On 1 February 2026, Finance Minister Mrs Nirmala Sitharaman presented the Union Budget 2026-27 in Parliament, outlining the government’s roadmap for economic growth, reforms, infrastructure, social welfare, and ease of doing business for the coming year. The Budget focused on boosting manufacturing, strengthening infrastructure, enhancing education and health systems, supporting entrepreneurship, and empowering youth, women and rural India.
1. Vision and Growth Framework
Mrs Sitharaman framed the Budget around three core pillars — growth acceleration, inclusion, and reform agenda — aimed at sustaining economic momentum while making India globally competitive.
2. Capex and Infrastructure Push
- Increase in public capital expenditure: Budgeted at ₹12.2 lakh crore for FY2026-27 to drive economic investment and job creation across sectors.
- Seven High-Speed Rail Corridors: Proposed to connect major cities like Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi, and Varanasi-Siliguri, boosting connectivity and sustainable transport.
- Infrastructure Risk Guarantee Fund: To support credit availability for infrastructure projects.
- 20 New National Waterways: Operationalisation to double inland water transport share by 2047.
3. Manufacturing, Technology and Strategic Sectors
- Six-point industrial interventions: Including scaling up manufacturing in strategic and frontier sectors, rejuvenating legacy sectors, champion MSMEs, infrastructure reinforcement, long-term stability, and urban growth regions.
- Biopharma Shakti: A ₹10,000 crore outlay over five years to build India into a global biopharma manufacturing hub with accredited clinical trial sites.
- India Semiconductor Mission 2.0: Enhanced semiconductor ecosystem with ₹40,000 crore for equipment, IP development and supply chain strengthening.
- Rare Earth Corridors: Support for Odisha, Kerala, Andhra Pradesh and Tamil Nadu to harness rare earth elements critical for high-tech and clean energy industries.
- Electronics & AVGC Labs: Proposed Animation, Visual Effects, Gaming and Comics (AVGC) labs in 15,000 secondary schools and 500 colleges to nurture digital talent.
- Mega Textile Parks & Mahatma Gandhi Gram Swaraj Initiative: To strengthen textile industry, Khadi and handloom clusters with integrated skill and employment schemes.
4. SMEs, Jobs and Entrepreneurship
- ₹10,000 crore Champions SME Growth Fund: To support MSMEs and future employment creators based on performance criteria.
- Focus on services sector growth via a high-powered committee linking education to employment opportunities.
5. Agriculture, Nutrition and Rural Economy
- Emphasis on productivity-led growth across fisheries, horticulture, animal husbandry, and high-value crops.
- Integrated development of reservoirs, market linkages for Farmer Producer Organisations (FPOs), and use of AI in agriculture portals.
6. Social Infrastructure: Health, Education, Women, Sports
- Girls’ hostels in every district: Promoting girls’ participation in STEM and higher education.
- Expansion of allied health training institutions and multi-skilled caregivers.
- Integrated Khelo India Mission for sports talent & infrastructure development.
7. Economic Reforms & Financial Sector
- New Income Tax Act: To be implemented from 1 April 2026 with simplified rules and forms.
- Banking for Viksit Bharat: Proposed high-level committee to review banking sector and align it with future growth while ensuring financial stability.
- FEMA Review: Modernisation of foreign exchange rules to boost investments.
- Bond Market Reforms: Introduction of corporate bond market making frameworks and total return swaps.
- Municipal Bond Incentives: Higher incentives for large city bond issuances to strengthen urban financing.
8. Foreign Goods & Personal Finance Relief
- Cuts in customs and TCS on foreign goods orders to make imported items cheaper for individuals.
Mrs Nirmala Sitharaman’s Budget 2026-27 seeks to balance continued economic reforms with social welfare, strategic manufacturing, infrastructure expansion, and ease of doing business. Its focus on emerging sectors like semiconductors, biopharma and digital talent, combined with high-speed connectivity and SME growth, reflects an emphasis on future-ready economic priorities. The Budget also brings targeted initiatives for education, women’s empowerment, rural growth and global competitiveness.
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