The Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman, outlines the government’s roadmap for economic stability, infrastructure expansion, and inclusive growth. The major highlights are as follows:
Fiscal Policy and Economic Estimates:
- The fiscal deficit for FY 2026–27 has been pegged at around 4.3 percent of GDP, continuing fiscal consolidation.
- The debt-to-GDP ratio- has been maintained at approximately 55–56 percent.
- Total government expenditure- is estimated at ₹53.5 lakh crore, while non-debt receipts- are projected at ₹36.5 lakh crore.
Infrastructure and Capital Expenditure:
- Capital expenditure- has been increased to ₹12.2 lakh crore, marking one of the highest-ever allocations.
- The government announced seven new high-speed rail corridors- to connect major cities and economic zones.
- A new dedicated freight corridor between Dankuni and Surat- will be developed to improve logistics efficiency.
- Twenty national waterways- will be developed in phases to promote inland water transport.
- An Infrastructure Risk Guarantee Fund- has been introduced to encourage private sector participation.
Technology and Manufacturing Growth:
- The India Semiconductor Mission 2.0- has been launched with an allocation of ₹40,000 crore- to strengthen domestic chip manufacturing.
- New mega textile parks, container parks, and chemical parks- will be developed through a competitive challenge-based approach.
- Cloud service providers operating data centres in India- will receive tax incentives until 2047.
MSME Development and Startup Support:
- A dedicated ₹10,000 crore MSME Growth Fund- has been announced to support high-potential enterprises.
- The Self-Reliant India Fund- has received an additional allocation of ₹2,000 crore.
- Credit guarantee coverage- for MSMEs has been expanded to improve access to institutional finance.
Healthcare and Biopharmaceutical Initiatives:
- The Biopharma Shakti Programme- has been allocated ₹10,000 crore over five years- to promote biologics and biosimilar manufacturing.
- The government will strengthen NIMHANS 2.0- and expand mental health infrastructure across the country.
Strategic Minerals and Rare Earth Development:
- The budget proposes Rare Earth Corridors- in Odisha, Kerala, Tamil Nadu, and Andhra Pradesh.
- These initiatives aim to achieve self-reliance in critical and strategic minerals- essential for electric vehicles, defence, and high-technology industries.
Taxation and Compliance Reforms:
- A new Income Tax Act- will come into effect from April 1, 2026, simplifying tax laws and return filing processes.
- Tax Collected at Source (TCS)- on foreign travel, overseas education, and medical remittances has been reduced to 2 percent.
- The deadline for revising Income Tax Returns (ITR)- has been extended up to 31 March.
Education, Skills, and Creative Economy:
- University Townships- will be established near industrial corridors to strengthen industry–academia collaboration.
- The government will promote the Orange Economy- to create employment in creative and cultural sectors.
- A new National Institute of Design- will be set up in the eastern region of India.
Sports and Tourism Promotion:
- The Khelo India Mission- has been expanded with a focus on structured talent identification and development.
- Tourism initiatives include upgrades to hospitality training institutes and enhanced skill development for tourist guides.
Development of Tier-2 and Tier-3 Cities:
- Special focus has been placed on infrastructure and urban mobility- in Tier-2 and Tier-3 cities.
- Improved rail connectivity- and development of regional economic clusters- will support balanced regional growth.