The corporate verdict on Union Budget 2026 is largely one of relief and reassurance. Industry leaders across sectors have welcomed the Finance Minister’s decision to prioritize policy continuity over populist measures. The recurring theme in boardroom reactions is “stability.”
Executives have lauded the 9% hike in capital expenditure to ₹12.2 lakh crore, viewing it as a necessary anchor for sustaining the investment cycle. The strategic pivot from mere capacity creation to “capability building”—evident in the Semiconductor Mission 2.0 and Biopharma Shakti initiatives—has been widely praised as a move towards genuine industrial sovereignty.
While the hike in Securities Transaction Tax (STT) caused a temporary flutter in the markets, the broader sentiment remains bullish. The consensus is that by balancing fiscal prudence with targeted incentives for MSMEs and digital infrastructure, the Budget successfully lays the groundwork for a competitive, future-ready economy without disrupting the status quo.
Manish Jain, Managing Director & CEO, Bajaj Broking
“From a capital markets point of view, Budget 2026 is all about building on the confidence factor rather than focusing on short-term momentum. The glide path on fiscal deficit, the commitment to capital expenditure of ₹12.2 lakh crores, and the overall focus on manufacturing-driven growth indicate stability in the overall macro framework of India. From a capital markets point of view, this provides a conducive environment for long-term capital formation and visibility.
Overall, the focus on infrastructure, semiconductors, bio-pharma, and strategic manufacturing is a positive factor for the overall investment story of India and broadens the investment universe beyond a specific set of sectors. Although increased transaction costs in specific sectors of the capital markets may affect trading sentiment, overall continuity and fiscal prudence would be much more important factors for long-term investors. We expect the capital markets to increasingly reward quality, balance sheet, and businesses that are structurally aligned with India’s growth themes.”
Ajay Menon, MD & CEO – Wealth Management, Motilal Oswal Financial Services
“Indian equities ended sharply lower as the Finance Minister proposed an increase in the STT on F&O transactions in the Union Budget 2026. Higher STT directly impacts the trading profitability for active participants and raises concerns around liquidity and volume growth. This triggered a strong selling pressure in Capital Market stocks including brokerages and exchanges. Benchmark Nifty50 plunged 593 points to close at 24,825 (-2.3%). The broader market also reacted negatively, with Nifty Midcap100 and Smallcap100 declining 2.2% and 2.7% respectively.
On the sectoral front, Data Centre and AI-linked stocks gained as the Budget proposed a tax holiday till 2047 for foreign companies providing cloud services globally from data centres based in India. In contrast, shares of defence companies fell sharply, as the government’s capex plans for the sector failed to meet market expectations. Pharma and healthcare stocks reacted positively, driven by measures such as launch of Biopharma Shakti (₹10,000 crore outlay over five years) to build a global biologics and biosimilar hub, along with over 1,000 accredited clinical trial sites to accelerate drug approvals and boost R&D activity.
Additionally, plans to develop five medical value tourism hubs in partnership with private hospitals are supportive for leading hospital chains. Capital expenditure was raised to a record ~₹12.2 lakh crore to drive infrastructure development and job creation. India’s FY27 real GDP growth was projected at 6.8–7.2% (vs 6.3-6.8% in FY26), while the fiscal deficit was pegged at ~4.3% of GDP, keeping debt-to-GDP on a declining path (at 55.6% in FY27). Overall, the Budget prioritised productivity-led growth with fiscal discipline, infrastructure expansion, supply-side reforms, and strategic sector support amid global uncertainties, focusing on long-term investment over short-term relief.
Going ahead, we expect the market to remain subdued in the near term amid weak investor sentiments, though attention is likely to shift from headline announcements to the Budget’s fine print. This, along with the upcoming earning announcements and global market cues would lay a key role in shaping market direction.”
