New Delhi: Finance Minister Nirmala Sitharaman on Sunday (February 1) presented the Union Budget 2026-27 in the Lok Sabha and proposed developing seven high speed corridors between cities as growth connectors. "We proposed the development of seven high-speed rail corridors as part of efforts to boost connectivity and infrastructure in India. Key routes include: Mumbai to Pune; Pune to Hyderabad; Hyderabad to Bengaluru; Bengaluru to Chennai. Additional corridors are planned to further strengthen regional connectivity and economic growth across the country under the Union Budget 2026-27," she said. On January 29, FM Nirmala Sitharaman tabled the Economic Survey of India in Parliament for the financial year 2025-26.
The government's planned capital expenditure for this fiscal year is budgeted at Rs 11.2 lakh crore.
Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 in the Lok Sabha on Sunday (February 1). The Budget is expected to unveil measures to sustain growth momentum, maintain fiscal discipline, and contain reforms that could buffer the economy from global trade frictions, including US tariffs.
This is yuva shakti driver budget. Since we assumed office 12 years ago, the country's economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation. This is the result of conscious choices we have made even in times of uncertainty and disruptions, said FM Sitharaman in Lok Sabha.
Finance Minister Nirmala Sitharaman added, "India will continue to take steps towards Viksit Bharat. Government has preferred reform over rhetoric.'
Various reforms rolled out since August 15, including GST, labour codes, and quality control order; reform express on its way, said FM Sitharaman.
The financial sector is central to mobilising savings, allocating capital and managing better governance, said Finance Minister Nirmala Sitharaman in Lok Sabha.
"To accelerate and sustain economic growth, I propose interventions in six areas- Scaling up manufacturing in 7 strategic sectors; Rejuvenating legacy industrial sectors; Creating champion MSMEs; Delivering a push for infra; Ensuring long-term security and stability; Developing city economic regions", said Sitharaman.
"Our government's 'sankalp' is to focus on our poor, underprivileged and the disadvantaged. To deliver on this 'sankalp' and given that this is the first Budget prepared in Kartavya Bhavan, we are inspired by three 'Kartavya'. Our first 'Kartavya' is to accelerate and sustain economic growth by enhancing productivity and competitiveness and building resilience to volatile global dynamics. Our second 'Kartavya' is to fulfill aspirations of our people and build their capacity making them strong partners in India's path to prosperity. Our third 'Kartavya', aligned with our 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", said FM Sitharaman.
FM Nirmala Sitharaman proposed setting up of 3 dedicated chemical parks to enhance domestic production, reduce import dependency.
FM Nirmala Sitharaman proposed scheme for container manufacturing to create globally competitive ecosystem. A scheme for enhancement for construction and infrastructure equipments will be introduced to strengthen domestic manufacturing: Nirmala Sitharaman.
Finance Minister Nirmala Sitharaman proposed setting up mega textile parks with focus on value addition to technical textiles. She added that govt will launch ISM 2.0 to produce equipment and materials, design full stack, Indian IP and fortify supply chains. We will also focus on industry led research and training centers to develop technology and skilled workforce.
"To develop India as a global biopharma manufacturing hub, I proposed the Biopharma Shakti with an outlay of 10,000 crores over the next five years. This will build the ecosystem," FM said. "For domestic production of biologics and biosimilars, the strategy will include a biopharma focused network with three new national institutes of pharmaceutical education and research, popularly known as NIPERS, and upgrading seven existing ones. It will also create a network of 1,000 accredited India clinical trials sites. We propose to strengthen the Central Drug Standard Control Organisation to meet global standards and approve timeframes through a dedicated scientific review and specialists", said Sitharaman.
"To accelerate and sustain economic growth, I propose interventions in six areas-Scaling up manufacturing in 7 strategic sectors; Rejuvenating legacy industrial sectors; Creating champion MSMEs; Delivering a push for infra; Ensuring long-term security and stability; Developing city economic regions", said Sitharaman.
FM Nirmala Sitharaman proposed to make TReDS as transaction platforms for all purchases from MSMEs by central public sector enterprises.
“Our government has undertaken comprehensive reforms towards creating employment, boosting productivity and accelerating growth. After PM Narendra Modi's announcement on Independence Day 2025 over 350 reforms have been rolled out", said FM Sitharaman.
Nirmala Sitharaman said, "We will continue to develop infrastructure in Tier 2, Tier 3 cities. Govt also proposes to support professional institutions like ICAI, ICSI to design short term modular courses. The govt also proposed to set up infrastructure risk guarantee fund for infra sector.
