LIVE | PM Modi Lauds FM Nirmala Sitharaman for Presenting Ninth Consecutive Budget

New Delhi: Finance Minister Nirmala Sitharaman is all set to present the Union Budget for the financial year 2026-27 tomorrow, February 1, marking her ninth consecutive budget presentation—a record in India's parliamentary history. This will also be the first time in nearly three decades that the Union Budget is tabled on a Sunday, with the last such instance occurring in 1999.

The budget speech is scheduled to commence around 11:00 AM in the Lok Sabha, Parliament House. The presentation comes amid expectations that it will outline strategies to sustain economic momentum, reinforce fiscal discipline, and shield the economy from global uncertainties, including potential US tariffs and geopolitical challenges.

Sitharaman, who assumed office on May 31, 2019, has now completed over six years and eight months as Finance Minister, making her the longest-serving in continuous terms. Her upcoming address will build on this legacy while continuing the shift to paperless formats and modern presentation styles, including the use of the traditional 'bahi-khata' instead of the colonial-era briefcase.

Budget documents continue to be securely printed at the historic North Block, even after the Finance Ministry's relocation to Kartavya Bhawan in 2025, ensuring strict confidentiality and controlled access.

Sectors in the Spotlight

The 2026 Budget is anticipated to prioritise several critical areas to drive growth, self-reliance (Atmanirbhar Bharat), and resilience. Key sectors expected to receive focused attention include:  

• Manufacturing — Enhanced incentives, PLI scheme refinements, and support for domestic production.  
• Defence — Increased allocations to boost indigenisation, R&D, and manufacturing capabilities.
• Renewable Energy and Green Initiatives — Continued push for solar, green hydrogen, battery storage, EVs, and energy transition measures.
• MSMEs — Improved credit access, compliance easing, and targeted support to enhance liquidity and competitiveness.
• Auto Sector — Policies to promote electric mobility and related infrastructure.  

Other potential focus areas encompass urban development, artificial intelligence, electronics, railways, agriculture, digital infrastructure, logistics, and semiconductors, all aimed at fostering inclusive growth, job creation, and export competitiveness.

Industry Expectations

Ahead of the presentation, various industry bodies and stakeholders have voiced their priorities. Expectations include sustained capital expenditure (capex) in infrastructure, railways, and logistics; tax relief measures to boost consumption; rationalisation of GST and customs duties; stronger support for AI adoption and digital transformation; and safeguards for export-oriented sectors amid global trade tensions.

Live coverage of the Budget speech will be available on parliamentary channels, Doordarshan, and major news platforms. Markets, including NSE and BSE, will operate a special trading session on Sunday to accommodate the event.

Feb 01, 2026 14:07 IST
PM Modi Says Union Budget 2026-27 Mirrors Aspirations of 140 Crore Indians
Prime Minister Narendra Modi on Sunday said the Union Budget 2026-27 reflects the aspirations of 140 crore Indians. He added that the Budget reinforces the government’s reform agenda and lays out a clear roadmap for building a Viksit Bharat.
The Union Budget reflects the aspirations of 140 crore Indians. It strengthens the reform journey and charts a clear roadmap for Viksit Bharat.#ViksitBharatBudgethttps://t.co/26hIdizan9
— Narendra Modi (@narendramodi) February 1, 2026



Feb 01, 2026 14:06 IST
PM Modi Hails Union Budget 2026-27 as ‘Historic’, Highlights Women’s Empowerment
Prime Minister Narendra Modi on Sunday described the Union Budget 2026-27 as historic, saying it underscores the empowered role of women in driving India’s progress.
He also commended Finance Minister Nirmala Sitharaman for her record-setting achievement of presenting the Union Budget for the ninth consecutive time, noting it as a testament to her experience and leadership in guiding the country’s fiscal policies.



Feb 01, 2026 14:03 IST
Union Budget 2026-27: India Eyes Data Centres, Toll Manufacturing, and Global Talent with Strategic Tax Incentives
In a clear bid to position India as a global hub for data centres, toll manufacturing, and high-value talent, Finance Minister Nirmala Sitharaman unveiled a series of targeted tax incentives in the Union Budget 2026-27.
These measures are designed not just to attract foreign investment but also to integrate India more deeply into global supply chains and digital infrastructure networks.
One of the most ambitious proposals is a tax holiday until 2047 for foreign companies providing cloud services globally through Indian data centres. While the benefit is contingent on servicing Indian customers via an Indian reseller entity, the long-term horizon signals the government’s intent to make India a strategic base for cloud infrastructure. To further incentivize inter-company operations, a safe harbour of 15 percent on cost has been proposed for data centre services provided by a related entity. This effectively reduces compliance risk and offers predictability in taxation—a key factor for global cloud providers weighing India against other jurisdictions.
The Budget also seeks to enhance just-in-time logistics for electronic manufacturing. Non-resident companies storing components in bonded warehouses will benefit from a safe harbour tax at 2 percent of invoice value, resulting in an effective tax rate of around 0.7 percent—significantly lower than competing countries. This could make India an attractive destination for global electronics supply chains, addressing persistent challenges in cost-competitiveness and efficiency.
Toll manufacturing is another focus area. Non-residents providing capital goods, equipment, or tooling to toll manufacturers in bonded zones will receive a five-year income tax exemption, a move likely to catalyze domestic manufacturing while integrating foreign investment in production networks.
Recognising the importance of human capital, the Budget provides tax exemptions on global (non-India sourced) income for non-resident experts under notified schemes for up to five years. This initiative appears aimed at attracting highly skilled global talent in technology, research, and other specialized sectors, offering India a longer-term competitive edge. Additionally, exemption from Minimum Alternate Tax (MAT) for non-residents paying tax on a presumptive basis further simplifies compliance and encourages foreign firms to establish operations in India without complex tax obligations.
Analysts suggest that these measures collectively signal a strategic shift in India’s fiscal policy, aligning tax incentives with broader economic objectives: expanding data infrastructure, integrating global supply chains, boosting manufacturing, and attracting high-value talent. By reducing tax friction and providing long-term certainty, India is positioning itself to compete aggressively with traditional hubs in Southeast Asia, Europe, and the US for investment in technology and manufacturing.
However, the success of these initiatives will hinge on implementation clarity, regulatory ease, and effective coordination with state governments, particularly in sectors such as data centres and toll manufacturing, which are capital- and infrastructure-intensive.



Feb 01, 2026 13:55 IST
Defence Pensions Allocation Rises to Rs 1.71 Lakh Crore in Budget 2026-27
The Union Budget 2026-27 has earmarkedRs 7.8 lakh crorefor the defence ministry, reflecting a15 percent increaseover last year, with a major focus on modernisation and strengthening India’s defence capabilities.
Of the total allocation,Rs 2.19 lakh crorehas been set aside under theCapital Outlayfor modernisation, marking a21.84 percent jumpfrom Rs 1.80 lakh crore in FY 2025-26. This fund will support key projects, including contracts forRafale fighter jets, submarines, and unmanned aerial vehicles.
While thecivil expenditure of the defence ministryhas been slightly reduced by 0.45 percent from Rs 28,554.61 crore last year, allocations forDefence ServicesandCapital Outlayhave increased significantly, amounting to Rs 3,65,478.98 crore and Rs 2,19,306.47 crore, respectively. TheDefence Pensionsbudget also saw a rise, with Rs 1,71,338.22 crore earmarked for the year. Read More



