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