Budget 2026: The Tech-Gold Catalyst

Strategic Analysis for Rajesh Exports Ltd & Deep Manufacturing
~ Sumon Mukhopadhyay

"Budget 2026 isn't just about fiscal numbers; it outlines a structural shift toward higher value-added manufacturing, where commodity leaders explore deeper positions in the value chain."

1

Electrifying the Gigafactory Dream

The continued policy focus on Advanced Chemistry Cells (ACC) remains one of the most capital-intensive pillars of India’s manufacturing roadmap, creating strategic adjacencies for large-scale metals and refining players.

• ✔
  Zero Duty on Machinery: The extension and rationalisation of Basic Customs Duty (BCD) exemptions on critical cell-manufacturing equipment continues to lower entry barriers and upfront CAPEX for upcoming gigafactory projects.
• ✔
  Critical Mineral Focus: Enhanced policy emphasis on domestic and overseas sourcing of rare earths and critical minerals—still a work in progress—supports long-term supply security for EV motors and advanced electronics.

2

The Gold Standard: Refining & Retail

For gold refining and export-oriented businesses—where Rajesh Exports Ltd (Rs.162.40) has scale and global exposure—Budget 2026 maintains a calibrated balance between trade competitiveness and revenue protection.

Ad Valorem Duty Drawback

The continued use of ad valorem–linked duty drawback mechanisms aligns export refunds more closely with prevailing gold prices, helping large exporters manage price volatility and stabilise operating margins.

3

AMOLED & Semiconductor Vision

Within the broader framework of the Semiconductor Mission (Phase II), display manufacturing—including AMOLED panels—benefits from input duty rationalisation, offering optionality rather than immediate execution for diversified manufacturing groups.

Segment	Budget Trigger	Impact
EV / Battery	BCD Exemptions on Machinery	Lower Entry CAPEX
Gold Export	Ad Valorem Drawback	Margin Stability
Display Fab	Semiconductor Mission Support	High-Tech Enablement

How sustainable is this diversification strategy over the next decade?

Stay tuned to SumanSpeaks for more deep dives into India’s evolving economic landscape.