Union Budget 2026-27

The Union Budget, presented on February 1, 2026, marked a clear shift from consumption to ensuring fiscal and policy stability.

The key expectations were support policies for FII investments, capex and growth-related measures. Budget 2026 has delivered well on the capex and growth themes, as per estimates.

The Union Budget 2026 is built around 3 Kartavyas (duties) 

  • Fostering economic growth 
  • Enhancing human capabilities 
  • Ensuring development
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Budget Special – Mirae Asset Sharekhan’s Union Budget Review

Crafting a new age growth story 

Budget 2026’s policy thrust clearly favours productive enterprise (builders and producers) over trading/speculative activity and long-term structural capacity over short-lived consumption spikes. 

India looks to position itself as a global manufacturing player, with supportive policies in heavy manufacturing and emerging sectors.  

Key Highlights

Union Budget 2025-26 outlines an approach to both short-term needs and long-term structural requirements 

For options, STT on the premium is set to increase from 0.1% to 0.15% (50% hike), while the STT on the exercise of options will rise from 0.125% to 0.15% (20% hike). 

The Budget also proposes raising the Securities Transaction Tax (STT) on Futures trades from the current 0.02% to 0.05% (a 150% increase) 

The Budget outlined a 10% increase in FY27BE capex, with the capex to GDP ratio set at 3.1% 

Budget 2026-27 also presents supportive policies in heavy manufacturing and emerging sectors such as Electronics, Semiconductors, Biopharma, Capital Goods, Cargo Transport and Logistics, and Textiles. 

In response to massive investments from tech giants, including Amazon (USD 35 Bn), Microsoft (USD 17.5 Bn), and Google (USD 15 Bn), the Budget introduces tax holiday for data centers until 2047. 

For FY27, the government is targeting fiscal deficit at 4.3%.

 

Promoters face added tax: 22% effective for corporate, 30% non-corporate 

Share buyback proceeds will be taxed as capital gains for all shareholders (allowing taxation only on actual profit, often at lower LTCG rates). 

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Budget Exclusive – Investment Picks by Mirae Asset Sharekhan Research

As a part of our Budget Exclusive reports, Mirae Asset Sharekhan’s reputed Fundamental Research Team has come out with stock picks in the Large Caps, Mid Caps and Small Caps segments

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Sectoral-Analysis

Key Sectoral Analysis - Budget 2026-27

We at the Mirae Asset India Research Centre believe that investors should remain selective, focus on quality sectors with strong policy visibility, and avoid aggressive short-term bets. Presenting you a sectoral analysis section covering Consumer Goods & Discretionary, Infrastructure, Real Estate, Metals & Mining, Railway, IT, and much more. 

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