Feb 01, 2026 13:32 IST
SUMMARY OF UNION BUDGET 2026-27 (Part-B)
Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman presented the Union Budget 2026-2027 in Parliament today.
Direct Taxes:
In Direct Taxes, many new reforms are proposed in the Union Budget 2026-27. The New Income tax Act, 2025 will come into effect from April 2026. Also the simplified Income Tax Rules and Forms will be notified shortly. The forms for the purpose are redesigned for easy compliance of ordinary citizens. 
There is also a proposed reduction in the TCS rates. The Overseas tour program package is reduced from the current 5 percent and 20 percent to 2 percent without any stipulation of amount. Further, TCS for pursuing education and for medical purposes under the Liberalized Remittance Scheme (LRS) reduced from 5 percent to 2 percent.
It is also proposed that the supply of manpower services to be brought within the ambit of payment to contractors for the purpose of TDS. TDS on these services will be at the rate of either 1 percent or 2 percent only. For small taxpayers, a rule-based automated process will enable obtaining a lower or nil deduction certificate instead of filing an application with the assessing officer. Also, the time available for revising returns is proposed to be extended from 31st December to up to 31st March with the payment of a nominal fee. Further, the timeline for filing of tax returns is to be staggered.
To address practical issues of small taxpayers, a One-time 6-month foreign asset disclosure scheme for students, young professionals, tech employees, relocated NRIs, and such others to be introduced to disclose income or assets below a certain size. 
Rationalising Penalty and Prosecution
With a view to rationalizing penalty and prosecution, the Union Budget 2026-27 proposes to reduce the multiplicity of proceedings. Assessment & penalty proceedings will be integrated by way of a common order for both. Further, the quantum of pre-payment will be reduced from 20 percent to 10 percent, calculated only on core tax demand. In order to reduce litigations, taxpayers will be allowed to update their returns even after reassessment proceedings have been initiated, at an additional 10 percent tax rate over and above the rate applicable for the relevant year.
The Budget proposes to extend the provisions for immunity from penalty and prosecution in the cases of under reporting, to misreporting as well. Taxpayer will need to pay 100 percent of the tax amount as an additional income tax over and above the tax and interest due. In addition, prosecution framework under the Income Tax Act will be rationalized. Non-production of books of account and documents, and requirement of TDS payment, where payment is made in kind, will be decriminalised. Non-disclosure of non-immovable foreign assets with aggregate value less than 20 lakh rupees will be provided with immunity from prosecution with retrospective effect from 1.10.2024.
Cooperatives
In her Budget speech in the Parliament today, Smt. Nirmala Sitharaman stated that the deduction already available to a primary cooperative society engaged in supplying milk, oilseeds, fruits or vegetables raised or grown by its members, will be extended to also include supply of cattle feed and cotton seed produced by its members. Inter-cooperative society dividend income will be allowed as deduction under the new tax regime to the extent it is further distributed to its members. In addition, an exemption of three years is to be allowed to dividend income received by a notified national cooperative federation, on their investments made in companies up to 31.1.2026, for dividends further distributed to its member co-operatives.
Supporting IT sector as India’s growth engine
Underscoring the significance of the IT sector for India’s growth trajectory, the Budget proposes to club software development services, IT enabled services, knowledge process outsourcing services and contract R&D services relating to software development under a single category of Information Technology Services with a common safe harbour margin of 15.5 percent. Further, the threshold for availing safe harbour for IT services will be enhanced from 300 crore rupees to 2,000 crore rupees. Safe harbour for IT services shall be approved by an automated rule-driven process, and once applied by an IT Services company, the same safe harbour can be continued for a period of 5 years at a stretch.
Unilateral  Advanced Pricing Agreement (APA) process for IT services is proposed to be fast-tracked with an endeavour to conclude it within two years, which can be extended by 6 months on taxpayer’s request. Further, the facility of modified returns available to the entity entering APA is to be extended to its associated entities.
Attracting global business and investment
While presenting the Union Budget 2026-27 in the Parliament today, the Union Finance and Corporate Affairs Minister said that any foreign company that provides cloud services to customers globally by using data centre services from India will be provided tax holiday till 2047. She added that a safe harbour of 15 percent on cost is to be provided if the company providing data centre services from India is a related entity. Moreover, a safe harbour will be provided to non-residents for component warehousing in a bonded warehouse at a profit margin of 2 percent of the invoice value. The resultant tax of about 0.7 percent will be much lower than in competing jurisdictions, the Union Minister said.
The Budget proposes to provide exemption from income tax for 5 years to any non-resident who provides capital goods, equipment or tooling, to any toll manufacturer in a bonded zone. To encourage vast pool of global talent to work in India for a longer period of time, exemption will be provided to global (non-India sourced) income of a non-resident expert, for a stay period of 5 years under notified schemes. Further, all non-residents who pay tax on presumptive basis, will be exempted from Minimum Alternate Tax (MAT).
Tax Administration
In a significant step towards strengthening tax administration, the Budget proposes the constitution of a Joint Committee of Ministry of Corporate Affairs and Central Board of Direct Taxes for incorporating the requirements of Income Computation and Disclosure Standards (ICDS) in the Indian Accounting Standards (IndAS) itself. Separate accounting requirement based on ICDS will be done away with from the tax year 2027-28. The definition of accountant for the purposes of Safe Harbour Rules will also be rationalized.
Other Tax Proposals
In the interest of minority shareholders, the Union Budget 2026-27 proposes that buyback for all types of shareholders will be taxed as Capital Gains. It requires promoters to pay an additional buyback tax, making effective tax 22 percent for corporate promoters and 30 percent for non-corporate promoters.
Smt. Nirmala Sitharaman said that TCS rate for sellers of specific goods namely alcoholic liquor, scrap and minerals will be rationalized to 2 percent and that on tendu leaves will be reduced from 5 percent to 2 percent. Another notable tax proposal is the move to raise STT on Futures to 0.05 percent from present 0.02 percent. STT on options premium and exercise of options will also be raised to 0.15 percent from the present rate of 0.1 percent and 0.125 percent, respectively.
To encourage companies to shift to the new regime, the Budget proposes that the set-off of brought forward MAT credit is to be allowed to companies only in the new regime. Set-off using available MAT credit will be allowed to an extent of 1/4th of the tax liability in the new regime. Proposing to make MAT the final tax, Smt. Sitharaman said that there will be no further credit accumulation from 1st April 2026. The rate of final tax will be reduced to 14 percent from the current MAT rate of 15 percent. Further, the brought forward MAT credit of taxpayers accumulated till 31st March 2026, will continue to be available to them for set-off as above.
Indirect Taxes:
The Finance Minister stated that the proposals for Customs and Central Excise aim to further simplify the tariff structure, support domestic manufacturing, promote export competitiveness, and correct inversion in duty.
Rationalisation of Custom Duties:
In Marine, Leather, and Textile products, the limit for duty-free imports of specified inputs used for processing seafood products for export, is to be increased from the current 1 per cent to 3 per cent of the FOB value. The duty-free imports of specified inputs, which is currently available for exports of leather or synthetic footwear will be allowed.
In Energy sector, the basic customs duty exemption given to capital goods used for manufacturing Lithium-Ion Cells for batteries will be extended and the basic customs duty on import of sodium antimonate for use in manufacture of solar glass will be exempted.
The Finance Minister added that the existing basic customs duty exemption on imports of goods required for Nuclear Power Projects will be extended till the year 2035 and the basic customs duty on specified parts used in the manufacture of microwave ovens will be exempted.
The basic customs duty to the import of capital goods required for processing of critical minerals will be exempted and the entire value of biogas while calculating the Central Excise duty payable on biogas blended CNG will be excluded.
In the Civil and Defence Aviation sector, the basic customs duty on components and parts required for the manufacture of civilian, training and other aircrafts will be exempted and the basic custom duty on raw materials imported for manufacture of parts of aircraft to be used in maintenance, repair, or overhaul requirements by Units in the Defence sector will be exempted.
Further, a special one-time measure, to facilitate sales by eligible manufacturing units in Special Economic Zone to the Domestic Tariff Area (DTA) at concessional rates of duty is proposed.
To enhance the Ease of Living, the Finance Minister stated that the tariff rate on all dutiable goods imported for personal use will be reduced from 20 per cent to 10 per cent. The basic customs duty on 17 drugs or medicines will be exempted. 7 more rare diseases will be added for the purposes of exempting import duties on personal imports of drugs, medicines and Food for Special Medical Purposes (FSMP) used in their treatment.
Custom Processes:
The Custom processes to have minimal intervention for smoother and faster movement of goods. Further, Duty deferral period for Tier 2 and Tier 3 Authorised Economic Operators, known as AEOs, is to be enhanced from 15 days to 30 days. Same is extended to the eligible manufacturer-importers. The Validity period of advance ruling, binding on Customs, is proposed to be extended from the present 3 years to 5 years. The government agencies will be encouraged to leverage AEO accreditation for preferential treatment in clearing their cargo.
The Budget also proposes that the Customs warehousing framework is to be transformed into a warehouse operator-centric system with self-declarations, electronic tracking and risk-based audit.
Ease of Doing Business:
Multiple initiatives have been taken in the Ease of Doing Business sector. For instance, Cargo clearance approvals from various Government agencies to be seamlessly processed through a single and interconnected digital window by the end of the financial year. For goods not having any compliance requirement, clearance is to be done by Customs immediately after online registration is completed by the importer. The Customs Integrated System (CIS) is to be rolled out in 2 years as a single, integrated and scalable platform for all the customs processes. Also, the Utilization of non-intrusive scanning with advanced imaging and AI technology for risk assessment is to be expanded in a phased manner with the objective to scan every container across all the major ports.
The Union Budget 2026-27 makes the Fish catch by an Indian fishing vessel in Exclusive Economic Zone (EEZ) or on the High Seas free of duty. Landing of such fish on foreign port will be treated as export of goods. The budget also proposes complete removal of the current value cap of ₹10 lakh per consignment on courier exports-supports aspirations of India’s small businesses, artisans and start-ups to access global markets through e-commerce
The Provisions governing baggage clearance are also to be revised during international travel. Revised rules to enhance duty-free allowances in line with the present day travel realities.Further, Honest taxpayers, willing to settle disputes will be able close cases by paying an additional amount in lieu of penalty.



