Salient Features of Union Budget 2026

1. Fiscal & Economic Outlook

India projected real GDP growth around 7% and nominal growth near 10%.
Fiscal deficit target for FY27 was reduced, with central government debt projected at ~55.6% of GDP.
Continued focus on fiscal consolidation alongside growth-oriented spending.

2. Infrastructure & Connectivity Push

Capital expenditure increased to ?12.2 lakh crore to boost infrastructure.
Seven high-speed rail corridors announced connecting major economic hubs such as Mumbai-Pune, Delhi-Varanasi, Hyderabad-Bengaluru, and Varanasi-Siliguri.
Risk guarantee fund and additional support to construction and equipment manufacturing sectors.

3. Agriculture & Rural Development

?1.63 lakh crore allocated to agriculture with emphasis on high-value crops and allied activities.
New tech-enabled initiatives like Bharat-VISTAAR, using data and AI to assist farmers in decision-making and boosting incomes.

4. Industry, Technology & Manufacturing

Launch of India Semiconductor Mission 2.0 with increased outlay under ECM Scheme (~?40,000 crore).
Push for domestic manufacturing and supply-chain resilience via “champion MSMEs” and strategic sector focus.
Tax incentives and support for data centres: tax holiday until 2047 for global cloud companies operating via Indian nodes.

5. Taxation & Business Reforms

Tax simplification moves continue; income tax slabs remain unchanged, but compliance norms like TDS/TCS rationalisation are being streamlined.
Greater trust in taxpayers and fiscal clarity in tax laws.
No major income-tax rate changes, but improved ease of compliance signalled.

6. Energy & Sustainability

Customs duty exemptions extended for nuclear power projects till 2035 to bolster clean energy capacity.
Duty reductions on key inputs for solar power, battery storage and EVs to accelerate green growth.

7. Education, Skills & Culture

Expansion of AVGC (Animation, Visual Effects, Gaming & Comics) education with support for IICT labs in schools/colleges.
New institutes and skill hubs near industrial regions to bridge education-to-employment gaps.

8. Social Sector & Welfare

Continued focus on inclusive development with targeted allocations for healthcare, welfare schemes, and rural livelihoods.
Schemes aimed at improving citizen access to services and opportunities were reiterated.

9. Vision & Long-Term Strategy

The budget’s overarching theme emphasises “Viksit Bharat” — balancing growth with inclusion, boosting competitiveness, and strengthening resilience.
It also sets priorities on productivity, technological adoption, and structural reforms to ensure broad-based participation in growth.