Union Budget 2026–27: Major Announcements, Sector Impact & What's Next
Table of Content
- Introduction
- Union Budget 2026–27 Major Announcements
- Sector-Wise Impact of Budget 2026–27
- Union Budget 2026–27 Approval Process: What Happens After the Budget Is Presented?
- Why Is There a Gap Between 13 February and 9 March in the Union Budget 2026 Session?
- Key Takeaways: Was Union Budget 2026–27 in Market's Favor?
Introduction
The Union Budget 2026–27 is here, and instead of flashy surprises, it focuses on steady growth, infrastructure, and long-term economic stability.
But what impact did it bring to the markets and sectors?
Keep scrolling as we break down the key announcements, sector impacts, and what it really means for investors and businesses.
Union Budget 2026–27 Major Announcements
Union Budget 2026–27 didn't bring dramatic tax shockers, but it delivered important policy moves with big numbers that matter for growth, jobs, and markets:
Here are some of the major Union Budget 2026 highlights you should know!
₹12.2 Lakh Crore Capital Expenditure
The government boosted public investment to ₹12.2 lakh crore — up from last year — focusing on roads, railways, ports, and cities. Higher capex means more jobs and stronger infrastructure growth.
Seven New High-Speed Rail Corridors
Budget announced 7 high-speed rail links connecting major city clusters like Mumbai-Pune, Hyderabad-Bengaluru, and Delhi-Varanasi — aimed at reducing travel time and unlocking economic corridors.
₹40,000 Crore for Electronics & Semiconductors
To build a stronger manufacturing base, ₹40,000 crore was allocated for electronics and semiconductor ecosystem development, signaling support for tech hardware production.
₹20,000 Crore for Carbon Capture & Climate Tech
A new ₹20,000 crore fund will focus on carbon capture and climate technologies — a major push for heavy industries to reduce emissions.
A ₹100 Billion District Hostel Scheme
This district hostel scheme will finance girls' hostels at the district level, addressing female dropouts. Also, one girl's hostel in every district will have a STEM college funded.
Creative & Digital Services (AVGC) Initiative
The government will establish Content Creator Labs in 15,000 schools and 500 colleges to train professionals in animation, VFX, Gaming, and comics. The target is to develop ~2m AVGC-sector jobs by 2030.
₹10,000 Crore Biopharma SHAKTI Initiative
India's biopharma push got a boost with ₹10,000 crore dedicated to strengthening research, manufacturing, and advanced drug development.
Rare Earth Minerals Corridor
The Budget announces dedicated Rare Earth processing corridors in Odisha, Kerala, AP, and TN. New chemical and fertiliser parks (support for 3 chemical parks) and a ₹100 billion container manufacturing scheme will boost domestic output.
₹10,000 Crore SME Growth Fund
To help small businesses scale, ₹10,000 crore was earmarked for an SME Growth Fund — key for job creation and entrepreneurship.
New Income Tax Act From April 2026
A simplified Income Tax Act, 2025, was introduced, effective April 1, 2026, reducing complexity by cutting hundreds of sections and simplifying compliance.
TCS on Overseas Spends Cut to 2%
Tax Collected at Source (TCS) on foreign travel, education, and healthcare remittances was standardized to 2%, making overseas spends cheaper.
STT Hikes on F&O
Budget 2026 focuses on strengthening bond markets and financial architecture, including STT hikes: Futures STT rises from 0.02% to 0.05%, while options premium and exercise STT increase to 0.15% from 0.1% and 0.125%, respectively.
₹5,000 Crore for City Economic Regions
To boost Tier-II and Tier-III city development, ₹5,000 crore per City Economic Region was proposed to upgrade city infrastructure and services.
Fresh 20 National Waterways & Freight Corridors
Budget plans to operationalize 20 new national waterways and expand freight corridors to lower logistics costs and improve goods movement.
Sector-Wise Impact of Budget 2026–27
Here's what Budget 2026-27 had an impact on the stock market and respective sectors.
1. Infrastructure & Capital Goods
- ₹12.22 lakh crore capex (~11.5% increase)
- Freight corridors & dedicated rail freight lines
- Urban transport & metro projects (Metro allocation ↑ 2.5% to ₹29,570 cr)
- National waterways expansion
- Beneficiaries: EPC firms, cement, steel, logistics companies
2. Manufacturing & Strategic Industrials
- ₹40,000 cr for Semiconductors Mission 2.0
- ₹10,000 cr container manufacturing
- Rare earth corridors: Odisha, TN, AP, Kerala
- Electronics manufacturing incentives
- Beneficiaries: Electronics & semiconductor makers, rare earth processors
3. MSMEs / Textiles
- ₹10,000 cr SME Growth Fund
- Five-part textile program (technical textiles)
- Mega Textile Parks & Handlooms
- Export facilitation measures
- Beneficiaries: High-potential MSMEs, textile units, export-linked firms
4. Healthcare & Pharmaceuticals
- ₹1.06 trillion health allocation (+10%)
- ₹10,000 cr Biopharma SHAKTI
- Regional medical hubs
- Training: 100,000 allied health professionals & 150,000 caregivers
- Beneficiaries: Hospitals, pharma companies, biotech firms
5. Chemicals & Specialty Chemicals
- Chemical parks & cluster-led initiatives
- Rare earth & critical mineral processing support
- Beneficiaries: Specialty chemical producers, downstream users (paints, polymers, agrochemicals)
6. Metals & Mining
- Rare earth corridors: Odisha, TN, AP, Kerala
- Beneficiaries: Steel, aluminum, mining companies
7. Banking & Financial Services
- Fiscal deficit target ~4.3% of GDP
- Improved credit flow for MSMEs & infrastructure
- Beneficiaries: Banks, NBFCs, financial institutions
8. Automobiles
- 4,000 e-buses under the "Purvodaya Scheme."
