- ICICIdirect

The Union Budget 2026–27 was presented by Nirmala Sitharaman on February 1, 2026. The Budget sets out the government’s fiscal position, expenditure plans, tax proposals and sector-specific measures for the financial year 2026–27.

This article summarises what was announced, strictly based on the Budget speech.

What Are the Key Fiscal Numbers in Budget 2026–27?

Fiscal deficit for FY 2026–27 estimated at 4.3% of GDP
Debt-to-GDP ratio estimated at 55.6%
Public capital expenditure proposed at ₹12.2 lakh crore
Net market borrowings estimated at ₹11.7 lakh crore
Gross market borrowings estimated at ₹17.2 lakh crore
GDP growth referenced at around 7%

What Manufacturing Sectors Did the Budget Focus On?

The Budget announced policy and funding measures across multiple manufacturing segments.

Biopharma SHAKTI announced with an outlay of ₹10,000 crore over five years
India Semiconductor Mission 2.0 announced, covering equipment, materials, IP and workforce
Outlay for the Electronics Components Manufacturing Scheme increased to ₹40,000 crore
Rare Earth Corridors announced in Odisha, Kerala, Andhra Pradesh and Tamil Nadu
Container Manufacturing Scheme announced with a ₹10,000 crore allocation
Scheme announced to revive 200 legacy industrial clusters

What Was Announced for MSMEs and Small Enterprises?

Measures announced for MSMEs include

Creation of a ₹10,000 crore SME Growth Fund
₹2,000 crore top-up to the Self-Reliant India Fund
Mandatory use of TReDS for CPSE procurement from MSMEs
Credit guarantee support for invoice discounting on TReDS
Securitisation of TReDS receivables
Introduction of “Corporate Mitras” through professional institutions

What Infrastructure Projects Were Announced in Budget 2026?

Infrastructure-related announcements include

Increase in public capex to ₹12.2 lakh crore
Establishment of an Infrastructure Risk Guarantee Fund
New Dedicated Freight Corridor between Dankuni and Surat
Development of 20 new National Waterways
Launch of a Coastal Cargo Promotion Scheme
Announcement of 7 High-Speed Rail corridors
Introduction of City Economic Regions (CERs) with ₹5,000 crore per region over five years

What Measures Were Announced for Energy and Climate?

₹20,000 crore allocated for Carbon Capture, Utilisation and Storage (CCUS)
Customs duty exemptions extended for

Nuclear power projects (till 2035)
Capital goods used for battery energy storage systems
Inputs used in solar glass manufacturing

Excise duty relief announced for biogas-blended CNG

What Changes Were Announced for the Financial Sector and Markets?

Constitution of a High-Level Committee on Banking for Viksit Bharat
Proposal to restructure Power Finance Corporation (PFC) and Rural Electrification Corporation (REC)
Introduction of a market-making framework for corporate bonds
Proposal to introduce total return swaps on corporate bonds
Incentive of ₹100 crore for municipal bond issuances above ₹1,000 crore
Increase in Securities Transaction Tax (STT) on futures and options

What Was Announced for Education, Skills and Services?

Establishment of an Education-to-Employment and Enterprise Standing Committee
Addition of 100,000 Allied Health Professionals over five years
Training of 1.5 lakh caregivers in geriatric and allied care
Creation of 5 Medical Value Tourism hubs
Development of university townships near industrial corridors
Construction of girls’ hostels in every district for STEM institutions

What Were the Key Agriculture and Rural Announcements?

Launch of Bharat-VISTAAR, an AI-based multilingual agricultural advisory platform
Crop-specific programmes for coconut, cocoa, cashew, sandalwood and nuts
Establishment of SHE-Marts for women-led rural enterprises
Divyangjan Kaushal Yojana announced for sector-specific skilling
Expansion of mental health institutes and trauma care centres

What Direct Tax Changes Were Announced in Budget 2026?

Income Tax Act, 2025 to come into force from April 1, 2026
Interest awarded by MACT to individuals made tax-exempt
TCS under LRS reduced to 2% for education, medical and overseas tour packages
Time limit for revised returns extended to March 31
One-time foreign asset disclosure scheme announced for small taxpayers
MAT reduced from 15% to 14% and made a final tax
Share buybacks to be taxed as capital gains