Union Budget 2026: What markets need to rebuild retail investors’ confidence

Retail investors have stayed committed to Indian markets through multiple crises, but their confidence must be continually reinforced as savings grow. Taxation, especially STT, CTT, and capital gains, adds friction and makes India less competitive globally. Predictable, rational tax policy and long-term support for mutual funds are crucial to sustain domestic capital formation. Higher capex, especially in defence and infrastructure, is essential for long-term growth.