Finance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026, outlining an ambitious roadmap centred on infrastructure expansion, manufacturing
strength, strategic minerals, and technology-led growth. Presenting her ninth consecutive budget, the Finance Minister said the Budget is driven by Yuvashakti and anchored in three key “kartavyas”—growth acceleration, inclusive prosperity, and long-term resilience.
The Budget builds on last year’s focus on middle-class tax relief, capital expenditure, jobs, and manufacturing, while responding to a challenging global environment marked by trade disruptions and supply-chain risks.
Infrastructure & Connectivity
- High-speed rail corridors announced:
- Mumbai–Pune
- Pune–Hyderabad
- Hyderabad–Bengaluru
- Hyderabad–Chennai
- Chennai–Bengaluru
- Delhi–Varanasi
- Varanasi–Siliguri
These corridors will connect financial hubs, technology centres, manufacturing clusters, and emerging cities.
- Rs 12.2 lakh crore capital expenditure planned for FY27, up from Rs 11.2 lakh crore in FY26
- New freight corridor announced for Dankuni, West Bengal
- 20 new inland waterways to be operationalised, starting with Odisha
- Infrastructure Risk Guarantee Fund with credit support for lenders
- Asset monetisation through recycling of CPSE real estate assets
Manufacturing, MSMEs & Jobs
- National Manufacturing Mission launched with focus on:
- Footwear and leather
- Toys
- Solar PV cell ecosystem
- Rs 10,000 crore MSME Growth Fund announced to create “future job champions”
- Three-pronged MSME strategy: equity support, credit expansion, and cluster rejuvenation
- Rejuvenation of 200 legacy industrial clusters
- Self-Reliant Indian Fund with Rs 2,000 crore outlay
- Mega textile parks to be set up in challenge mode
- Textile labour incentive scheme and national handloom & handicrafts programme announced
- Khadi and handicrafts sector to be strengthened
- Mahatma Gandhi Gram Swaraj Scheme launched
Semiconductors, Electronics & Strategic Sectors
- India Semiconductor Mission (ISM) 2.0 launched
- Rs 40,000 crore outlay for electronics component manufacturing
- Focus on full-stack Indian IP, equipment, materials, and industry-led R&D
- Bio-Pharma Shakti scheme announced with Rs 10,000 crore outlay and three new institutes
Rare Earths & Critical Minerals
- Dedicated rare-earth corridors announced for:
- Odisha
- Kerala
- Tamil Nadu
- Andhra Pradesh
- Support for rare-earth permanent magnet manufacturing to reduce import dependence
Education, Skills & Healthcare
- Five university campuses to be set up near industrial corridors
- Education-to-employment standing committee focused on the services sector
- Five regional medical hubs to promote medical tourism
- 1.5 lakh caregivers to be trained
- 10,000 new medical seats in FY26
- Day-care cancer centres in district hospitals
- 50,000 new Atal Tinkering Labs
- 10,000 tech fellowships at IITs and IISc
- Centre of Excellence in AI for education
Agriculture & Rural Economy
- Expanded Kisan Credit Scheme loan limits
- New missions for pulses, fisheries, fruits, and vegetables
- Makhana Board to be set up in Bihar
- Investments in irrigation, crop diversification, and rural infrastructure
Urban Development & States Support
- Rs 1.5 lakh crore in 50-year interest-free loans to states
- Rs 1 lakh crore Urban Challenge Fund for next-generation cities
- Rs 25,000 crore Maritime Development Fund
- New greenfield airports and Patna airport expansion
- Western Koshi Canal project support
Fiscal & Strategic Outlook
- Budget emphasises Atmanirbharta, domestic manufacturing, energy security, and reduced critical imports
- Focus on balancing ambition with inclusion amid uncertain global trade conditions
- Government reiterates commitment to fiscal discipline, sustained growth, and resilience
Budget 2026 delivers a strong infrastructure- and manufacturing-led growth push, with strategic bets on semiconductors, rare earths, MSMEs, and connectivity—while keeping jobs, youth, and long-term competitiveness at the centre of India’s economic strategy.
