New Delhi: Finance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026–27 on Sunday, announcing major allocations across railways, defence, agriculture, MSMEs, healthcare and infrastructure, alongside key changes in income tax provisions.

Prime Minister Narendra Modi described the Budget as “historic”, calling it a “highway of immense opportunities” that would accelerate India’s Reform Express and strengthen the foundation for a Viksit Bharat by 2047.

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While the transport sector, including the Indian Railway and roadways, had the biggest share earmarked in the Budget, the defence spending got a major boost in this year's Budget.

Sector-wise allotment of resources

In the Union Budget 2026–27, transport sector saw the highest allocation at Rs 5,98,520 crore, followed closely by defence at Rs 5,94,585 crore. Rural development has been allotted Rs 2,73,108 crore, while home affairs gets Rs 2,55,234 crore.

Agriculture and allied activities have been allocated Rs 1,62,671 crore and education Rs 1,39,289 crore. Energy spending stands at Rs 1,09,029 crore, with health receiving Rs 1,04,599 crore.

Urban development has been earmarked Rs 85,522 crore, IT and telecom Rs 74,560 crore, and commerce and industry Rs 70,296 crore.

Social welfare has been allocated Rs 62,362 crore, scientific departments Rs 55,756 crore and tax administration Rs 45,500 crore.

External affairs has received Rs 22,119 crore, finance Rs 20,649 crore, while development of the North East has been allotted Rs 6,812 crore.

Here is how allocations have been distributed in several sections of the major sectors.

The Budget has earmarked Rs 2,77,830 crore for capital expenditure for the Ministry of Railways in FY27, a 10.25 per cent increase over Rs 2,52,000 crore in 2025–26 and the highest ever allocation, PTI reported.

The funds will be used for new line construction, rolling stock procurement and infrastructure upgrades. In addition, Rs 15,000 crore will be mobilised through extra budgetary resources.

Rare earth minerals

The government announced the creation of dedicated Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu to promote mining, processing, research and manufacturing.

The move aims to strengthen domestic capacity in critical minerals and permanent magnet manufacturing, seen as essential for the modern manufacturing ecosystem.

Defence

Defence spending has been pegged at Rs 5,94,585 crore, with industry welcoming the nearly 22 per cent increase in capital expenditure. The decision to scrap basic customs duty on components used in aircraft manufacturing is expected to boost domestic production.

Defence firms said the allocation reflects India’s geo-strategic priorities, with companies such as Thales highlighting its role in modernising the armed forces.

Home Affairs

The Ministry of Home Affairs has received Rs 2,55,234 crore, up 9.44 per cent from the previous year. Nearly 68 per cent of the allocation has gone to policing, covering central armed police forces, intelligence agencies, border development and policing in Delhi and Jammu and Kashmir, PTI reported.

Capital expenditure under the police head has risen sharply, signalling a renewed focus on modernisation and infrastructure. The ministry is headed by Amit Shah.

Agriculture and allied sectors

Agriculture and allied activities have been allocated Rs 1,62,671 crore, a 7.12 per cent increase from last year.

The Budget focuses on livestock, fisheries and high-value agriculture, aiming to diversify rural livelihoods and reduce dependence on traditional crop farming, with special emphasis on small and marginal farmers.

Waterways and logistics

The Budget proposes dedicated freight corridors linking Dankuni to Surat, operationalisation of 20 new national waterways, and development of a ship repair ecosystem for inland transport.

A coastal cargo promotion scheme has also been announced to raise the share of inland and coastal shipping to 12 per cent by 2047.

Industry players, including Essar Ports, said the measures would strengthen India’s maritime and logistics backbone.

MSMEs

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To support small businesses, the government announced a Rs 10,000 crore MSME Growth Fund to create “Champion MSMEs” and mandated the use of TReDS for CPSEs. Indian Overseas Bank said the measures would improve access to credit, enhance liquidity and support balanced industrial growth with job creation.

Healthcare

Healthcare allocation has been raised by 10 per cent to Rs 1,06,530 crore. The Budget includes measures to strengthen mental health infrastructure, establish regional medical hubs, boost biopharma manufacturing, train caregivers and reduce the cost of cancer medicines. As part of the mental health push, the government announced NIMHANS 2.0 to expand access to specialised care.

New Delhi: Finance Minister Nirmala Sitharaman began the Union Budget 2026 at 11 am on Sunday. Over the past eight years, the annual Budget presentations have highlighted India’s evolving fiscal journey and emerging policy trends. February 1 is particularly significant this year as it marks the first time the Union Budget will be presented on a Sunday.

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Here are the key updates of Union Budget 2026:

Beginning her speech in the Parliament, Nirmala Sitharaman says that Budget 2026 is "Yuva Shakti" driven and will focus on key sectors for fiscal development.

Budget 2026 Highlights: Sitharaman proposes customs, excise reforms to support Make in India

Nirmala Sitharaman Budget speech LIVE: Finance Minister Nirmala Sitharaman outlined measures to simplify customs and excise duties and boost domestic manufacturing in the Union Budget 2026-27.

She said: “My proposals for Customs and fiscal excise aim to further simplify the tariff structure, support domestic manufacturing, promote export competitiveness and correct inversion in duty."

“To continue weeding out long continuing customs duty exemptions, I propose to remove certain exemptions on items which are being manufactured in India or where the imports are negligible,” she added.

The union minister said, "To further simplify the process of ascertaining the rate of duty applicable on a particular item, I propose to incorporate certain effective rates in various customs notifications to the tariff schedule itself.”

Budget 2026 Highlights: FM proposes lower TCS rates for overseas travel, education

Nirmala Sitharaman Budget speech LIVE: On direct taxes, finanace minister Nirmala Sitharaman proposed easing compliance for taxpayers under the Union Budget 2026-27.

She announced: Reducing TCS on sale of overseas tour packages from 5% and 20% to 2%, with no minimum amount stipulation.

She added that TCS for remittances for education and medical purposes under the Liberalised Remittance Scheme will be reduced from 5 per cent to 2 per cent.

Budget 2026 Highlights:  FM proposes six-month foreign asset disclosure scheme for small taxpayers

Finance minister Nirmala Sitharaman proposed a six-month foreign asset disclosure scheme under the Union Budget 2026-27.

The scheme will benefit small taxpayers such as students, tech professionals, and relocated NRIs, providing them an opportunity to regularize foreign assets with ease.

Budget 2026 Highlights: FM Sitharaman proposes extension, staggered deadlines for filing Income Tax returns

Union FM Nirmala Sitharaman says, "I propose to extend time available for revising returns from 31st December to up to 31st March with the payment of a nominal fee. I also propose to stagger the timeline for filing of tax returns - individuals with ITR 1 and ITR 2 will continue to file till 31st July and non-audit business cases or trust are proposed to be allowed time till 31st August."

Budget 2026 Highlights: 'Self-help entrepreneur marts To support women entrepreneurship', says FM Sitharaman

Self-Help Entrepreneur (SHE) Marts to support women entrepreneurship

Budget 2026 Highlights: Centre retains 41 per cent tax devolution; Rs 1.4 lakh crore allocated to states for FY27

 Union Finance Minister Nirmala Sitharaman says,"...The Government has accepted 16th Finance Commission recommendations to retain the vertical share of devolution at 41 per cent. I have allocated Rs 1.4 lakh crores for states for FY2026-27."

