Union Budget 2026 : Who Benefits and Who Doesn't, A Closer Look

On February 1, 2026, Finance Minister Nirmala Sitharaman delivered the Union Budgetfor the fiscal year 2026–2027 to Parliament on behalf of the Indian government. It sets out the government’s tax policies, spending priorities and economic orientation for the year ahead.

A policy of infrastructure-led growth, manufacturing expansion, MSME support, strategic sector push, and fiscal conservatism is reinforced by the budget. Here’s a summary of winners and losers from the UnionBudget 2026.

Union Budget 2026 Major Winners — Who Benefits Most

1. The Construction and Infrastructure Sectors

The government raised capital expenditure to ₹12.2 lakh crore, with a large portion going into roads, railways, freight corridors, waterways and urban connectivity projects. This will fuel jobs and business for construction firms, logistics operators and allied services in the Union Budget 2026.

2. MSMEs, Crafts & Small Businesses

Micro, Small & Medium Enterprises (MSMEs) draw significant support through dedicated growth funds, easier credit access and structural reforms. Traditional sectors — such as khadi, handloom, silk and textile — also get focused schemes for modernization, employment and exports Union Budget 2026.

3. Strategic & High-Growth Industries

Several long-term industrial priorities were announced:

• Biopharma (Biopharma SHAKTI) — big investment push aimed to strengthen domestic biologic drugs and medical manufacturing.
• Semiconductors & electronics — mission expansion to build local chip and component manufacturing.
• Rare-earth processing corridors — leveraging mineral resources in states like Odisha and Tamil Nadu.

These aim to create jobs, deepen supply chains, and attract investment in Union Budget 2026.

4. Women & Entrepreneurship

New entrepreneurship-focused initiatives like SHE Marts and self-help ecosystem support aim to help women scale businesses and increase their participation in formal markets.

5. Regional & Tourism Development

The development of heritage destinations and tourism, notably Buddhist circuits in the Northeast, has been emphasized, which could boost regional economies and jobs associated with tourism.

6. Foreign Professionals and NRIs

Increased tax incentives, such as a five-year exemption on foreign income for specific visitors, are provided by the budget for non-resident professionals employed in India in Union Budget 2026.

Who Could Be Worse Off or Not Benefit

1. Wealthy investors and high-net-worth individuals

The budget tightened rules around certain investments and increased some taxes – for example, it doubled Securities Transaction Tax (STT) on futures and options trading, hitting aggressive and speculative traders.

Additionally, it changed how share buybacks are taxed, making large investors pay more in taxes.

2. A Few Business Divisions

While many industries are getting boosts, certain large corporates may see less benefit from general tax changes or find the compliance and market reform measures tightening their short-term profitability.

3. Agricultural Sector Concerns

Some commentators argue the share of overall spending for agriculture hasn’t expanded proportionately — and in some reported analyses budgetary allocation to agriculture and allied activities appears lower as a share of expenditure than before.

(This doesn’t mean no support for farmers, but relative growth might be smaller compared with other sectors.)

In Summary: Winners vs. Losers

Long-term-focused but balanced

Overall, while maintaining budgetary restraint and reform initiatives, Budget 2026–2027 places a high priority on growth engines, including infrastructure, manufacturing, digital, key industries, and MSMEs. With a focus on industrial competitiveness and economic resilience, it is generally seen as a pro-business and forward-looking budget.

However, rather than providing instant tax relief for all citizens, the benefits are more structural and may take some time to manifest. Gains for middle-class paid individuals come more from expectations for job creation and economic growth than from significant tax cuts.