Budget 2026: Infra, Power, Green Energy Push Boosts Capital Goods Sector Outlook

• Union Budget 2026 proposes significant measures for infrastructure, power, renewable energy, and technology, boosting the capital goods sector.
• Public capital expenditure increases by nearly 9% to Rs 12.2 lakh crore for 2026–27, focusing on infrastructure-led growth.
• Key initiatives include new freight corridors, 20 national waterways, seven high-speed rail corridors, and a tax holiday for foreign cloud service providers.
• BCD exemption extended for lithium-ion cells and BESS manufacturing, with increased viability gap funding for BESS projects.
• Allocations for solar rooftop, transmission, distribution, and nuclear power generation are scaled up, alongside an Infrastructure Risk Guarantee Fund.