- Custom Duty exemptions for lithium-ion cells
- ₹59.4 bn allocation under PLI for Auto & Components
- Beneficiaries: EVs, auto components, battery manufacturers, public transport fleets
9. Defence
- Lower customs duty on aircraft parts
- No BCD on goods for nuclear power generation
- Beneficiaries: Defence & aerospace industries
10. Capital Markets
- Bond market & STT reforms
- Person Resident Outside India (PROI) investment limit expansions
- Beneficiaries: Capital markets, mutual funds, institutional investors
11. FMCG & Consumer Goods
- Coconut Promotion Scheme
- Alcohol TCS hike to 2%
- Custom duty exemption on microwave parts
- Beneficiaries: FMCG, beverages, consumer appliances
12. Agrochemicals & Fertilisers
- Benefits across the agriculture sector
- Custom duty lapse on Naphtha / Ammonium Phosphate
- Beneficiaries: Fertilisers, agrochemicals, crop input suppliers
13. Urban Development
- ₹5,000 cr per City Economic Region (CER) over 5 years
- Beneficiaries: Real estate, utilities, retail, urban infrastructure, smart cities
Union Budget 2026–27 Approval Process: What Happens After the Budget Is Presented?
Now, that the Budget has been announced, the real discussion in the Parliament House begins.
But, it is equally important to know what happens before the budget starts in the Parliament.
Phase 1: Budget Session (28 January to 13 February 2026)
| Date / Period | What Happens |
|---|---|
| 28 January 2026 | First phase of the Budget Session begins |
| 28–29 January 2026 | President's address to the Lok Sabha and the Rajya Sabha. |
| 29–30 January 2026 | Discussion on the President's Address is done. |
| 30–31 January 2026 | Economic Survey presented in Parliament |
| 1 February 2026 | Union Budget 2026 was presented in the Lok Sabha by the Finance Minister. |
| 1–13 February 2026 | General discussion on the Union Budget |
Phase 2: Budget Session (9 March to 2 April 2026)
| Date / Period | What Happens |
|---|---|
| 9 March 2026 | Second phase of the Budget Session begins |
| 9–23 March 2026 | Department-wise examination by Standing Committees |
| Late March | Voting on Demands for Grants |
| By 2 April 2026 | Passage of the Finance Bill and completion of the Budget process |
Why Is There a Gap Between 13 February and 9 March in the Union Budget 2026 Session?
During the Budget Session, Parliament takes a recess break after the 1st phase, before proceeding with the 2nd one. This recess gives Standing Committees time to review ministry-wise Budget proposals in detail.
When Parliament meets again (on 9th March), discussions and approvals can happen faster and with better insight. In case the proposed Union Budget isn't approved, the government can use a Vote on Account to continue essential spending until Parliament passes it.
Key Takeaways: Was Union Budget 2026–27 in Market's Favor?
If you zoom out and look at the bigger picture, the Budget 2026 was about consistency.
Instead of changing direction every year, the government stayed focused on:
- Infrastructure-led growth
- Manufacturing under Make in India
- Clean energy transition
- Fiscal discipline
- Stable tax environment
While some people expected bold tax reforms or big stimulus packages, the government chose caution. And in uncertain global conditions, sometimes stability is the best policy.
This kind of policy stability is actually very important for investors and businesses. It allows companies to plan long-term projects without worrying about sudden policy reversals.
As said, "Not every day can be your Birthday". This budget continued the previous budget to ensure a smooth transition, considering the nation's long-term future.
Disclaimer
The information provided in this article is for educational and informational purposes only. Any financial figures, calculations, or projections shared are solely intended to illustrate concepts and should not be construed as investment advice. All scenarios mentioned are hypothetical and are used only for explanatory purposes. The content is based on information obtained from credible and publicly available sources. We do not guarantee the completeness, accuracy, or reliability of the data presented. Any references to the performance of indices, stocks, or financial products are purely illustrative and do not represent actual or future results. Actual investor experience may vary. Investors are advised to carefully read the scheme/product offering information document before making any decisions. Readers are advised to consult with a certified financial advisor before making any investment decisions. Neither the author nor the publishing entity shall be held responsible for any loss or liability arising from the use of this information.
