Finance Minister Nirmala Sitharaman on Sunday announced an extension of basic customs duty exemption on capital goods used for manufacturing lithium-ion cells for battery storage in the annual budget for the next financial year.
In her budget speech, she also proposed to exclude the entire value of biogas while calculating excise duty levy on (biogas) blended CNG (compressed natural gas).
"I propose to extend the basic customs duty exemption given to capital goods used for manufacturing lithium-ion cells for batteries. Also, I propose to exempt basic customs duty on import of sodium anti Monet, for use in manufacturing of solar glass," she said.
It is proposed to provide basic customs duty exemption to the import of capital goods required for the processing of critical minerals in India.
For biogas blended CNG, she said, "I propose to exclude the entire value of biogas while calculating the central excise duty payable on biogas blended CNG."
She said that the government will develop an integrated East Coast Industrial Corridor with a well-connected node at Durgapur.
About the focus on Poorvodaya states and Northeastern regions, she said, "I propose the development of an integrated east coast industrial corridor with a well-connected node at Durgapur, creation of five tourism destinations in five Poorvodaya states and the provision of 4,000 e-buses, Buddhist sites in the northeastern region."
Budget proposes to remove exemptions on customs duties on items manufactured in India or have negligible import, she added.
Finance Minister Nirmala Sitharaman on Sunday proposed duty-free imports of certain specified inputs for promoting the country's exports of leather.
The move will help provide cushion to leather exporters who are reeling under the steep 50 per cent US tariffs.
The country's leather and leather products shipments dipped marginally 0.23 per cent to USD 3.3 billion during April-December 2025-26.
She also exempted parts used to manufacture microwave ovens from basic customs duty.
Sitharaman announced that India will develop 15 archaeological sites, including Lothal, Dholavira, Rakhigarhi, Sarnath, and Hastinapur.
She also proposed to extend the time period of exports of final products from six months to one year for exporters of leather, and textile garments.
Further the minister said that the government will support Artificial Limbs Manufacturing Corporation of India to scale up production of assistive devices.
Finance Minister Nirmala Sitharaman on Sunday said buyback proceeds for all types of shareholders will be taxed as capital gains.
Presenting the Union Budget for 2026-27, Sitharaman also proposed to raise Securities Transaction Tax to 0.05 per cent on commodity futures from 0.02 per cent.
She further said MAT (Minimum Alternate Tax ) will be made final tax and the rate will be reduced to 14 per cent from current 15 per cent.
She also said the government has proposed a joint panel of Corporate Affairs Ministry and CBDT for incorporation of income computation and disclosure standards.
National Destination Digital Knowledge Grid will be established to digitally document all places of significance, she added.
Finance Minister Nirmala Sitharaman on Sunday proposed to increase time limit for filing revised income tax (I-T) return from December 31 to March 31, on payment of nominal fee.
The government also proposed reduction in TCS rate for pursuing education and medical education under liberalised remittance scheme from 5 per cent to 2 per cent.
Tax Collected at Source (TCS) rate on sale of overseas tour packages was announced to cut to 2 per cent from 5 per cent. The rate was 20 per cent earlier.
She also proposed a rule-based automated process for small taxpayers in FY27 Budget.
In her Budget speech, Sitharaman announced a proposal to exempt award given by Motor Accident Claims Tribunal from income tax.
The Government will set up five university townships in the vicinity of major industrial logistics centres, Union Finance Minister Nirmala Sitharaman announced on Sunday.
Presenting the Union Budget for 2026-27 in the Lok Sabha, Sitharaman also announced the setting up of one girls' hostel in every district of the country.
There are over 700 districts in the country.
The Finance Minister said the budget proposes to support the Indian Institute of Creative Technologies, Mumbai, for setting up content labs in 15,000 secondary schools.
Finance Minister Nirmala Sitharaman on Sunday said individual persons residing outside India (PROI) will be permitted equity investments in listed Indian companies through a portfolio investment scheme.
She also proposed raising investment limit for PROIs to 10 per cent from 5 per cent.
The finance minister also proposed making framework with suitable access to funds and derivatives on corporate bond indices.
The government will continue to focus on developing infrastructure in cities with over 5 lakh population, she added.
