Talking about the fintech ecosystem, analysts believe that India’s swift embrace of digital payments highlights a significant transformation in the way economic transactions occur. Experts believe that what started as a convenience has evolved into a standard expectation in various daily scenarios—from local shops and transportation to healthcare and education sectors.
This surge has been propelled by UPI’s cost-effective and interoperable framework, a rise in smartphone usage, access to affordable internet, and a regulatory environment that keeps pace with innovation. These factors combined have fostered trust, promoted formalization, and facilitated growth within the digital payments landscape.
Naren Agarwal, CEO, Wealth1, believes targeted Budget measures such as easier access to growth capital, tax incentives for fintech innovation, rationalization of GST on technology-driven financial services, and continued support for digital public platforms like UPI, Account Aggregator and DigiLocker can significantly boost the sector.
Agarwal added that policy support for AI, data analytics, cybersecurity and regulatory sandboxes will help fintechs scale responsibly, deepen financial inclusion, and reinforce India’s position as a global hub for digital financial services.
policy continuity
According to Richika Dadheech, Founder & Managing Director, FiatPe, looking ahead to Budget 2026, the fintech industry is seeking policy continuity with a sharper focus on long-term sustainability.
Dadheech explained that while zero MDR has played a vital role in accelerating adoption and inclusion, differentiated economics for high-volume use cases can help support continued investment in infrastructure, security, and reliability without affecting smaller merchants. As transaction volumes rise, reinforcing payment resilience, cybersecurity, and fraud prevention will be increasingly important.
Technology—especially AI—is quietly transforming fintech operations, enabling real-time fraud detection, system monitoring, and efficiency at scale. Ultimately, trust in financial services is built on dependable systems backed by human accountability. According to Dadheech, the next phase of fintech growth will be defined not just by reach or speed, but by reliability on the ground and confidence in user support when it matters most.
4 core expectations for the upcoming budget to boost the fintech ecosystem
According to Rohith Reji, Co-Founder & CEO, Neokred, India stands at a tipping point where the “India Stack” could no longer be a mere foundation but a global benchmark.
1. Strengthen the “Embedded Finance” infrastructure – The government has done a phenomenal job with DPI. In 2026, the expectation is to see policies that further democratize banking-as-a-service. Tax incentives for startups building indigenous middleware will ensure that even the smallest non-banking entity can offer sophisticated financial products, decentralizing credit and payments.
2. Bridging the MSME credit gap through account aggregator MSMEs – MSMEs are an absolute essential part of India’s economy, yet credit access gaps persist. What’s needed are mandates that offer subsidies to integrate the Account Aggregator (AA) framework across all financial touchpoints. By making data-backed lending the norm, India can move away from collateral-heavy requirements, allowing fintechs to serve the “missing middle” with precision.
3. Regulatory clarity is crucial – Expansion of regulatory sandboxes with a focus on “green fintech” and AI-driven compliance can smooth the waters greatly. A simplified GST structure for fintech service providers will improve operational efficiency and encourage cross-border collaborations.
4. Incentivize financial literacy and security- As fintechs scale, security is paramount. A dedicated fund for cybersecurity R&D and digital literacy programs will ensure that the “next 500 million” users entering the formal economy do so with confidence and safety.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
