• Source:JND

Union Budget 2026-27: Finance Minister Nirmala Sitharaman announced her ninth consecutive Union Budget in the Parliament on Sunday, asserting the government has undertaken comprehensive economic reforms towards creating employment, boosting productivity and accelerating growth.

Sitharaman said, "The government is laying the path and giving a push to the economy to maintain the growth momentum and for that growth momentum or sustained economic growth, which we want to ensure. Primarily, we are looking at building the ecosystem with structural reforms, which will continue. Reforms have been carried out. We are continuing to do the reform activities."

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Here Are Key Highlights Of The Union Budget 2026-27

Manufacturing Sector

Mega projects: India Semiconductor Mission (ISM) 2.0, Biopharma SHAKTI, Hi-Tech Tool Rooms in CPSEs, Scheme for Container Manufacturing, Scheme for Rare Earth Permanent Magnets, research, mining, processing and manufacturing and a dedicated initiative for manufacturing of affordable Sports Goods have been announced in the budget.

Strengthening domestic manufacturing of high-value and technologically-advanced Construction and Infrastructure Equipment

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Tax Reforms To Boost Manufacturing Sector

  • Exemption from income tax for five years to nonresidents providing capital goods, equipment or tooling, to any toll manufacturer in a bonded zone.
  • Provision of safe harbour to non-residents for component warehousing in a bonded warehouse.
  • Deferred duty payment window to trusted manufacturers.

What's For MSMEs

  • Dedicated Rs 10,000 crore SME Growth Fund has been allocated in the budget.
  • Top up the Self-Reliant India Fund (2021) with Rs 2,000 crore
  • Liquidity Support through TReDS
  • The government to facilitate Professional Institutions to develop ‘Corporate Mitras, especially in Tier-II and TierIII towns, to help MSMEs meet compliance requirements at affordable costs.

Rs 7.8 lakh cr to Defence

  • The Centre allocated a budget of Rs 7.8 lakh crore to the Defence Ministry for the year 2026-27. Defence forces will receive Rs 2.19 lakh crore for modernisation under the Capital Outlay budget.
  • Overall, the defence ministry will see a 15 percent increase in its budgetary allotment. In FY26-27, there is a 21.84 percent increase in capital outlay hiked from Rs 1.80 lakh crore in FY 25-25 to Rs 2.19 lakh crore.
  • The Defence Ministry has major projects in the pipeline, such as contracts for Rafale fighter jets, submarines, and unmanned aerial vehicles.

What's For Service Sector?

High-Powered ‘Education to Employment and Enterprise’ Standing Committee will be formed to focus on the services sector as a core driver of 'Viksit Bharat'.

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Health Sector

  • Upgrade and establish new institutions for Allied Health Professionals (AHPs) in ten selected disciplines.
  • Schemes to support States in establishing Five Hubs for Medical Value Tourism in partnership with the private sector.

Education Sector

  • 5 University Townships in the vicinity of major industrial and logistic corridors will be built.
  • A girls’ hostel in Higher Education STEM institutions in every district will be opened.
  • Setting up or upgrading of four Telescope Infrastructure facilities.

Tourism Sector

  • National Destination Digital Knowledge Grid to digitally document all places of significance.
  • To develop ecologically sustainable Mountain trails, Turtle Trails and Bird-Watching trails will be built in select states.
  • India will host the first-ever Global Big Cat Summit.
  • The government will develop 15 archeological sites into vibrant, experiential cultural destinations.
  • Pilot scheme will be launched for upskilling 10,000 guides in 20 iconic tourist sites.
  • Setting up a National Institute of Hospitality as a bridge between academia, industry and the Government.

Financial Sector

  • Centre will set up of High Level Committee on Banking for Viksit Bharat to align with India’s next growth phase.
  • Incentive of Rs 100 crore for single issuance of municipal bonds of more than Rs 1000 crore.
  • The current scheme under AMRUT will continue.

Infrastructure Sector

  • Several initiatives for large-scale enhancement of public infrastructure - InVITs, REITs, NIIF and NABFID Continue to focus on developing infrastructure in cities with over 5 lakh population (Tier III).
  • The government will set up Infrastructure Risk Guarantee Fund to provide prudently calibrated partial credit guarantees to lenders.

Ease of Doing Business and Ease of Living

  • Individual Persons Resident Outside India (PROIs) will be permitted to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme (PIS).
  • Interest awarded by the motor accident claim tribunal to a natural person will be exempt from Income Tax, and any TDS on this account will be done away with.
  • Reduce TCS rate on sale of overseas tour program package from 5% and 20% to 2% without any stipulation of amount.

 


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