Union Budget 2026 highlights: Key announcements by Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman presents her ninth Union Budget, outlining key reforms aimed at growth, affordability and long-term development under the ‘Viksit Bharat 2047’ vision.

1.    Fiscal Deficit & Spending: Fiscal deficit for 2026-27 pegged at 4.3% of GDP; capital expenditure raised to ₹12.2 lakh crore for infrastructure development.
2.    Cheaper Foreign Travel: TCS on overseas tour packages cut to 2% from earlier 5% and 20%, making foreign travel more affordable.
3.    Customs Duty Relief on Medicines: Full basic customs duty exemption for 17 cancer drugs and medicines used for seven rare diseases.
4.    Boost to Technology Sector: Tax holiday announced for cloud service companies setting up data centres in India until 2047.
5.    Income Tax Update: New Income Tax Act to come into force from April 1, 2026; ITR filing deadline extended to March 31, with no change in tax exemption limits.
6.    Mental Health Focus: Announcement of ‘NIMHANS 2.0’ in North India to strengthen mental healthcare infrastructure.
7.    Ayurveda & Medical Tourism: Three new All India Ayurveda institutes to be set up; modernisation of Ayush pharmacies and support for five medical tourism hubs.
8.    MSME & Railways: ₹10,000 crore fund allocated for MSME growth; seven new high-speed rail corridors to improve inter-city connectivity.
9.    Biopharma & Semiconductors: ₹10,000 crore allocated for biopharma production over five years; ₹40,000 crore for Semiconductor Mission 2.0.
10.  Rare Earth Corridors: Proposal for special rare earth corridors connecting Tamil Nadu, Odisha, Andhra Pradesh and Kerala.
11.  Atmanirbhar Bharat Push: ₹2,000 crore allocated to strengthen the Atmanirbhar Bharat initiative and domestic manufacturing.