Infrastructure Boost
The Union Budget 2026 showcased a strong emphasis on infrastructure development, with several high-speed rail corridors and mountain trains being announced. Specifically, the budget included plans for
seven high-speed rail corridors, with a Mumbai-Pune corridor and a Hyderabad-Bengaluru corridor as part of the initiative. Furthermore, there was an allocation for mountain trains to connect Himachal Pradesh, Uttarakhand, and Jammu & Kashmir. These initiatives reflect the government's commitment to improving transportation infrastructure across the country, aiming to facilitate better connectivity and economic growth in the respective regions. The allocation of Rs 2.19 lakh crore for modernization, as part of the defense budget, underscores a broader investment in infrastructural advancements.
Tax Reforms Detailed
The budget unveiled the latest income tax slabs for the fiscal year 2026-27, affecting individual taxpayers under both the new and old tax regimes. Details about the income tax slabs and rates were provided, offering clarity on the tax implications for the coming year. Furthermore, the budget included updates on the Section 87A rebate limit under the new income tax regime for the fiscal year 2026-27. This provision is designed to provide tax relief to eligible taxpayers based on their income levels. Additionally, discussions around the Union Budget included the provision of customs duty waivers on cancer and rare disease drugs. This is aimed at providing financial relief to those who require essential medical treatments.
Defense Sector Surge
A significant increase was observed in the defense budget for the fiscal year 2026. The budget allocated a substantial amount of Rs 7.85 lakh crore to the defense sector, reflecting the government's focus on national security and modernization. Furthermore, a substantial sum of Rs 2.19 lakh crore was specifically earmarked for the modernization of defense capabilities. This substantial investment in defense, coupled with infrastructure, signals the government's commitment to bolstering national security and improving India's strategic preparedness. The substantial financial allocation towards defense reflects the government's proactive approach to national security and infrastructure development.
Health Sector Support
The Union Budget 2026 included provisions related to healthcare, particularly focusing on reducing the cost of treatments for critical illnesses. A key announcement was the waiver of customs duty on cancer and rare disease drugs. This measure aims to make these life-saving medications more affordable and accessible to patients across the country. This move is part of the broader strategy to ensure that the healthcare infrastructure is supported with better access to essential medicine. Overall, these measures are designed to ease the financial burden on patients. This is reflective of the government's commitment to healthcare accessibility and affordability.
Semiconductor Mission 2.0
Finance Minister Nirmala Sitharaman launched the 'India Semiconductor Mission 2.0' as part of the Union Budget 2026. This initiative is aimed at fostering the growth of the semiconductor industry within the country. The mission includes various measures to support the domestic semiconductor ecosystem, and promote technological advancements, encouraging research and development, and attracting investments to build semiconductor manufacturing capabilities. The launch of 'India Semiconductor Mission 2.0' is a significant step towards achieving self-reliance in this critical sector.