Feb 01, 2026 13:30 IST
SUMMARY OF UNION BUDGET 2026-27 (Part-A)
Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman presented the Union Budget 2026-2027 in Parliament today.
PART-A
On the sacred occasion of Magha Purnima and the birth anniversary of Guru Ravidas, the Finance Minister said, as this is the first Budget prepared in Kartavya Bhawan, it is inspired by 3 kartavya:
1. First kartavya is to accelerate and sustain economic growth, by enhancing productivity and competitiveness, and building resilience to volatile global dynamics.
2. Second kartavya is to fulfil aspirations of  people and build their capacity, making them strong partners in India’s path to prosperity
3. Third kartavya, aligned with vision of Sabka Sath, Sabka Vikas, is to ensure that every family, community, region and sector has access to resources, amenities and opportunities for meaningful participation.
Presenting the Yuva Shakti-driven Budget which emphasizes on Government’s ‘Sankalp’ to focus on poor, underprivileged and the disadvantaged, the Finance Minister said, India will continue to take confident steps towards Viksit Bharat, balancing ambition with inclusion. As a growing economy with expanding trade and capital needs, India must also remain deeply integrated with global markets, exporting more and attracting stable long-term investment.
She also mentioned that the country is facing an external environment in which trade and multilateralism are imperilled and access to resources and supply chains are disrupted. New technologies are transforming production systems while sharply increasing demands on water, energy and critical minerals.
The Finance Minister said that after the Prime Minister’s announcement on Independence Day in 2025, over 350 reforms have been rolled out. These include GST simplification, notification of Labour Codes, and rationalisation of mandatory Quality Control Orders. High Level Committees have been formed and in parallel, the Central Government is working with the State Governments on deregulation and reducing compliance requirements.
Under the first kartavya to accelerate and sustain economic growth, interventions were proposed in six areas:
1. Scaling up manufacturing in 7 strategic and frontier sectors;
2. Rejuvenating legacy industrial sectors;
3. Creating “Champion MSMEs”;
4. Delivering a powerful push to Infrastructure;
5. Ensuring long-term energy security and stability; and
6. Developing City Economic Regions
To develop India as a global Biopharma manufacturing hub, the Biopharma SHAKTI with an outlay of ₹ 10,000 crores to build the ecosystem for domestic production of biologics and biosimilars will be set up  over the next 5 years. The Strategy will include a Biopharma-focused network with 3 new National Institutes of Pharmaceutical Education and Research (NIPER) and upgrading 7 existing ones. It will also create a network of over 1000 accredited India Clinical Trials sites. The Central Drugs Standard Control Organisation will be strengthened to meet global standards and approval timeframes through a dedicated scientific review cadre and specialists.
For the labour-intensive Textile Sector, an Integrated Programme with 5 sub-parts was proposed: The National Fibre Scheme for self-reliance in natural fibres such as silk, wool and jute, man-made fibres, and new-age fibres;  Textile Expansion and Employment Scheme to modernise traditional clusters with capital support for machinery, technology upgradation and common testing and certification centres; A National Handloom and Handicraft programme to integrate and strengthen existing schemes and ensure targeted support for weavers and artisans; Tex-Eco Initiative to promote globally competitive and sustainable textiles and apparels; Samarth 2.0 to modernize and upgrade the textile skilling ecosystem through collaboration with industry and academic institutions.
Recognising MSMEs as a vital engine of growth, a dedicated ₹10,000 crore SME Growth Fund was proposed to create future Champions, incentivizing enterprises based on select criteria.
The Finance Minister said, Public capex has increased manifold from ₹2 lakh crore in FY2014-15 to an allocation of ₹11.2 lakh crore in BE 2025-26. In FY2026-27, she proposed to increase it to ₹12.2 lakh crore to continue the momentum.
To promote environmentally sustainable movement of cargo, the Finance Minister proposed new Dedicated Freight Corridors connecting Dankuni in the East, to Surat in the West; b) operationalise 20 new National Waterways (NW) over next 5 years, starting with NW-5 in Odisha to connect mineral rich areas of Talcher and Angul and industrial centres like Kalinga Nagar to the Ports of Paradeep and Dhamra. Training Institutes will be set up as Regional Centres of Excellence for development of the required manpower.
The Budget aims to further amplify the potential of cities to deliver the economic power of agglomerations by mapping city economic regions (CER), based on their specific growth drivers. An allocation of ₹ 5000 crore per CER over 5 years is proposed for implementing their plans through a challenge mode with a reform-cum-results based financing mechanism.
To promote environmentally sustainable passenger systems, seven High-Speed Rail corridors between cities will be developed as ‘growth connectors’, namely i) Mumbai-Pune, ii) Pune-Hyderabad, iii) Hyderabad-Bengaluru, iv) Hyderabad-Chennai, v) Chennai-Bengaluru, vi) Delhi-Varanasi, vii) Varanasi-Siliguri.
The Finance Minister said that second kartavya is to fulfil aspirations and build capacity. Close to 25 crore individuals have come out of multidimensional poverty through a decade of Government’s sustained and reform-oriented efforts.
To promote India as a hub for medical tourism services, the Finance Minister proposed a Scheme to support States in establishing five Regional Medical Hubs, in partnership with the private sector. These Hubs will serve as integrated healthcare complexes that combine medical, educational and research facilities. They will have AYUSH Centres, Medical Value Tourism Facilitation Centres and infrastructure for diagnostics, post-care and rehabilitation. These Hubs will provide diverse job opportunities for health professionals including doctors and AHPs.
To scale up availability of veterinary professionals by more than 20,000, a loan-linked capital subsidy was proposed to support scheme for establishment of veterinary and para vet colleges, veterinary hospitals, diagnostic laboratories and breeding facilities in the private sector.
India’s Animation, Visual Effects, Gaming and Comics (AVGC) sector is a growing industry, projected to require 2 million professionals by 2030. The Finance Minister proposed to support the Indian Institute of Creative Technologies, Mumbai in setting up AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges.
In Higher Education STEM institutions, prolonged hours of study and laboratory work pose some challenges for girl students. Through VGF/capital support, 1 girls hostel will be established in every district.
The Finance Minister proposed to set up a National Institute of Hospitality by upgrading the existing National Council for Hotel Management and Catering Technology. It will function as a bridge between academia, industry and the Government. She further proposed a pilot scheme for upskilling 10,000 guides in 20 tourist sites through a standardized, high-quality 12-week training course in hybrid mode, in collaboration with an Indian Institute of Management.
Taking forward the systematic nurturing of sports talent which is set in motion through the Khelo India programme, the Finance Minister proposed to launch a Khelo India Mission to transform the Sports sector over the next decade. The Mission will facilitate: a) An integrated talent development pathway, supported by training centres b) systematic development of coaches and support staff; c) integration of sports science and technology; d) competitions and leagues to promote sports culture and provide platforms; and, e) development of sports infrastructure for training and competition.
The Finance Minister said that the Budget’s third kartavya aligns with the vision of Sabka Sath, Sabka Vikas towards a Viksit Bharat. This requires targeted efforts for increasing farmer incomes, empowering Divyangjan, empowering the vulnerable to access mental health and trauma care, focus on the Purvodaya States and the North-East Region to accelerate development and employment opportunities.
The Finance Minister proposed Bharat-VISTAAR (Virtually Integrated System to Access Agricultural Resources), a multilingual AI tool that shall integrate the AgriStack portals and the ICAR package on agricultural practices with AI systems. This will enhance farm productivity, enable better decisions for farmers and reduce risk by providing customised advisory support.
Building on the success of the Lakhpati Didi Programme, Self-Help Entrepreneur (SHE) Marts will be set up as community-owned retail outlets within the cluster level federations through enhanced and innovative financing instruments.
Reaffirming the commitment to Mental Health and Trauma Care, the Finance Minister announced to setup a NIMHANS-2 and also upgrade National Mental Health Institutes in Ranchi and Tezpur as Regional Apex Institutions.
She further proposed the development of an integrated East Coast Industrial Corridor with a well-connected node at Durgapur, creation of 5 tourism destinations in the 5 Purvodaya States, and the provision of 4,000 e-buses. She also proposed to launch a Scheme for Development of Buddhist Circuits in Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram and Tripura. The Scheme will cover preservation of temples and monasteries, pilgrimage interpretation centers, connectivity and pilgrim amenities.
Fiscal Consolidation
The debt-to-GDP ratio is estimated to be 55.6 percent of GDP in BE 2026-27, compared to 56.1 percent of GDP in RE 2025-26. A declining debt-to-GDP ratio will gradually free up resources for priority sector expenditure by reducing the outgo on interest payments. In RE 2025-26, the fiscal deficit has been estimated at par with BE of 2025-26 at 4.4 percent of GDP. In line with the new fiscal prudence path of debt consolidation, the fiscal deficit in BE 2026-27 is estimated to be 4.3 percent of GDP.
Revised Estimates 2025-26
The Revised Estimates of the non-debt receipts are ₹34 lakh crore of which the Centre’s net tax receipts are ₹26.7 lakh crore. The Revised Estimate of the total expenditure is ₹49.6 lakh crore, of which the capital expenditure is about ₹11 lakh crore.
Budget Estimates 2026-27
Coming to 2026-27, the non-debt receipts and the expenditure are estimated as ₹36.5 lakh croreand ₹53.5 lakh crore respectively. The Centre’s net tax receipts are estimated at ₹28.7 lakh crore.
To finance the fiscal deficit, the net market borrowings from dated securities are estimated at ₹11.7 lakh crore. The balance financing is expected to come from small savings and other sources. The gross market borrowings are estimated at ₹17.2 lakh crore.