"India has the potential to emerge as a global hub for sports goods, we propose a dedicated initiative to promote globally competitive sports goods," said FM. Self-reliant India fund gets Rs 2000 crore to continue support to micro enterprises, she added.
Finance Minister Nirmala Sitharaman on Sunday proposed Rs 10,000 crore investment in the biopharma sector over the next five years, a move which would give a boost to the country's pharmaceuticals industry. Biopharmaceuticals, or biologics, are complex medicines manufactured from living organisms, cells, or tissues rather than through chemical synthesis. She also proposed interventions in six areas, including manufacturing, strategic and frontier sectors, healthcare and advanced technology. The minister added that semiconductor mission 2.0 will focus on producing equipment and materials designed for full-stack Indian IP (intellectual property). The India Semiconductor Mission (ISM) is a specialized, autonomous business division within Digital India Corporation under Ministry of Electronics and Information Technology (MeitY), designed to build a sustainable semiconductor and display ecosystem. Sitharaman also announced support for mineral rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish critical mineral facilities. She added that 'Sabka Saath, Sabka Vikas' is the third Kartavya of the government.
"A textile expansion and employment scheme to modernise textile clusters. Aim for Samarth 2.0 to promote skilling in the textile sector. Propose to set up mega textile parks in challenge mode. To launch Mahatma Gandhi Gram Samaj initiative to support Khadi, handicrafts", said Sitharaman.
"We proposed the development of seven high-speed rail corridors as part of efforts to boost connectivity and infrastructure in India. Key routes include: Mumbai to Pune; Pune to Hyderabad; Hyderabad to Bengaluru; Bengaluru to Chennai. Additional corridors are planned to further strengthen regional connectivity and economic growth across the country under the Union Budget 2026-27", said Sitharaman.
"Today, we face an external environment in which trade and multilateralism are in imperent 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. 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", said Sitharaman.
FM Nirmala Sitharaman proposed setting up of Infrastructure Risk Fund to strengthen private developers risk management.
Finance Minister Nirmala Sitharaman on Sunday proposed to increase the outlay on electronics manufacturing to Rs 40,000 crore in the 2026-27 fiscal year. Presenting the Union Budget for 2026-27, she said high-tech tool rooms will be established at two locations to give push to capital goods manufacturing. Sitharaman also proposed a scheme for container manufacturing to create globally competitive ecosystem. Three dedicated chemical parks will also be set up to enhance domestic production, reduce import dependency, she added. The move comes amid a massive thrust by the government on increasing electronics manufacturing in the country. The mobile manufacturing segment witnessed a nearly 30-fold increase in production value, rising from Rs 18,000 crore in FY15 to Rs 5.45 lakh crore in FY25. iPhone exports from India have hit Rs 2.03 lakh crore in 2025, which is almost double that of Rs 1.1 lakh crore Apple exported in the calendar year 2024. Mobile phone production in the country is expected to reach about Rs 6.76 lakh crore, comprising exports over USD 30 billion, or about Rs 2.7 lakh crore, by the end of the current fiscal year. As of August 2025, 10 semiconductor manufacturing and packaging projects have been approved in the country with a cumulative investment of around Rs 1.6 lakh crore in six states.
High-powered standing committee announced, will assess impact of emerging technologies including AI on jobs, said FM Sitharaman.
Finance Minister Nirmala Sitharaman on Sunday announced that the Self-Reliant India Fund will be topped up by Rs 4,000 crore in 2026-27 to support micro, small and medium enterprises (MSMEs). The fund was announced in 2023 to infuse Rs 50,000 crore in equity funding into MSMEs with the potential and viability to grow into large units.
While presenting the Budget 2026-27, the minister also proposed an integrated textile programme with five sub-parts, a move that could help the sector, which is facing challenges due to steep 50 per cent tariffs imposed by the US. In her Budget speech, she proposeed Natural Fibre Scheme, Textile Expansion and Employment Scheme, and National Handloom and Handicraft programme. The minister also proposed to make TReDS as transaction platforms for all purchases from MSMEs by central public sector enterprises. TReDS platform - Receivables Exchange of India Ltd (RXIL) is a joint venture promoted by SIDBI and NSE. The minister added that the government will continue to develop infrastructure in Tier 2, and Tier 3 cities.
