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The Indian pharmaceutical industry is poised for a significant boost following the Union Budget for 2026-27, which has earmarked ₹10,000 crores for the Biopharma Shakti programme. This initiative aims to transition India from a global supplier of medicines to a leader in biopharma innovation, according to industry leaders like K Satish Reddy of Dr Reddy’s Laboratories. The budget also includes the establishment of three new National Institutes of Pharmaceutical Education and Research (NIPER) and a network of 1,000 accredited clinical trial sites, enhancing the country’s capacity for complex therapies. Kiran Mazumdar-Shaw of Biocon Group emphasized the importance of biologics and biosimilars in addressing rising health challenges such as cancer and diabetes. While experts welcome the initiatives, concerns remain about the adequacy of funding given the high R&D costs in biopharma. The true impact will depend on the detailed implementation of these measures. 
Published: Feb 01 2026, 7 pmeznews.inIn a significant move to bolster India's IT sector, the Union Budget has proposed consolidating various IT-related business segments into a single "Information Technology Services" category, featuring a uniform safe harbour margin of 15.5 percent and an increased eligibility threshold from ₹300 crore to ₹2,000 crore. Finance Minister Nirmala Sitharaman announced that the safe harbour approvals will now be automated, eliminating the need for tax officer scrutiny, and allowing companies to maintain the same safe harbour for five years. The Budget also aims to expedite the Unilateral Advance Pricing Agreement (APA) process, addressing long-standing concerns about timelines. Industry body Nasscom welcomed these changes, highlighting their potential to enhance tax certainty and reduce compliance costs. Wipro's CFO and GlobalLogic's APAC head emphasized that these reforms will not only ease operational challenges but also position India as a competitive global hub for IT services amidst shifting global economic conditions.
Published: Feb 01 2026, 8 pmeznews.inOn February 1, 2026, India's volatility index, known as India VIX, surged by 10.7% on Budget Day, marking a notable first in a decade where the index rose on such an occasion. The VIX peaked at an eight-month high of 16.11 before settling at 15.10, driven primarily by the government's increase in Securities Transaction Tax (STT), which triggered the sharpest intraday jump since November 2021. The India VIX, often referred to as a "fear gauge," reflects market sentiment and expectations of volatility over the next 30 days, indicating heightened investor caution amid ongoing geopolitical uncertainties and capital outflows. Analysts suggest that while selective stock opportunities may exist, the rising VIX signals potential market weakness, with projections indicating it could climb further, possibly reaching 20, before any stabilization occurs. Investors are advised to remain vigilant as the market navigates these turbulent conditions.
Published: Feb 01 2026, 8 pmeznews.inFinance Minister Nirmala Sitharaman has delivered nine Budgets since July 2019, navigating the Indian economy through the pandemic, recovery, and global uncertainties. An analysis of Budget Day returns across 16 major sectors reveals significant disparities, with the Nifty 100 achieving positive returns on only three occasions. The FMCG sector emerged as the strongest performer, recording gains on seven of the nine Budget days, highlighting its defensive nature. Conversely, the Oil & Gas sector struggled, with only one positive session, reflecting ongoing investor concerns over pricing controls and regulatory issues. The Financial Services sector exhibited mixed results, with three positive and six negative closes, indicating its sensitivity to fiscal policies. In the latest 2026 Budget, most sectors declined, except for Nifty IT, which gained 1.3%. Overall, recent Budgets have favored consumption-linked sectors, while commodity-heavy segments lagged, underscoring the importance of sectoral positioning over index exposure.
Published: Feb 01 2026, 8 pmeznews.inIn a significant move to bolster domestic manufacturing, the Indian government has removed or reduced basic customs duties on key capital goods and strategic inputs across various sectors, including nuclear energy, clean energy, healthcare, and electronics. Finance Minister Nirmala Sitharaman emphasized that these changes aim to simplify the tariff structure, enhance export competitiveness, and correct duty inversions. While duties on essential items like lithium-ion cells and 17 healthcare drugs have been exempted, tariffs on certain consumer goods, such as potassium hydroxide, have been increased. Experts believe these measures will facilitate technology-led exports from the US to India and improve market access for American exporters in high-value sectors. Additionally, the government plans to implement a Customs Integrated System within two years to streamline customs processes, transitioning to a trust-based, digital framework that promises faster clearances and enhanced support for cross-border e-commerce.
