Union Budget 2026- 27 India highlights Impact on Sector

Announcement	Companies	Impact
Rare earth permanent magnet manufacturing programme launched covering domestic mining, processing and fabrication, aimed at reducing import dependence (currently >90%), supporting EVs, wind energy, electronics and defence applications, with focus on end-to-end value chain development.	GMDC Ltd., and NMDC Ltd.	Positive for Metal & Mining companies
India's pharma sector is evolving from generic manufacturing to innovation-led biopharma dominance via the Rs. 10,000 crores "Biopharma Shakti" initiative over five years. It aims to foster a domestic biosimilars ecosystem, boost global clinical research, and cut high-value therapy imports through 3 new NIPERs (plus upgrades), 1,000 accredited trial sites, and industry-academia skill linkages.	Positive for Pharmaceutical companies	Biocon Ltd., Dr Reddy’s Laboratories Ltd., Sun Pharma Industries Ltd., and Piramal Pharma Ltd.
Extension of basic customs duty exemption on capital goods used for manufacturing Lithium-Ion Cells for battery energy storage systems (BESS). BCD exemption on import of capital goods for processing critical minerals, directly benefiting lithium refining and processing ecosystem.	Positive for Auto Components companies	Exide Industries Ltd., Amara Raja Batteries Ltd.
Extension of basic customs duty exemption on capital goods used for manufacturing Lithium-Ion Cells for battery energy storage systems (BESS). BCD exemption on import of capital goods for processing critical minerals, directly benefiting lithium refining and processing ecosystem.	Positive for Auto Components companies	Exide Industries Ltd., Amara Raja Batteries Ltd.
Safe harbour threshold for IT services increased from Rs. 300 crores to Rs. 2,000 crores, materially reducing tax uncertainty for mid-sized IT companies. Common safe harbour margin of 15.5% across IT services improves earnings predictability.	Positive for IT companies	Infosys Ltd., Coforge Ltd. and other players
The fertilizers sector is eyeing ~Rs. 1.7 lakh crores in FY27 subsidy support to ensure affordable nutrient availability amid volatile global input costs. The industry continues to seek duty and GST rationalization, inclusion of urea under the nutrient-based subsidy regime, and streamlined regulations to improve efficiency and domestic competitiveness.	Positive for agro-chemical companies	RCF Ltd., Chambal Fertilizer Ltd., Paradeep Phosphate Ltd.
Outlay for The Electronics Components Manufacturing Scheme has been increased from Rs. 22,919 crores to Rs. 40,000 crores.	Positive for Electrical components companies	Dixon Technologies Ltd., Syrma SGS Technology Ltd.
The textile sector received support through an integrated programme focused on improving scale, productivity and global competitiveness, with emphasis on value-added and export-oriented segments.	Positive for Textiles companies	Vardhaman Textiles Ltd., KPR Mill Ltd., SP Apparel Ltd.
The government has proposed a dedicated Container Manufacturing Scheme with a total outlay of Rs. 10,000 crores over 5 years to develop a globally competitive domestic container manufacturing ecosystem.	Positive for Container Manufacturing companies	Container Corporation Of India Ltd.
The Construction Scheme for Enhancement of Construction and Infrastructure Equipment (CIE) announced to strengthen domestic manufacturing of high-value, technologically advanced equipment, spanning lifts, fire-fighting systems, and heavy machinery including tunnel-boring equipment used in metros and high-altitude infrastructure projects.	Positive for Construction Equipment Sector	Ajax Engineering Ltd., Escort Kubota Ltd., and Action Construction Equipment Ltd.