Budget 2026 Highlights: 'Will develop ecologically sustainable mountain trails in Himachal Pradesh, Uttarakhand..': FM Sitharaman

Union Finance Minister Nirmala Sitharaman says,"...We will develop ecologically sustainable mountain trails in Himachal Pradesh, Uttarakhand and Jammu & Kashmir, also in Araku Valley in Eastern Ghats and also Western Ghats. Turtle trails along key nesting sites in Odisha, Karnataka and Kerala will be developed..."

Budget 2026 Highlights: 'Indian design industry expanding rapidly', says FM Sitharaman

The government to establish through challenge route new national institute of design in East India. The government to support states through challenge routes to create five university townships. Planned academic zones to host multiple colleges, skill centres, residential areas.

Budget 2026 Highlights: Upgrade WHO traditional medical centre In Jamnagar

The government plans to upgrade WHO traditional medical centre in Jamnagar.

Budget 2026 Highlights: FM proposes to set 3 new All India Institutes of Ayurveda 

Union Finance Minister Nirmala Sitharaman says,"... I propose to set up three new All India Institutes of Ayurveda; Upgrade Ayush pharmacies and drug testing labs and make available more skilled persons; Upgrade the WHO global Traditional Medicine Centre in Jamnagar"

Budget 2026 Highlights:  25 crore people have moved out Of multi-dimentional poverty over 10 years, says FM Sitharaman

Close to 25 crore individuals have come out of multi-dimentional poverty over 10 years, said Finance Minister Nirmala Sitharaman

Budget 2026 Highlights: FM proposes to establish National Institute of Hospitality

Nirmala Sitharaman Budget speech LIVE: Finance Minister Nirmala Sitharaman proposed the establishment of a National Institute of Hospitality to strengthen India’s tourism and hospitality sector. The institute will act as a bridge between academia, industry, and the government, she said.

Budget 2026 Highlights: FM Sitharaman proposes high-level banking committee for ‘Viksit Bharat’

Union FM Nirmala Sitharaman says, "I propose setting up a high-level committee on banking for Viksit Bharat to comprehensively review the sector and align it with India's next phase of growth, while safeguarding financial stability, inclusion and consumer protection."

Budget 2026 Highlights:  FM Sitharaman outlines manufacturing push, MSME boost, infrastructure drive

Finance Minister Nirmala Sitharaman said the government proposes to scale up manufacturing across seven strategic sectors while rejuvenating legacy industrial sectors to boost productivity and global competitiveness. She said the Centre aims to create champion MSMEs to further strengthen the Indian economy, alongside a continued push for infrastructure development across the country.

The Finance Minister added that the government will focus on ensuring long-term security and stability in economic and financial systems, while also developing economic regions within cities to drive regional growth and accelerate urban development.

Budget 2026 Highlights:  Centre to boost infrastructure in Tier-2 and Tier-3 cities: FM Sitharaman

On infrastructure, Union Finance Minister Nirmala Sitharaman says,"...We will continue to develop infrastructure in cities with over 5 lakh population, that is, tier 2 and tier 3 cities."

Budget 2026 Highlights:  FM Sitharaman proposes Rs 20,000-crore outlay for CCUS technologies over five years

Union Finance Minister Nirmala Sitharaman proposes an outlay of Rs 20,000 crores over the next 5 years in Carbon Capture Utilization and Storage (CCUS) technologies to scale up and achieve higher readiness levels in end-use applications across.

Budget 2026 Highlights: FM Sitharaman proposes new freight corridors, 20 waterways to boost Green Cargo Movement

Union Finance Minister Nirmala Sitharaman says, "To promote environmentally sustainable movement of cargo, I propose to establish new dedicated freight corridors connecting Dankuni in the east to Surat in the west, operational 20 new waterways over the next 5 years, starting with national waterways 5 in Odisha to connect mineral-rich areas of Talcher and Angul and industrial centres like Kalinganagar to the ports of Paradip and Damra. A ship repair ecosystem, catering to inland waterways, will also be set up at Varanasi and Patna..."

Budget 2026 Highlights: FM proposes launch of Mahatma Gandhi Gram Swaraj initiative

Union Finance Minister Nirmala Sitharaman says,"...I propose to set up mega textile parks in challenge mode. I propose to launch the Mahatma Gandhi Gram Swaraj initiative to strengthen Khadi and handloom."

Budget 2026 Highlights: India Semiconductor Mission 2.0 launched with Rs 40,000 crore outlay

Nirmala Sitharaman Budget speech LIVE: Finance Minister Nirmala Sitharaman announced the launch of India Semiconductor Mission 2.0 as part of the Union Budget 2026-27, aimed at strengthening the country’s semiconductor ecosystem. Key highlights include: Focus on industry-led research and training centres for semiconductors. Increased outlay of ₹40,000 crore to capitalise on the momentum of the semiconductor mission. Support for mineral-rich states including Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. Launch of a scheme to help states establish three dedicated chemical parks through a challenge route, boosting domestic manufacturing capabilities.

Budget 2026 Highlights: FM Sitharaman announces scheme to boost domestic manufacturing of construction equipment

Union Finance Minister Nirmala Sitharaman says,"...A scheme for enhancement of construction and infrastructure equipment will be introduced to strengthen domestic manufacturing of high-value, technology-advanced CIE. This can range from firefighting equipment to a lifts to tunnel boring machines."

Budget 2026 Highlights: 'To support mineral-rich states in establishing rare-earth corridors': FM 

 Union Finance Minister Nirmala Sitharaman says,"...A scheme for rare earth permanent magnets was launched in 2025. We now propose to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu in establishing dedicated rare-earth corridors."

Budget 2026 Highlights: 'National Fibre Scheme for self-sufficiency in space': FM

Finance Minister Nirmala Sitharaman proposed a National Fibre Scheme for self-sufficiency in the space.

Budget 2026 Highlights: FM Sitharaman praises BJP's 12 years in govt

Nirmala Sitharaman Budget speech LIVE: Nirmala Sitharaman says," Since we assumed office 12 years ago, the country's economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation." She credited this change to be the "result of conscious choices we have made even in times of uncertainty and disruptions."

Budget 2026 Highlights: 'Government Has Preferred Reform Over Rhetoric': N Sitharaman

While presenting her ninth consecutive budget, Finance Minister Nirmala Sitharaman said the government has preferred reform over rhetoric.

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Budget 2026 Highlights: India's economic trajectory marked by stability over 12 years

"Since we assumed office 12 years ago, India's economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation. This is the result of conscious choices we have made."

New Delhi: Finance Minister Nirmala Sitharaman is all set to present the Union Budget 2026 on Sunday. Over the past eight years, the annual Budget presentations have highlighted India’s evolving fiscal journey and emerging policy trends. February 1 is particularly significant this year as it marks the first time the Union Budget will be presented on a Sunday.

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This year’s Budget will be Sitharaman’s ninth consecutive Union Budget, including an interim Budget, making her the first Finance Minister to achieve this milestone. She will also become the first Finance Minister to present the Union Budget on a Sunday.

What all changed in the Union Budget over the years

Until 1999, the Union Budget was traditionally presented on the last working day of February. This convention changed when February 28 fell on a Sunday, prompting then Finance Minister Yashwant Sinha to present the Budget a day earlier.

