Union Budget 2026 - Coverage & Complete Analysis

Customs Duty Exemption for Civil Aviation Training Equipment The government announces exemption from basic customs duty on civilian aircraft training equipment and select aviation-related components to support skill development and sector growth.

Duty-Free Import Rules and Export Timelines Relaxed Finance Minister proposes key changes to duty-free import schemes, including extended timelines for exports and simplified compliance requirements.

STT on Futures Increased Securities Transaction Tax on futures contracts has been raised to 0.05%, up from the earlier rate of 0.02%, as part of the budget proposals.

Return Revision Deadline Extended to March 31 The government proposes allowing taxpayers to revise returns until March 31 by paying a nominal fee, providing additional compliance flexibility.

Tax Holiday Announced for Foreign Cloud Data Centres Finance Minister announces a long-term tax holiday extending until 2047 for foreign cloud service providers that establish and operate data centres within India.

TCS on Overseas Tour Packages Reduced Finance Minister announces a sharp cut in Tax Collected at Source on overseas tour packages, bringing the rate down to 2% to ease the burden on travellers.

Fiscal Deficit Targeted at 4.3% for FY27 The government pegs India’s fiscal deficit at 4.3% of GDP for FY27, reaffirming its commitment to medium-term fiscal consolidation.

Electronics Manufacturing Boost India Electronics Components Manufacturing Plan announced with ₹400 Billion outlay to strengthen domestic electronics ecosystem.

Rare Earth Corridors Development Dedicated Rare Earth Corridors to be established in mineral-rich states for strategic mineral development and value addition.

NRI Investment Rules Liberalized Persons of Indian Origin now permitted to invest in equity instruments and listed firms, expanding investment opportunities for diaspora.

Municipal Bond Incentive Scheme FM proposes ₹100 crore incentive for municipal corporations issuing single bonds worth over ₹1,000 crore to boost urban financing.

Tier II & III Cities Infrastructure Focus Government announces major push for infrastructure development in Tier II and Tier III cities to drive balanced regional growth.

₹20,000 Crore for Carbon Capture Technologies FM allocates ₹20,000 crore outlay for Carbon Capture, Utilization and Storage (CCUS) technologies to support green transition.

MSME Champion Growth Strategy Three-pronged approach unveiled to help MSMEs scale up and emerge as champions.

Education to Employment Standing Committee New standing committee proposed to bridge the gap between academic learning and industry needs.

Skilled Career Pathways for Youth Comprehensive interventions announced to connect education with employment opportunities.

Three New All India Institute of Ayurveda Three new All India Institute of Ayurveda proposed to strengthen traditional healthcare.

Girls' Hostel in Every District Government commits to establishing one girls' hostel in every district.

PFC and REC Restructuring Announced Comprehensive restructuring of PFC and REC announced.

Biopharma SHAKTI Initiative Unveiled Biopharma SHAKTI scheme announced along with strategic manufacturing programs.

India Semiconductor Mission 2.0 Launched ISM 2.0 announced to boost domestic semiconductor manufacturing.