Feb 01, 2026 13:26 IST
HIGHLIGHTS OF UNION BUDGET 2026-27 (PART–B)
Direct Taxes

New Income Tax Act
·  New Income tax Act ,2025 to come into effect from April 2026
· The simplified Income Tax Rules and Forms will be notified shortly. The forms redesigned for easy compliance of ordinary citizens.  
Ease of Living
• Interest awarded by the Motor Accident Claims Tribunal to a natural person will be exempt from Income Tax, and any TDS on this account will be done away with.
•  TCS Rationalization
• Reduce TCS rate on sale of overseas tour program package to 2 % (from current 2-20%).
• Reduce the TCS rate to 2% (from current 5%) for LRS remittances for education and medical.
• Simplified TDS provisions for manpower supply will benefit labour intensive business.
• Scheme for small taxpayers wherein a rule based automated process for obtaining Lower or nil deduction certificate instead of filing application with the assessor.
• Single window filing with depositories for Form 15G or 15 H for TDS on dividends, interests etc
• Extend time available for revising returns from 31^st December to upto 31^st March with payment of nominal fees
• The timeline for filing of tax returns to be staggered .
• TAN for property transactions involving NRIs will be replaced with resident buyers PAN based challan.
• A one time 6 month foreign asset disclosure scheme for small taxpayers to disclose their overseas income or asset.
Rationalizing Penalty and Prosecution
• IT assessment & penalty proceedings are proposed to be integrated by way of common order for both.
• Taxpayers allowed  to update their returns even after reassessment proceedings have been initiated to reduce litigations, at an additional 10 percent tax rate over and above the rate applicable for the relevant year.
• Penalty for misreporting of income also eligible for immunity with payment of additional income tax.
• Prosecution framework under the Income Tax Act to be rationalized.
• Non-production of books of account and documents, and requirement of TDS payment, where payment is made in kind, to be decriminalised.
• Non-disclosure of non-immovable foreign assets with aggregate value less than 20 lakh rupees to be provided with immunity from prosecution with retrospective effect from 1.10.2024.
Cooperatives
• Extend deduction already allowed to a primary cooperative society engaged in supplying milk, oilseeds, fruits or vegetables raised or grown by its members to those supplying cattle feed and cotton seed also.
• Allow the inter-cooperative society dividend income as deduction under the new tax regime to the extent it is further distributed to its members.
• Exemption for a period of 3 years allowed to dividend income received by a notified national cooperative federation, on their investments made in companies up to 31.1.2026, for dividends further distributed to its member co-operatives.
Supporting IT sector as India’s growth engine
• Software development services, IT enabled services, knowledge process outsourcing services and contract R&D services relating to software development to be clubbed under a single category of Information Technology Services with a common safe harbour margin of 15.5 percent.
• The threshold for availing safe harbour for IT services to be enhanced from 300 crore rupees to 2,000 crore rupees.
• Safe harbour for IT services shall be approved by an automated rule-driven process, can be continued for a period of 5 years at a stretch.
• Unilateral  Advanced Pricing Agreement (APA) process for IT services to be fast-tracked with the endeavour to conclude it within a period of 2 years, which can be extended by 6 months on taxpayer’s request.
• The facility of modified returns available to the entity entering APA to be extended to its associated entities.
Attracting global business and investment
• Any foreign company that provides cloud services to customers globally by using data centre services from India to be provided Tax holiday till 2047
• A safe harbour of 15 percent on cost to be provided if the company providing data centre services from India is a related entity.
• A safe harbour to non-residents for component warehousing in a bonded warehouse at a profit margin of 2 percent of the invoice value. The resultant tax of about 0.7 percent will be much lower than in competing jurisdictions.
• Exemption from income tax for 5 years to be provided to any non-resident who provides capital goods, equipment or tooling, to any toll manufacturer in a bonded zone.
• Exemption to global (non-India sourced) income of a non-resident expert, for a stay period of 5 years under notified schemes
• Exemption from Minimum Alternate Tax (MAT) to all non-residents who pay tax on presumptive basis.
Tax administration
• A Joint Committee of Ministry of Corporate Affairs and Central Board of Direct Taxes to be constituted for incorporating the requirements of Income Computation and Disclosure Standards (ICDS) in the Indian Accounting Standards (IndAS) itself. Separate accounting requirement based on ICDS will be done away with from the tax year 2027-28.
• Definition of accountant for the purposes of Safe Harbour Rules to be rationalized.
Other Tax proposals
• In the interest of minority shareholders, buyback for all types of shareholders to be taxed as Capital Gains. Promoters to pay an additional buyback tax, making effective tax 22 percent for corporate promoters and 30 percent for non-corporate promoters.
• TCS rate for sellers of specific goods namely alcoholic liquor, scrap and minerals will be rationalized to 2 percent and that on tendu leaves will be reduced from 5 percent to 2 percent.
• STT on Futures to be raised to 0.05 percent from present 0.02 percent. STT on options premium and exercise of options to be raised to 0.15 percent from the present rate of 0.1 percent and 0.125 percent respectively.
• To encourage companies to shift to the new regime, set-off of brought forward MAT credit to be allowed to companies only in the new regime. Set-off using available MAT credit to be allowed to an extent of 1/4th of the tax liability in the new regime.
• MAT is proposed to be made final tax. There will be no further credit accumulation from 1st April 2026. The rate of final tax to be reduced to 14 percent from the current MAT rate of 15 percent. The brought forward MAT credit of taxpayers accumulated till 31st March 2026, will continue to be available to them for set-off as above.
Indirect taxes:
Tariff Simplification
Marine, leather, and textile products:
• The limit for duty-free imports of specified inputs used for processing seafood products for export, to increase from the current 1 per cent to 3 per cent of the FOB value.
• The duty-free imports of specified inputs, which is currently available for exports of leather or synthetic footwear to be allowed.
Energy transition and security:
• The basic customs duty exemption given to capital goods used for manufacturing Lithium-Ion Cells for batteries to be extended. 
• The basic customs duty on import of sodium antimonate for use in manufacture of solar glass to be exempted.
Nuclear Power:
• The existing basic customs duty exemption on imports of goods required for Nuclear Power Projects to be extended till the year 2035.
Critical Minerals:
• The basic customs duty to the import of capital goods required for processing of critical minerals to be exempted.
Biogas blended CNG:
• The entire value of biogas while calculating the Central Excise duty payable on biogas blended CNG to be excluded.
Civil and Defence Aviation:
• The basic customs duty on components and parts required for the manufacture of civilian, training and other aircrafts to be exempted.
• The basic custom duty on raw materials imported for manufacture of parts of aircraft to be used in maintenance, repair, or overhaul requirements by Units in the Defence sector to be exempted.
Electronics:
• The basic customs duty on specified parts used in the manufacture of microwave ovens to be exempted.
Special Economic Zone:
• A special one-time measure, to facilitate sales by eligible manufacturing units in SEZs to the Domestic Tariff Area (DTA) at concessional rates of duty is proposed. The quantity of such sales will be limited to a prescribed proportion of their exports.
Ease of Living:
• The tariff rate on all dutiable goods imported for personal use to be reduced from 20 per cent to 10 per cent.
• The basic customs duty on 17 drugs/ medicines is to be exempted.
• Duty free personal import of drugs/ medicines and food for 7 more rare diseases.
Customs Process simplification
• Custom processes to have minimal intervention for smoother and faster movement of goods.
Trust-based systems
• Duty deferral period for Tier 2 and Tier 3 Authorised Economic Operators, known as AEOs, to be enhanced from 15 days to 30 days. Same is extended to the eligible manufacturer-importers
• Validity period of advance ruling, binding on Customs, to be extended from the present 3 years to 5 years.
• Government agencies will be encouraged to leverage AEO accreditation for preferential treatment in clearing their cargo.
• Filing of bill of entry by a trusted importer, and arrival of goods will automatically notify Customs for completing their clearance formalities (for import of goods not needing any compliance).
• The Customs warehousing framework to be transformed into a warehouse operator-centric system with self-declarations, electronic tracking and risk-based audit.
Ease of Doing Business
• Cargo clearance approvals from various Government agencies to be seamlessly processed through a single and interconnected digital window by the end of the financial year.
• Processes involved in clearance of food, drugs, plant, animal & wild life products, accounting for around 70 percent of interdicted cargo, to be operationalised on this system by April 2026 itself.
• For goods not having any compliance requirement, clearance to be done by Customs immediately after online registration is completed by the importer.
• Customs Integrated System (CIS) to be rolled out in 2 years as a single, integrated and scalable platform for all the customs processes.
• Utilization of non-intrusive scanning with advanced imaging and AI technology for risk assessment to be expanded in a phased manner with the objective to scan every container across all the major ports.
New export opportunities
• Fish catch by an Indian fishing vessel in Exclusive Economic Zone (EEZ) or on the High Seas to be made free of duty, Landing of such fish on foreign port will be treated as export of goods.
• Complete removal of the current value cap of ₹10 lakh per consignment on courier exports-supports aspirations of India’s small businesses, artisans and start-ups to access global markets through e-commerce
Ease of Living
· Provisions governing baggage clearance to be revised during international travel. Revised rules to enhance duty-free allowances in line with the present day travel realities.
· Honest taxpayers, willing to settle disputes will be able close cases by paying an additional amount in lieu of penalty.



Feb 01, 2026 13:24 IST
HIGHLIGHTS OF UNION BUDGET 2026-27 (PART-A)
Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman tabled the Union Budget 2026-27 in the parliament today. The highlights of the budget are as follows:
The first Budget prepared in Kartavya Bhawan, is inspired by 3 kartavyas:
• First kartavya is to accelerate and sustain economic growth, by enhancing productivity and competitiveness, and building resilience to volatile global dynamics.
• Second kartavya is to fulfil aspirations of  people and build their capacity, making them strong partners in India’s path to prosperity
• Third kartavya, aligned with vision of Sabka Sath, Sabka Vikas, is to ensure that every family, community, region and sector has access to resources, amenities and opportunities for meaningful participation.
Budget Estimates
• The non-debt receipts and the total expenditure are estimated as ₹36.5 lakh crore and ₹53.5 lakh crore respectively. The Centre’s net tax receipts are estimated at ₹28.7 lakh crore.
• The gross market borrowings are estimated at ₹17.2 lakh crore and the net market borrowings from dated securities are estimated at ₹11.7 lakh crore.
  • The Revised Estimates of the non-debt receipts are ₹34 lakh crore of which the Centre’s net tax receipts are ₹26.7 lakh crore.
  • The Revised Estimate of the total expenditure is ₹49.6 lakh crore, of which the capital expenditure is about ₹11 lakh crore.
• The fiscal deficit in BE 2026-27 is estimated to be 4.3 percent of GDP.
• In RE 2025-26, the fiscal deficit has been estimated at par with BE of 2025-26 at 4.4 percent of GDP.
• The debt-to-GDP ratio is estimated to be 55.6 percent of GDP in BE 2026-27, compared to 56.1 percent of GDP in RE 2025-26.
First Kartavya is to accelerate and sustain economic growth and proposes 6 interventions
1. Scaling up manufacturing in 7 strategic and frontier sectors
1. Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation) announced, with an outlay of ₹ 10,000 crores over the next 5 years to develop India as a global Biopharma manufacturing hub.
1. A Biopharma-focused network to be created with 3 new National Institutes of Pharmaceutical Education and Research (NIPER) and upgrading 7 existing ones.
2. A network of over 1000 accredited India Clinical Trials sites to be created
2. India Semiconductor Mission (ISM) 2.0 to be launched to produce equipment and materials, design full-stack Indian IP, and fortify supply chains with focus on industry led research and training centres to develop technology and skilled workforce.
3. The Electronics Components Manufacturing Scheme outlay increased to₹40,000 crore.
4. Dedicated Rare Earth Corridors to be established, to support the mineral-rich States of Odisha, Kerala, Andhra Pradesh and Tamil Naduto promote mining, processing, research and manufacturing.
5. Government to launch a Scheme to support States in establishing 3 dedicated Chemical Parks, through challenge route, on a cluster-based plug-and-play model.
6. Strengthening Capital Goods Capability
• Hi-Tech Tool Rooms to be established by CPSEs at 2 locations as digitally enabled automated service bureaus that locally design, test, and manufacture high-precision components at scale and at lower cost.
• A Scheme for Enhancement of Construction and Infrastructure Equipment (CIE) to be introduced, to strengthen domestic manufacturing of high-value and technologically-advanced CIE.
• A Scheme for Container Manufacturing announced, to create a globally competitive container manufacturing ecosystem, with a budgetary allocation of over ₹10,000 crore over a 5 year period.
7. Integrated Programme for the Textile Sector announced
1. The National Fibre Scheme for self-reliance in natural fibres such as silk, wool and jute, man-made fibres, and new-age fibres.
2. Textile Expansion and Employment Scheme to modernize traditional clusters with capital support for machinery, technology upgradation and common testing and certification centres.
• Mega Textile Parks to be setup in challenge mode with focus on bringing value addition to technical textiles.
• Mahatma Gandhi Gram Swaraj initiative announced, to strengthen khadi, handloom and handicrafts.
1. Initiative to help in global market linkage, branding and will streamline and support training, skilling, quality of process and production.
2. Rejuvenating legacy industrial sectors
• A Scheme to revive 200 legacy industrial clusters announced, to improve their cost competitiveness and efficiency through infrastructure and technology upgradation.
3. Creating “Champion SMEs” and supporting micro enterprises
• A dedicated ₹10,000 croreSME Growth Fund, to be introduced, to create future Champions, incentivizing enterprises based onselect criteria.
• Self-Reliant India Fund to be allocated with additional ₹2,000 crore, to continue support to micro enterprises and maintain their access to risk capital.
• Government to facilitate Professional Institutions such as ICAI, ICSI, ICMAI to design short-term, modular courses and practical tools to develop a cadre of ‘Corporate Mitras’, especially in Tier-II and Tier-III towns.
4. Delivering a powerful push to Infrastructure
• Public capital expenditure to be increased to ₹12.2 lakh crore in FY 2026-27.
• Government to set up an Infrastructure Risk Guarantee Fund to strengthen the confidence of private developers regarding risks during infrastructure development and construction phase.
• Government to accelerate recycling of significant real estate assets of CPSEs through the setting up of dedicated REITs.
• To promote environmentally sustainable movement of cargo, following measures are proposed:
  
1. New Dedicated Freight Corridors to be established connecting Dankuni in the East, to Surat in the West
2. 20 new National Waterways (NW) to be operationalised  over next 5 years, starting with NW-5 in Odisha to connect mineral rich areas of Talcher and Angul and industrial centres like Kalinga Nagar to the Ports of Paradeep and Dhamra.
   