Presenting the Union Budget 2026-27, Sitharaman proposed to upgrade WHO Global Traditional Medicine Centre at Jamnagar, Gujarat, while also stating that the country's telescope infrastructure will be upgraded to promote astrophysics and astronomy.
The government will also launch a pilot scheme to upgrade skills of 10,000 guides at 20 iconic tourist sites, while noting that India has potential to offer world-class experience in mountaineering.
Besides, she promised that the Centre will develop ecologically sustainable trails in Himachal Pradesh, Utttarakhand, and Jammu and Kashmir.Finance Minister Nirmala Sitharaman on Sunday said individual persons residing outside India (PROI) will be permitted equity investments in listed Indian companies through a portfolio investment scheme.
She also proposed raising investment limit for PROIs to 10 per cent from 5 per cent.
The finance minister also proposed making framework with suitable access to funds and derivatives on corporate bond indices.
The government will continue to focus on developing infrastructure in cities with over 5 lakh population, she added.
Presenting the Union Budget 2026-27, Sitharaman proposed to upgrade WHO Global Traditional Medicine Centre at Jamnagar, Gujarat, while also stating that the country's telescope infrastructure will be upgraded to promote astrophysics and astronomy.
The government will also launch a pilot scheme to upgrade skills of 10,000 guides at 20 iconic tourist sites, while noting that India has potential to offer world-class experience in mountaineering.
Besides, she promised that the Centre will develop ecologically sustainable trails in Himachal Pradesh, Utttarakhand, and Jammu and Kashmir.
Finance Minister Nirmala Sitharaman on Sunday proposed seven high-speed corridors among various cities and a new dedicated freight corridor between Dankuni in West Bengal and Surat in Gujarat in the Union Budget for 2026-27.
“In order to promote an environmentally-sustainable passenger system, we will develop seven high-speed rail corridors between cities as growth connectors,” she said while presenting the Union Budget.
According to the minister, these proposed corridors will be developed between Mumbai and Pune, Pune and Hyderabad, Hyderabad and Bengaluru, Hyderabad and Chennai, Chennai and Bengaluru, Delhi and Varanasi and Varanasi and Siliguri.
Sitharaman said to promote environmentally-sustainable movement of cargo, she proposed to establish a new dedicated freight corridor connecting Dankuni in the east to Surat in the west.
At present, work on one high-speed corridor between Ahmedabad and Mumbai is in progress. Similarly, two dedicated freight corridors -- Eastern and Western -- are in operation covering several states and districts.
The government has proposed to lower debt-to-GDP ratio to 55.6 per cent in FY27, from 56.1 per cent in the current fiscal year, Finance Minister Nirmala Sitharaman said on Sunday.
Presenting the Union Budget 2026-27, she said the Centre has allocated Rs 5,000 crore for CITY Economic Regions (CERs) over five years.
She also said the government has accepted the recommendations of the 16th Finance Commission, retaining a 41 per cent tax devolution formula.
A scheme for development of the Buddhist circuit in the Northeast to preserve temples, monasteries will also be launched, the finance minister noted.
She also proposed to support Artificial Limbs Manufacturing Corporation of India to scale up production of assisted devises for divyangjan.
Finance Minister Nirmala Sitharaman on Sunday said the government will create a network of over 1,000 accredited Indian clinical trial sites.
Major clinical trial sites in the country are currently located in big cities like Mumbai, Delhi, Bengaluru, Chennai, and Hyderabad.
She also proposed credit-linked subsidy programme to encourage livestock farmer producer organisations to promote employment opportunities.
In her Budget speech, the finance minister announced the launch of Bharat Vistar, a multilingual AI tool to integrate agri stack; and setting up of 'She Marts' as community-owned retail outlets.
Finance Minister Nirmala Sitharaman on Sunday proposed to set up five hubs for medical tourism and a Rs 10,000-crore outlay for Biopharma Shakti programme over the next five years.
Presenting the Union Budget, she said, "I propose to launch a scheme to support states in establishing five regional medical hubs."
She said these hubs will serve as integrated healthcare complexes that combine medical, educational and research facilities.
She said, "I propose the Biopharma Shakti with an outlay of Rs 10,000 crore over the next five years, this will build the ecosystem for domestic production of biologics and biosimilars."
The strategy will include a biopharma-focused network with three new National Institutes of Pharmaceutical Education and Research, popularly known as NIPERS, and upgrading seven existing ones, she added.
