Budget 2026: Manufacturing, Capex Drive Positive Outlook Amid STT Worries

• Budget 2026 signals a major shift in India's growth strategy, moving from rural-led development to manufacturing, services, and digital infrastructure.
• Pankaj Tibrewal of IKIGAI Asset Manager emphasized the Budget's focus on "manufacturing, manufacturing, manufacturing," highlighting a structural policy shift.
• Vikas Khemani of Carnelian Asset Management noted the broad and operational manufacturing push, including electronics, textiles, and semiconductors, bolstered by free trade agreements.
• Public capital expenditure, particularly in defence, railways, and roads, remains a key pillar, reinforcing infrastructure-led growth and private investment.
• Despite market worries over increased Securities Transaction Tax (STT) on F&O, veterans see the overall approach as pragmatic, with no adverse capital gains tax changes.

Why It Matters: Budget 2026 pivots India's growth to manufacturing, services, and digital infrastructure, maintaining a positive long-term outlook.