   • Training Institutes to be set up as Regional Centres of Excellence for development of the required manpower.
   • Further, a ship repair ecosystem catering to inland waterways to be set up at Varanasi and Patna
3. A  Coastal Cargo Promotion Scheme to be launched for incentivising a modal shift from rail and road, to increase the share of inland waterways and coastal shipping from 6% to 12 % by 2047.
• Incentives to be provided to indigenize manufacturing of seaplanes and enhance last-mile and remote connectivity, and promote tourism.
1. Seaplane VGF Scheme to be introduced to provide support for operations.
5. Ensuring long term energy security and stability
• An outlay of ₹20,000 crore over the next 5 years, announced  for Carbon Capture Utilization and Storage (CCUS) technologies.
6. Developing City Economic Regions
• An allocation of  ₹5000 crore over 5 years, per city economic regions (CER) announced, for implementing their plans through a challenge mode with a reform-cum-results based financing mechanism.
• Government to develop SevenHigh-Speed Rail corridors between cities as ‘growth connectors’ to promote environmentally sustainable passenger systems. These include:
1. Mumbai-Pune
2. Pune-Hyderabad,
3. Hyderabad-Bengaluru,
4. Hyderabad-Chennai
5. Chennai-Bengaluru,
6. Delhi-Varanasi,
7. Varanasi-Siliguri.
• Government to setup a “High Level Committee on Banking for Viksit Bharat”, to comprehensively review the sector and align it withIndia’s next phase of growth, while safeguarding financial stability, inclusion and consumer protection.
• Government to restructure the Power Finance Corporation and Rural Electrification Corporation to achieve scale and improve efficiency in the Public Sector NBFCs.
• A comprehensive review of the Foreign Exchange Management (Non-debt Instruments) Rules is proposed, to create a morecontemporary, user-friendly framework for foreign investments,consistent with India’s evolving economic priorities.
Municipal Bonds
• An incentive of ₹100 crore for a single bond issuance of more than ₹1000 crore announced, to encourage the issuance of municipal bonds of higher value by large cities.
Second Kartavya is to fulfil aspirations and build capacity of people
• Government to set up a High-Powered ‘Education to Employment and Enterprise’ Standing Committee to recommend measures that focus on the ServicesSector as a core driver of Viksit Bharat.
Creation of Professionals for Viksit Bharat
• Existing institutions for Allied Health Professionals (AHPs) to be upgraded and new AHP Institutions to be established in private and Government sectors
1. 100,000 Allied Health Professionals to be added over the next 5 years
• Five Regional Medical Hubs to be established, to promote India as a hub for medical tourism services.
AYUSH
• 3 new All India Institutes of Ayurveda to be established
.
Animal Husbandry
• Government to scale up availability of veterinary professionals by more than 20,000
1. A loan-linked capital subsidy support scheme to be launched for establishment of veterinary and para vet colleges, veterinary hospitals, diagnostic laboratories and breeding facilities in the private sector.
Orange Economy
• Indian Institute of Creative Technologies, Mumbai  to be provided support in setting up , Visual Effects, Gaming and Comics (AVGC) Content Creator Labs in 15,000 secondary schools and 500 colleges.
Education
• 5 University Townships to be created in the vicinity of major industrial and logistic corridors through challenge route.
1. Through VGF/capital support, 1 girls’ hostel to be established in every district
Tourism
• National Council for Hotel Management and Catering Technology to be upgraded to National Institute of Hospitality
1. A pilot scheme for upskilling 10,000 guides in 20 tourist sites announced through a standardized, high-quality 12-week training course in hybrid mode In collaboration with an IIM.
2. A National Destination Digital Knowledge Grid to be established to digitally document all places of significance—cultural, spiritual andheritage.
Heritage and Culture Tourism
• 15 archeological sites including Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur, and Leh Palace to be developed into vibrant, experiential cultural destinations
Sports
• Khelo India Mission to be launched to transform the Sports sector over the next decade.
Third Kartavya is aligned with vision of Sabka Sath, Sabka Vikas and requires targeted efforts in the following four areas:
1. Increasing Farmer Incomes
• New Initiatives to be undertaken for
1. Integrated development of 500 reservoirs and Amrit Sarovars
 High Value Agriculture:
• Govt. to support high value crops such as :
1. coconut, sandalwood, cocoa and cashew in coastal areas
2. Coconut Promotion Scheme to be launched to increase production and enhance productivity.
Bharat-VISTAAR (Virtually Integrated System to Access Agricultural Resources)
• Government to launch Bharat-VISTAAR, a multilingual AI tool to integrate the AgriStack portals and the ICAR package on agricultural practices with AI systems.
2. Empowering Divyangjan
• Divyangjan Kaushal Yojana for Divyangjans to offer task-oriented and process-driven roles in IT, AVGC sectors, Hospitality and Food and Beverages sectors.
3. Commitment to Mental Health and Trauma Care
• Government to set up NIMHANS-2 in north India.
1. Government to upgrade National Mental Health Institutes in Ranchi and Tezpur as Regional Apex Institutions.
4. Focus on the Purvodaya States and the North-Eastern Region
• Government to develop an integrated East Coast Industrial Corridor with a well-connected node at Durgapur, creation of 5 tourism destinations in the 5 Purvodaya States, and the provision of 4,000 e-buses.
1. A scheme to be launched for the  development of Buddhist Circuits in Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram and Tripura.
16th Finance Commission
• Government provided ₹1.4 lakh crore to the States for the FY 2026-27 as Finance Commission Grants as recommended by the 16th Finance Commission.



Feb 01, 2026 13:16 IST
FM Proposes Upgrades to AYUSH Pharmacies, WHO Traditional Medicine Centre in Jamnagar
In her Union Budget 2026–27 presentation, Finance Minister Nirmala Sitharaman unveiled ambitious plans to strengthen India’s healthcare and biotechnology ecosystem. At the forefront is the Biopharma Shakti initiative, a Rs 10,000 crore programme over five years aimed at boosting domestic research, manufacturing, and innovation in the pharmaceutical and biotech sectors. The move is expected to position India as a global hub for biopharmaceutical production and deepen the country’s self-reliance in critical medicines.
Sitharaman also highlighted the government’s focus on traditional medicine, announcing the establishment of three new All India Institutes of Ayurveda. Existing AYUSH pharmacies and drug testing laboratories are set to be upgraded to ensure a skilled workforce is available to meet growing demand. The WHO Global Traditional Medicine Centre in Jamnagar will also undergo modernization, reflecting India’s push to promote its heritage medicine globally.
The Budget further underlined the government’s long-term commitment to healthcare. Allocations under the Department of Health and Family Welfare and the Department of Health Research have shown steady growth, rising from Rs 80,694 crore in FY21 to Rs 84,471 crore in FY22, with minor fluctuations in FY23 and FY24. The Revised Estimate for FY25 stood at Rs 89,974 crore, while the Budget Estimate for FY26 has been pegged at Rs 99,859 crore, marking a continued focus on improving health infrastructure and access.



Feb 01, 2026 13:12 IST
Finance Minister Proposes Girls’ Hostels, Women-Led ‘She MARTS’ in Budget 2026–27
Union Finance Minister Nirmala Sitharaman on Sunday unveiled key initiatives in her Union Budget 2026–27 speech aimed at strengthening higher education and promoting women-led entrepreneurship.
Among the measures, the government plans to construct a girls’ hostel in every district to support women pursuing higher studies, particularly in STEM fields such as astrophysics and astronomy. Sitharaman noted that these hostels will provide safe and accessible accommodation, helping improve enrolment and retention of women in advanced scientific disciplines.
In addition to education, the Finance Minister proposed She MARTS, community-owned retail outlets designed to empower women entrepreneurs. “Building on the success of the Lakpati Didi program, these marts will help women transition from credit-linked livelihoods to enterprise ownership, providing market access, branding opportunities, and sustainable income,” she said.
Sitharaman also outlined six major focus areas of the Budget, aimed at fostering long-term growth and stability: scaling up manufacturing in strategic sectors, rejuvenating legacy industries, creating champion MSMEs, driving infrastructure development, ensuring long-term security, and developing city economic regions.



