The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, focuses on domestic manufacturing, infrastructure, and fiscal consolidation. Termed a "Yuva Shakti-driven Budget," it outlines a roadmap toward the goal of "Viksit Bharat" (Developed India) by 2047.
• Total Expenditure: Estimated at ₹53.47 lakh crore.
• Capital Expenditure (Capex): Increased to ₹12.2 lakh crore (an 11.5% jump) to drive long-term infrastructure growth.
• Nominal GDP Growth: Projected at 10% for the upcoming financial year.
• Tax-Free Limit: Under the New Tax Regime, income up to ₹12 lakh effectively attracts zero tax due to an enhanced rebate (Section 87A) of ₹60,000.
• Standard Deduction: Remains at ₹75,000 for salaried individuals under the new regime.
• TCS Relief: Tax Collected at Source (TCS) on overseas tour packages and remittances for education/medical treatment above ₹10 lakh has been reduced to a flat 2%.
• Semiconductors: Outlay for India Semiconductor Mission (ISM) 2.0 increased to ₹40,000 crore.
• Biopharma: Launch of Biopharma SHAKTI (₹10,000 crore) to make India a global hub for biologics.
• Rare Earths: Establishment of "Rare Earth Corridors" in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.
• MSMEs: A new ₹10,000 crore SME Growth Fund to create "Champion SMEs."
• High-Speed Rail: Seven new corridors (e.g., Mumbai-Pune, Delhi-Varanasi) proposed as "growth connectors."
• Logistics: Dedicated freight corridors connecting Surat to Dankuni and the operationalization of 20 new national waterways.
• Urban Development: Mapping of "City Economic Regions" (CERs) to boost urban economic output.
• STT Increase: Securities Transaction Tax on Futures (0.05%) and Options (0.15%) has been hiked to curb excessive speculation.
• Buybacks: Share buybacks will now be taxed as capital gains in the hands of shareholders, rather than at the company level.
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