Sinha also altered the long-standing timing of the Budget presentation. Earlier, the Budget was presented at 5:00 pm, a practice introduced during British rule to align with working hours in the UK. By shifting the timing to 11:00 am, the minister ensured the proceedings continued throughout the day in India.

In 2017, the BJP-led NDA government introduced another reform by advancing the Budget presentation to February 1. In 2019, the Centre replaced the colonial-era briefcase with a red cloth folder embedded with the national emblem, reflecting Indian tradition.

'Towards a paperless budget'

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From 2021, the traditional bahi khata was replaced with a digital tablet, marking a shift toward paperless budgets.

Independent India’s first Union Budget was presented on November 26, 1947, by the country’s first Finance Minister, RK Shanmukham Chetty. Nirmala Sitharaman will present the Union Budget 2026 at 11:00 am in Parliament, outlining key fiscal priorities and economic measures for the country.

Kolkata: Keep it simple GST style -- this is what India Inc and man experts are urging finance minister Nirmala Sitharaman to do with the complex web of customs duties to boost trade and accelerate resolution of disputes. Ahead of the budget the reforms that industry wants to see in the field of customs a slew of reforms involving rationalisation of customs duty rates and cutting down the existing eight-slab structure to five or six at the most. The investors also the government to introduce a single-window clearance mechanism for imports and exports.

Apart from the overhaul of customs duty structure, industry also wants quick action on amnesty schemes to unlock Rs 1.53 lakh crore which is mired in disputes. In short, the ease of doing business in the domain of customs has to go up.

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Single window can cut down on bureaucracy

Gulzar Didwania, partner of Deloitte India has eloquently described what ails the customs sector. "Currently, an importer or an exporter has to approach various government departments and ministries to get clearance for their shipments. That is becoming a big hindrance in doing trade. While I am ready to comply with all these things, at least I should know that this is the department where I should go... Customs already has a provision under the Customs Act, which empowers them to act as a single window for all these import export related licensing requirements. We want this facility to be launched as soon as possible, so that it actually achieves the real, true spirit of single window clearance," Didwania was quoted in the media as saying.

Digitisation of litigation

India Inc also wants to bring the fruits of digitisation to the world of customs. It is also urging the government to announce a system which will end the quagmire in which nothing less than Rs 1.52 lakh crore is stuck in legal disputes. Also on the wishlist is an AEO (authorised economic operator) scheme which can usher in timelines for certification. They point out that such a practice will help importers, exporters, and customs brokers to get trade facilitation from foreign customs administrations.

Parallels of "Sabka Vishwas" and "Vivad se Vishwas"

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If "Sabka Vishwas" and "Vivad se Vishwas" can address prickly issues in central excise, service tax, and income tax disputes, why not introduce similar schemes in customs, ask experts. EY India Tax Partner Saurabh Agarwal was quoted in the media as saying, "To effectively arrest spiralling litigation, it is imperative to introduce a Customs Dispute Resolution Scheme coverin cases pending up to the Tribunal level. Crucially, the architecture of this scheme must shift away from the 'complete settlement of a pending litigation' approach to adopting an 'issue wise' or 'year-wise' settlement mechanism. Such a pragmatic move would not only unlock stuck revenue but also foster a predictable tax environment essential for global Invertors."

"Sabka Vishwas" was targeted at indirect taxes such as service tax/excise, while "Vivad se Vishwas" pertained to income tax disputes pending in tribunals or courts.

Kolkata: What sits on less than 3% of the Indian land but contributes to 60% of the GDP? Answer: its cities. India can still live in the villages but the economic pulse throbs in the cities. Against this rapidly urbanising scenario, management consultancy MNC PWC has focused on transport solutions in the expanding cities and has pointed out that pollution, congestion, hygiene, safety, ageing populations and rising expectations of convenience are all touchpoints to satisfy while trying to create affordable, fast, clean, and reliable public transport against a broad challenge of tight fiscal space. PWC has emphasised that five priorities stand out. These are:

Models for all cities projected to be million-plus

The budget should mandate transport models for all cities whose population will be more than 10 lakh by 2030, said PWC. This should be done so that "city-wide integrated transport and land-use models enable testing of the impact of proposed projects, simulate policy changes and prioritise investments based on measurable outcomes, and solve congestion by treating it not just as a transport problem but equally as a land-use and demand-management problem,".

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For the million-plus cities, PWC's recommendation is, the Centre should make access to major urban transport funds. This should be contingent on regularly updating integrated transport and land-use models as well as using these models to appraise projects such as metro rail, BRT, elevated corridors and widening of large roads. It also said that these should be periodically reviewed updated to create comprehensive mobility plans based on the ground performance.

Creating a central nudge unit

PWC think a Central ‘nudge unit’ for urban behaviour and design should be created. It would trigger civic discipline and then embed the insights into standard, funding condition and capacity-building programmes. It can gp a long ay in ensuring infrastructure is used by studying how people actually use streets and public spaces and accordingly develop model design guidelines and low-cost interventions such as overpasses, subways and crossings.

Five-year rolling capital commitments

PWC has also harped o the need for large capital for transport infrastructure and come up with the recommendation of non-lapsable funds. "Large urban transport projects—metros, BRT corridors, depots, multimodal hubs—require long-term capital visibility. Yet, the current system of annual, stop–go budgeting creates uncertainty. Private contractors invest heavily in tunnelling machines, casting yards, and specialised equipment, and delayed or unpredictable payments increase their risk, which ultimately shows up as higher bid prices," is has said

Against this backdrop, the consultant has recommended that a non-lapsable urban transport fund under the Ministry of Housing and Urban Affairs with five-year rolling capital commitments should be created. The government should also provide multi-year sanction letters for approved projects. PWC thinks that there should be faster flow of funds directly to city or metro rail corporations, subject to milestones and governance standards.

O&M fund

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An operations and maintenance challenge fund should be created for operations and maintenance of roads, flyovers, metros, depots and fleet of electric buses. The country has to come out of ‘build–neglect–rebuild’ or ‘buy–neglect–repurchase’ cycle that destroys value and erodes public confidence, the agency has said.

PWC has also emphasized the creation of a common technology framework and skilling ecosystem for advanced traffic management systems, intelligent transport systems, fare collection platforms and fleet management systems. "To manage this complexity, the Centre should promote a common technology framework," PWC has mentioned in its note.

Kolkata: As India moves towards the government's over arching goal of attaining the status of a developed nation by 2047, the importance of technology sovereignty in building an ecosystem for resilient electronics and semiconductor manufacturing is rising constantly. Management consultant major PWC has set out its recommendations towards that end. The broad objective is to work out a space for India in the global value chain (GVC), says PWC. "A continued policy push towards electronic components and semiconductor manufacturing is critical to ensure supply chain ecosystem development, reducing lead times and improve reliability," PWC has stated in its pre-Budget note.

MSME incentives limited

PWC thinks it is essential to incentivise the role of the MSMEs in India in the electronic components ecosystem. It has stated that MSMEs account for 25–35% of the industry and capital support along with continued access to advanced technology and skilled talent essential for this sector. "It is imperative to extend the focus from fabs towards development of critical input materials such as gases, chemicals, and substrates. Incentive support, infrastructure readiness. and promotion of long-term strategic partnerships will be essential to attract players who have the potential to supply domestically to Indian manufacturers, thereby enabling investors to save costs on logistics," said the consultant expert agency.