Finance Minister Nirmala Sitharaman on Sunday proposed to set up a Rs 10,000 crore fund to create champion small and medium enterprises (SMEs) to boost the economy. Presenting Union Budget 2026-27, she also proposed a scheme for container manufacturing to create globally competitive ecosystem. Also, mega textile parks with focus on value addition to technical textiles would be set up. The budget also proposed setting up mega textile parks with focus on value addition to technical textiles and an integrated textile programme with five sub-parts, she stated. The finance minister said India has the potential to emerge as a global hub for high-quality affordable sports goods. She also proposed Mahatma Gandhi Gram Swaraj initiative to strengthen Khadi handloom. Besides, there would be a scheme to revive 200 legacy industrial clusters.
FM Sitharaman said, "We propose setting up ABGC (Animation, Visual Effects, Gaming, and Comics) content creator labs in 1500 secondary schools and 500 colleges". Content Creator labs in 15,000 Indian schools, while also creating 5 university townships in the vicinity of industry corridors, she added.
Govt will continue to focus on developing infrastructure in cities with over 5 lakh population. Govt to also support states in setting up five hubs for medical tourism, said Sitharaman.
Finance Minister Nirmala Sitharaman on Sunday proposed incentives of Rs 100 crore for single bond issuance by municipal corporations of more than Rs 1,000 crore. She also announced restructuring of REC Ltd (formerly Rural Electrification Corporation) and Power Finance Corporation (PFC) as part of the government's public sector financial institution strengthening. The minister proposed setting up high-level committee on 'Banking for Viksit Bharat'. She said the country's banking sector is characterised by a strong balance sheet, historic high profitability. In her Budget speech, she proposed to review foreign exchange management non-debt instruments rules. She added that close to 25 crore people have come out of multi-dimensional poverty.
Government propose trains for bird watching along Andhra Pradesh, Tamil Nadu border, said FM Sitharaman.
Prime Minister Narendra Modi told ministers during the Cabinet meeting that this will be the budget for a developed India, keeping the 2047 goals in mind. He also emphasised the responsibility to communicate the budget's benefits to as many people as possible.
FM Sitharaman proposed to set up 3 new All India Institute of Ayurveda. She also proposed loan-linked capital subsidy support scheme for veterinary collages, hospitals, diagnostics laboratories. Centre to support 5 university townships in vicinity of major industrial logistics centres. She also proposed upgradation of Ayush pharmacies and drug testing labs, WHO Traditional Medicine Centre at Jamanagar.
"I propose to set up a High-Powered Education to Employment and Enterprise Standing Committee to recommend measures that focus on the Services Sector as a core driver of Viksit Bharat. This will make us a global leader in services, with a 10% global share by 2047. The Committee will prioritise areas to optimise the potential for growth, employment and exports. They will also assess the impact of emerging technologies, including AI, on jobs and skill requirements and propose measures thereof", said Sitharaman.
Finance Minister Nirmala Sitharaman on Sunday proposed Rs 20,000 crore for a carbon capture and utilisation scheme across sectors, including steel and cement. Presenting the Union Budget for 2026-27, the minister said the government will provide incentives for manufacturing seaplanes in the country as part of efforts to boost tourism. Meanwhile, a high-level committee on 'Banking for Viksit Bharat' will be set up, Sitharaman said, announcing various measures to boost the economy. Among others, the minister proposed developing seven high-speed corridors between cities as growth connectors, and also have a ship repair ecosystem catering to inland waterways, which will be set up in Varanasi and Patna. According to the minister, the Indian banking sector today is characterised by strong balance sheet, historic highs and profitability, improved asset quality and coverage. Noting that the sector is well placed to futuristically evaluate the measures needed to continue on the path of reform-led growth, Sitharaman said a high-level committee on Banking for Viksit Bharat will be set up.
We will develop ecologically sustainable trails in Himachal Pradesh, Utttarakhand and Jammu and Kashmir, said FM Sitharaman.
"I propose setting up ‘She MARTS’ self-help entrepreneurs ‘SHE marts’ will be set up as a community owned retail outlets", said FM.
Governmt has accepted the recommendations of 16th Finance Commission, retaining 41 pc tax devolution formula, said Sitharaman. Fiscal deficit pegged at 4.3 pc of GDP in FY'27, lower than 4.4 pc in FY'26, she added.
The TCS rate on the sale of overseas tour programme packages from 5% and 20% to 2% with any stipulation amount, said FM Sitharaman. "Now, a person can file revised ITR by March 31 with a nominal fee. I propose that any 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," she added.
Union FM Nirmala Sitharaman said, "I propose that any 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."
