The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has laid out a comprehensive roadmap for India’s economic growth, focusing on key sectors such as agriculture, MSMEs, manufacturing, infrastructure, and exports. The budget aims to stimulate inclusive development, boost private sector investments, and enhance the spending power of India’s rising middle class. Here’s a breakdown of the sectors that are poised to benefit, along with specific companies that could see growth opportunities:
New Personal Income Tax Slabs for 2025-26
1. Agriculture and Rural Development
The budget has introduced several initiatives to boost agricultural productivity and rural prosperity. The ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ aims to increase productivity in 100 low-productivity districts, while the ‘Mission for Aatmanirbharta in Pulses’ focuses on self-sufficiency in pulses like Tur, Urad, and Masoor. Additionally, the Kisan Credit Card (KCC) loan limit has been increased from ₹3 lakh to ₹5 lakh, which will benefit small and marginal farmers.
Companies to Watch:
- NCCF (National Cooperative Consumers’ Federation of India): As a central agency for procuring pulses, NCCF will play a crucial role in the pulses mission.
- NAFED (National Agricultural Cooperative Marketing Federation of India): Another key player in the procurement of agricultural produce, especially pulses.
- Mahindra & Mahindra (Farm Equipment Division): With increased focus on farm mechanization and irrigation, companies like Mahindra could see higher demand for their agricultural equipment.
2. MSMEs and Manufacturing
The budget has significantly enhanced credit availability for MSMEs, with the guarantee cover limit increased from ₹5 crore to ₹10 crore. The National Manufacturing Mission aims to further the “Make in India” initiative, covering small, medium, and large industries. Additionally, the budget has introduced a new scheme for women, Scheduled Castes, and Scheduled Tribes first-time entrepreneurs, offering term loans up to ₹2 crore.
Companies to Watch:
- L&T (Larsen & Toubro): As a major player in the manufacturing and infrastructure sectors, L&T could benefit from increased government spending on infrastructure and manufacturing.
- Tata Motors: With the focus on electric vehicles (EVs) and battery manufacturing, Tata Motors, which has a strong presence in the EV market, could see growth opportunities.
- Reliance Industries: The company’s focus on manufacturing and exports aligns well with the budget’s emphasis on domestic production and global supply chains.
3. Infrastructure and Urban Development
The budget has allocated ₹1 lakh crore for the Urban Challenge Fund, aimed at transforming cities into growth hubs. Additionally, the Jal Jeevan Mission has been extended till 2028, focusing on rural piped water supply schemes. The Modified UDAN Scheme will enhance regional connectivity to 120 new destinations, boosting the aviation and tourism sectors.
Companies to Watch:
- IRB Infrastructure: As a major player in road and highway construction, IRB Infrastructure could benefit from increased infrastructure spending.
- Adani Ports and SEZ: With the focus on improving logistics and warehousing for exports, Adani Ports could see growth in its operations.
- Indigo and SpiceJet: These airlines could benefit from the expansion of the UDAN scheme, which aims to enhance regional connectivity.
4. Exports and Global Trade
The budget has introduced the BharatTradeNet (BTN), a digital public infrastructure for international trade, aimed at simplifying trade documentation and financing. The government has also announced support for domestic manufacturing capacities to integrate with global supply chains, particularly in the electronics and textile sectors.
Companies to Watch:
- Infosys and TCS: These IT giants could benefit from the digitalization of trade processes and the push for global capability centers.
- Arvind Limited: As a major player in the textile industry, Arvind could benefit from the budget’s focus on promoting domestic textile production.
- Bharat Forge: With the government’s focus on boosting exports, Bharat Forge, a leading exporter of auto components, could see increased demand.
5. Healthcare and Pharmaceuticals
The budget has exempted Basic Customs Duty (BCD) on 36 lifesaving drugs and medicines for treating cancer, rare diseases, and chronic diseases. This move is expected to reduce the cost of critical medicines and boost the pharmaceutical sector.
Companies to Watch:
- Dr. Reddy’s Laboratories: As a major player in the pharmaceutical industry, Dr. Reddy’s could benefit from the reduced cost of raw materials for lifesaving drugs.
- Cipla: With a strong focus on affordable healthcare, Cipla could see growth opportunities in the production of cancer and chronic disease medications.
- Sun Pharma: The company’s focus on research and development aligns well with the budget’s emphasis on innovation in healthcare.
6. Renewable Energy and EVs
The budget has announced a Nuclear Energy Mission with an outlay of ₹20,000 crore for the R&D of small modular reactors. Additionally, the budget has extended exemptions on capital goods for EV and mobile battery manufacturing, promoting domestic production of lithium-ion batteries.
Companies to Watch:
- Tata Power: With the focus on renewable energy and EV infrastructure, Tata Power could see growth in its solar and EV charging businesses.
- Exide Industries: As a leading battery manufacturer, Exide could benefit from the push for domestic battery production.
- Suzlon Energy: The company’s focus on wind energy could align well with the government’s renewable energy goals.
7. Technology and Artificial Intelligence
The budget has allocated ₹500 crore for a Centre of Excellence in Artificial Intelligence for education. Additionally, the government has proposed the National Geospatial Mission to develop foundational geospatial infrastructure, which will benefit urban planning and disaster management.
Companies to Watch:
- Wipro and HCL Technologies: These IT companies could benefit from the increased focus on AI and geospatial technologies.
- MapmyIndia: As a leader in geospatial technology, MapmyIndia could see growth opportunities from the National Geospatial Mission.
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Conclusion
The Union Budget 2025-26 has laid a strong foundation for India’s growth across multiple sectors. With a focus on agriculture, MSMEs, infrastructure, exports, and technology, the budget aims to create a more inclusive and self-reliant economy. Companies in these sectors, such as Mahindra & Mahindra, L&T, Tata Motors, Dr. Reddy’s, and Infosys, are well-positioned to benefit from the government’s initiatives. As India moves towards becoming a $5 trillion economy, these sectors and companies will play a pivotal role in driving growth and innovation.
Disclaimer: The companies mentioned are based on the sectors highlighted in the budget and are not investment recommendations. Investors should conduct their own research before making any investment decisions.