Budget 2026 Charts a High-Growth Path with Tech Push, Infrastructure Surge and Inclusive Reforms

Finance Minister Nirmala Sitharaman projected Budget 2026 as a blueprint for rapid expansion, job creation and deep structural transformation, underlining that India’s economic resilience is rooted in fiscal prudence, sustained public investment and long-term reforms.

Addressing Parliament in her record ninth Budget speech — the longest by any Finance Minister at 83 minutes — Sitharaman said the government’s vision of a “Viksit Bharat” rests on three core responsibilities: speeding up economic growth, strengthening human capabilities, and ensuring development reaches every citizen.

A major thrust has been placed on manufacturing, with targeted schemes for sunrise sectors such as biopharma, semiconductors, electronics, textiles, chemicals and capital goods.

MSMEs were elevated as the backbone of future growth, backed by fresh equity infusion, simplified credit access and professional support systems.

Public capital expenditure has been raised sharply to ₹12.2 lakh crore, reinforcing the government’s infrastructure-led growth model.

Investments will prioritise freight corridors, inland waterways, high-speed rail networks and the transformation of Tier-II and Tier-III cities into economic powerhouses through a new “City Economic Regions” programme.

High-tech industries emerged as standout winners.

The newly announced Biopharma SHAKTI mission, with an outlay of ₹10,000 crore, aims to position India as a global hub for biological medicines, targeting lifestyle diseases such as diabetes and cancer.

The semiconductor ecosystem received another boost through ISM 2.0, expanding beyond fabrication into design, materials and equipment manufacturing.

Meanwhile, the Electronics Components Manufacturing Scheme saw its funding nearly double to ₹40,000 crore.

To secure strategic resources, rare earth mineral corridors will be developed across Odisha, Kerala, Andhra Pradesh and Tamil Nadu.

Connectivity plans include seven new high-speed rail corridors — including Mumbai–Pune and Hyderabad–Bengaluru — and the operationalisation of 20 new National Waterways to reduce logistics costs.

For small businesses, the government unveiled a ₹10,000 crore SME Growth Fund to provide equity capital to promising enterprises under a “Champion MSME” framework.

A new cadre of “Corporate Mitras” will assist firms in smaller towns with regulatory compliance, while the TReDS platform will expand with mandatory participation from CPSEs to improve cash flows.

Agriculture and rural livelihoods will see a technology upgrade through Bharat-VISTAAR, a multilingual AI platform offering farmers personalised advice on weather and pest management.

Crop diversification initiatives will promote high-value produce such as cashew, cocoa and walnuts, alongside a Coconut Promotion Scheme in coastal states.

The Budget maintained the fiscal consolidation roadmap, pegging the fiscal deficit at 4.3% of GDP.

No changes were made to personal income tax slabs, but significant compliance relief was announced.

Several offences will be decriminalised, jail terms reduced, and prosecution eased — including complete decriminalisation of certain TDS defaults and book-keeping lapses.

Customs duties on critical minerals like monazite, as well as inputs for solar glass and nuclear energy, will be cut to enhance competitiveness.

A tax holiday till 2047 for foreign firms procuring data centre services in India aims to boost digital infrastructure.

Eastern India and the North-East received special focus through industrial corridors, tourism projects, electric mobility, and development of Buddhist circuits across states, including Arunachal Pradesh, Assam, Manipur, Mizoram, Sikkim and Tripura.

Support was also announced for agarwood cultivation and other region-specific high-value crops.

A new National Institute of Design will be set up in eastern India to strengthen creative education.

Highlighting the government’s economic journey, Sitharaman said consistent reform choices — even during global disruptions — have delivered around 7% growth, controlled inflation and significant poverty reduction.

Reacting to the Budget, IMC Chamber of Commerce and Industry Director General Ajit Mangrulkar said expectations remained upbeat, predicting continued emphasis on infrastructure, technology and growth, while noting limited movement on personal taxation.

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