Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27, focusing on boosting manufacturing, infrastructure, job creation, and easing tax and customs compliance. Key highlights include:
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Manufacturing & Supply Chains: Electronics component outlay raised to ₹40,000 crore; new schemes for rare earth magnets, chemical parks, container and capital goods manufacturing to reduce import dependence. Textiles receive an integrated, employment-focused support package.
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Infrastructure: Higher capital expenditure, risk guarantee fund for private developers, new freight corridors, and national waterways.
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Urban & Services Growth: Tier-II and Tier-III cities targeted via City Economic Regions; services sector skilling linked to emerging technologies.
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Creative & Tourism Industries: Support for AVGC labs, animation, gaming, comics, design, hospitality, and tourism-related skills.
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AI Integration: Promoted across sectors like agriculture, education, and governance to enhance productivity.
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Tax & Customs Reforms: Simplified Income Tax Act, extended return timelines, staggered ITR dates, and easier Form 15G/15H filing. Customs duty rationalisation includes lower duties on personal imports, exemptions for cancer drugs, rare-disease treatments, and key manufacturing inputs.
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Fiscal Discipline: Fiscal deficit projected at 4.3% of GDP for 2026-27, down from 4.4% in 2025-26.
The Budget underscores India’s focus on self-reliance, employment generation, and leveraging technology for growth.
