Explained: This article explains the political background, key decisions, and possible outcomes related to Explained : Union Budget 2026 Highlights | Key Takeaways From FM Sitharaman’s Speech and Its Impact and why it matters right now.
Finance Minister Nirmala Sitharaman presented the Union Budget 2026, outlining the government’s priorities amid global uncertainty. Referring to this as the first Budget prepared in Kartavya Bhavan, she said the government is guided by three core kartavyas or duties towards citizens.
First kartavya
- To accelerate and sustain economic growth
- Focus on productivity, competitiveness and resilience to global volatility
Second kartavya
- To fulfil the aspirations of people
- Build capacity and make citizens active partners in India’s growth journey
Third kartavya
- To ensure equitable access to resources, amenities and opportunities
- Aligned with the vision of Sabka Saath, Sabka Vikas
Also Read: Budget 2026 Explained: Education, Tourism And Mental Healthcare Impact
- Over 350 reforms rolled out following the Prime Minister’s Independence Day 2025 announcement
- Key reforms include GST simplification, labour code notifications and rationalisation of Quality Control Orders
- High-level committees set up to review and accelerate reforms
- Centre working with states to reduce compliance burden and deregulation
- Scaling up manufacturing in seven strategic and frontier sectors
- Rejuvenating legacy industrial sectors
- Creating Champion MSMEs
- Strong push for infrastructure
- Ensuring long-term energy security
- Development of City Economic Regions
- Rs 10,000 crore investment proposed over five years
- Focus on pharmaceuticals, healthcare and advanced technology
- Creation of a biopharma-focused network
- Three new NIPER institutes and upgrade of seven existing ones
- Network of over 1,000 accredited clinical trial sites
- Rs 10,000 crore SME Growth Fund announced
- Aim to revive stressed MSMEs and support growth-stage firms
- Focus on cluster-based revival and technology upgradation
- Rs 2,000 crore top-up to Self-Reliant India Fund
- Introduction of ‘Corporate Mitras’ to help MSMEs with compliance at affordable costs
- FY27 capital expenditure raised by around 9 percent
- Total allocation increased to Rs 12.2 lakh crore
- Focus on sustaining infrastructure momentum and economic growth
- Launch of ISM 2.0 announced
- Focus on equipment, materials and full-stack Indian IP
- Strengthening semiconductor supply chains
- Outlay for Electronics Components Manufacturing Scheme raised to Rs 40,000 crore
- Support for Odisha, Kerala, Andhra Pradesh and Tamil Nadu
- Focus on mining, processing, research and manufacturing of critical minerals
- Aimed at reducing dependence on imports
- Mumbai to Pune
- Pune to Hyderabad
- Hyderabad to Chennai
- Hyderabad to Bengaluru
- Chennai to Bengaluru
- Delhi to Varanasi
- Varanasi to Siliguri
- Designed as environmentally sustainable passenger systems
- Integrated programme with five sub-parts for textiles
- Includes National Fibre Scheme and Samarth 2.0
- Proposal for Mega Textile Parks
- Strengthening khadi, handloom and handicrafts
- Dedicated initiative for sports goods manufacturing and innovation
- Services positioned as a key driver of Viksit Bharat
- Target of 10 percent global share by 2047
- High-powered Education to Employment committee
- Expansion of allied health professional institutions
- Creation of care ecosystem including geriatric services
- Five Regional Medical Hubs proposed
- Three new All India Institutes of Ayurveda
- Higher duty-free import limits for seafood processing inputs
- Duty-free imports extended to shoe uppers
- Export timelines extended from six months to one year for select sectors
- PROIs allowed to invest in listed Indian equities via PIS
- TCS on overseas tour packages reduced to 2 percent
- Lower TCS for education and medical remittances
- Decriminalisation of select compliance defaults
- Extended window for revising income tax returns
- Artificial intelligence mentioned 11 times, the highest ever in a Budget speech
- Use of AI in governance and public service delivery
- Expansion of AI Mission and National Quantum Mission
- Bharat-VISTAAR multilingual AI tool announced
- Integration of AI in agriculture, healthcare, education and employment platforms