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Identifying the factors that are important for semiconductor manufacturing, PWC said expertise in each of these linkages should be improved. "In line with the Government of India’s vision of building self-reliance in semiconductor manufacturing, in addition to critical utilities such as power supply and ultra-pure water supply, establishment of industry benchmarks across road infrastructure, cold-chain logistics for high-precision equipment, and transportation systems to handle high-purity gases is essential," PWC stated in the note.

Industry–academia collaboration

Electronics is an area where R&D has a big role to play and in this connection, industry–academia collaboration assumes significance. "Incentives to raise R&D expenditure, IP development, and retention are required to increase technological advancement and industrial competitiveness, thereby enhancing industry–academia collaboration," it mentioned. Besdies this, the government should adopt a focused approach to develop a talent pipeline with establishment of dedicated training fabs and simulation facilities.

Made in India for the world

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The government is pursuing self reliance in manufacturing as a broad principle. PWC has said that to boost exports in electronics and semiconductor products the government can rationalise tax and duties and export subsidies. It is also important that businesses have access to low-cost capital and other support mechanisms.

There are 46 approved applicants under the Electronics Component Manufacturing Scheme. It can boost manufacturing in this sector. PWC mentions that there should be effective integration of tier-2 and tier-3 suppliers. On the matter of exports of electronics and semiconductor products, matters such as duty drawbacks, export subsidies are important. Also there is need to rationalise import duties on essential components, raw materials and equipment to reduce costs.

Kolkata: Civil aviation is one of the most important sectors of transportation in a developing and fast-growing economy such as India. As speed of travel assume increasing significance, civil aviation becomes more and more important. Headline numbers indicate India is the third largest aviation market in the world after the US and China. In 2025, about 25 crore passengers are supposed to have taken to the air and the sector is rising at an annual rate of 10%.

With finance minister Nirmala Sitharaman set to present the Union Budget on Sunday, Feb 1, it is important to have a look at what are the expectations from this crucial sector. Significantly, the civil aviation sector has been in the news for all the wrong reasons lately -- the severe disruptions of service of Indigo and before that the Ahmedabad air crash of Air India that took about 270 lives. Let's take a look at what the Budget recommendations of PWC for this crucial sector are.

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World-class aviation infrastructure

A developed nation cannot be imagined without a developed aviation infrastructure. PWC thinks India needs a multi-pronged strategy that will incorporate building new airports, expanding metropolitan aviation hubs and modernising existing airports to support long-term economic growth. The act of modernizing existing airports can be undertaken through public–private partnerships (PPP), PWC said. The number of PPPs is expected to rise from 14 to 25 in the next couple of years in accordance with the National Monetisation Pipeline (NMP), the agency mentioned in its report.

Inclusive and balanced regional connectivity

The UDAN scheme will be further strengthened to ensure affordable and reliable air connectivity for all regions, with focused interventions for hilly, remote, and North-Eastern areas, promoting balanced regional development, said the consultancy major.

Aviation fuel taxation

Aviation fuel costs are a significant cost of operating air service. PWC has said that efforts should be made to progressively bring aviation turbine fuel under the GST framework, to improve efficiency and competitiveness. It also mentioned that states have to be incentivised to VAT on ATF.

Atmanirbhar aviation ecosystem

PWC said that the GIFT City can be strengthened as a global hub for aircraft leasing and financing. Alongside capabilities of domestic businesses in maintenance, repair and overhaul, and aerospace manufacturing have to be scaled up.

Global connectivity and AI-enabled air traffic management systems

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PWC mentioned a few more points which are significant. These range from enhancing global connectivity to deployment of AI-enabled air traffic management systems. "India will modernise bilateral air service agreements and develop its airports as globally competitive transit hubs, reinforcing the country’s position in the international aviation landscape," PWC mentioned in its report.

It also said, "A seamless digital air travel ecosystem will be created through the expansion of DigiYatra, deployment of AI-enabled air traffic management systems, and transition to end-to-end paperless processes." The management consultancy also mentioned the need to promote sustainable aviation fuels and development of carbon-neutral airports. The Directorate General of Civil Aviation’s (DGCA) regulatory and safety oversight in line with global best practices, PWC thinks.

Kolkata: Job creation has emerged on top of the list of expectations that India Inc has, a survey by leading chamber of commerce Ficci has found. Next in he line of priorities that Ficci members would like to see finance minister Nirmala Sitharaman deliver are thrust on capital expenditure, support to exports, thrust on consumption, price stability, fiscal consolidation and focus on social sector spending (in that order).

"India Inc identified job creation as the top priority, with 71 per cent of respondents emphasizing it, alongside a strong call for sustaining capital expenditure, cited by about 61 per cent as essential for supporting growth and investment," Ficci said in its survey report. In a first, the Union budget will be presented on Sunday, Feb 1, 2026.

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Expectations from Union Budget 2026-27

The question asked in he survey by FIIC: Given the current situation, in your assessment, what should be the major macro-economic themes for the Union Budget 2026-27? Three responses were taken from each respondent. The responses are as follows:

Job creation: 71%

Thrust on capital expenditure: 61%

Support to exports: 54%

Thrust on consumption: 43%

Price Stability: 27%

Fiscal consolidation: 23%

Focus on social sector spending: 10%

Ficci said that the survey was conducted between end December 2025 and mid January 2026. The results are based on responses from around 100 companies belonging to a wide array of sectors.

Waiting for clear policy direction

Budget 2026 will be placed against a "fragile and uneven" global economic environment with risks arising from geopolitical tensions, trade fragmentation, financial market volatility and climate-related shocks continuing to weigh on prospects.

Ficci said the Union Budget will be expected to provide "clear policy direction to sustain growth, crowd in private investment and preserve macroeconomic stability". The chamber of commerce has labelled the budget as an opportunity to strengthen confidence, support consumption and employment, and lay the groundwork for durable and inclusive growth.

Growth expectations

About 50 per cent respondents expect a GDP growth rate between 7 per cent and 8 per cent in the next fiscal year (2026-27), which is similar to the current financial year. Industrialists expect the government to adhere to the fiscal consolidation efforts while 42 per cent participants expect government to achieve the fiscal deficit target of 4.4 per cent.

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In terms of policy thrust areas, more than 50% of the respondents emphasised reducing regulatory compliances and promoting research and development. They also emphasised futuristic digital technologies. "To enhance India's export performance and integration into global value chains, respondents emphasised streamlining trade facilitation and customs processes, reducing logistics and port-related bottlenecks, and strengthening export incentive and refund mechanisms," the survey mentioned.

In order to streamline the customs process, the respondents pointed to simplification of customs regulations, ongoing customs duty rationalisation, greater digitisation and improved adjudication which need reforms.

Kolkata: As Feb 1 draws near, speculation as to what Budget 2026 can contain is peaking. Whatever the outcome, there are few things almost everyone agrees upon. And that is in the Budget, the government should try to do everything that is required to maintain and further boost GDP growth rates, generate employment, boost consumption and invest in infrastructure. Leading chamber of commerce Confederation of Indian Industry (CII) has submitted a recommendation to the finance ministry that urges for a continuation of capital expenditure which the Modi government has been stepping up over the past few years, a push to digitisation with a dedicated fund and tariff reform that can provide a thrust to export competitiveness.

