The Union Budget 2026-27 was presented in the Parliament by the Union Finance Minister Nirmala Sitharaman today.
The key Highlight are:
- Budget anchored around three Kartavya:
Accelerate economic growth, fulfil aspirations, and ensure Sabka Sath–Sabka Vikas - Public capital expenditure raised to ₹12.2 lakh crore in FY 2026–27 to sustain infrastructure-led growth
- Fiscal deficit pegged at 4.3% of GDP, continuing the path of fiscal consolidation
- Debt-to-GDP ratio projected at 55.6%, targeting 50±1% by 2030–31
Manufacturing & Industrial Growth
- Biopharma SHAKTI launched with ₹10,000 crore outlay to make India a global biologics and biosimilars hub
- India Semiconductor Mission 2.0 announced to boost equipment, materials, IP design and skilled workforce
- Electronics Components Manufacturing Scheme outlay increased to ₹40,000 crore
- Rare Earth Corridors to be developed in Odisha, Kerala, Andhra Pradesh and Tamil Nadu
- Three Chemical Parks to be set up on a cluster-based plug-and-play model
- ₹10,000 crore Container Manufacturing Scheme over five years
- Integrated Textile Programme covering fibres, handlooms, skilling, sustainability and employment
- Mega Textile Parks to be set up through challenge mode
- Mahatma Gandhi Gram Swaraj Initiative for khadi, handloom and handicrafts
- Dedicated initiative for sports goods manufacturing
- 200 legacy industrial clusters to be rejuvenated
MSMEs & Startups
- ₹10,000 crore SME Growth Fund to create “Champion MSMEs”
- ₹2,000 crore top-up to Self-Reliant India Fund for micro enterprises
- Mandatory TReDS platform for CPSE procurement from MSMEs
- Credit guarantee for invoice discounting on TReDS
- Creation of ‘Corporate Mitras’ to assist MSMEs with compliance
Infrastructure, Transport & Cities
- Infrastructure Risk Guarantee Fund to support private developers
- Monetisation of CPSE real estate assets through dedicated REITs
- New Dedicated Freight Corridor from Dankuni to Surat
- 20 new National Waterways to be operationalised over five years
- Coastal Cargo Promotion Scheme to double inland waterways and coastal shipping share by 2047
- Seaplane manufacturing incentives and Viability Gap Funding for operations
- ₹20,000 crore outlay for Carbon Capture, Utilisation and Storage (CCUS)
- Development of City Economic Regions (CERs) with ₹5,000 crore per region
- Seven High-Speed Rail corridors announced, including Mumbai–Pune and Delhi–Varanasi
Financial Sector & Investments
- High-Level Committee on Banking for Viksit Bharat to review banking reforms
- Restructuring of PFC and REC among public sector NBFCs
- Review of FDI rules under FEMA (Non-Debt Instruments)
- Introduction of market-making framework for corporate bonds
- Incentives for large municipal bond issuances
- Higher investment limits for Persons Resident Outside India (PROI)
Education, Skills & Employment
- Education-to-Employment Standing Committee for services-led growth
- 100,000 Allied Health Professionals to be added over five years
- 1.5 lakh caregivers to be trained annually
- Five Regional Medical Value Tourism Hubs to be set up
- Expansion of AYUSH institutes and certification ecosystem
- Support for AVGC sector through labs in schools and colleges
- New National Institute of Design in eastern India
- University Townships near industrial corridors
- Girls’ hostels in every district for higher education institutions
Tourism, Culture & Sports
- National Institute of Hospitality to be upgraded
- Upskilling 10,000 tourist guides at iconic sites
- National Destination Digital Knowledge Grid
- Development of eco-tourism trails (mountain, turtle and birding trails)
- 15 archaeological sites to be developed as experiential heritage destinations
- Launch of Khelo India Mission to transform sports ecosystem
Agriculture & Rural Economy
- Fisheries development across 500 reservoirs and Amrit Sarovars
- High-value crop promotion including coconut, cashew, cocoa, sandalwood and nuts
- Coconut Promotion Scheme announced
- Dedicated programmes for Indian Cashew and Cocoa brands
- Launch of Bharat-VISTAAR, a multilingual AI-based agriculture advisory system
- SHE-Marts to promote women-led rural enterprises
Social Welfare & Inclusion
- Divyangjan Kaushal Yojana for skill-based employment
- Divyang Sahara Yojana for assistive devices and technology marts
- NIMHANS-2 to be set up; mental health institutes upgraded
- Emergency and Trauma Care Centres to be expanded in district hospitals
- Special focus on Purvodaya States and North-East, including East Coast Industrial Corridor
Direct Tax Reforms
- Income Tax Act, 2025 to come into force from April 1, 2026
- Simplified tax forms and rules for easier compliance
- MACT compensation interest exempt from tax
- Reduced TCS on foreign tours, education and medical remittances
- Extended timelines for filing revised returns
- Rationalisation of penalties and prosecution; decriminalisation of minor offences
- Safe harbour threshold for IT services raised to ₹2,000 crore
Indirect Tax & Customs Measures
- Removal of obsolete customs exemptions
- Duty relief for marine, leather and textile exports
- Customs duty exemptions for clean energy, nuclear power and critical minerals
- Concessional duty for SEZ sales to Domestic Tariff Area
- Customs duty on personal imports reduced from 20% to 10%
- 17 life-saving drugs exempted from customs duty
- End-to-end digital customs clearance and AI-based scanning
