Budget 2026: Sector-Wise Allocation and Announcements By FM Nirmala Sitharaman
Macroeconomy & Fiscal Management
GDP growth targeted at around 7% with moderate inflation and monetary stability
Fiscal deficit estimated at 4.3% of GDP for FY27
Government targets debt-to-GDP ratio of 50±1% by 2030
₹1.4 lakh crore Finance Commission grants to States; vertical devolution retained at 41%
Manufacturing & Industrial Growth
Revival scheme for 200 legacy industrial clusters
Expansion of India Semiconductor Mission (ISM) 2.0
New schemes for electronics components, textiles, chemicals and container manufacturing
Focus on rare earth permanent magnets, defence manufacturing and aircraft components
Customs duty exemptions for key manufacturing inputs to reduce costs and boost exports
MSMEs
₹10,000 crore SME Growth Fund announced
Additional ₹2,000 crore infusion into Self-Reliant India Fund
Mandatory use of TReDS platform by CPSEs for MSME procurement
Credit guarantee support for invoice discounting
Professional “Corporate Mitra” support for MSMEs in Tier II and Tier III towns
Services Sector
Five Medical Value Tourism hubs in partnership with States and private sector
Expansion of allied health education and training of 1.5 lakh caregivers
AVGC content creator labs in 15,000 schools and 500 colleges
Sports infrastructure push under Khelo India Mission
New National Institute of Design in eastern India
IT, Digital & Data Centres
Single safe harbour margin of 15.5% for IT services
Safe harbour threshold raised from ₹300 crore to ₹2,000 crore
Faster, automated APA approvals for IT companies
Tax holiday till 2047 for foreign cloud service providers using India-based data centres
Infrastructure & Public Capex
Continued thrust on public capital expenditure via InVITs, REITs, NIIF and NABFID
New Dedicated Freight Corridor from Dankuni (East) to Surat (West)
Operationalisation of 20 new National Waterways
Coastal Cargo Promotion Scheme to double modal share by 2047
₹2 lakh crore support to States under SASCI scheme
Urban Development & Transport
Creation of City Economic Regions, focusing on Tier II and Tier III cities
Seven proposed high-speed rail corridors, including Hyderabad–Bengaluru and Mumbai–Pune
Emphasis on temple towns and logistics-linked urban clusters
Energy & Green Transition
₹20,000 crore outlay for Carbon Capture, Utilisation and Storage (CCUS)
Customs duty exemptions for lithium-ion battery manufacturing inputs
Extended duty exemption for nuclear power project imports till 2035
Incentives for processing critical minerals in India
Excise duty relief on biogas blended CNG
Agriculture & Allied Sectors
Integrated development of 500 reservoirs and Amrit Sarovars
Fisheries value chain strengthening in coastal regions
Dedicated programmes for cashew, cocoa, coconut and sandalwood
Support for high-density horticulture and orchard rejuvenation
AI integration through AgriStack and ICAR systems
Financial Sector
Incentives for large municipal bond issuances
Market-making framework and total return swaps for corporate bonds
Review of FEMA (Non-Debt Instruments) Rules
STT increased on futures and options transactions
High-Level Committee on Banking for Viksit Bharat
Social Sector & People-Centric Development
Stronger care ecosystem covering geriatric and allied services
Self-Help Entrepreneur (SHE) Marts at community level
Divyangjan Kaushal Yojana for disability-specific skilling
Expansion of mental health infrastructure including NIMHANS-2
Emergency and trauma care centres in district hospitals
Ease of Doing Business & Taxpayer Reforms
Reduced TCS on overseas travel, education and medical expenses
Simplified return filing timelines and extended revision window
Decriminalisation of select compliance offences
One-time foreign asset disclosure scheme for small taxpayers
Customs reforms with automated clearances and extended advance rulings