Feb 01, 2026 13:10 IST
Union Budget 2026–27: FM Sitharaman Focuses on Northeast, Purvodaya States, Medical Hubs, and Tourism Development
Union Finance Minister Nirmala Sitharaman on Sunday, while presenting the Union Budget 2026–27 in Parliament, outlined a series of initiatives aimed at boosting tourism, healthcare, and cultural infrastructure across the country, with a special emphasis on the Northeastern Region and Purvodaya States.
Highlighting the strategic importance of the Northeast, Sitharaman proposed the creation of a Buddhist Circuit covering Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram, and Tripura. The scheme will focus on the preservation of temples and monasteries, development of pilgrimage interpretation centres, enhanced connectivity, and pilgrim amenities, aiming to promote the region as a hub of spiritual and cultural tourism. She noted that the Northeast represents a unique civilizational confluence of Theravada and Mahayana/Vajrayana traditions, making it a significant cultural and heritage destination.
For the Purvodaya States, the Finance Minister announced the development of an integrated East Coast Industrial Corridor with a node at Durgapur, the creation of five tourism destinations, and the provision of 4,000 e-buses to enhance sustainable connectivity and mobility in the region. Read More



Feb 01, 2026 12:47 IST
Budget 2026: Duty Exemption on Medicines for Cancer and Rare Diseases Announced
Union Finance Minister Nirmala Sitharaman announced in her Union Budget 2026–27 measures aimed at reducing treatment costs for patients, particularly those battling cancer and rare diseases.
• Exemption on 17 Critical Drugs: Basic customs duty will be waived on 17 key medicines, providing relief to patients and making treatments more affordable.

• Rare Disease Coverage Expanded: The government plans to add seven more rare diseases for the purpose of duty exemptions on personal imports of drugs, medicines, and food for special medical purposes.
The move is part of the government’s broader strategy to enhance healthcare access, reduce medical expenses, and support patients with life-threatening and rare conditions.



Feb 01, 2026 12:47 IST
Budget 2026: FM Sitharaman Announces Tax Reforms for Shareholders and Commodity Trading
Union Finance Minister Nirmala Sitharaman announced in the Union Budget 2026–27 key changes to taxation affecting investors and traders.
• Buyback Proceeds Taxed as Capital Gains: All buyback proceeds received by shareholders will now be treated as capital gains, ensuring uniform tax treatment.

• Securities Transaction Tax (STT) Hike on Commodity Futures: The STT on commodity futures will be increased from 0.02% to 0.05%, impacting trading costs for market participants.

• Minimum Alternate Tax (MAT) as Final Tax: MAT will now be treated as the final tax, with the rate reduced from 15% to 14%, providing relief to corporates.
These measures are aimed at simplifying tax compliance, ensuring fairness, and boosting investment transparency.



Feb 01, 2026 12:46 IST
Budget 2026–27: India Strengthens Semiconductor Ecosystem, Electronics Manufacturing and Industrial Corridors
Union Finance Minister Nirmala Sitharaman announced in her Union Budget 2026–27 that the government plans a massive expansion of India’s semiconductor and electronics ecosystem. The Electronics Components Manufacturing Scheme (ECMS) outlay has been increased from Rs 22,999 crore to Rs 40,000 crore, reflecting doubled investment commitments.
The Budget also unveiled new initiatives to reduce import dependence, strengthen domestic manufacturing, and develop advanced industrial corridors:
• ISM 2.0 Launch: Focused on producing semiconductor equipment and materials, designing full-stack Indian IP, and reinforcing supply chains.

• Rare Earth Corridors: Support proposed for Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to establish dedicated corridors for mining, processing, research, and manufacturing.

• Chemical Parks: A new scheme to help states set up three dedicated chemical parks using a cluster-based plug-and-play model to enhance domestic chemical production and reduce import dependency.
These measures aim to boost India’s global competitiveness in strategic sectors while creating employment and technology-led growth opportunities.



Feb 01, 2026 12:43 IST
Budget 2026: Customs Duty Exemption for Defence Aircraft Parts Proposed
Union Finance Minister Nirmala Sitharaman announced in her Union Budget 2026–27 speech that the government proposes to exempt basic customs duty on raw materials imported for manufacturing aircraft parts.
These parts will be used by units in the defence sector for maintenance, repair, or other operational requirements, aiming to boost domestic defence manufacturing, reduce import dependence, and strengthen India’s strategic capabilities.



Feb 01, 2026 12:38 IST
FM Sitharaman Proposes Development of Buddhist Tourism Circuit in Northeast
The Union Budget 2026–27 has proposed the establishment of a Buddhist Circuit across Northeastern India, aimed at promoting tourism, cultural heritage, and regional development.
The Buddhist Circuit will be developed in the states of Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram, and Tripura, highlighting the region’s rich Buddhist heritage and spiritual tourism potential.



Feb 01, 2026 12:37 IST
Union Budget 2026: Special Measures for Northeast Development
The Union Budget 2026–27 includes several key initiatives aimed at boosting infrastructure, heritage conservation, and agriculture in the Northeast region:
• Electronic Buses: The government plans to introduce 4,000 electronic buses in the Northeastern states to improve sustainable public transport and reduce carbon emissions.

• Heritage Conservation: Special schemes have been proposed for the preservation of temples and monasteries, safeguarding the region’s cultural and religious heritage.

• Agriculture Focus: Emphasis will also be placed on boosting agricultural production, including horticulture and other high-value crops, to enhance farmer incomes and regional food security.
These measures are part of a broader push to promote economic growth, sustainable infrastructure, and cultural preservation in the Northeast.



Feb 01, 2026 12:36 IST
Union Budget 2026: Special Focus on Expanding Groundnut Cultivation in Northeast
The Union Budget 2026–27 has proposed measures to promote groundnut (peanut) farming in India’s Northeastern states.
The initiative aims to enhance agricultural productivity, boost farmer incomes, and diversify crop cultivation in the region, supporting sustainable agriculture and rural livelihoods.



Feb 01, 2026 12:35 IST
Budget 2026: Customs Duty Exemption for Capital Goods Used in Critical Mineral Processing
Union Finance Minister Nirmala Sitharaman announced in her Budget 2026–27 speech that the government proposes to provide a basic customs duty exemption on imports of capital goods required for processing critical minerals in India.
The move aims to promote domestic mineral processing, strengthen supply chains, and reduce import dependencies, supporting India’s strategic industries and manufacturing growth.



Feb 01, 2026 12:35 IST
Budget 2026: Customs Duty Exemption for Nuclear Power Projects Extended Till 2035
Union Finance Minister Nirmala Sitharaman announced in her Budget 2026–27 speech that the basic customs duty exemption for goods imported for nuclear power projects will be extended until 2035.
She further added that the exemption will now apply to all nuclear plants, regardless of their capacity, aiming to promote investment in clean energy and support India’s nuclear infrastructure expansion.



Feb 01, 2026 12:34 IST
Union Budget 2026: Special Focus on Northeast Development
The Union Budget 2026–27 has highlighted special measures for the Northeast region.
Key announcements include:
• Horticulture and Tree Plantation: Emphasis on boosting tree cultivation and forestry development to support sustainable growth.

• Fisheries Development: Focus on the establishment of 500 new water bodies to promote aquaculture and strengthen the fisheries sector in the region.
These initiatives aim to enhance agricultural productivity, livelihood opportunities, and overall economic development in India’s Northeastern states.



Feb 01, 2026 12:30 IST
Budget 2026: FM Proposes Higher Duty-Free Import Limits for Seafood and Footwear Exports
Union Finance Minister Nirmala Sitharaman on Sunday proposed raising the duty-free import limit for specified inputs used in seafood processing for exports from 1% to 3% of the FOB value of the previous year’s export turnover.
She further announced that the duty-free imports currently available for leather and synthetic footwear exports will now also apply to exports of shoe uppers, aimed at supporting domestic manufacturers and boosting export competitiveness.



Feb 01, 2026 12:26 IST
Budget 2026: Income Tax Act, 2025 to Come Into Force from April 1, 2026
Union Finance Minister Nirmala Sitharaman on Sunday announced that the Income Tax Act, 2025, will be implemented from 1 April 2026, with the rules and forms for tax filing to be notified shortly.
Speaking in the Lok Sabha during the Union Budget 2026–27 presentation, Sitharaman said,
"This direct tax code was completed in record time. The Income Tax Act, 2025, will come into force from 1 April 2026. The simplified rules and forms will be notified soon, giving taxpayers adequate time to familiarise themselves."
Key features of the new legislation include:
• Simplified Compliance: Redesigned tax return forms aim to ease compliance for ordinary citizens.

• Revenue Neutral: The law maintains current tax rates while simplifying provisions, removing ambiguities, and reducing litigation risks.

• Reduced Complexity: Compared to the 1961 Income Tax Act, the 2025 Act cuts text and sections by nearly 50%.

• Single Tax Year: Eliminates the distinction between assessment year and previous year for easier calculation.

• TDS Refund Flexibility: Taxpayers can claim TDS refunds even if ITRs are filed late, without penalties.
The new framework is expected to streamline tax compliance, reduce disputes, and make the system more taxpayer-friendly.



Feb 01, 2026 12:24 IST
FM Projects 4.3% Deficit, Net Tax Receipts at Rs 28.7 Lakh Crore in Budget 2026
Union Finance Minister Nirmala Sitharaman on Sunday projected a fiscal deficit of 4.3 per cent of GDP for 2026–27, slightly lower than the 4.4 per cent estimated for the current financial year.
In her Budget speech, Sitharaman outlined key fiscal measures:
• Devolution to States: Rs 1.4 lakh crore in tax revenues to be shared with state governments.

• Net Tax Receipts: Estimated at Rs 28.7 lakh crore for FY 2026–27.

• Total Budget Size: Pegged at Rs 53.5 lakh crore.
The Finance Minister emphasized that the government is committed to fiscal prudence and debt consolidation, aiming to gradually reduce the central government’s debt-to-GDP ratio, which stood at 57 per cent in 2024. She added that a fiscal deficit of 3–4 per cent of GDP is sustainable for a growing economy like India, balancing expansionary needs with financial stability.



Feb 01, 2026 12:23 IST
Budget 2026: Rs 12.2 Lakh Crore Capex, High-Speed Rail Corridors, Coastal Cargo Push Announced
Union Finance Minister Nirmala Sitharaman on Sunday outlined a range of major infrastructure initiatives aimed at building a future-ready Bharat, with a focus on growth centres in Tier II and Tier III cities with populations above five lakh.
Key highlights from the Union Budget 2026–27 include:
• Public Capital Expenditure: Increased to Rs 12.2 lakh crore for FY 2026–27 to maintain momentum in infrastructure development.

• Real Estate Investment Trusts (REITs): Dedicated REITs will accelerate the recycling of significant real estate assets of CPSEs.

