Guwahati: Inspired by three core kartavyas—accelerating economic growth, fulfilling the aspirations of the people, and building their capacities—Finance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026–27, seeking to balance sustained economic expansion with fiscal discipline.
The Budget places strong emphasis on maintaining India’s growth momentum through targeted investments, structural reforms and continued public spending, while keeping government finances on a prudent and credible path, in line with the vision of Sabka Saath, Sabka Vikas.
Presenting her record ninth Union Budget in Parliament, Sitharaman largely stayed away from headline-grabbing announcements but unveiled several sector-specific initiatives, including fresh allocations for healthcare tourism and sports ventures—areas that had received limited focus earlier.
However, the markets reacted negatively to the Budget proposals. Investor sentiment took a hit after the Finance Minister announced an increase in the Securities Transaction Tax (STT) to boost direct tax revenues. Following the announcements, the benchmark Sensex was trading in the red, plunging by over 900 points during mid-session trade.
A major highlight of the Budget was the continued thrust on infrastructure development.
The Finance Minister announced a capital expenditure (capex) allocation of Rs 12 lakh crore for 2026–27, reinforcing the government’s commitment to public investment-led growth.
Public capital expenditure has seen a sharp rise over the years—from Rs 2 lakh crore in 2014–15 to Rs 11.2 lakh crore in Budget Estimates for 2025–26—and the latest allocation aims to sustain this momentum.
On the technology front, Sitharaman announced the launch of India Semiconductor Mission (ISM) 2.0, alongside a significant enhancement of the outlay for the Electronics Components Manufacturing Scheme (ECMS) to Rs 40,000 crore, underscoring the push to strengthen India’s electronics and semiconductor ecosystem.
In the healthcare and employment space, the Finance Minister proposed the creation of one lakh Allied Health Professionals (AHPs) across 10 disciplines, including optometry, radiology and anaesthesia. Additionally, over the next five years, the government aims to train 1.5 lakh caregivers for geriatric care under NSQF-aligned programmes. A high-powered Education-to-Employment Standing Committee will also be set up to recommend measures for strengthening the services sector as part of the journey towards Viksit Bharat.
The Budget also announced an outlay of Rs 20,000 crore for launching a carbon capture and utilisation scheme across hard-to-abate sectors such as steel and cement.
In transport infrastructure, the Finance Minister proposed developing seven high-speed rail corridors, including Mumbai–Pune, Pune–Hyderabad, Hyderabad–Chennai, Delhi–Varanasi and Varanasi–Siliguri, among others.
To strengthen the financial system, Sitharaman proposed setting up a high-level committee on banking for Viksit Bharat, aimed at reviewing the banking sector and aligning it with India’s next phase of economic growth.
For MSMEs, the Budget announced a Rs 10,000 crore SME Growth Fund to create national champions, a Rs 2,000 crore top-up to the Self-Reliant India Fund, and additional liquidity support measures.
Finance Minister highlighted AI and other cutting-edge technologies as key enablers of future growth, emphasising their role in transforming productivity, competitiveness and employment across sectors.
The Budget proposed strengthening India’s AI ecosystem, including governance frameworks to ensure responsible and effective adoption of AI tools.
A high-powered Education to Employment Standing Committee will be set up to assess how AI and other emerging technologies are reshaping the job market and skill requirements, and recommend measures to equip the workforce for future opportunities.
On the taxation front, the Budget maintained status quo on personal income tax. No changes were announced to existing income tax slabs, offering continuity and predictability for individual taxpayers. Under the new tax regime, income up to Rs 12 lakh remains effectively tax-free, including standard deductions. The Finance Minister also confirmed that the Income Tax Act, 2025, a simplified and modernised direct tax law, will come into force from April 1, 2026, replacing the six-decade-old legislation while keeping tax rates broadly unchanged.
Meanwhile, tariff and duty changes announced in the Budget are expected to impact consumer prices. Several items are set to become cheaper, including essential medicines such as cancer drugs, solar equipment components, mobile batteries, footwear and microwave ovens, following reductions or exemptions in customs duty. On the other hand, luxury watches and imported alcoholic beverages are likely to become costlier due to higher import duties.
Overall, the Union Budget 2026–27 reflects the government’s attempt to prioritise growth, infrastructure and employment generation, while exercising restraint on tax concessions and adhering to fiscal discipline amid global economic uncertainties.