Union Budget 2026–27: Key Highlights

  • Union Budget 2026–27 presented by Finance Minister Nirmala Sitharaman, focused on accelerating growth, resilience, and inclusive development
  • Emphasis on manufacturing, infrastructure, energy security, social welfare, and sustainability
  • Positions India as a global hub for innovation and production through targeted investments
  • Balances economic ambition with ease of living, education, healthcare, and environmental responsibility

Economic Reforms & Governance

  • Over 350 reforms implemented since Independence Day 2025
    • GST simplification
    • Notification of Labour Codes
    • Rationalisation of Quality Control Orders
  • Continued reforms in customs, indirect taxes, and direct taxation
  • Proposals shaped by ideas from Viksit Bharat Young Leaders Dialogue 2026, making it a youth-driven budget

Capital Expenditure & Infrastructure

  • Record public capital expenditure of Rs 12.2 lakh crore
  • Effective capex at 4.4% of GDP, highest in the last decade
  • Special Assistance to States for Capital Investment (SASCI) increased by 23% to Rs 1.85 lakh crore
  • New Dedicated Freight Corridor from Dankuni (East) to Surat (West)
  • 20 new National Waterways to be operationalised over five years
  • Launch of Coastal Cargo Promotion Scheme to shift freight from rail and road
  • Development of City Economic Regions (CERs) with Rs 5,000 crore per region over five years

Transport & Urban Development

  • Creation of seven High-Speed Rail corridors:
    • Mumbai–Pune
    • Pune–Hyderabad
    • Hyderabad–Bengaluru
    • Hyderabad–Chennai
    • Chennai–Bengaluru
    • Delhi–Varanasi
    • Varanasi–Siliguri

Climate, Energy & Sustainability

  • Rs 20,000 crore investment over five years for Carbon Capture Utilisation and Storage (CCUS) across five industries
  • Integrated development of 500 reservoirs and Amrit Sarovars to boost fisheries

Agriculture & Rural Economy

  • Promotion of high-value agriculture:
    • Coastal areas: coconut, sandalwood, cocoa, cashew
    • Hilly regions: almonds, walnuts, pine nuts
  • Launch of Coconut Promotion Scheme to replace old trees and improve productivity
  • Dedicated cashew and cocoa programmes targeting self-reliance and global competitiveness by 2030
  • Rollout of Bharat-VISTAAR, an AI-based farm advisory integrating AgriStack and ICAR practices

Women, MSMEs & Social Inclusion

  • Establishment of SHE-Marts as community-owned retail outlets for rural women-led enterprises
  • Divyangjan-focused schemes:
    • Kaushal Yojana for livelihoods in IT, AVGC, hospitality, and food sectors
    • Sahara Yojana for assistive devices

Health & Education

  • Expansion of mental health infrastructure:
    • New NIMHANS-2 in North India
    • Upgradation of institutes in Ranchi and Tezpur
  • 50% increase in emergency and trauma care capacity in district hospitals

Regional Development

  • Boost to Purvodaya states and Northeast through:
    • East Coast Industrial Corridor with a node at Durgapur
    • Development of five tourism destinations
    • Deployment of 4,000 e-buses
  • Development of Buddhist Circuits across Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram, and Tripura

Financial Sector & Investment

  • Formation of a High-Level Committee on Banking for Viksit Bharat
  • Review of foreign investment rules
  • Incentives for large municipal bond issuances
  • Expanded investment limits for Persons Resident Outside India (PROI) in listed companies

Fiscal Position

  • Fiscal deficit for FY 2025–26 retained at 4.4% of GDP
  • Aligned with the glide path to reduce fiscal deficit below 4.5%