Shovel-ready projects

Among the recommendations of CII is emphasis on sustaining the capex push. CII states, "... a revitalised, Rs 150 crore, National Infrastructure Pipeline (NIP) 2.0 could be launched. The focus should be on shovel-ready, revenue-generating projects and streamlined dispute-resolution mechanisms to accelerate infrastructure delivery and crowd-in private investment".

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The chamber of commerce has also urged the government to set up Development and Strategic Funding mechanisms to enhance India’s long-term competitiveness. They have said that an India Development and Strategic Fund can be created. It will be a sovereign-anchored platform to mobilise large pools of domestic institutional capital and foreign investment. "The IDSF could operate through two complementary arms: a developmental arm to support domestic priorities such as MSMEs, energy transition, and human capital; and a strategic arm to enable overseas acquisitions and partnerships that secure India’s long-term economic and security interests," CII has said.

Financial sector ecosystem

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CII wants the capital base of Development Financial Institutions to be enhanced. It has called for selective NBFC-to-bank transitions, allowing calibrated foreign equity, encouraging the entry of well-capitalised new banks, and consolidating weaker institutions to improve scale and efficiency. The chamber of commerce has also suggested that an expert committee could be set up "to reassess banking structures, ownership and governance norms, capital frameworks, and long-term institutional design for a future ready financial sector". It has also named the Narsimhan Committee as an example. CII has also suggested some measures to attract global capital and unlock liquidity. It has said that pilots could be launched using the GIFT City so that eventually a vibrant secondary market can be created with deep investor participation.

Business confidence high

CII stated that business confidence appears to be high among Indian Inc as signaled by its own Business Outlook Survey. It rose for the third quarter on the trot to a level which is the highest in the past five quarters. Domestic demand has been a major driver of this optimism. And two-thirds of firms has experienced higher demand in Q2FY26 and 72% is expecting more growth in Q3FY26.

Kolkata: The real estate sector is an extremely important sector in terms of the bigger picture. If the real estate sector improves, it triggers benefits for a number of labour-intensive domains such as cement, steel, bricks, electricals, decorative paints, sanitaryware, consumer durables, furniture, wood and last but not the least, the construction industry. Therefore, policymakers are usually eager to pave the way for a buoyant real estate sector.

Before approaching the subject of real estate sector, it must be borne in mind that in the GST rejig in September 2025, the indirect taxes on cement has been brought down, the taxes on wood has come down too, boosting the sector. The overall construction costs has come down by about 3-4% indicated reports, which has helped the affordable housing segment directly.

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Therefore, one goes to the Budget with the realisation that affordability issues continue to plague the real estate sector but the premium segment flourished. On the commercial real estate front, emerging sectors such as student/health housing attracted significant investment. The real estate sector is now urging for continuity of policy and targeted benefits.

Stability in policy

Significantly, there is no expectation of big bang announcements from the real estate sector. Rather, experts are looking for policy stability and smooth execution. Continued spending on infrastructure targeted fiscal benefit and lower cost of capital can continue to boost the sector as well as support employment generation, says analysts. "The lowering of interest rates by the Reserve Bank can go a long way in improving demand for the affordable sector, which is an important aspect," says investment strategist and Wishlist Capital director Nilanjan De, though he pointe out that it does not fall in the purview of the budget.

Spending on infrastructure

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Experts pointed out that spending on infrastructure remains central to expectations in related industries. Rajan Luthra, CFO of ACE-Action Construction Equipment has pointed out that continued capital expenditure should support economic activity. It would also revive demand for construction equipment. On the construction front, private capex, exports and large projects such as airports, railways and freight corridors can boost demand in real estate. Luthra also emphasised lower interest rates can encourage investment. Mohit Goel, managing director of Omaxe told the media that they can see robust potential in Tier 2 and Tier 3 cities. Improving urban infrastructure and better connectivity are stimulating this demand.

Clearer REIT norms

Some analysts also pointed to tax rationalisation for homebuyers as a crucial to creating demand. Binitha Dalal, founder and managing of Mt. K Kapital has told the media that affordability in housing, GST rationalisation for construction and redevelopment and clearer REIT norms could go a long way to boost this sector. She also thinks the government will provide incentives for green buildings and sustainable construction.

Kolkata: Is Budget 2026 going to provide income tax relief? More specifically, after the big reliefs that she provided in the last budget on income tax, will FM Nirmala Sitharaman be munificent enough to open her purse strings again? These are questions that are on many lips and definitive answers cannot be provided before the FM ends her Budget speech -- don't forget, direct tax proposals always come at the end of any budget speech.

However, before approaching the subject of direct taxes, one must realise the macro picture. The government is trying its best to stoke consumption in the country. In 2025 when the FM announced that she is making an annual income of Rs 12 lakh free from income tax, her main objective was to inject life in the private consumption scenario. The relief put significant amount of additional cash in the hands of the average salaried citizen from April 2025. In September 2025, the GST Council rolled out the biggest GST rejig yet, bringing down the indirect tax rates on 91% of the products and services.

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On its part, RBI too trimmed the Repo Rate by 125 basis points to bring down the interest rate on loans to boost consumption. If the government thinks that consumption is yet to reach the desired level, the FM could seriously consider another round of income tax relief. But on the flip side, fiscal constriants and the need to raise the Tax-GDP ration could be a dampner to this objective of the government.

According to analysts, there could be some relief in the form of rationalisation of income tax slabs under the new tax regime. There are also hopes of higher deductions and inflation-linked slabs.

Highest slab threshold to be raised?

The highest income tax slab now becomes effective as one crosses the income of Rs 24 lakh a year. But given the impact of inflation over the past few years, this threshold needs upward revision. For example, Akhil Chandna, partner, Global People Solutions Leader, Grant Thornton Bharat, has told the media that this threshold should be raised to an annual income of Rs 35 lakh. His logic: nominal wage growth has been eroded by living expenses and taxpayers encounter higher rates without genuine wealth gains.

Other changes direct tax changes expected

Direct tax expectations this year include a higher basic exemption limit too. Additionally there are hopes of higher deductions under Sections 80C, 80D, and 80CCD. Tax experts are also hoping for a higher standard deduction, now at Rs 75,000 under the new tax system.

Other tax expectations are restoration of the indexation benefits on debt mutual funds and simpler capital gains taxes. One also hopes that the new tax system allows some tax deductions, though that could interfere with its simple structure. Those who opt for home loans are keen to see higher interest deductions on home loans.

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Additionally, the government could further goad individuals towards the new tax regime. The government could also signal a phase-out of the old regime. With interest rates in the downwards spiral to stoke consumption, senior citizens and retires could ask for protection of interest income more effectively than the 50 basis points that is paid over and above the normal band to senior citizens.

Analysts also pointed out that there could be announcement on taxation of ESOPs, NPS incentives and insurance-related deductions.

New Delhi: The central government is expected to announce a big decision regarding the tax rules related to foreign companies in the Budget 2026. The new tax rules could be implemented for companies, which are earning good income through digital or technology without setting up a big office or factory in India. The government is considering introducing such rules so that the tax system can be made cleaner, easier and dispute-free.

So far, the tax on a foreign company in India is clearly levied only when it is considered a permanent establishment. But in the era of digital companies, it has become difficult to determine whether the company's real presence is in India or not. Due to this confusion, many companies have received tax notices and long cases are going on. Now the government is considering replacing the old rules with a formula-based tax system, in which a certain part of the company's profits will be taxed on the basis of income linked to India.

