Top 25 Highlights – Union Budget 2026–27
1. Capital Expenditure Boost
Capital expenditure increased to ₹12.2 lakh crore, reinforcing the government’s long-term infrastructure push.
2. Economic Growth Outlook
India’s GDP growth projected at around 7.4%, keeping India among the fastest-growing major economies.
3. Fiscal Discipline Maintained
Fiscal deficit targeted at 4.3% of GDP for FY27, continuing the consolidation path.
4. New Income Tax Law
Income Tax Act, 2025 to come into force from 1 April 2026, simplifying tax language and structure.
5. No Change in Income Tax Slabs
Personal income tax slabs remain unchanged to ensure stability and predictability.
6. Extended ITR Revision Window
Time limit to revise Income Tax Returns extended up to 31 March of the relevant assessment year.
7. Relief on Accident Compensation
Interest received on motor accident claim awards made tax-exempt.
8. Lower TCS on Foreign Remittances
TCS on education and medical remittances abroad reduced to 2%.
9. Higher Foreign Investment Limits
Investment limit for Persons Resident Outside India (PROI) in listed Indian companies increased to 24%.
10. Higher STT on Derivatives
Securities Transaction Tax (STT) on futures and options trading increased.
11. Change in Buyback Taxation
Share buybacks to be taxed as capital gains in the hands of shareholders instead of companies.
12. Infrastructure Risk Guarantee Fund
New fund announced to crowd-in private investment into infrastructure projects.
13. Seven Strategic Manufacturing Sectors Identified
Focused support to scale manufacturing in priority sectors under “Make in India”.
14. Semiconductor Mission 2.0
Outlay enhanced to ₹40,000 crore to strengthen chip manufacturing and ecosystem.
15. AI-Driven Agriculture Platform
Launch of “Bharat Vistar”, a multilingual AI-based digital advisory tool for farmers.
16. City Economic Regions (CERs)
₹5,000 crore allocated over five years to develop city-led economic growth hubs.
17. High-Speed Rail Corridors
Seven new high-speed rail corridors announced connecting major economic centres.
18. Customs Duty Rationalisation
Reduction/exemptions on key items such as aircraft parts, EV components, solar inputs and critical drugs.
19. Textile Sector Push
Integrated textile programme including mega textile parks to boost exports and employment.
20. Corporate Bond Market Reforms
Introduction of market-making framework and total return swaps to deepen bond markets.
21. Banking Sector Reforms Committee
High-level committee to review and strengthen banking regulations and governance.
22. Agriculture Value-Chain Support
Special focus on crops like cashew, cocoa, sandalwood and allied rural activities.
23. Tourism Development
Promotion of eco-tourism, heritage circuits and destination-based tourism hubs.
24. Women & Education Infrastructure
One girls’ hostel per district announced under viability gap funding.
25. Six-Pillar Growth Strategy
Focus areas include manufacturing, MSMEs, infrastructure, financial stability, urbanisation and innovation.