Vineet Mittal, Chairman, Avaada Group
“Budget 2026–27 strikes balance between ambition, growth and discipline. With sustained public capex of ₹12.2 lakh crore, a clear fiscal consolidation path, and reforms like the Infrastructure Risk Guarantee Fund, it focuses on building long-term productive capacity rather than short-term stimulus. The emphasis on infrastructure, MSME scaling, transport, digital and logistics readiness sends a strong signal that India is investing for durable growth, competitiveness, and investor confidence”
Arjun Bajaj, Director, Videotex
“The Budget is a positive step for the consumer electronics industry, with the introduction of ISM 2.0 and a significant increase in the outlay for the Electronics Components Manufacturing Scheme to ₹40,000 crore, along with support for the rare earth permanent magnet ecosystem. These measures are expected to strengthen the sector over the long term. Overall, the Budget’s emphasis on skill development, domestic manufacturing, and infrastructure lays a strong foundation for innovation and long-term competitiveness across the electronics ecosystem.”
Dhruv Gupta, Co-founder, Orange Health Labs
“We welcome the future-forward Union Budget from a healthcare perspective; it outlines a strong vision for India’s healthcare and life sciences ecosystem, with diagnostics set to play a crucial role in advancing innovation, quality care, and global competitiveness. As part of a major effort to establish India as a global biopharma manufacturing hub, the ₹10,000-crore Biopharma Shakti initiative will strengthen India’s goal to lead healthcare innovation. Furthermore, the proposed expansion of NIPERs, creation of 1000 accredited clinical trial sites, and strengthening of CDSCO signal the alignment of India’s healthcare ecosystem with global standards.
The government’s focus on evaluating the impact of emerging technologies such as artificial intelligence on jobs, along with upgrading allied health institutes and NQSF-aligned skilling programmes, is a timely step toward developing a multi-skilled healthcare workforce crucial for improving patient outcomes across the country. The announcement of five regional hubs for medical tourism, new Ayurveda institutes, expansion of allied health disciplines, and upgradation of AYUSH pharmacies and testing laboratories are particularly encouraging steps that will help improve standardisation, quality assurance, and workforce readiness across traditional and integrative care. Strengthening the WHO Global Centre for Traditional Medicine further reinforces India’s leadership in evidence-based traditional medicine.
The exemption of customs duty on cancer drugs and additional rare disease imports is a welcome, patient-centric move that improves access to life-saving therapies, where timely and accurate diagnostics are essential for effective treatment decisions.”
Deepali Dev, COO of ECOS (India) Mobility and Hospitality Limited
“The Union Budget 2026–27 presents a balanced and forward-looking roadmap for strengthening India’s infrastructure-led growth while boosting mobility, tourism potential and service-sector employment. The continued emphasis on public capital investment, with effective capex rising to ₹17.14 lakh crore, alongside improved transport networks and last-mile connectivity, will enhance the efficiency and reliability of travel and mobility ecosystems nationwide.
The Budget’s focus on logistics improvements, multimodal transport integration and urban infrastructure aligns well with the evolving needs of India’s corporate mobility and hospitality sectors. Enhanced allocations for transport, urban renewal and centrally supported schemes will support smoother movement of people and goods, reduce congestion and promote more sustainable mobility outcomes.
Equally important are measures to simplify compliance, encourage formalization and strengthen MSMEs, fostering a more trust-based regulatory environment that enables service-oriented enterprises to scale with confidence. Overall, the Budget reinforces India’s journey towards a globally competitive, service-driven economy and opens new avenues for organized mobility and hospitality providers.”
Bala Ramajayam, Founder and Managing Director, G Square Group
“We congratulate the government on presenting a forward-looking Union Budget that reinforces infrastructure as a foundation for sustainable real estate growth. The Budget provides a strong tailwind for the real estate sector in Tamil Nadu, especially in Chennai and emerging growth corridors across the state.
The continued focus on infrastructure development, city economic regions, Tier I and Tier II cities, and improved connectivity will accelerate planned urban expansion and enhance the attractiveness of well-developed residential locations.
Measures to unlock real estate assets through REITs, reduce construction-phase risks for infrastructure projects and simplify property transactions involving non-residents will further strengthen ease of doing business and market transparency. Importantly, the emphasis on sustained public investment and economic stability will help improve affordability and boost homebuyer confidence.
For plotted development, this creates an enabling environment for first-time buyers and long-term investors seeking accessible, well-connected and value-driven housing options.”
