Why Fintech And Crypto Are Counting On Budget 2026?

The fintech sector in India is a key driver of economic growth and financial inclusion. The Unified Payments Interface (UPI) now handles around 85% of digital transactions nationwide. In July 2025 alone, UPI processed a record 19.47 billion transactions worth over Rs 25 lakh crore, showing how deeply digital finance is embedded in daily life.

"Looking ahead to the Union Budget 2026-27, there is hope it will strengthen digital financial infrastructure and boost innovation. A dedicated framework to streamline digital lending, similar to UPI's role, could help bridge credit gaps for MSMEs and underserved entrepreneurs," commented Kundan Shahi, Founder , Zavo.

Fintech startups also want supportive regulatory and tax policies. Simplified compliance, special fintech licenses, or sandbox environments could fast-track innovation while protecting consumers. Tax incentives for fintech investors and entrepreneurs could reverse the recent decline in startup funding.

Lowering GST on financial services like insurance and simplifying capital gains tax can encourage growth and adoption. The budget should prioritize digital inclusion, credit support for small businesses, and a future-ready fintech policy. These steps will help fintech expand financial access and strengthen India's global leadership in innovation.

India remains among the global leaders in crypto adoption, reflecting the strong and growing interest of Indian investors in digital assets. While the 2022 Union Budget brought much-needed recognition to the sector, certain measures, particularly the 1% TDS on transactions, pushed trading activity to offshore platforms, reducing visibility and participation within the domestic ecosystem. The restriction on setting off losses against gains has also dampened investor sentiment.

"As we approach the Union Budget FY27, there is an opportunity to adopt a more balanced and forward-looking approach. Reducing TDS to 0.1% and allowing loss offsetting would ease friction for investors, improve transparency, and support the long-term, sustainable growth of India's crypto industry," stated Edul Patel, CEO of Mudrex.

As India prepares for the upcoming Budget, the fintech and IT sectors are looking for continued policy support that strengthens digital infrastructure, data security, and ease of doing business.

"With India already accounting for nearly 40% of real-time digital payment transactions globally, sustained investment in cloud adoption, AI-led innovation, and cybersecurity will be critical to support scale and trust. Simplifying compliance norms and encouraging public-private collaboration can further accelerate India's position as a global digital services hub," commented Dipal Dutta, CEO, RedoQ.

As India's digital payments ecosystem continues to expand, the Union Budget plays an essential role in reinforcing infrastructure, security, and regulatory clarity. Policies that support secure digital adoption, ease compliance for MSMEs, and encourage innovation can help sustain growth across the fintech sector.

"For payment aggregators, stable regulatory frameworks and technology-focused incentives are key to scaling responsibly while maintaining trust. Continued focus on cybersecurity, data protection, and ease of doing business will strengthen the overall payments landscape," said Prakash Ravindran, CEO and Director InstiFi.

The direction set through the Budget will influence how fintech players contribute to financial inclusion and build a resilient digital economy in the coming years.