Published: Feb 01 2026, 8 pmeznews.inConsumer product companies have welcomed the Union Budget's focus on sustained public investments and support for MSMEs, viewing it as a strategic move to enhance consumption rather than a short-term populist approach. Saugata Gupta, MD & CEO of Marico Ltd, highlighted the budget's commitment to manufacturing growth and agricultural income enhancement, which he believes will positively impact rural demand. Naveen Malpani from Grant Thornton Bharat noted that improved access to equity and liquidity for MSMEs could stimulate investments in smaller cities, fostering broader consumer demand. Mohit Malhotra, CEO of Dabur India, emphasized the budget's continuity and resilience, particularly its focus on tier-2 and tier-3 cities to expand the market for branded products. Kumar Rajagopalan, CEO of the Retailers Association of India, cautioned that while the budget aims to create a conducive environment for retail, its effects on consumption will be gradual and uneven, driven by supply chain improvements and regional demand growth.
Published: Feb 01 2026, 8 pmeznews.inIn a significant boost for sandalwood cultivation, Finance Minister Nirmala Sitharaman announced support for high-value agriculture in the Budget 2026-27, allocating Rs 350 crore for crops including sandalwood, cashew, cocoa, and agar. Sitharaman emphasized the cultural importance of sandalwood, stating that the government will collaborate with state authorities to enhance cultivation and post-harvest processing, aiming to revive the Indian Sandalwood ecosystem. K Amaranarayana, President of the All India Sandalwood and Tree Culture Association, praised the initiative, highlighting sandalwood's global demand and its status as a pride product of India. However, he urged for farm-grown sandalwood to be exempt from forest department regulations, advocating for amendments to the Indian Forest Act of 1927. Currently, sandalwood is cultivated on approximately 18,000 hectares nationwide, with Karnataka being the largest producer, followed by Telangana and Tamil Nadu.
Published: Feb 01 2026, 7 pmeznews.inThe Ministry of Road Transport and Highways (MoRTH) has announced a budgetary allocation of ₹3,09,875.30 crore for the fiscal year 2026–27, a notable increase from ₹2,87,333.16 crore in the previous year. The National Highways Authority of India (NHAI) will receive ₹1,87,293.16 crore, up from ₹1,70,266.00 crore, aimed at enhancing national highways, expressways, and greenfield corridors. The budget also allocates ₹86,125 crore for "Road Works," an increase from ₹78,295 crore, focusing on two-laning and four-laning projects. Special programmes will target road connectivity in Left Wing Extremism-affected areas, last-mile connectivity, and the development of Multi-Modal Logistics Parks. Additionally, maintenance and repair funding for national highways has risen to ₹5,020 crore from ₹4,595 crore, with a new mechanism in place to ensure accountability in maintenance efforts. The budget reflects a comprehensive approach to improving India's road infrastructure.
Published: Feb 01 2026, 7 pmeznews.inIn a significant boost for Indian Railways, the Union Budget has allocated a record ₹2,93,030 crore for capital expenditure (capex) in FY27, marking a 10.5% increase from the previous fiscal year. This funding aims to enhance railway infrastructure, focusing on the construction of new lines, doubling existing tracks, and upgrading traffic facilities and rolling stock. Notably, the budget includes provisions for high-speed rail corridors in Southern States and a dedicated freight corridor linking Dankuni to Surat. Additionally, the revenue expenditure is set at ₹2,99,500 crore, reflecting an 8% rise, while gross traffic receipts are projected to reach ₹3,01,700 crore, a growth of 8.4%. Despite falling short of revenue targets in FY26, the operating ratio is expected to improve slightly from 98.9% to 98.4% in FY27, indicating a cautious optimism for the sector's financial health.
Published: Feb 01 2026, 7 pmeznews.inThe Tea Board India has received a substantial 36% increase in its budget allocation for the financial year 2026-27, amounting to ₹380 crore, making it the highest among commodity boards, surpassing allocations for the Coffee, Rubber, and Spices Boards. This increase from the revised ₹278.47 crore for FY25-26 comes despite a significant drop from the original ₹771.55 crore allocated for the current year. Industry leaders, including Indian Tea Association Chairman Hemant Bangur, have expressed concerns over the lack of financial support for growers amid declining tea prices, which threaten the industry's viability. The budget also extends the Pradhan Mantri Cha Shramik Protsahan Yojana (PMCSPY) for another year, aimed at improving welfare for tea workers in Assam and West Bengal. The Indian tea sector anticipates a rise in both production and exports in 2025, driven by increased shipments to key markets like Iran, Iraq, and China.
Published: Feb 01 2026, 7 pm
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