Budget 2026 Boosts Semiconductors

• India budget 2026: ₹40k cr for semiconductors.
• Defense budget ₹7.85 lakh cr, ₹2.19 lakh cr for modernization.
• Capital expenditure target ₹12.2 lakh crore for FY27.

The Union Budget 2026, presented by Nirmala Sitharaman, unveiled significant policy shifts and financial allocations. With a strong emphasis on technology and strategic sectors, the budget reflects the government's priorities for the upcoming fiscal year. Explore the key announcements, including investments in semiconductors, defense, and changes in tax policies.

Semiconductor Push Ahead

The budget allocated a significant amount to the semiconductor industry, reaching ₹40,000 crore, to strengthen India's technological base and reduce reliance on imports through the 'India Semiconductor Mission 2.0'.

Defense and Modernization

The defense budget received a considerable boost, reaching ₹7.85 lakh crore, with ₹2.19 lakh crore designated for modernization, highlighting a commitment to national security and enhanced defense capabilities.

Investment and Tax Reforms

The budget included reforms to encourage foreign investment by opening a direct equity route for overseas individuals and increasing investment caps. It also updated tax slabs and adjusted customs duties on certain goods.

IT Sector and Beyond

The IT sector saw changes with IT services being brought under a single category. The government set a capital expenditure target of ₹12.2 lakh crore for FY27, signaling an infrastructure push.