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Negotiations on a global tax regime under the OECD are underway across the world, but it is constantly being delayed. In such a situation, the Indian government does not want the country's tax rights to weaken. This is why it is preparing to introduce such a system at the domestic level, so that foreign and multinational companies get certainty in tax and the government gets the right revenue.

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According to the ET report, if the payment received directly from India to a foreign company is less than Rs 10 lakh, then it will not be taxed. But if this limit is exceeded, then a certain formula will determine how much profit will be subject to tax in India. This will provide relief to small companies and startups, while the same rules will apply to big digital and tech companies. Apart from this, the government is also taking care that double tax is not imposed on companies. If an Indian affiliate company has already paid tax, then the foreign company will get tax credit on the same profits. This will make the system more fair and transparent.

Many GCCs and data centres in India have faced tax uncertainty so far. With the implementation of the new rules, they will clearly know how much tax is to be paid and why. This will improve the investment climate and may reduce litigation. If these changes are implemented in Budget 2026, India can emerge as a digital-friendly but tax-smart country. It is possible that the tax rates may not be reduced directly, but when the rules are cleared, companies will invest more, which will benefit both employment and the economy.

Kolkata: The mutual fund industry has turned out to be a preferred route for investment by a large section of the Indian middle and lower-middle class. They are putting a huge amount of money every month -- well over Rs 1,000 crore every day -- just in the form of SIP (Systematic Investment Plan) in mutual fund schemes. They have a few concrete expectations from FM Nirmala Sitharaman who will present the Union Budget on Sunday, Feb 1, 2026.

The Association of Mutual Funds in India has submitted a representation to the finance ministry with a voluminous list of 27 proposals. Needless to say all of these pertain to a conducive experience for the investor. One of the most significant benefits sought is restoration of long-term indexation benefit on debt schemes, which was abolished on and from April 1, 2023. The mutual fund industry body also sought separate deduction for investment in Equity Linked Savings Scheme under the new tax regime. Right now, the new income tax regime offers minimal deductions and there is no separate deduction for ELSS under the new tax regime. ELSS benefits offers up to Rs 1.5 lakh under section 80C of the Income Tax Act 1061 but only in the old tax regime.

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Significance of indexation benefits

If the long term indexation benefits are restored in debt funds, it could bring a lot of benefits, as pointed out by Wishlist capital director and personal investment strategist Nilanjan De. "One can expect concrete benefits if the indexation benefits are restored for debt funds. It can adjust the purchase price of debt fund units to account for inflation, which in turn, raises the cost basis and bring down the taxable capital gains. Considering an investor holds debt fund units for more than three years, the tax rate would come down significantly," he says. De also points to collateral benefits such as overnight rise in appeal of debt funds to conservative investors and direct rise in net flows to debt funds. The withdrawal of this benefit has impacted the flows into debt funds over the past three years, AMFI has noted.

Corporate bond market

AMFI is of the opinion that proper tax treatment for debt funds can have another major collateral benefit and that is the development of the corporate bond market, which will get increased flow of household savings. Flows into the corporate bond mutual funds can help develop the corporate bond market and it can contribute to reducing borrowing costs and raise market liquidity.

Other recommendations

Among other pleas to the finance ministry, AMFI has said that the threshold limit of withholding tax (TDS) on income distribution by mutual fund scheme be raised. This threshold is at Rs 10,000 from the current financial year. The MF body thinks this limit is too low. It also urged for removal of Securities Transaction Tax (STT) on purchase or sale transactions undertaken in units of mutual fund.

AMFI also said that ‘Equity Oriented Funds’ should include investment in Fund of Funds schemes which invests a minimum of 90% of the corpus in units of equity oriented MF schemes (which in turn invest minimum 65% in equity shares).

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AMFI has also proposed to introduce Debt Linked Savings Scheme in order to boost the corporate bond market. It has also said that ELSS Rule 3A should be amended so that any amount, and not necessarily in the multiples of Rs 500, can be invested in ELSS.

The MF body also suggested that LTCG on listed equity shares or units of equity-oriented fund schemes held for more than one year and up to three years. The LTCG tax of 12.5% should be applicable on the capital gains exceeding Rs 2 lakh in a financial year.

New Delhi: Union Finance Minister Nirmala Sitharaman will present the Union Budget 202627 on 1 February. This time the budget is coming at a time when the impact of US tariffs and geopolitical tensions remain a matter of concern across the world. In such a situation, all eyes are on the upcoming budget.

Budget 2026: Emphasis may be on AI

The industry believes that this time Artificial Intelligence (AI) infrastructure should get priority in the budget. According to Happiest Minds CEO Shridhar Mantha, India should move towards becoming a global leader, not just a consumer of AI. For this, indigenous hardware, data centers, support to startups, tax incentives and skilling programs are necessary.

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Insurance sector

There are also high expectations from the insurance sector. Ashwini Dhanawat, CIO of Shriram General Insurance, says that insurance penetration in India is now very low compared to GDP. Steps like tax relief on health insurance, strengthening Ayushman Bharat and improving the claim settlement process should be taken in the budget.

Manufacturing sector

In the manufacturing sector, especially the footwear and consumer goods industry, the need for long-term policy support is being told. According to Yashesh Mukhi, founder of Chupps, only short-term incentives will not work, but it is important to promote quality manufacturing and innovation.

Logistics sector

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Experts associated with logistics and trade believe that India's global competitiveness will depend on how fast and reliable the cargo movement is. According to FedEx representative Kami Viswanathan, the focus on air cargo infrastructure and digital custom clearance systems is the need of the hour.

Markets also have expectations from the budget. Investors are expected to get income tax relief, tax expenditure of around Rs 11.512 lakh crore and fiscal deficit to be kept around 4.4%. Overall, Budget 2026 is expected to give new impetus to growth, employment and innovation.

Kolkata: Agriculture is one of the most important pillars of the Indian economy. Apart from generating direct massive employment for the rural sectors, it underpins the growth of the economy through food processing industries. The agriculture sector contributed 18.2% of GDP (constant prices) and provided employment to about 50% of the workforce. Days away from the Union budget, there are hopes of higher spending in infrastructure, research and development and climate-smart farming. It should be noted that 2026 has been labelled as the International Year of Women Farmers.

Interestingly, climate-smart agriculture is a holistic approach that combines traditional knowledge and modern technology. It is designed to boosts food security by sustainably increasing productivity, adapting to climate change impacts like droughts and floods, and reducing agriculture's greenhouse gas emissions. Building resilient food systems is one of the priorities of this approach.

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The agri and allied sector budget in FY25 stood at Rs 1.52 lakh crore and for FY26 stood at Rs 1.37 lakh crore. Allocations for MSP and input subsidy effectively push it to more than Rs 3.91 lakh crore. Analysts have also pointed out that the bulk of the expenditure is towards direct benefit transfer and subsidies.

Direct infrastructure spend through PPP

Industry experts have said that continued support towards producer organisations and cooperatives will be one of the focus areas of the Budget. Digital agriculture is another one. “It is expected that the upcoming budget would be more rational with greater allocation towards direct infrastructure spend through PPP as well as investment subsidies, as to be more in sync with the practices in other more developed ecosystems such as in the USA and China,” Padmanand V, partner and agriculture industry leader, Grant Thornton Bharat, was quoted as saying.

