Union Budget 2026 - Winners and Losers

Last Updated: 9 Feb 2026

The Union Budget 2026 stands out as a future-facing, productivity-led Budget, deeply inspired by ideas from the Viksit Bharat Young Leaders Dialogue. With a strong focus on manufacturing, MSMEs, infrastructure, healthcare, and technology, this Budget lays the foundation for long-term economic resilience amid global volatility. 

At its core, the Government’s Sankalp is anchored in three Kartavya, starting with accelerating economic growth by enhancing competitiveness, innovation, and self-reliance. 

For investors and businesses, this Budget clearly signals where capital, policy support, and growth will flow over the next decade. 

Big Picture Themes That Drive the Budget 

• Manufacturing-led growth & import substitution 

• MSME scale-up and liquidity 

• Infrastructure + logistics transformation 

• Healthcare, biopharma & medical tourism 

• Clean energy, sustainability & CCUS 

• Capital market deepening 

Sectors That Will Benefit the Most 

1) Biopharma & Healthcare 

Budget Allocation 

• ₹10,000 crore over 5 years under Biopharma SHAKTI 

• 3 new NIPERs + 7 upgraded 

• 1,000+ accredited clinical trial sites 

• Strengthening CDSCO for faster global approvals 

• 5 Regional Medical Tourism Hubs 

• 100,000 Allied Health Professionals over 5 years 

Why This Sector Wins 

• Shift from communicable to lifestyle diseases 

• Push for biologics & biosimilars manufacturing 

• Export competitiveness + affordability 

 

2) Semiconductors & Electronics Manufacturing 

Budget Allocation 

• ₹40,000 crore (enhanced from ₹22,919 crore) 

• Launch of India Semiconductor Mission (ISM) 2.0 

• Focus on: 

• Equipment & materials 

• Full-stack Indian IP 

• Industry-led R&D and training centres 

Why This Sector Wins 

• Import substitution 

• China+1 manufacturing strategy 

• Strong policy continuity 

 

3) Capital Goods, Construction & Containers 

Budget Allocation 

• ₹10,000 crore over 5 years for container manufacturing 

• New schemes for: 

• Hi-Tech Tool Rooms (CPSE-led) 

• Construction & Infrastructure Equipment (CIE) 

Why This Sector Wins 

• Backbone of industrial productivity 

• Rising infra execution 

• Export-ready manufacturing ecosystem 

 

4) Textiles, Apparel & Rural Industries 

• Key programmes funded through Central schemes: 

• National Fibre Scheme 

• Textile Expansion & Employment Scheme 

• Samarth 2.0 (skilling) 

• Mega Textile Parks (challenge mode) 

• Mahatma Gandhi Gram Swaraj Initiative 

Why This Sector Wins 

• Employment-intensive 

• Export competitiveness 

• Rural income generation 

 

5) Infrastructure, Logistics & Transportation 

• ₹12.2 lakh crore public capex (FY27) 

• Dedicated Freight Corridors (East–West) 

• 20 new National Waterways (5 years) 

• Coastal Cargo Promotion Scheme 

• 7 High-Speed Rail Corridors 

Why This Sector Wins 

• Lower logistics cost 

• Faster freight movement 

• Strong multiplier effect 

 

6) MSMEs & SME Financing 

• ₹10,000 crore SME Growth Fund 

• ₹2,000 crore top-up to Self-Reliant India Fund 

• Credit guarantees for TReDS 

• Securitisation of MSME receivables 

Why This Sector Wins 

• Easier equity + liquidity access 

• Faster cash cycle 

• Formalisation boost 

 

7) Green Tech, CCUS & Sustainability 

• ₹20,000 crore over 5 years for CCUS technologies 

• Coverage across power, steel, cement, refineries & chemicals 

Why This Sector Wins 

• Climate alignment 

• Industrial decarbonisation 
• Long-term regulatory support 

 

Sectors That Will Impact the Most 

1) FMCG 

Key Budget Measures Impacting the Sector 

• TCS rate on alcoholic liquor doubled 

• Increase in excise duties on tobacco products 

• No major personal income tax relief 

• No meaningful GST rationalisation to stimulate consumption 

Why This Sector Loses 

• Higher duties directly pressure volumes and margins, especially in tobacco and liquor 

• Cost inflation likely to be passed on to consumers, risking demand slowdown 

• Absence of tax relief limits discretionary spending growth 

• Near-term earnings visibility weak for staple-heavy FMCG players 

 

2) Exchange & Brokerage Stock 

Key Budget Measures Impacting the Sector 

• STT on equity futures increased from 0.02% to 0.05% (+150%) 

• STT on options premium raised from 0.10% to 0.15% (+50%) 

• No compensatory measures to boost trading participation 

Why This Sector Loses 

• Derivatives contribute a large share of exchange volumes and brokerage revenues 

• Higher transaction costs discourage high-frequency and retail trading 

• Lower volumes could compress operating leverage and profitability 

• Near-term earnings growth likely to remain subdued 

Union Budget 2026 signals a decisive shift from consumption-led growth to capacity creation and productivity enhancement. The Government of India has chosen to channel resources toward manufacturing, infrastructure, healthcare, MSME scaling and sustainability, sectors with long-term multiplier effects, while being willing to accept near-term pain in areas such as FMCG and capital market intermediaries through higher levies and transaction costs. For investors and businesses, the message is unambiguous: follow sustained public capex, industrial policy support and structural reforms rather than short-term sentiment.

As India moves toward its Viksit Bharat ambition, companies aligned with formalisation, domestic value creation and global competitiveness are best positioned to emerge as long-term winners, even as selective sectors navigate short-term adjustments.