What changed for defence and energy in the Budget?

Defence spending rises 21% and energy sees a 36% allocation increase. That points to more orders for platforms, electronics, grid equipment, storage, and renewables integration. Investors should track RfQs, award timelines, and margin guidance. Execution quality and supply-chain reliability will decide how fast these allocations convert into revenue.

How does the Swachh Bharat Mission cut affect urban projects?

With SBM-Urban halved, cities may slow new capex and focus on operations and maintenance. Expect delays in waste processing plants, fecal sludge treatment, and mechanised sweeping upgrades. Contractors should plan for longer receivable cycles and staggered tenders, with tighter funding and more scrutiny on performance metrics.

What is the outlook for MoHUA budget 2026 and e-buses?

MoHUA budget 2026 is trimmed, so e-bus awards and depot readiness could slip to later quarters. Aggregated demand may continue, but with smaller batches and stricter viability-gap support. Metro and AMRUT 2.0 plans are likely to prioritise ongoing works, with fewer new corridors until funding visibility improves.

What should retail investors watch next?

Focus on tender calendars, PSU order books, and pre-bid updates. Check borrowing and deficit prints that affect rates. Track city and state budgets for co-funding. Prefer companies with diversified exposure, strong balance sheets, and proven execution, rather than pure-play urban contractors facing slower award momentum.

Law and Government

February 02: India Budget Lifts Defence, Energy; Urban Schemes Cut

ByDanny Kontos February 2, 2026February 2, 2026

Union Budget 2026 defence all signals a clear pivot toward security and power. The government raised energy allocation by 36% and defence by 21%, while halving Swachh Bharat Mission Urban and trimming MoHUA budget 2026. The fiscal deficit path targets 4.3% of GDP with capex of Rs 12.22 lakh crore. For Indian investors, the message is selective: defence and energy suppliers gain visibility, but urban infrastructure and e-bus pipelines may slow. We map the policy shift, sector impact, and the data points to track next.