The Union Budget for FY 2026–27 was presented by Nirmala Sitharaman, marking her ninth consecutive budget. This is also the first Budget prepared at Kartavya Bhawan, symbolising a renewed governance ethos.

The Budget is anchored around three national Kartavyas (duties):

1. Sustained Economic Growth – improving productivity, competitiveness, and resilience
2. Empowering Citizens – enabling people as partners in prosperity
3. Inclusive Development – ensuring balanced regional and social participation under Sabka Saath, Sabka Vikas

To reduce import dependence in critical healthcare segments, the government has launched Biopharma SHAKTI, a ₹10,000 crore initiative spanning five years. The programme focuses on:

• Strengthening domestic production of biologics and biosimilars
• Establishing new pharmaceutical education and research institutes
• Creating a national network of accredited clinical trial centres

This move positions India as a global hub for advanced biopharmaceutical manufacturing.

The India Semiconductor Mission (ISM) 2.0 targets end-to-end semiconductor capability—from equipment and materials to indigenous IP creation. To complement this:

• Electronics manufacturing incentives have been enhanced
• The Electronics Components Manufacturing Scheme outlay has been increased to ₹40,000 crore

Together, these measures aim to integrate India deeper into global electronics supply chains.

To secure critical minerals, Rare Earth Corridors will be developed across coastal and mineral-rich states, covering mining, processing, R&D and magnet manufacturing.

Additional sectoral initiatives include:

• Hi-Tech Tool Rooms by CPSEs for precision manufacturing
• A Construction & Infrastructure Equipment (CIE) Enhancement Scheme
• A ₹10,000 crore Container Manufacturing Scheme to boost export logistics

For textiles, an Integrated Textile Programme combines fibre self-reliance, cluster modernisation, artisan support, sustainable production, and upgraded skilling under Samarth 2.0.

Recognising MSMEs as the backbone of employment and exports, Budget 2026 introduces a structured support framework:

• ₹10,000 crore SME Growth Fund for equity infusion
• Additional capital for micro enterprises through Self-Reliant India Fund
• Wider adoption of TReDS for faster liquidity
• “Corporate Mitras” to provide affordable compliance and advisory support in smaller cities

Public capital expenditure has been raised to ₹12.2 lakh crore in FY27, reinforcing infrastructure as a growth multiplier. Key initiatives include:

• New freight and logistics corridors
• Expansion of national waterways and coastal cargo movement
• Incentives for seaplane manufacturing and operations

To drive urban growth, City Economic Regions (CERs) will be developed in Tier-II and Tier-III cities, with ₹5,000 crore allocated per region over five years. Seven high-speed rail corridors will further strengthen inter-city economic integration.

India’s healthcare soft power receives a boost through:

• Five regional Medical Tourism Hubs in PPP mode
• New All India Institutes of Ayurveda
• Upgradation of AYUSH pharmacies and testing labs
• Strengthening the WHO Global Traditional Medicine Centre at Jamnagar

The government continues on a fiscal consolidation path:

• Fiscal deficit reduced to 4.3% of GDP in BE 2026–27
• Debt-to-GDP ratio projected at 55.6%, moving towards the 2030 target

Lower deficits are expected to ease interest costs and create room for productive public spending.

Major proposals include:

• A High-Level Committee on Banking for Viksit Bharat
• Restructuring of PFC and REC to strengthen NBFCs
• Introduction of market-making for corporate bonds
• Incentives for large municipal bond issuances

These reforms aim to deepen financial markets and unlock long-term infrastructure financing.

Key employment and skilling initiatives:

• Training of allied health professionals and caregivers
• AVGC Creator Labs in schools and colleges
• New design and medical education institutions
• University townships near industrial corridors
• Girls’ hostels in every district to support STEM education
• Launch of a revamped Khelo India Mission

Fifteen iconic archaeological sites will be developed as immersive destinations. A National Destination Digital Knowledge Grid will document India’s cultural assets, alongside eco-tourism trails, guide skilling, and global events like the Big Cat Summit.

The Budget focuses on rural prosperity through:

• Fisheries development in reservoirs
• High-value crop promotion
• Coconut sector support
• AI-based farm advisory platform Bharat-VISTAAR

Social inclusion initiatives cover women entrepreneurs, Divyangjan skilling, mental health infrastructure, and focused development of eastern and North-Eastern regions.

From April 1, 2026, the Income Tax Act, 2025 comes into effect, simplifying compliance through:

• Redesigned tax forms and processes
• Relief on accident compensation interest
• Reduced TCS on overseas tours and education remittances
• Extended timelines for revised and belated returns
• One-time Foreign Asset Disclosure Scheme for small taxpayers

Trade facilitation measures include:

• A single digital customs clearance window
• AI-based risk assessment
• Removal of courier export caps
• Reduced customs duty on personal imports
• Duty exemptions on select cancer and rare disease drugs

These reforms aim to cut transaction costs and improve export competitiveness.

Notable changes include:

• Buyback taxation shifted to capital gains
• Rationalised TCS rates on select commodities
• Higher STT on derivatives to curb excessive speculation
• MAT reduced to 14% and made a final tax

Union Budget 2026–27 lays a strong foundation for India’s transition towards a Viksit Bharat by combining growth-oriented investments with fiscal responsibility, structural reforms, and inclusive development. By strengthening domestic capabilities, improving ease of doing business, and investing in people, the Budget charts a sustainable and forward-looking economic path.