"It will also create a network of 1,000 accredited India clinical trials sites. We propose to strengthen the central drug standard control organisation to meet global standards and approve timeframes, through an approval time frames through a dedicated scientific review cadre, and specialists," said said.
She also proposed setting up three new All India Institute of Ayurveda.
Shares of electronic manufacturing companies rose up to 6 per cent after Finance Minister Nirmala Sitharaman on Sunday proposed to increase the outlay on electronics manufacturing to Rs 40,000 crore in 2026-27.
The stock of Syrma SGS Technology jumped 5.95 per cent to Rs 806.35, Dixon Technologies (India) Ltd climbed 4.21 per cent to Rs 10,885, and Kaynes Technology India rose 3.82 per cent to Rs 3,608.90 apiece on BSE.
In addition, PG Electroplast's shares increased by 2.59 per cent to Rs 561.75 per piece, DCX Systems rose 2.06 per cent to Rs 180.95, and Cyient DLM's by 1.04 per cent to Rs 379.70 apiece on the bourse.
Presenting the Union Budget for 2026-27, Finance Minister Nirmala Sitharaman said high-tech tool rooms will be established at two locations to give a push to capital goods manufacturing.
The move comes amid a massive thrust by the government to increase electronics manufacturing in the country.
The mobile manufacturing segment witnessed a nearly 30-fold increase in production value, rising from Rs 18,000 crore in FY15 to Rs 5.45 lakh crore in FY25.
iPhone exports from India have reached Rs 2.03 lakh crore in 2025, almost double the Rs 1.1 lakh crore Apple exported in calendar year 2024.
Mobile phone production in the country is expected to reach about Rs 6.76 lakh crore, comprising exports over USD 30 billion, or about Rs 2.7 lakh crore, by the end of the current fiscal year.
As of August 2025, 10 semiconductor manufacturing and packaging projects have been approved in the country with a cumulative investment of around Rs 1.6 lakh crore in six states.
Finance Minister Nirmala Sitharaman on Sunday announced setting up of one girls' hostel in every district of the country.
There are over 700 districts in the country.
She also proposed a loan-linked capital subsidy support scheme for veterinary colleges, hospitals, and diagnostics laboratories.
The minister also announced upgrading Ayush pharmacies and drug testing labs, WHO (World Health Organisation) Traditional Medicine Centre at Jamanagar, Gujarat.
The Centre, she said, will support five university townships in the vicinity of major industrial logistics centres.
Finance Minister Nirmala Sitharaman on Sunday proposed Rs 20,000 crore for a carbon capture and utilisation scheme across sectors, including steel and cement.
Presenting the Union Budget for 2026-27, the minister said the government will provide incentives for manufacturing seaplanes in the country as part of efforts to boost tourism.
Meanwhile, a high-level committee on 'Banking for Viksit Bharat' will be set up, Sitharaman said, announcing various measures to boost the economy.
Among others, the minister proposed developing seven high-speed corridors between cities as growth connectors, and also have a ship repair ecosystem catering to inland waterways, which will be set up in Varanasi and Patna.
According to the minister, the Indian banking sector today is characterised by strong balance sheet, historic highs and profitability, improved asset quality and coverage.
Noting that the sector is well placed to futuristically evaluate the measures needed to continue on the path of reform-led growth, Sitharaman said a high-level committee on Banking for Viksit Bharat will be set up.
Finance Minister Nirmala Sitharaman on Sunday proposed incentives of Rs 100 crore for single bond issuance by municipal corporations of more than Rs 1,000 crore.
She also announced restructuring of REC Ltd (formerly Rural Electrification Corporation) and Power Finance Corporation (PFC) as part of the government's public sector financial institution strengthening.
The minister proposed setting up high-level committee on 'Banking for Viksit Bharat'.
She said the country's banking sector is characterised by a strong balance sheet, historic high profitability.
In her Budget speech, she proposed to review foreign exchange management non-debt instruments rules.
She added that close to 25 crore people have come out of multi-dimensional poverty.
Finance Minister Nirmala Sitharaman on Sunday announced that the Self-Reliant India Fund will be topped up by Rs 4,000 crore in 2026-27 to support micro, small and medium enterprises (MSMEs).
The fund was announced in 2023 to infuse Rs 50,000 crore in equity funding into MSMEs with the potential and viability to grow into large units.