Deepak Acharya, CEO of INOX India Limited
“The Union Budget 2026–27 sets an ambitious stage for India’s emergence as a powerhouse of advanced manufacturing and next-generation energy systems. By prioritising long-term capital investment and accelerating the build-out of national infrastructure, the Budget lays the foundation for India to lead in technologies that will define global industry for decades.
The Budget’s sustained focus on energy through increased support for infrastructure, technology, and critical industrial sectors reinforces India’s commitment to expanding reliable, low-carbon capacity while accelerating the shift toward cleaner fuels and future-ready technologies. These measures create a stable policy environment for investments in areas such as cryogenics, clean fuels, renewable energy components and high-value industrial equipment.
The enhanced fiscal space created through substantial resource transfers to states ₹25.43 lakh crore in FY27 will further enable state governments to advance clean-energy projects, industrial corridors, and large-scale infrastructure that support India’s growing energy and manufacturing needs.
Overall, the Budget strikes a prudent balance between fiscal responsibility, structural reforms and targeted public investment. It lays a strong foundation for accelerating India’s energy transition, scaling advanced manufacturing, and building resilient infrastructure areas where INOX India remains deeply committed to contributing with world-class engineering and technology.”
Arif Aga, Director, SgurrEnergy
“The strong emphasis on capacity building through the National Centres of Excellence for Skilling—including collaborations in sectors like renewable energy—is vital for equipping the nation with the specialized workforce needed to deploy large-scale solar, wind, green hydrogen, and other clean energy projects, while optimizing renewable energy generation and integration.
This commitment will play a key role in achieving India’s target of 500 GW capacity by 2030, all while ensuring cost efficiency and supporting the broader transition to a sustainable, low-carbon energy future.”
Sunil Nair, CEO, Ramky Infrastructure Ltd.
“The Union Budget 2026 underscores a clear continuity of confidence in India’s infrastructure growth story. The proposal to establish an Infrastructure Risk Guarantee Fund is a particularly forwardlooking intervention, it directly addresses one of the biggest hurdles in the sector: risk perception during the early stages of project development and construction. By offering partial credit guarantees to lenders, the Fund will not only ease financing bottlenecks but also embolden private players to invest in new, largescale projects with greater assurance.
Equally significant is the government’s move to accelerate asset monetisation through dedicated Real Estate Investment Trusts (REITs) for Central Public Sector Enterprise (CPSE) owned real estate. This will unlock dormant capital, enhance liquidity in the system, and catalyse a new wave of investments across allied sectors like logistics, housing, and industrial infrastructure.
Complementing these reforms, the Budget’s thrust on industrial infrastructure through the Chemical Park and bulk drug park, Biopharma Shakti schemes enhances India’s manufacturing and innovation ecosystem. The Chemical Park and bulk drug park will create plugandplay clusters to boost domestic chemical production and reduce imports, while the ₹10,000 crore Biopharma Shakti initiative aims to build a globally competitive biopharma ecosystem through new NIPERs, clinical trial networks, and upgraded regulatory standards.
Finally, with a proposed capital expenditure of ₹12.2 lakh crore for FY 202627, the Budget reaffirms infrastructure as the backbone of India’s economic momentum. These measures together create a balanced ecosystem, derisked, capitalefficient, and geared towards sustainable, highvelocity growth. For developers like Ramky Infrastructure, this paves the way for deeper partnerships in nationbuilding.”
Rakesh Goyal, Director, Probus
“Instead of looking for headlines, this Budget focuses on staying the course and keeping the economy on a steady path. By removing TDS on Motor Accident Claims Tribunal (MACT) interest, the government has provided direct, compassionate relief to accident victims, a move that humanizes our financial regulations.
While we await further movement on GST rationalization for health premiums, the Budget’s massive push for Regional Medical Hubs and caregiver training provides the infrastructure needed to control medical inflation from the supply side. For the insurtech ecosystem, the commitment to Digital Public Infrastructure is the true headline; it creates a transparent environment where we can move from ‘claims processing’ to ‘true risk prevention’. Overall, this Budget keeps the industry on track for the ‘Insurance for All by 2047’ goal by building the foundational trust and infrastructure the sector requires.”
