Finance Minister Nirmala Sitharaman is set to present her ninth consecutive Union Budget today—making history as the first Budget ever tabled on a Sunday in independent India.
The Budget for FY 2026–27 is being presented amid global economic uncertainty, with geopolitical tensions and recent trade actions by the United States adding pressure to the outlook.
Back home, the government faces a tightrope walk:
- Boost consumption
- Create jobs
- Ramp up capital expenditure
- Keep the fiscal deficit on a downward path
The Budget is expected to prioritise cross-sector reforms aimed at simplifying regulations, improving competitiveness, and strengthening domestic manufacturing.
Key Announcements Highlights
"I propose to reduce TCS rate on sale of overseas tour program packages from current 5% and 20% to 2% without any stipulation of amount. I propose to reduce the TCS rate for pursuing education and medical purposes under the liberalised remittance scheme from 5% to 2%: Finance Minister Nirmala Sitharaman on Direct Taxes.
SHE (Self-help Entrepreneur) marks will be set up as community-owned retail outlets to help women entrepreneurs.
FM Sitharaman announces content creator labs to boost India’s Animation Visual effects, Gaming and Comic (ABGC) sector in 15,000 secondary schools across India and 500 colleges.
Union Finance Minister Nirmala Sitharaman says," In 2026-27, I propose to increase public capex to Rs 12.2 lakh crores."
India has potential to emerge as a global hub for high-quality affordable sports goods,” FM Sitharaman proposed a dedicated initiative for high-quality sports goods manufacturing and research.
7 high-speed rail corridors between cities as growth connectors. This corridors will be Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi, and Varanasi-Siliguri.
FM Nirmala Sitharaman proposed to develop India as a global bio-pharma manufacturing hub by establishing Bio Pharma Shakti with an outlay of Rs 10,000 crore over the next 5 years. This will build an ecosystem for domestic productions of biologics and biosimilars.
FM Nirmala Sitharaman proposed a scheme for Container manufacturing with a capital outlay of Rs. 10,000 crore over the next 5 years.
Lodestar of Aatmanirbharta: The Budget is built on the foundation of self-reliance, aiming to reduce critical import dependencies and bolster domestic manufacturing.
Economic Performance: India maintains a high growth rate of around 7%, focusing on poverty reduction and improving the quality of life for all citizens.
The Three "Kartavyas" (Duties): The FM outlined a three-fold approach to governance:
- Accelerating and sustaining economic growth.
- Fulfilling the aspirations of the people by building their capacity.
- Aligning all actions with the vision of ‘Sabka Saath, Sabka Vikas’.
Key Sectoral Announcements
1. Rural Development & Khadi
- Mahatma Gandhi Gram Swaraj Yojana: A new flagship scheme to revitalize the Khadi handloom sector in villages.
- Focus: Training, skilling, large-scale production, and stringent quality checks to make village products globally competitive.
2. Strategic Minerals & Energy
- Rare Earth Mineral Corridors: Establishment of dedicated corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. This is a strategic move to secure the supply chain for critical minerals used in electronics and defense.
- National Critical Mineral Mission: Further strengthening of the mission to reduce dependence on imports (specifically from China).
3. Industry & MSMEs
- Biopharma Shakti: A new initiative with an outlay of ₹10,000 crore to boost the biopharmaceutical sector.
- MSME Growth Fund: A ₹10,000 crore fund dedicated to helping MSMEs scale up.
- Industrial Clusters: Proposal to revive 2,000 legacy industry clusters and set up Mega Textile Parks to rejuvenate traditional manufacturing.
Six Strategic Intervention Areas
To sustain long-term growth, the FM proposed specific interventions in these six pillars:
- Scaling up Manufacturing: Focusing on 7 strategic and frontier sectors.
- Rejuvenating Legacy Sectors: Modernizing older industrial hubs.
- Creating Champion MSMEs: Providing the tools for small businesses to become global leaders.
- Infrastructure Push: Continuing the momentum on roads, railways, and ports.
- Security & Stability: Ensuring long-term economic and energy security.
- City Economic Regions: Developing cities as engines of economic growth.
Social & Economic Indicators
- Fiscal Deficit: The target for FY26 remains a focus for market stability, following the previous year's estimate of 4.4%.
- Inclusive Growth: Priority remains on "GYAN" — Garib (Poor), Yuva (Youth), Annadata (Farmer), and Nari Shakti (Women).
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