India's Union Budget 2026-27 sets a clear direction towards 7%+ economic growth, with a strong focus on infrastructure, manufacturing, jobs, and fiscal discipline.
Key Highlights at a Glance
- Infrastructure Push: Capital expenditure increased to ₹12.2 lakh crore (from ₹10.96 lakh crore), targeting freight corridors, national waterways, and high-speed rail projects.
- Manufacturing & Industry: Major boost through Semiconductor Mission 2.0, biopharma initiatives, revival of legacy industrial clusters, and support for solar, nuclear energy, and critical minerals.
- Agriculture & Rural Economy: Focused schemes for coconut, cashew, and cocoa, along with subsidies for veterinary infrastructure to enhance rural productivity and employment.
- Youth & MSMEs: Priority on job creation, skilling programs, and simplified compliance for small and medium businesses.
Tax & Compliance Updates
- TCS on foreign travel and education reduced to 2%.
- TDS rationalised to 1%–2%.
- Revised return filing deadline extended to 31 March.
- STT increased: Futures 0.05%, Options 0.15%.
- Buybacks now taxed as capital gains.
Fiscal Discipline Maintained
Fiscal deficit targeted at 4.3% of GDP, with higher devolution to states at ₹15.26 lakh crore.
Overall Takeaway
Budget 2026-27 balances growth with stability, focusing on jobs, manufacturing strength, and trust-based governance.