While presenting the Budget 2026-27, the minister also proposed an integrated textile programme with five sub-parts, a move that could help the sector, which is facing challenges due to steep 50 per cent tariffs imposed by the US.
In her Budget speech, she proposeed Natural Fibre Scheme, Textile Expansion and Employment Scheme, and National Handloom and Handicraft programme.
The minister also proposed to make TReDS as transaction platforms for all purchases from MSMEs by central public sector enterprises.
TReDS platform - Receivables Exchange of India Ltd (RXIL) is a joint venture promoted by SIDBI and NSE.
The minister added that the government will continue to develop infrastructure in Tier 2, and Tier 3 cities.
Finance Minister Nirmala Sitharaman on Sunday proposed to set up a Rs 10,000 crore fund to create champion small and medium enterprises (SMEs) to boost the economy.
Presenting Union Budget 2026-27, she also proposed a scheme for container manufacturing to create globally competitive ecosystem.
Also, mega textile parks with focus on value addition to technical textiles would be set up.
The budget also proposed setting up mega textile parks with focus on value addition to technical textiles and an integrated textile programme with five sub-parts, she stated.
The finance minister said India has the potential to emerge as a global hub for high-quality affordable sports goods.
She also proposed Mahatma Gandhi Gram Swaraj initiative to strengthen Khadi handloom.
Besides, there would be a scheme to revive 200 legacy industrial clusters.
Finance Minister Nirmala Sitharaman on Sunday said the target for capex will be raised to Rs 12.2 lakh crore for FY27 from Rs 11.2 lakh crore earmarked for the current fiscal year and announced a slew of measures to boost infrastructure in the country.
Presenting the Union Budget for 2026-27 in the Lok Sabha, she said the government will continue to develop infrastructure in Tier-2 and Tier-3 cities.
The government also proposes to set up risk guarantee fund for infrastructure sector, she added.
A scheme for enhancement for construction and infrastructure equipment will be introduced to strengthen domestic manufacturing, Sitharaman said.
The government also proposes to support professional institutions like ICAI, ICSI to design short-term modular courses, she added.
Finance Minister Nirmala Sitharaman on Sunday proposed to increase the outlay on electronics manufacturing to Rs 40,000 crore in the 2026-27 fiscal year.
Presenting the Union Budget for 2026-27, she said high-tech tool rooms will be established at two locations to give push to capital goods manufacturing.
Sitharaman also proposed a scheme for container manufacturing to create globally competitive ecosystem.
Three dedicated chemical parks will also be set up to enhance domestic production, reduce import dependency, she added.
The move comes amid a massive thrust by the government on increasing electronics manufacturing in the country.
The mobile manufacturing segment witnessed a nearly 30-fold increase in production value, rising from Rs 18,000 crore in FY15 to Rs 5.45 lakh crore in FY25.
iPhone exports from India have hit Rs 2.03 lakh crore in 2025, which is almost double that of Rs 1.1 lakh crore Apple exported in the calendar year 2024.
Mobile phone production in the country is expected to reach about Rs 6.76 lakh crore, comprising exports over USD 30 billion, or about Rs 2.7 lakh crore, by the end of the current fiscal year.
As of August 2025, 10 semiconductor manufacturing and packaging projects have been approved in the country with a cumulative investment of around Rs 1.6 lakh crore in six states.
Finance Minister Nirmala Sitharaman on Sunday proposed Rs 10,000 crore investment in the biopharma sector over the next five years, a move which would give a boost to the country's pharmaceuticals industry.
Biopharmaceuticals, or biologics, are complex medicines manufactured from living organisms, cells, or tissues rather than through chemical synthesis.
She also proposed interventions in six areas, including manufacturing, strategic and frontier sectors, healthcare and advanced technology.
The minister added that semiconductor mission 2.0 will focus on producing equipment and materials designed for full-stack Indian IP (intellectual property).
The India Semiconductor Mission (ISM) is a specialized, autonomous business division within Digital India Corporation under Ministry of Electronics and Information Technology (MeitY), designed to build a sustainable semiconductor and display ecosystem.
Sitharaman also announced support for mineral rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish critical mineral facilities.
She added that 'Sabka Saath, Sabka Vikas' is the third Kartavya of the government.