Consultancy major EY has brought out pointed out the benefits of climate-smart agriculture. It has said that it could help the sector avoid significant losses in the next 15 years. “While addressing the immediate issues, such as MSP (Minimum Support Price) rationalization, the government can take the opportunity to leverage the MSP as a platform to promote climate-resilient farming,” EY said in its note.

'Critical to address needs of small farmers'

"Almost 80% of the agricultural workforce comprises farmers with small land holdings, making it critical to address their most pressing challenges – income security, access to markets and credit, and the incentivization of modern farming techniques. At the same time, addressing sustainability and climate change priorities in the sector is also a core concern," consultancy major EY has mentioned in a pre-Budget note.

There is a need for considerable increase in investment spend in the budget as against the typical consumption oriented spend in terms of DBT (Direct Benefit Transfer), MSP support and subsidizing operational expenditure in the agri budget, the industry says.

“Research and development (high yielding and climate resilient varieties), infrastructure (production, storage and processing), digital agricultural solutions (ag stack and AgTech) and exports (quality and higher value capture) should be the key focus areas for the upcoming budget,” Shashi Kant Singh, partner—agriculture, food and agribusiness, PwC India, was quoted as saying.

Challenges for the agri sector

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Down the years, inadequate storage and logistics have been challenges for the Indian agri sector. About 15% to 20% fruits and vegetables are supposed to perish due to inadequate storage facilities. The food supply chain too has challenges despite the schemes such as the National Food Security Act (2013), PM Garib Kalyan Anna Yojana, PM POSHAN and Antyodaya Anna Yojana declared in the past few years.

The government has a few continuing missions which are likely to receive continued attention: These are National Mission on Edible Oils–Oilseeds and Aatmanirbharta in Pulses Mission. “Budget 2026–27 must strengthen these efforts, especially because India still imports a significant share of its edible oil (India currently imports 60% of its edible oil requirement) and pulses. Improving domestic capacity is not just an economic goal; it is essential to enable long-term food security,” EY mentioned in its note.

Kolkata: Indian railway ferries more than 700 crore passengers a year, a number that is about 85% of the population of the entire world. It is likely that FM Nirmala Sitharaman will continue to bestow as much attention to the railways as she did in earlier years. However, it has been reported that the allocation to this sector could be a little moderated compared to the earlier years.

In FY25, the railways transported more than 1.61 billion tonnes of freight which is a record. The tonnage makes it the world's second-largest rail freight mover after China. The railways also earned a revenue of more than Rs 2.62 lakh crore. The allocation for the railways was Rs 2.65 lakh crore in FY26, which is the same as in FY25. While there is an opinion that the allocation might be slightly less for FY27, the railways will be one of the vehicles of the government to boost economic growth and modern transportation across the country.

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Focus areas

Among the focus areas of the government for improvement in the railways will be track expansion, electrification (though this task is aubstantially done), signalling upgrades, improvement in freight handling and redevelopment of stations. Proper and timely completion of ongoing projects could be a priority rathan than new headline-hogging announcements. “In terms of beneficiaries, rail infrastructure and EPC segments are likely to gain the most. These projects involve long pipelines and steady work orders. Rolling stock manufacturers should also see demand, but growth there may be more gradual. Overall, the Budget is expected to support steady, long-term growth for the rail sector rather than trigger an immediate spike in activity,” Ravi Singh, chief research officer at Master Capital Services, was quoted as saying.

Extra budgetary resources to help

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According to reports, Vivek Lohia, MD, Jupiter Wagons thinks that the allocation to railway could just be raised by about 5% which would include extra-budgetary resources. “With electrification nearing completion, capital deployment is likely to be redirected toward easing congestion through new lines, gauge conversion, track doubling, and the expansion of Dedicated Freight Corridors and economic corridors linked to ports and mineral clusters,” Lohia told the media.

The extra-budgetary resources can be market borrowings that can be raised by Indian Railway Finance Corporation and financing from institutions such as LIC or PPPs (Public-Private Partnerships) and external commercial borrowings. These could be adopted to fund new lines, gauge conversion and rolling stock procurement etc.

New Delhi: Positive signals are coming from the banking sector regarding the Union Budget 2026. Punjab National Bank MD and CEO Ashok Chandra believes that the government will give priority to development in the upcoming Budget. According to Chandra, special attention can be paid to infrastructure MSME and rural development in the budget. In the last few years there has been continuity in the policies of the government. This continuity is expected to continue. The focus of the budget can be on strengthening economic growth and promoting investment.

PNB MD said in the Budget 2026-27, the government can pursue the same priorities. Increasing investment in infrastructure and rural areas will strengthen the economy. This can create new employment opportunities. The government's goal may be to speed up growth.

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Budget 2026 expectations: Special emphasis on MSME sector

In the budget, there is hope of big announcements regarding the MSME sector. According to the PNB MD, by increasing the expenditure on MSMEs and rural infrastructure, new entrepreneurs will get a chance to come forward. Demand in rural areas will increase. This will increase the flow of capital in the market. The banking sector can also benefit directly from this.

Chandra believes that capital expenditure will remain the priority of the government. Capex growth will strengthen road power and other infrastructure. This will also encourage private investment. Infrastructure projects will create employment. In the long run, this will stabilize economic growth.

Growth reflected in the performance of PNB

The latest results of PNB strengthen confidence in the budget. The bank's MSME retail and agricultural loans are increasing steadily. MSME loans have increased by more than 19 percent. Retail housing and vehicle loans have also seen sharp growth. This shows that there is demand at the grassroots level.

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NPA: PNB’s massive recovery

PNB has made a massive recovery in the current financial year. The bank's target is to recover sixteen thousand crores, out of which a large amount has already been achieved. Slippage has been kept below one percent. This has improved the gross and net NPA. According to the MD, this strong base will be further strengthened by the upcoming budget.

New Delhi: Ahead of the Union Budget 2026 presentation, reports are doing rounds that the next phase of PM Kusum Yojana may be announced by the Finance Minister. This scheme was specially introduced to provide affordable and clean energy to the farmers. The government is now preparing to pursue this scheme in a new way. Under PM Kusum 2.0, solar energy can be further strengthened in rural and agricultural sectors. This will help in increasing the income of farmers and reducing their dependence on diesel.

What is PM Kusum Yojana

PM Kusum Yojana was launched in March 2019. Its purpose is to connect farmers with solar pumps and solar electricity. It was further expanded in January 2024. This scheme provides both electricity and water facilities to the farmers. At the same time, there is a decrease in the use of diesel in farming. This scheme also plays an important role in keeping the environment safe.

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The present PM Kusum Yojana is set to end in March 2026. Considering this, the government is preparing for its next phase. The Ministry of New and Renewable Energy has sent its proposal to the Finance Ministry. In the new phase, it is planned to promote decentralized solar projects in the agricultural sector. The government wants more farmers to join solar energy.

PM Kusum Allocation may increase in budget

According to sources, the budget allocation for PM Kusum 2.0 may be more than Rs 50,000 crore. In the first phase, the government had allocated about Rs 32,400 crore. The goal was to achieve 35 GW of solar capacity. In the new phase, the focus will be on more incentive and modern technology. This will speed up solar projects.

