Union Budget 2026: High Capex, Strategic Initiatives Amidst STT Hike Concerns

• Union Budget 2026 introduces a significant increase in Securities Transaction Tax (STT) for Options (50%) and Futures (150%), impacting market sentiment.
• Despite market disappointment, the budget focuses on deepening India's manufacturing capabilities, self-reliance, and world-class infrastructure.
• A substantial capital expenditure (capex) of Rs 12.2 lakh crore is allocated, an 11% increase from the revised estimate, with defence and railways receiving significant boosts.
• Key strategic initiatives include ISM 2.0 (India Semiconductor Mission) with Rs 40,000 crore, bio-pharma development, health tourism, and critical mineral ecosystem development.
• A visionary 22-year tax holiday for data centre buildout aims to attract large capital and integrate India with global hyperscaler services.