India
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Union Budget 2026 Highlights: Key Announcements From FM Sitharaman

Budget 2026 Highlights At A Glance
Team Brut
Published on
01
/
02
/
2026
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Finance Minister Nirmala Sitharaman presented the Union Budget 2026, outlining the government’s priorities amid global uncertainty. Referring to this as the first Budget prepared in Kartavya Bhavan, she said the government is guided by three core kartavyas or duties towards citizens.
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Three Kartavyas Of The Government

First kartavya

  • To accelerate and sustain economic growth
  • Focus on productivity, competitiveness and resilience to global volatility

Second kartavya

  • To fulfil the aspirations of people
  • Build capacity and make citizens active partners in India’s growth journey

Third kartavya

  • To ensure equitable access to resources, amenities and opportunities
  • Aligned with the vision of Sabka Saath, Sabka Vikas

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Also Read: Budget 2026 Explained: Education, Tourism And Mental Healthcare Impact

‘Reform Express Is Well On Its Way’

  • Over 350 reforms rolled out following the Prime Minister’s Independence Day 2025 announcement
  • Key reforms include GST simplification, labour code notifications and rationalisation of Quality Control Orders
  • High-level committees set up to review and accelerate reforms
  • Centre working with states to reduce compliance burden and deregulation

Interventions Across Six Focus Areas

  • Scaling up manufacturing in seven strategic and frontier sectors
  • Rejuvenating legacy industrial sectors
  • Creating Champion MSMEs
  • Strong push for infrastructure
  • Ensuring long-term energy security
  • Development of City Economic Regions

Rs 10,000 Crore Push For Biopharma Sector

  • Rs 10,000 crore investment proposed over five years
  • Focus on pharmaceuticals, healthcare and advanced technology
  • Creation of a biopharma-focused network
  • Three new NIPER institutes and upgrade of seven existing ones
  • Network of over 1,000 accredited clinical trial sites

MSMEs And SME Growth Fund

  • Rs 10,000 crore SME Growth Fund announced
  • Aim to revive stressed MSMEs and support growth-stage firms
  • Focus on cluster-based revival and technology upgradation
  • Rs 2,000 crore top-up to Self-Reliant India Fund
  • Introduction of ‘Corporate Mitras’ to help MSMEs with compliance at affordable costs

Capital Expenditure Increase

  • FY27 capital expenditure raised by around 9 percent
  • Total allocation increased to Rs 12.2 lakh crore
  • Focus on sustaining infrastructure momentum and economic growth

India Semiconductor Mission 2.0

  • Launch of ISM 2.0 announced
  • Focus on equipment, materials and full-stack Indian IP
  • Strengthening semiconductor supply chains
  • Outlay for Electronics Components Manufacturing Scheme raised to Rs 40,000 crore

Rare Earth Corridors

  • Support for Odisha, Kerala, Andhra Pradesh and Tamil Nadu
  • Focus on mining, processing, research and manufacturing of critical minerals
  • Aimed at reducing dependence on imports

Seven High-Speed Rail Corridors

  • Mumbai to Pune
  • Pune to Hyderabad
  • Hyderabad to Chennai
  • Hyderabad to Bengaluru
  • Chennai to Bengaluru
  • Delhi to Varanasi
  • Varanasi to Siliguri
  • Designed as environmentally sustainable passenger systems

Boost To Textile And Sports Goods Manufacturing

  • Integrated programme with five sub-parts for textiles
  • Includes National Fibre Scheme and Samarth 2.0
  • Proposal for Mega Textile Parks
  • Strengthening khadi, handloom and handicrafts
  • Dedicated initiative for sports goods manufacturing and innovation

Renewed Focus On Services Sector

  • Services positioned as a key driver of Viksit Bharat
  • Target of 10 percent global share by 2047
  • High-powered Education to Employment committee
  • Expansion of allied health professional institutions
  • Creation of care ecosystem including geriatric services
  • Five Regional Medical Hubs proposed
  • Three new All India Institutes of Ayurveda

Export Promotion Measures

  • Higher duty-free import limits for seafood processing inputs
  • Duty-free imports extended to shoe uppers
  • Export timelines extended from six months to one year for select sectors

Financial Sector And Ease Of Doing Business

  • PROIs allowed to invest in listed Indian equities via PIS
  • TCS on overseas tour packages reduced to 2 percent
  • Lower TCS for education and medical remittances
  • Decriminalisation of select compliance defaults
  • Extended window for revising income tax returns

AI And Emerging Technologies

  • Artificial intelligence mentioned 11 times, the highest ever in a Budget speech
  • Use of AI in governance and public service delivery
  • Expansion of AI Mission and National Quantum Mission
  • Bharat-VISTAAR multilingual AI tool announced
  • Integration of AI in agriculture, healthcare, education and employment platforms

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