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Battery storage is likely to be included in PM Kusum 2.0. This will enable better use of solar energy. The government can insist on adopting new technology. This will make the power supply more reliable. Farmers will be helped to get electricity both during the day and night.

The government wants to increase the participation of private companies in this scheme. For this, the compliance process can be made easier. With the arrival of private investment, the speed of solar projects will be accelerated. New employment opportunities will also be created. Overall, PM Kusum 2.0 is expected to provide great support to the renewable energy sector.

Kolkata: Mobile phone manufacturers constitute on the of the most important part of the Indian manufacturing firmament. Based on data pertaining to 2025 calendar year, mobile phones accounted for about two-thirds of India's total electronics exports. Cellphone manufacturers have urged the finance ministry to reduce customs duty parts of mobile phone such as PCBS (printed circuit boards), microphones and wearables.

The manufacturers have also sought tariff revision on capital goods and other components so as to reduce the cot of handset manufacturing. production cost, industry body ICEA said in its budget recommendations. India Cellular and Electronics Association (ICEA), which asked for the reliefs, include Apple, Foxconn, Dixon, Xiaomi, Vivo, and Oppo. ICEA has pitched their wishlist as an enabler of a self-reliant and globally competitive capital equipment ecosystem in India.

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Recent restrictions imposed by China

The plea of the industry body seems to have been triggered by the recent restrictions by China which could impact production of mobile phones in India. "With China's recent export restrictions on manufacturing machinery increasing supply-chain risks, India's dependence on imported equipment has become a strategic vulnerability. It is, therefore, recommended that the government extend the existing zero-duty benefit on capital equipment to all constituent components, sub-assemblies, and assemblies imported specifically for their manufacture," ICEA said.

ICEA pointed out that certain critical and specialised machinery required for mobile phone and lithium-ion cell manufacturing remain outside the scope of existing customs duty exemption notifications. This pushes up project costs of mobile phone manufacturing. The industry body has also said that machines are custom-built for lithium-ion cell and mobile phone manufacturing. These machines are not manufactured in India and are subject to import duty which pushes up capex by 7.5–20%.

"Global supply constraints and China’s export restrictions on key battery materials have heightened the urgency to build self-reliant domestic capacity. Extending exemptions will lower setup costs, accelerate commissioning, enhance export competitiveness, and create employment across the energy-storage ecosystem," ICEA has mentioned.

ICEA estimates of cellphone production in India

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The India Cellular and Electronics Association has forecast that mobile phone of $75 billion or about Rs 6.76 lakh crore can be produced in India this financial year. In FY27, mobile phone exports can surpass $30 billion or about Rs 2.7 lakh crore. In FY25, phones worth 5.5 lakh crore were produced in India and exports touched Rs 2 lakh crore. According to industry estimates has also cited the employment generating potential of the electronics sector which is believed to employ in excess of 25 lakh people.

Hearables and wearables

ICEA has requested the government for import duty on PCBs to be revised. PCBs account for 10-15% of the cost of a phone and if this price goes down, the phone swill be more competitively priced. It has also urged the government to rationalise the tax structure for the display or the screens used by various devices and this includes the screens on automobile dashboards. The industry body has also asked for reduction of basic customs duty on finished wearables and hearables. This extent of reduction is from the existing 20% to 15%.

Kolkata: What can a slightly yellow, dense and sweetmeat that is cooked with sooji, sugar, ghee, nuts, cardamom and saffron have to do with the most important annual financial statement of the government? Well, on the one hand nothing. But one another plane, a lot, is this sweetmeat happens to be halwa. Did you know that our very familiar, home-cooked halwa has come to develop an unshakeable bond with the Union Budget? Significantly, the sweet which often has the appearance of a fudgy, glossy paste has its origin in Persian/Arabic and means sweet. Every year the halwa ceremony serves halwa to the employees of her ministry and it marks the beginning of the final stages of the Budget preparation exercise.

When it the halwa ceremony held

The halwa ceremony is conducted by the minister is charge of finance. The dessert is prepared in a large vessel and the finance minister serves it to all the employees and officers who are part of the Budget preparation. It takes place at the basement of the North Block where the Budget papers are printed in utmost secrecy, so much so that the employees are secluded in that part of the building and cannot leave until the FM presents the Budget in Parliament. The end of the ceremony signals the beginning of the lock-in period for the employees. They do not have access to their phones of other means of communication with the outside world till the Budget is tabled in the Parliament.

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It also signals the end of the elaborate consultations and discussions for the Budget and it also marks the final shape of the budget. Usually, it marks a time when the Budget is finalised and there is no change until something emergency has cropped up and it is absolutely necessary to incorporate it. This marks the time when the speculation about the provisions in the Budget reaches its feverish peak.

The cultural significance

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In Indian tradition, sweets are often offered to mark the beginning of any auspicious occasion so that it becomes successful. The halwa ceremony also mirrors this belief. The FM herself/himself serving the dessert also indicates that all the employees involved in the final stages of preparing the Budget documents are equal and have a big, collective responsibility. Even as the Budget has transitioned from the suitcase to the bohi-khata and now to a tablet, the halwa ceremony has survived all the changes both on the technology front as well as economic model front (from a controlled to a market economy).

When is halwa ceremony held

Usually it is held about 8-10 days before the Budget is presented. It began since 1950 when the Budget was leaked. That was the only instance of the Budget being leaked so far. That was also the first year when India turned into a Republic. Therefore, from camaraderie to flagging off an auspicious ceremoney which must go off well -- the halwa cefremoney signifies a lot of things.

New Delhi: The central government may present a big roadmap for the banking sector in the upcoming Budget 2026-27. Finance Minister Nirmala Sitharaman can decide the direction of further integration of government banks, which aims to build big and strong banks that can compete globally. At present, very few Indian banks are among the top banks in the world.

The government has already made it clear that big banks are necessary to strengthen the banking sector. Under this vision, government banks have been integrated in the last few years. In the year 2017, where the number of government banks was 27, it has now come down to 12. This move has strengthened the financial position of banks and increased their lending capacity. Now in the Budget 2026, the government can present a roadmap to take this process forward.

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SBI becomes country's strongest bank

State Bank of India is the biggest example of the government's banking reform policy. In the year 2017, its associate banks were merged, which increased both the size and strength of SBI. Today, SBI's asset base is about Rs 44 lakh crore and it has more than 22,500 branches and over 58,000 ATMs across the country. Globally too, SBI is the only bank in India which is included in the list of top 50 banks.

Many consultancies, including Deloitte, believe that to increase investment in the banking sector, it is necessary to change the rules related to voting rights. Currently, under the banking law, the promoter's voting rights are limited to a maximum of 26 percent, irrespective of their stake. Because of this reason, large foreign investors distance themselves from investing in Indian banks. If this rule is reconsidered in Budget 2026, then large foreign capital may come into the banking sector.

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If the government succeeds in building big and world-class banks, then the common customers will get direct benefit from it. Strong banks will be more secure and the availability of credit will also be better. There may also be new opportunities for investors in the banking sector. Overall, Budget 2026 can prove to be important in making India's banking system more robust and reliable.

According to media reports, the government is considering incorporating some mid-size government banks into big banks. It is being said that Indian Overseas Bank, Central Bank of India, Bank of India and Bank of Maharashtra can be merged with the country's big banks State Bank of India, Punjab National Bank and Bank of Baroda. A draft record of discussion has been prepared in this regard.