The Government has accepted 16th Finance Commission recommendations to retain the vertical share of devolution at 41%. "I have allocated Rs 1.4 lakh crores for states for FY2026-27. Govt to borrow Rs 11.7 lakh crore in FY27 from dated securities to fund its fiscal deficit. Minor offences to attract fine only…no penalty on non-disclosure of non-immovable foreign assets with aggregate value less than Rs 20 lakh… I propose to provide them immunity from prosecution." said Sitharaman.
FM Nirmala Sitharamam proposes to increase time limit for filing revised I-T return from December 31 to March 31, on payment of nominal fee.
We announce exemption from income tax for 5 years to any non-resident who provide capital goods, equipment to any tall manufactures in bonded zone, said FM.
No interest liability on taxpayer on penalty amount for period of appeal before 1st appellate authority, irrespective of outcome, said Sitharaman. "We also propose a six-month foreign asset disclosure scheme under the Union Budget 2026-27. The scheme will benefit small taxpayers such as students, tech professionals, and relocated NRIs, providing them an opportunity to regularize foreign assets with ease", she added.
Govt to develop ecologically sustainable mountain trails in HP, Uttarakhand, J&K, Araku Valley of Eastern Ghats and Western Ghats, said Sitharaman.
Shoes and leather products will get cheaper, said FM Sitharaman. Govt propose to increase limit of duty free goods of specified inputs, leather, synthetic footwear etc.
Mobile phones and EV batteries to get cheaper. We propose to exempt duty on the aviation component and parts. Biogas mixed CNG will also get cheaper, said FM Sitharaman.
Finance Minister Nirmala Sitharaman on Sunday said the Income Tax Act, 2025 will be implemented from April 1 and rules and tax returns forms will be notified shortly. Beginning April 1, the Income Tax Act, 2025, will come into force replacing the six-decade-old tax law and the changes made in tax laws in 2026-27 Budget will be incorporated in the new legislation. In her Budget speech in the Lok Sabha on Sunday, she said, "This (direct tax code) was completed in record time and the Income Tax Act 2025 will come into effect from first April 2026. The simplified income tax rules and forms will be notified shortly, giving adequate time to taxpayers to acquaint themselves with its requirements." The forms have been redesigned, such that ordinary citizens can comply without difficulty, she added. The 2025 I-T law is revenue neutral with no change in tax rates. It has only made direct tax laws simple to understand, removed ambiguities, thereby reducing scope for litigations. It reduces text volume and sections by about 50 per cent vis-a-vis the 1961 Income Tax Act. The new law simplifies the tax timeline by doing away with the distinction between the assessment year and the previous year, replacing it with a single "tax year" framework. It also allows taxpayers to claim TDS refund even when ITRs are filed after deadlines, without any penal charges.
17 drugs or medicines exempted from BCD used in cancer treatment. Dutiable goods imported for personal use from 20% to 10%. 17 drugs or medicines exempted from BCD used in cancer treatment. "We propse to exempt basic customs duty on specified parts used in the manufacture of microwave ovens. a special one time measure to facilitated sales by eligible manufacturing units in the special economic zones to the domestic tariff at constructional rates of duty", said FM.
Relief in customs duty for the import of sodium antimonate used in the manufacture of solar glass. This move is aimed at reducing input costs for solar panel manufacturers and boosting domestic solar equipment production, said FM.
"We propose to add 7 more rare diseases for the purposes of exempting import duty on personal imports of drug medicine and food for special medical purposes used in their treatment", said FM.
"Customs warehouse framework will be transformed into a warehouse operated credit centric system with self declaration, electronic tracking and risk base audit in order to move away from current system of officer dependent approvals, reduce transaction delays and compliance cost", said FM Sitharaman.
"Ease of business Utilisation of non intrusive scanning with advance imaging and AI technology for risk assessment will be expanded In a phased manner to scan every container across all Major ports", said FM Sitharaman. "To support small businesses, artisans and startups to access global market through E-Commerce, a complete removal of the current value cap of 10 lakh per consignment on courier exports", she added.
Alcohol and future option trading to get costlier, said FM in Lok Sabha.
Union FM Nirmala Sitharaman said, "It is proposed to exempt basic customs duty on raw materials imported for the manufacture of parts of aircraft to be used in maintenance, repair or overall requirements by units in the defence sector."
Sensex tumbled 869.93 points to 81,399.85 amid Budget presentation; Nifty drops 294.9 points to 25,025.75.
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