By Neetu VinayekIndia’s effort to strengthen its manufacturing foundation has steadily progressed over the past decade through a series of significant policy measures. A major milestone was the launch of the Make in India initiative in 2014, designed to encourage investment, spur innovation, and improve ease of doing business. Labour reforms also moved forward with the rollout of the four Labour Codes on 21 November 2025, merging 29 Central labour laws to streamline compliance and create a modern, resilient workforce framework. Complementing these domestic reforms, India has simultaneously intensified its global trade engagement through a renewed focus on Free Trade Agreements (FTAs). Together, these reforms laid the foundation for the renewed manufacturing push outlined in Union Budget 2026.The Budget 2026 places manufacturing as a strategic and frontier sector for sustaining economic growth. The government framed the Budget as a continuation of structural reforms aimed at improving productivity, boosting competitiveness, and strengthening resilience against global disruptions.

In light of the rapid progress under the Electronics Components Manufacturing Scheme, the Budget proposes expanding its allocation to ₹40,000 crore, reaffirming India’s ambition to enhance domestic value addition and secure its place in global electronics supply chains. To compliment this, income tax holiday is being provided for five years to non-residents providing capital goods, equipment, or tooling to contract manufacturer operating in customs-bonded zones. This will help reduce costs which were being incurred on specialised equipment. Safe harbour provisions have been extended to non-residents for component warehousing in a bonded warehouse at a profit margin of 2 percent of the invoice value with a resulting tax incidence of 0.7 percent. This will harness efficiency of just-in-time logistics for the sector.A key highlight is the India Semiconductor Mission (ISM) 2.0, to produce equipment and materials, design full-stack Indian IP, and fortify supply chains signalling the country’s ongoing commitment to building a robust domestic semiconductor ecosystem. There is tremendous potential for the aviation sector with rise in airports and regional connectivity under the UDAN schemes. To build sustainable ecosystem it is important to manufacture aircrafts and undertake MRO activities within the country. With this vision basic customs duty is exempted on parts and components imported for manufacture of aircraft. Further, basic customs duty on raw materials imported for manufacture of parts used in maintenance, repair or overhaul requirements in defence units is also exempted. The government has also proposed a seaplane VGF scheme to support operations and indigenise manufacturing of seaplanes.A Scheme for Rare Earth Permanent Magnets, launched in late 2025, is now complemented by proposed support for Rare Earth Corridors across mineral-rich states to promote mining, processing, research and manufacturing.The Budget also introduces Biopharma SHAKTI—a five-year, ₹10,000 crore programme to position India as a global hub for biopharma manufacturing by strengthening capabilities in biologics and biosimilars.To boost the chemicals sector, the government has launched a scheme supporting States in developing chemical parks to expand domestic production. The capital goods sector, often the silent driver of productivity, receives a comprehensive support package. This includes the establishment of Hi-Tech Tool Rooms by Central Public Sector Enterprises (CPSEs) as digital service hubs for precision components, a scheme for advanced construction and infrastructure equipment. ₹10,000 crore over five-years is also allocated to develop a competitive container manufacturing ecosystem. These interventions aim to reduce import dependence, shorten supply chains, and lower costs.Beyond advanced manufacturing, the Budget extends support to labour-intensive sectors such as textiles. It also introduces a dedicated thrust to develop India into a global centre for high-quality, affordable sports goods.A Scheme has been proposed to revive 200 legacy industrial clusters to improve their cost competitiveness and efficiency through infrastructure and technology upgradation.Impetus to the manufacturing sector is also provided through taxes. Basic customs duty exemptions have been extended across emerging sectors, including lithium-ion cell battery storage systems, critical mineral processing equipment, raw material for wind turbines and nuclear power plants. In essence, the Union Budget 2026 represents a holistic manufacturing-led growth strategy. It marries structural reforms with targeted fiscal incentives, embraces both advanced and traditional industries, and puts exports and global competitiveness at the centre of its vision. The new set of measures and focus on emerging sectors has the potential to deepen the country’s industrial capabilities and strengthen its position in global value chains. On ground execution and collaboration could mark a transformative chapter in India’s industrial journey.(Neetu Vinayek is Partner, Tax Infrastructure and Oil & Gas Leader, EY India . Manmay Chandawalla, Director-Tax, EY India also contributed to the article.)