• Infrastructure Risk Guarantee Fund: A prudently calibrated partial credit guarantee mechanism will support lenders during infrastructure projects.

• City Economic Regions: Rs 5,000 crore allocated over five years to develop urban growth hubs.

• Coastal Cargo & Inland Waterways: The Coastal Cargo Promotion Scheme aims to double the share of inland waterways and coastal shipping from 6% to 12% by 2047.

• Connectivity Measures: Launch of Seaplane VGF Scheme, new dedicated freight corridors from Dankuni to Surat, and development of 20 new National Waterways over the next five years.

• High-Speed Rail Corridors: Seven high-speed rail lines proposed as growth connectors, supported by Regional Centres of Excellence for training skilled manpower in the sector.
These initiatives are expected to strengthen connectivity, boost economic growth in smaller cities, and enhance India’s logistics and urban infrastructure ecosystem.



Feb 01, 2026 12:20 IST
Budget 2026: FM Announces 1,000 Clinical Trial Sites, Bharat Vistar AI, She Marts, and Livestock Support
Union Finance Minister Nirmala Sitharaman on Sunday unveiled a series of initiatives in her Budget 2026–27 speech aimed at healthcare, agriculture, and entrepreneurship.
Key announcements include:
• Clinical Trials Expansion: The government will set up a network of over 1,000 accredited clinical trial sites across India, extending beyond major hubs such as Mumbai, Delhi, Bengaluru, Chennai, and Hyderabad.

• Livestock Support: A credit-linked subsidy programme will support livestock farmer producer organisations, aimed at creating employment opportunities in rural areas.

• Bharat Vistar AI: Launch of a multilingual AI tool to integrate the agri-stack and enhance access to technology for farmers.

• She Marts: Creation of community-owned retail outlets to empower local entrepreneurs, particularly women, and strengthen rural markets.
These measures are expected to boost healthcare infrastructure, promote technology adoption in agriculture, and empower local communities economically.



Feb 01, 2026 12:19 IST
Budget 2026: Rs 20,000 Crore Proposed for Carbon Capture, Utilization and Storage Technologies
Union Finance Minister Nirmala Sitharaman on Sunday proposed an outlay of Rs 20,000 crore over five years to support Carbon Capture, Utilization and Storage (CCUS) technologies.
The funding aims to scale up CCUS projects, enhance technology readiness, and promote wider adoption across sectors, reinforcing India’s commitment to sustainable growth and climate action.



Feb 01, 2026 12:15 IST
Budget 2026: New Income Tax Act, TCS Cuts, and Exemptions to Ease Compliance
The Income Tax Act, 2025, is scheduled to come into effect from 1 April 2026, introducing simplified rules, redesigned forms, and several direct tax relief measures. The reforms aim to reduce compliance burdens, lower tax rates on specific transactions, and remove ambiguities affecting individuals and service providers.
Key measures announced in the Budget 2026–27 include:
• Income Tax Act 2025: A new framework with simplified rules and redesigned forms for easier tax filing.

• Motor Accident Compensation: Interest awarded by Motor Accident Claims Tribunals to individuals will be exempt from income tax.

• TCS Rate Cuts: Tax Collected at Source (TCS) on overseas tour packages and LRS remittances for education and medical purposes reduced to 2%.

• Manpower Services: Supply of manpower services brought under contractor payments for TDS purposes to clarify previous ambiguities.
These steps are expected to streamline tax compliance, benefit taxpayers, and provide clarity on contentious provisions.



Feb 01, 2026 12:14 IST
Budget 2026: Staggered Timeline Proposed for Income Tax Returns
The government has proposed a staggered timeline for filing income tax returns in the Union Budget 2026–27.
Individuals filing ITR-1 and ITR-2 will continue to adhere to the July 31 deadline, while non-audit business entities and trusts will be granted an extended timeline, with their returns due by August 31.
The move aims to ease compliance for businesses and trusts while maintaining deadlines for individual taxpayers.



Feb 01, 2026 12:10 IST
Budget 2026: FM Proposes Divyangjan Skill and Sahara Schemes for Inclusive Growth
Finance Minister Nirmala Sitharaman on Sunday announced two major initiatives to empower persons with disabilities: the Divyangjan Skill Scheme and the Divyang Sahara Scheme.
The Divyangjan Skill Scheme aims to provide industry-relevant and specialized training, ensuring dignified livelihood opportunities for every group of persons with disabilities.
The Divyang Sahara Scheme focuses on supporting the Artificial Limbs Manufacturing Corporation of India (ALIMCO) to enhance the production of assistive devices, invest in research and development, and integrate artificial intelligence technologies to improve accessibility and efficiency.
These measures are part of the government’s broader push for inclusive growth and equal opportunities for all citizens.



Feb 01, 2026 12:09 IST
Budget 2026–27: Rs 1.4 Lakh Crore Allocated to States, Vertical Share Retained at 41%
Presenting the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced that the government has accepted the 16th Finance Commission’s recommendations, retaining the vertical share of devolution at 41%.
She said a total of ₹1.4 lakh crore has been allocated to states for the 2026–27 financial year, ensuring continued fiscal support while maintaining a stable framework for Centre-State resource sharing.



Feb 01, 2026 12:09 IST
Budget 2026–27: Fiscal Deficit to Ease to 4.3% as Govt Sticks to Consolidation Path
Presenting the Budget Estimates for 2026–27, Finance Minister Nirmala Sitharaman underlined the government’s commitment to fiscal consolidation while sustaining economic growth.
The debt-to-GDP ratio is projected to improve to 55.6 per cent in 2026–27, compared with 56.1 per cent in the Revised Estimates for 2025–26. The fiscal deficit is estimated at 4.3 per cent of GDP, marginally lower than the 4.4 per cent projected for 2025–26, signalling continued efforts to rein in public finances.
On the revenue side, non-debt receipts are estimated at ₹36.5 lakh crore, while the Centre’s net tax receipts are pegged at ₹28.7 lakh crore for 2026–27. Total government expenditure is projected at ₹53.5 lakh crore, reflecting sustained support for priority programmes even as the government adheres to its fiscal consolidation roadmap.



Feb 01, 2026 12:08 IST
Budget 2026: FM Proposes Five Regional Medical Tourism Hubs, Rs 10,000 Crore Biopharma Push
Finance Minister Nirmala Sitharaman on Sunday announced plans to establish five regional hubs for medical tourism, alongside a major boost to India’s biopharmaceutical ecosystem, while presenting the Union Budget 2026–27.
She said the government will launch a new scheme to support states in setting up integrated medical hubs, which will bring together healthcare services, medical education and research facilities under one umbrella, positioning India as a global medical tourism destination.
The Finance Minister also unveiled the Biopharma Shakti programme, with an outlay of ₹10,000 crore over five years, aimed at strengthening domestic manufacturing of biologics and biosimilars. The initiative will create a biopharma-focused network, including three new National Institutes of Pharmaceutical Education and Research (NIPERs) and the upgradation of seven existing institutes.
As part of the programme, a network of 1,000 accredited clinical trial sites will be developed across the country. Sitharaman said the Central Drugs Standard Control Organisation (CDSCO) will be strengthened to align with global standards and ensure faster approvals through a dedicated scientific review cadre.
In addition, the Finance Minister proposed the establishment of three new All India Institutes of Ayurveda, reinforcing the government’s focus on expanding both modern and traditional healthcare infrastructure.



Feb 01, 2026 12:03 IST
Budget 2026: FM Proposes AVGC Content Creator Labs in Schools and Colleges
Finance Minister Nirmala Sitharaman on Sunday said India’s Animation, Visual Effects, Gaming and Comics (AVGC) sector is a fast-growing industry, with an estimated requirement of around two million skilled professionals by 2030.
Presenting the Union Budget 2026–27, she announced a proposal to support the Indian Institute of Creative Technologies, Mumbai, in setting up AVGC Content Creator Labs across 15,000 secondary schools and 500 colleges. The initiative aims to strengthen early talent development, enhance digital creativity, and prepare students for emerging opportunities in the creative economy.



Feb 01, 2026 12:02 IST
“Dignified Livelihoods for Divyangjan,” Says FM as New Skill Scheme Is Announced
Finance Minister Nirmala Sitharaman on Sunday announced the Divyangjan Kaushal Yojana in the Lok Sabha, proposing targeted measures to address the skilling and employment needs of persons with disabilities.
The initiative aims to create dignified livelihood opportunities for divyangjan, focusing on skill development, employability and greater participation in the workforce.



Feb 01, 2026 12:02 IST
“We Will Set Up Three New All India Institutes of Ayurveda,” FM Announces in Budget
Finance Minister Nirmala Sitharaman on Sunday announced plans to set up three new All India Institutes of Ayurveda as part of the government’s push to strengthen traditional medicine systems.
Presenting the Union Budget 2026–27, she said the government also proposes to upgrade AYUSH pharmacies and drug testing laboratories to expand skilled manpower and improve quality standards. In addition, Sitharaman announced the upgradation of the WHO Global Centre for Traditional Medicine in Jamnagar, aimed at enhancing India’s role in global traditional medicine research and standards.
The measures are intended to strengthen infrastructure, research and human resources in the AYUSH sector while promoting India’s traditional healthcare systems at the global level.



Feb 01, 2026 12:01 IST
FM Sitharaman Pitches AI as Growth Engine, Proposes Missions for 25 Crore Citizens
Emphasising the role of emerging technologies in driving inclusive growth, Finance Minister Nirmala Sitharaman on Sunday said the government is placing a strong focus on artificial intelligence and advanced technologies as key pillars of India’s future development.
During her Budget speech, the Finance Minister said capacity-building AI missions covering 25 crore people have been proposed to strengthen technological adoption and ensure wider participation in the digital economy. She noted that several national technology missions are already underway to boost innovation and research.
These include initiatives under the AI missions, the National Quantum Mission, the Anusandhan National Research Fund, and the Research, Development and Innovation Fund, aimed at deepening India’s science, technology and innovation ecosystem and positioning the country for long-term, inclusive progress.



