Union Budget 2026 LIVE: Cabinet clears Budget for FY27; focus on growth, fiscal prudence

FM Announces Tax Relief, Lower TCS on Foreign Tours

Finance Minister Nirmala Sitharaman unveiled key tax and compliance measures in Budget 2026, focusing on relief for taxpayers and fiscal clarity. She announced that the TCS on foreign tour packages will be cut from 5% to 2%, while simplified income tax return forms will be introduced soon.

On the fiscal front, FY27 net market borrowings are pegged at ₹11.7 lakh crore, and net tax receipts are estimated at ₹28.7 lakh crore, outlining the government’s revenue and borrowing roadmap.

Tourism push: Key proposals announced

Finance Minister Nirmala Sitharaman announced a series of measures to strengthen India’s tourism ecosystem. She proposed ecological trails in Himachal Pradesh, Uttarakhand and Jammu & Kashmir; turtle trails in Kerala, Odisha and Karnataka; bird-watching trails along Pulicat Lake; and the development of 15 archaeological sites.

Promote medical-value tourism boost; new Ayurveda institutes announced

Finance Minister Nirmala Sitharaman outlined steps to position India as a global hub for medical-value tourism, including a scheme to help States establish five regional medical hubs in partnership with the private sector.

She also proposed measures to strengthen the healthcare workforce, including support for allied health practitioners and caregiver training.

On traditional medicine, she announced plans to set up three new All India Institutes of Ayurveda, upgrade AYUSH pharmacies, and enhance the WHO Global Centre for Traditional Medicine in Jamnagar.

Markets slip during Budget speech; Sensex, Nifty decline as FY27 fiscal deficit pegged at 4.3%

Equity benchmarks traded lower as Finance Minister Nirmala Sitharaman presented the Union Budget 2026, with investors reacting to key fiscal and policy signals. The Sensex and Nifty both slipped during the speech, reflecting cautious sentiment on Dalal Street.

The government projected a fiscal deficit of 4.3% of GDP for FY27, a figure closely watched by markets for cues on the pace of fiscal consolidation and borrowing needs in the coming year.

AI in focus: Govt plans high-powered panel to power services sector growth toward Viksit Bharat 2047

Aiming to make India a global leader in the services sector by 2047, Finance Minister Nirmala Sitharaman proposed setting up a high-powered committee to recommend measures to position the sector as a key growth driver for Viksit Bharat, with a focus on emerging technologies and AI.

Centre steps up infra push; public capex raised to ₹12.2 lakh crore

Reinforcing infrastructure as a core growth driver, Finance Minister Nirmala Sitharaman said the government will continue to prioritise development in Tier 2 and Tier 3 cities, particularly urban centres with populations above five lakh.

To back this push, she proposed an increase in public capital expenditure to ₹12.2 lakh crore, underscoring the Centre’s commitment to asset creation and long-term economic expansion.

She also announced the creation of an Infrastructure Risk Guarantee Fund, aimed at providing partial credit guarantees to lenders and improving financing access for infrastructure projects.

Markets volatile on (Special) Budget Day: Sensex slips 250 pts, Nifty flat; rail, defence, PSU banks in focus

Indian equity markets opened on a cautious note on Budget Day, with benchmark indices trading near the flatline before turning volatile during the Finance Minister’s speech. The Sensex fell about 250 points, while the Nifty moved in a narrow range, reflecting investor caution amid key policy announcements.

Sectoral action remained prominent, with railway, defence and PSU banking stocks drawing attention ahead of Union Budget 2026 announcements. MSME-linked counters also stayed on investors’ radar.

Among individual stocks, Meesho, Bajaj Auto, IDBI Bank and Delhivery were among the key names being closely tracked during the session.

Three-pronged plan to create champion MSMEs

Finance Minister Nirmala Sitharaman outlined a three-pronged strategy to build globally competitive MSMEs. The plan includes equity support through a ₹10,000 crore SME Growth Fund, a ₹2,000 crore top-up to the Self-Reliant India Fund, and liquidity support via the TReDS platform.

She also said the government will work with professional institutes to roll out short-term courses to create a cadre of “Corporate Mitras” to support MSME growth.

Centre unveils ‘Biopharma Shakti’ with ₹10,000 crore outlay

As part of the government’s push to scale up manufacturing across seven strategic and frontier sectors, Finance Minister Nirmala Sitharaman announced a dedicated biopharma strategy aimed at advancing healthcare and strengthening domestic capabilities.

Highlighting India’s evolving public health profile, she noted that the country’s disease burden is increasingly shifting toward non-communicable diseases, including diabetes and other chronic conditions. In response, the government plans to position India as a global biopharma manufacturing hub.

To support this goal, the Finance Minister proposed the launch of “Biopharma Shakti”, with an outlay of ₹10,000 crore over the next five years. The initiative is expected to boost domestic production capacity, encourage innovation, and enhance India’s role in the global life sciences and pharmaceutical value chain.

India to roll out Semiconductor Mission 2.0, boost electronics manufacturing push

Building on the momentum of the first phase of the India Semiconductor Mission (ISM), the government is set to launch ISM 2.0 with a broader and more integrated focus on strengthening the country’s semiconductor ecosystem.

The next phase of the mission aims to expand beyond chip fabrication to include the domestic production of semiconductor equipment and critical materials, alongside efforts to develop full-stack Indian technology capabilities. The initiative will also seek to fortify supply chains, reduce import dependence and position India as a more resilient player in the global electronics value chain.