Last Updated:February 13, 2026, 10:52 IST

Jane Street operates trading subsidiaries in India and also manages offshore funds in Hong Kong and Singapore that are registered as FPIs

Jane Street Case

New York-based trading firm Jane Street has moved the Supreme Court of India amid a dispute with Indian tax authorities over the scope of legal privilege for certain internal communications, according to an Economic Times report on Friday.

The private quantitative trading firm, currently under scrutiny from both the Income Tax Department and capital markets regulator SEBI, has filed a review petition seeking judicial clarity on what constitutes “legal privilege.”

The case could have wider implications for Jane Street’s operations in India as well as for other corporate entities navigating the boundaries of privileged legal communications.

The Economic Times noted that the plea has reignited debate over whether confidential legal advice—including guidance from in-house legal teams acting in a legal advisory capacity—is protected under the Bharatiya Sakshya Adhiniyam, 2023, which replaced provisions of the Indian Evidence Act, 1872.

The filing is reportedly linked to enquiries by the Income Tax Department, which sought access to certain internal emails of Jane Street’s overseas operations as part of its investigation.

Jane Street operates trading subsidiaries in India and manages offshore funds in Hong Kong and Singapore, which are registered as foreign portfolio investors (FPIs) with SEBI.

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Stock market recommendations: Bajaj Broking Research recommends buying Tata Power, and Manappuram Finance as the top stocks picks for February 13, 2026 with a 3-month timeframe for target. It also shares its view on Nifty and Bank Nifty:

Index View: NIFTY

Indian benchmark indices traded within a narrow range during the week, exhibiting a positive bias amid supportive domestic cues. Market sentiment remained constructive, underpinned by a revival in Foreign Institutional Investor (FII) inflows. After a phase of sustained outflows, FIIs have turned net buyers, reflecting renewed confidence in India’s macroeconomic fundamentals. The continuation of these inflows is expected to lend further support to equities, particularly in light of improving GDP growth expectations.Investor attention has gradually shifted toward the concluding phase of the third-quarter earnings season. Market participants are closely evaluating corporate earnings performance and forward-looking management commentary to gauge the sustainability of earnings growth. Additionally, upcoming inflation data will be a key monitorable in both India and US, as it may influence expectations regarding the Reserve Bank of India’s and US FOMC future rate decision.Developments related to the proposed trade agreement also remain in focus, with reports suggesting that the final contours are nearing completion. Greater clarity on this front could provide incremental direction to the markets in the near term. Overall, the market undertone remains cautiously optimistic, supported by improving macroeconomic indicators and stabilizing external flows.Nifty post the RBI monetary policy outcome rebounded from the support area of 20 days EMA and tested the immediate resistance area of 26,000 in Wednesday session.Going forward, index sustaining above the key psychological level of 26,000, will open upwards toward the key resistance area of 26,200–26,300 in the coming sessions. However, if it fails to move above the 26,000 levels, the index is likely to consolidate in the range of 25,500-26,000.The overall outlook remains positive, and market dips should be seen as buying opportunities. Immediate support is placed at 25,500–25,400, which aligns with last week’s breakout area and the 20-day EMA.Volatility is likely to remain elevated amid uncertain global cues and the rising crude oil prices.BANKNIFTYBank Nifty traded in a range with positive bias during the current week. PSU banking stocks extended their outperformance. Going ahead, a move above 61,000 levels will lead to further upside toward the 61,400 and 61,800 levels in the coming sessions. Failure to move above 61,000 will signal some consolidation in the range of 59,800-60,800 levelsBias remains positive and we believe dips should be used as buying opportunity, with short term support seen at 59500-59200 levels being the confluence of the 20- and 50-days EMA. Volatility is likely to remain elevated amid uncertain global cues

Stock Recommendations:

Tata PowerBuy in the range of ₹ 373-381

The stock is at the cusp of generating a breakout above a falling supply line joining the highs of October 2025 and January 2026 signaling resumption of up move and offers fresh entry opportunity.We expect the stock to head towards 413 levels in the coming quarters being the high of October 2025 and the upper band of the last 12 months range.Daily 14 periods RSI is in uptrend and is seen sustaining above its nine periods average thus supports the positive bias in the stock.Manappuram FinanceBuy in the range of 300-310

Buying demand is seen emerging from the 52 weeks EMA and the previous major low of October 2025 signaling strength and offers fresh entry opportunity. The stock during last week formed a bullish engulfing candle signaling strength and opening upside towards 332 levels being the 123.6% external retracement of the previous decline.The daily 14 periods RSI is seen rebounding, taking support at its nine periods average thus supports the positive bias in the stock. The weekly stochastic has generated a buy signal.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)