Finance Minister Nirmala Sitharaman’s Union Budget 2026-27, presented yesterday, sustains a capex-led growth trajectory with public capital expenditure at ₹12.2 lakh crore and a fiscal deficit target of 4.3% of GDP. While no direct stimulus was announced for discretionary or consumption categories, the budget reinforces long-term productivity, trade facilitation, urban capacity building, and strategic sector investments—moves welcomed by industry for providing execution visibility, reduced risk, and investor confidence amid global uncertainty.
Key sectoral highlights include the ₹10,000-crore Biopharma Shakti programme to scale domestic biologics and biosimilars manufacturing, duty exemptions on select lifesaving drugs, over 1,000 new clinical trial sites, NIPER upgrades, and infrastructure-focused measures such as the Infrastructure Risk Guarantee Fund (IRGF), dedicated REITs for CPSE asset monetisation, City Economic Regions, and NRI taxation clarifications.
Leaders from biopharma, jewellery, and Mumbai real estate have described the budget as steady, reform-oriented, and foundational for long-term competitiveness and urban maturity.
Biopharma & Healthcare: From Volume to Innovation Leadership
The ₹10,000-crore Biopharma Shakti initiative, combined with clinical trial expansion, regulatory strengthening, and duty exemptions on critical drugs, has been hailed as a defining step toward global biopharma leadership.
Mr. Nikkhil K. Masurkar, CEO, ENTOD Pharmaceuticals, said:
“The Union Budget 2026 reinforces healthcare and biopharma as India’s strategic growth pillars, with the ₹10,000-crore Biopharma Shakti programme landmark for boosting domestic biologics/biosimilars manufacturing amid rising cancer, diabetes, and autoimmune burdens. Over 1,000 new clinical trial sites, NIPER upgrades, and CDSCO global-standard strengthening will enhance research depth, regulatory robustness, and competitiveness. Patient-centric wins include duty exemptions on lifesaving cancer/rare-disease drugs for immediate relief, plus medical value tourism, mental health infrastructure, allied workforce skilling, and digital integration for holistic delivery. From an industry and MSME perspective, while the overall direction is strongly positive, there remains an opportunity to further catalyse innovation. Expanding allocations under the PRIP framework and reinstating a 200% weighted R&D tax deduction for in-house pharmaceutical research would significantly accelerate private-sector investment in high-risk areas such as biologics, biosimilars, novel drug delivery systems and complex therapies. Overall, Budget 2026 builds a solid foundation for affordable, innovation-led healthcare, positioning India for global biopharma leadership.”
Jewellery & Discretionary: Stability Over Short-Term Stimulus
While direct consumption incentives were absent, the budget’s focus on trade simplification, capital market deepening, and NRI participation has been viewed as supportive for organised players in discretionary categories.
Namita Kothari, Founder at Akoirah by Augmont, noted:
“Union Budget 2026–27 reinforces productivity-led growth and stable fiscal management, which supports long-term confidence in discretionary categories like jewellery. While there are no direct consumption incentives for the sector, the broader focus on trade facilitation, process simplification, and competitiveness is constructive for organised, compliance-driven players. The Budget’s intent to deepen capital market participation, including enabling wider NRI participation, is also a positive signal for overall investor sentiment. The gems and jewellery industry will track detailed notifications as they follow, especially around customs duty rationalisation. For emerging categories like lab-grown diamonds—a more sustainable, innovation-led segment, long-term competitiveness will be shaped by stronger manufacturing capabilities, skilling depth, and export readiness, along with building deeper consumer trust through transparency, clear quality standards, and consistent value communication. Overall, the Budget signals a steady, execution-focused growth roadmap that rewards credible businesses and strengthens India’s long-term economic fundamentals.”
Mumbai Real Estate: Infrastructure Depth and Capital Confidence
The continued capex momentum, City Economic Regions framework, Infrastructure Risk Guarantee Fund, CPSE REITs, and NRI TDS clarifications have been seen as reinforcing Mumbai’s fundamentals as a mature, long-term investment destination.
Mr Anuj Mehta, Director, Dhuleva Group, said:
“The core fundamentals of Mumbai’s real estate market will be strengthened by Budget 2026–27 through the prioritisation of creating urban capacity for the long-term, as opposed to short-term measures. Continued increases in public capital expenditures alongside the implementation of the City Economic Regions framework will create greater infrastructure depth throughout the Mumbai Metropolitan Region and reinforce the demand for residential and commercial properties in well-located micro-markets. Likewise, the implementation of an Infrastructure Risk Guarantee Fund will significantly help real estate developers to reduce the risks associated with construction while also improving access to financing during that phase. Further, the creation of asset monetisation through dedicated REITs will confirm that the capital markets supporting property assets are maturing. NRI taxation clarifications and TDS considerations will make it easier for global investors to participate in the Mumbai real estate market and reaffirm that Mumbai is a stable long-term investment location.”
Mr Cyrus Mody, Founder & C.E.O., Viceroy Properties, added:
“Through Budget 2026-27, a capital-expenditure-driven growth strategy will be implemented. Public capital expenditure is expected to increase to ₹12.2 lakh crore, allowing for long-term execution certainty for the infrastructure pipeline in Mumbai. The focus on providing financing enhances the contribution of the City Economic Regions while enhancing both connectivity and depth of infrastructure across suburban growth nodes, thereby solidifying Mumbai’s position as the anchor of the larger Mumbai Metropolitan Region. In addition to providing greater clarity regarding capital markets, the government has introduced the infrastructure risk guarantee fund (IRGF) and has also accelerated asset recycling for Central Public Sector Enterprises (CPSE) real estate through dedicated real estate investment trusts (REITs). This signals an established and maturing capital markets framework to facilitate project viability in high-value urban markets, such as Mumbai. As an extension of this commitment to executing infrastructure projects, increasing regional connectivity and participation of institutional capital will contribute to Mumbai being regarded as a long-term, stable real estate investment location, primarily based on its fundamentals rather than on any short-term incentives.”
Mr Aakash Patel, Managing Director, Atul Projects, observed:
“Mumbai’s real estate market will benefit from infrastructure investment as part of India’s budget. Since FY2014-15, the public capital outlay has grown from ₹2 lakh crores to ₹11.2 lakh crore (as per the BE 2025-26) with a proposal of an additional ₹12.2 lakh crore for FY2026-27, establishing long-term certainty and confidence in the development of cities. The creation of the Infrastructure Risk Guarantee Fund will reduce the risk of building and financing properties. An additional benefit of the government’s reduction in TDS on NRI property sales will create liquidity to enable greater global investment in the Mumbai property market. Continued government support for the development of REITs and InVITs will help facilitate institutional investment in urban infrastructure and completion of projects will require accelerated processing and coordination to convert public sector funding into fast and efficient building processes and greater buyer confidence.”
The Union Budget 2026-27 delivers a measured, fundamentals-driven approach: prioritising productive capital formation, urban maturity in high-value markets like Mumbai, biopharma self-reliance, and stable policy support for discretionary and organised sectors. With no short-term consumption fireworks, the budget’s success will hinge on detailed notifications, swift execution of infrastructure and risk-mitigation measures, and sustained private-sector confidence in India’s long-term growth story.
Last Updated on: Thursday, February 5, 2026 10:27 am by Indian News Bulletin Team | Published by: Indian News Bulletin Team on Thursday, February 5, 2026 10:27 am | News Categories: India, News
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