Financial sector measures in Budget 2026 to spur private investment: UBI Report

Contributing sentiments towards policy:

54% : The report added that these reforms are expected to improve governance standards, strengthen the resilience of the banking sector, and prepare lenders for meeting high-growth credit demand in the coming years.The overall focus is on creating a robust and forward-looking financial architecture aligned with India's long-term growth aspirations.In the power sector, the report noted that the Budget initiatives will improve efficiency and capital allocation in power-sector financing.This, in turn, will strengthen the ability of financial institutions to fund renewable energy and transmission projects, which are critical for meeting India's energy transition goals.As part of this effort, the government has announced the restructuring of Power Finance Corporation and Rural Electrification Corporation, with the objective of enhancing their effectiveness in financing power infrastructure.The Budget outlined new targets for non-banking financial companies (NBFCs), focusing on credit expansion and technology adoption.These measures are expected to improve credit penetration in underserved segments, accelerate digitisation in NBFC operations, and enhance overall financial inclusion.In addition, the government has announced the creation of an Infrastructure Risk Guarantee Fund.

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