Mumbai, Feb 2 (.) India’s union Budget 2026, unveiled by Finance Minister Nirmala Sitharaman, has been hailed as a game-changer for the country’s manufacturing ambitions.
Mitul Shah, Managing Director for Investment Banking at Pantomath Capital Advisors, described it as one of the most impactful budgets in recent years, laying robust foundations for new-age high-tech sectors.
Shah emphasized the budget’s sharp focus on semiconductors, rare earth metals, nuclear energy, data centres, and bio-ecology through initiatives like India Semiconductor Mission 2.0 and boosted electronics manufacturing outlays. “Budget 2026 is one of the most impactful budgets amongst the last few years as it lays strong foundations for India’s new age manufacturing, bringing paradigmatic shift in establishing a robust secular framework for the high-tech manufacturing ecosystem over the next decade,” Shah stated.
“These measures aim to reduce import dependencies, positioning India as a global manufacturing hub and potentially diverting supply chains from China, benefiting automotive, electronics, defence, and energy industries.
While a sudden Securities Transaction Tax (STT) hike triggered initial market jitters, Shah remains optimistic about long-term gains.
“Investors may take some more time to understand the long-term multiplier positive effect of the Budget due to knee jerk reaction of sudden STT increase, but eventually it would be taken positively by the investor community,” he added.
With allocations rising to support self-reliance, the budget signals a manufacturing-led supercycle amid fiscal consolidation.
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