The Union Budget 2026-27: Infrastructure Momentum, Sectoral Reforms, and Forward-Looking Bets on Real Estate, Healthcare, and Semiconductors
New Delhi, February 5, 2026 — Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget on February 1, 2026, underscoring a balanced approach to fiscal consolidation and growth acceleration under the Viksit Bharat vision. With total expenditure pegged at approximately ₹53.5 lakh crore and public capital expenditure sustained at a robust ₹12.2 lakh crore (a 9% increase from the previous year’s revised estimates), the budget prioritizes infrastructure as the engine of economic expansion while targeting a fiscal deficit of 4.3% of GDP (down from 4.4% revised for 2025-26) and debt-to-GDP at 55.6%, on path to 50% ±1% by 2030-31.
The budget introduces targeted reforms across real estate, healthcare, and strategic manufacturing, including the launch of India Semiconductor Mission (ISM) 2.0 to deepen domestic capabilities in equipment, materials, full-stack IP design, and supply-chain resilience through industry-led R&D and training centers. An Infrastructure Risk Guarantee Fund aims to de-risk private participation in projects, while dedicated REITs for recycling underutilized real estate assets of Central Public Sector Enterprises (CPSEs) seek to unlock capital and boost monetization. Healthcare gains from expanded medical education, establishment of day-care cancer centres in district hospitals, trauma/emergency upgrades, and customs duty reductions on critical cancer and rare disease drugs to enhance affordability and access.
Industry leaders have responded positively, viewing these as incremental yet impactful steps toward decentralized growth, better risk management, and sector-specific resilience.
In real estate, the budget offers indirect support through infrastructure-led development in Tier-2 and Tier-3 cities, urban connectivity enhancements, and measures to ease transactions.
Mr Rohan Khatau, Director, CCI Projects, noted the limited direct emphasis but highlighted positives: “Union Budget 2026 gives limited direct emphasis to real estate or homebuyers. The Infrastructure Risk Guarantee Fund and REITs for CPSE assets can unlock funds and speed up monetization. Simplifying TDS on property sales by non-residents through PAN challans will ease transactions and improve transparency for foreign buyers. Stronger municipal finances and market-based funding will aid development of integrated townships. Growing economy coupled with better infrastructure framework will lead to balancing real estate dynamics.”
Mr. Nikhil Madan, MD, Mahima Group, emphasized opportunities for regional markets: “The Union Budget 2026 maintains a largely lukewarm sentiment, but consistent emphasis on capital expenditure as a driver of economic growth encourages hopefulness. With continued allocations toward transport, logistics, urban mobility and regional connectivity, Tier 2 and 3 cities are likely to witness the next phase of real estate development. The commitment to infrastructure led growth for Tier-2 cities is very promising for Jaipur with many existing projects underway such as Jaipur Ring Road, major industrial hubs and sector-specific parks in Rajasthan. In Jaipur, targeted urban infrastructure upgrades and policy continuity are incrementally improving liveability while unlocking new residential and mixed-use development opportunities. As economic activity continues to decentralise and housing demand broadens, the real estate sector stands to benefit from a more diversified and resilient demand base further supporting long-term and sustainable urbanisation rather than a purely cyclical, metro-led growth trajectory.”
Healthcare receives focused attention with investments in preventive and specialized care, including day-care cancer centres, expanded super-specialty blocks, and increased medical seats to strengthen early diagnosis and outcomes beyond metros.
Dr. Sanket Mehta, Founder & Director, SSO Cancer Care Hospital, welcomed the patient-centric direction: “The Union Budget 2026–27 sends a clear signal that cancer care in India is moving closer to the patient. Investments in day-care cancer centres, expanded medical education, and affordable access to life-saving drugs and the setup of preventive healthcare will strengthen early diagnosis and better treatment outcomes, especially beyond metros. For oncology, this is a critical step towards timely, and outcome-driven cancer treatment, accessible to all.”
The strategic push in semiconductors via ISM 2.0 builds on prior momentum, aiming to position India as an innovation hub in AI, IoT, and next-gen computing through ecosystem building and talent development.
Shashwath, TR, Co-founder & CEO of Mindgrove Technologies, described it as transformative : “The India Semiconductor Mission 2.0 marks a fundamental shift from value addition to value creation. It recognizes that India is no longer just catching up. We must build our own ecosystem and imprint our unique mark on the global semiconductor landscape. By enabling industry-led R&D and talent depth, the ISM 2.0 unlocks scalable innovation, strengthens export competitiveness, and positions India to lead in high-growth semiconductor applications across AI, IoT, and next-gen computing.”
The budget’s emphasis on infrastructure crowding-in private investment, frontier manufacturing, and inclusive sectoral reforms signals confidence in sustaining 7%+ growth amid global headwinds. Execution, particularly in risk mitigation, regional decentralization, and public-private synergies, will determine how effectively these initiatives translate into tangible economic gains for developers, patients, innovators, and citizens alike.
Last Updated on Thursday, February 5, 2026 5:17 am by Startup Newswire Team
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