Feb 01, 2026 11:55 IST
‘Khelo India Mission’ Launched to Boost Jobs, Skilling in Sports Ecosystem: FM
Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026–27, announced a proposal to launch a ‘Khelo India Mission’ aimed at transforming India’s sports sector over the next decade.
Highlighting the employment and skilling potential of sports, she said the sector offers wide-ranging opportunities for jobs and entrepreneurship. Building on the structured talent development already underway through the Khelo India programme, the proposed mission seeks to systematically nurture sporting talent and strengthen the sports ecosystem across the country.



Feb 01, 2026 11:51 IST
Budget 2026: FM Sitharaman Proposes High-Level Banking Panel for ‘Viksit Bharat’
Presenting the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced plans to set up a high-level committee on banking to undertake a comprehensive review of the sector and align it with India’s next phase of economic growth.
She said the panel will focus on supporting expansion while safeguarding financial stability, promoting inclusion, and ensuring consumer protection.
The Finance Minister also outlined a clear roadmap for non-banking financial companies (NBFCs) under the vision of Viksit Bharat, with defined targets for credit growth and technology adoption.
To enhance scale and efficiency among public sector NBFCs, Sitharaman said the government proposes, as an initial step, the restructuring of Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).



Feb 01, 2026 11:50 IST
Big Relief for Micro Businesses: FM Announces Rs 2,000 Crore Top-Up Fund
Finance Minister Nirmala Sitharaman on Sunday announced an additional ₹2,000 crore infusion into the Self Reliant India Fund, originally set up in 2021, to ensure continued access to risk capital for micro enterprises.
Highlighting the government’s push to ease liquidity constraints for MSMEs, the Finance Minister said that over ₹7 lakh crore has already been made available through the Trade Receivables Discounting System (TReDS). To unlock its full potential, she outlined four key measures.
First, the government will mandate TReDS as the settlement platform for all purchases from MSMEs by Central Public Sector Enterprises (CPSEs), setting a benchmark for private sector adoption.
Second, a credit guarantee support mechanism through CGTMSE will be introduced to back invoice discounting on the TReDS platform.
Third, the Government e-Marketplace (GeM) will be linked with TReDS to enable seamless information sharing and improve access to financing for MSMEs.
Finally, the government will roll out a ‘Corporate Mitras’ initiative, under which professional institutions will train paraprofessionals to provide affordable compliance and regulatory support to MSMEs, particularly in smaller cities.



Feb 01, 2026 11:48 IST
FM Sitharaman Proposes High-Powered ‘Education to Employment and Enterprise’ Committee
Finance Minister Nirmala Sitharaman, while presenting the Union Budget, announced a proposal to set up a high-powered ‘Education to Employment and Enterprise’ Standing Committee aimed at strengthening the services sector as a key engine of India’s growth.
The committee will recommend measures to position the services sector as a core driver of Viksit Bharat, with a target of achieving a 10 per cent share in global services trade by 2047. It will identify priority areas to unlock growth, generate employment and boost exports.
The panel will also evaluate the impact of emerging technologies, including artificial intelligence, on jobs and skill requirements, and suggest policy measures to align education, skilling and enterprise development with future workforce needs.



Feb 01, 2026 11:48 IST
FM Sitharaman Proposes Seven High-Speed City Corridors to Drive Economic Growth
Presenting the Union Budget in the Lok Sabha, Finance Minister Nirmala Sitharaman announced a proposal to develop seven high-speed corridors between major cities, positioning them as key growth connectors. The initiative aims to enhance mobility, reduce travel time, and strengthen economic linkages across regions, supporting faster and more balanced urban and industrial development.



Feb 01, 2026 11:46 IST
FM Sitharaman Launches India Semiconductor Mission 2.0 with Rs 40,000 Crore Outlay
Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026–27, announced the launch of India Semiconductor Mission (ISM) 2.0 with an outlay of ₹40,000 crore. The initiative aims to build on the successes of the first phase and accelerate growth in India’s semiconductor sector.
Sitharaman said that the initial phase of the mission had strengthened India’s semiconductor capabilities, while ISM 2.0 will focus on manufacturing equipment and materials, enabling full-stack chip design, developing domestic intellectual property, and fortifying supply chains.
The programme will also support industry-led research and training centres to drive technological innovation and create a skilled talent pipeline for the semiconductor ecosystem.
In addition, the Finance Minister unveiled the ‘Shakti’ initiative, allocating ₹10,000 crore over five years to further strengthen and expand India’s semiconductor and electronics ecosystem.



Feb 01, 2026 11:42 IST
FM Sitharaman Proposes New Dedicated Freight Corridor from Dankuni to Surat in Union Budget 2026–27
Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026–27, announced the creation of a new dedicated freight corridor connecting Dankuni in the East to Surat in the West. The initiative aims to promote environmentally sustainable cargo movement, improve logistics efficiency, and reduce carbon emissions in the transport sector.
The corridor is expected to enhance trade connectivity, strengthen industrial supply chains, and support India’s broader goals of green and efficient infrastructure development.



Feb 01, 2026 11:39 IST
‘Corporate Mitras’ to Help SMEs Meet Compliance Needs, Says FM Sitharaman
Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026–27, announced a Rs 10,000 crore SME Growth Fund to support job-creating enterprises and strengthen micro, small, and medium enterprises (MSMEs) across India. In addition, a Rs 2,000 crore top-up to the Self-Reliant India Fund will provide risk capital for micro-enterprises.
To reinforce liquidity for MSMEs, the government has proposed four key measures:
1. Mandatory use of TReDS for purchases by central public sector enterprises (CPSEs) to ensure timely payments.

2. Credit guarantee backing for invoice discounting, improving access to working capital.

3. Integration of GeM and TReDS platforms to simplify financing for MSMEs.

4. Development of a secondary market for trade receivables, enhancing liquidity options for businesses.
Sitharaman also announced that professional institutions will train ‘corporate mitras’ to assist MSMEs in meeting compliance requirements affordably, particularly in Tier 2 and Tier 3 cities.
“These measures aim to create globally competitive SMEs, generate employment, and strengthen India’s entrepreneurship ecosystem,” the Finance Minister said.



Feb 01, 2026 11:37 IST
FM Sitharaman Announces Integrated Textile Sector Programme in Union Budget 2026–27
Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026–27, announced a comprehensive integrated programme for the labour-intensive textile sector, comprising five key components.
1. National Fibre Scheme – Aimed at achieving self-reliance in natural fibres such as silk, wool, and jute, as well as man-made and new-age fibres.

2. Textile Expansion and Employment Scheme – To modernise traditional clusters with capital support for machinery, technology upgrades, and common testing and certification centres.

3. National Handloom and Handicraft Programme – To integrate and strengthen existing schemes while ensuring targeted support for weavers and artisans.

4. Text-ECON Initiative – Focused on promoting globally competitive and sustainable textiles and apparel.

5. SAMARTH 2.0 – To modernise and upgrade the textile skilling ecosystem through collaboration with industry and academic institutions.
The Finance Minister further proposed the establishment of mega textile parks under a challenge-mode framework, with an emphasis on value addition in technical textiles. She also announced the Mahatma Gandhi Gram Swaraj initiative, aimed at strengthening handloom and handicrafts by enhancing global market linkages, branding, and supporting training, skilling, and quality processes in production.
“These measures will benefit weavers, village industries, the One District, One Product (ODOP) initiative, and rural youth,” Sitharaman said, underscoring the government’s focus on boosting employment and global competitiveness in the textile sector.



Feb 01, 2026 11:36 IST
FM Sitharaman Proposes Rs 10,000 Crore Scheme to Boost Container Manufacturing in Union Budget 2026–27
In the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced a new initiative to promote container manufacturing in India. The scheme, with a budgetary allocation of ₹10,000 crore over five years, aims to create a globally competitive ecosystem for the sector and strengthen domestic production capabilities.



Feb 01, 2026 11:33 IST
FM Sitharaman: Government Prioritises Reforms Over Rhetoric in Union Budget 2026–27
Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026–27 in the Lok Sabha on Sunday, said the government has consistently chosen reforms over rhetoric in shaping India’s economic trajectory. She emphasised that the country will continue taking decisive steps towards becoming a Viksit Bharat.
In a key development, the Finance Minister also tabled the 16th Finance Commission report, which sets out the framework for tax revenue devolution between the Centre and the states for the 2026–2031 period.



Feb 01, 2026 11:32 IST
“Capex to Rise to ₹12.2 Lakh Crore in FY 2026–27,” Says FM Sitharaman
Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026–27, proposed a public capital expenditure of ₹12.2 lakh crore for the upcoming financial year, continuing the government’s momentum in infrastructure investment.
“Public capital expenditure has increased manifold from ₹2 lakh crore in 2014–15 to ₹11.2 lakh crore in the Budget Estimates for 2025–26. For FY 2026–27, I propose to raise it further to ₹12.2 lakh crore,” she said.
To bolster private investment confidence during infrastructure development and construction phases, the Finance Minister announced the creation of an Infrastructure Risk Guarantee Fund, which will provide prudentially calibrated public credit guarantees to lenders.
Sitharaman also highlighted measures to accelerate asset monetization through dedicated real estate investment trusts (REITs) for CPSE assets, while emphasizing environmentally sustainable cargo movement. She proposed the establishment of new dedicated freight corridors connecting Dangkuni in the east to Surat in the west to improve logistics efficiency.
“These initiatives aim to strengthen infrastructure, promote private investment, and ensure environmentally sustainable economic growth,” the Finance Minister added.



Feb 01, 2026 11:29 IST
“India Will Continue to Take Confident Steps Towards Viksit Bharat,” Says FM Sitharaman
Presenting the Union Budget 2026–27, Finance Minister Nirmala Sitharaman said India would continue charting a bold course towards Viksit Bharat, even as the world faces disruption in trade, supply chains, and critical resources.
“New technologies are transforming production systems, while sharply increasing demands on water, energy, and critical minerals. In this environment, India will move forward with confidence, balancing ambition with inclusion,” she said.
Sitharaman added that as a rapidly growing economy with rising trade and capital requirements, India must remain deeply integrated with global markets, boosting exports and attracting stable long-term investments.
The Finance Minister’s statement underscores the government’s vision of a future-ready India, where sustainable growth, technological adoption, and inclusive development go hand in hand.