Here are the key highlights from FM Sitharaman's Budget 2026 speech:

• The presentation of the Union Budget for April 2026 to March 2027 fiscal (2026-27) on Sunday is a first in the history of independent India.
• India must integrate global implications, said FM Sitharaman.
• FM announced an outlay of ?10,000 crore for Biopharma. Pharma stocks like Biocon, Panacea Biotec and others rose over 2% following the announcement.
• Government plans to establish Rare Earth Corridors in mineral-rich states like Odisha and Kerala.
• FM Sitharaman proposed a ?10,000 crore SME fund for 'future champions'.
• India Semiconductor Mission 2.0 launched to support industry-led research and training centres for semiconductors.
• FM proposes interventions in six areas, including manufacturing, strategic and frontier sectors, healthcare and advanced technology.
• Samarth 2.0 to upgrade the textile mission. FM proposed a textile expansion and employment scheme to modernise textile clusters. She also announced the launch of the Mahatma Gandhi Gram Samaj initiative to support Khadi and handicrafts.
• Centre offers credit guarantee support for MSMEs. FM Sitharaman proposes to top up the Self-Reliance India Fund with ?2,000 crore in FY27 to support MSMEs.
• FM proposes a scheme for container manufacturing with an outlay of ?10,000 crore over 5 years.
• India has the potential to emerge as a global hub for sports goods, said Finance Minister Nirmala Sitharaman. FM proposed reforms to promote globally competitive sports goods.
• Dedicated freight corridor proposed. "New dedicated freight corridor from Dankuni in East to Surat in West to promote environmentally sustainable movement of cargo," said FM Sitharaman.
• A ship repair ecosystem catering to inland waterways will be set up at Varanasi and Patna, announced the FM.
• FM proposes a high-level committee for banks.
• Government plans to focus on developing infrastructure in tier-2 and tier-3 cities, says FM.
• FM increases capex target to ?12.2 lakh crore for FY27 from ?11.2 lakh crore allocated for the current fiscal year
• Centre plans to set up three new all-India institutes for Ayurveda.
• Government plans to develop seven high-speed rail corridors between cities as growth connectors, including Mumbai-Pune, Hyderabad-Pune, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi and Varanasi-Silliguri.
• New National Institute of Design (NID) proposed in the eastern region of India to boost design careers in the country.
• Tourism sector has a huge potential to contribute to employment generation, says FM. A new institute proposed to transform the tourism sector, and a pilot scheme to upskill 10,000 tourist guides.
• FM announces many reforms for content creators.
• India is hosting the first-ever Global Big Cat Summit in 2026, in which leaders of over 92 countries will discuss conservation.
• FM proposes the launch of a scheme for 5 regional medical hubs.
• Khelo India Mission announced to transform the sports sector.
• Government plans to give special attention to small and marginal farmers.
• India is the largest producer of coconuts. FM proposed a scheme to empower coconut farmers and reforms to improve coconut production.
• To help women take the next step and become owners of enterprises, FM Sitharaman announces reforms in the Lakhpati Didi Scheme, including the introduction of she-marts.
• Centre plans to set up a high-powered education-to-employment standing committee to prioritise areas with potential for growth in the services space.
• Government reaffirmed commitment to health and trauma. FM announces reforms to focus on health, incuding emergency and trauma care centres. NIMHANS 2 to be set up, and mental health institutes will be upgraded, FM said.
• In November 2025, the 16th Finance Commission submitted its report to the President. The government has reviewed and accepted many recommendations of the commission.
• Direct taxes: New Income Tax Act will come into effect from April 2026. Forms have been redesigned so ordinary taxpayers can file easily, says FM.
• FM proposed to reduce TCS rate for pursuing education and medical purposes from 5% to 2%.
• Individuals with ITR-1 and ITR-2 returns will continue to file until July 31.
• There will be no interest liability on the penalty amount for taxpayers. FM said that minor offences will only attract fines to simplify the penalty proceedings.
• Taxpayers will now be allowed to file revised returns until March 31. The earlier deadline was December 31.
• TDS on sale of immovable property by NRI to be deducted by resident buyer, says FM.
• FM proposes to provide tax holiday till 2047 to any foreign company that provides cloud services. "Recognising the need to enable critical infrastructure and boost investment in data centers, I propose to provide a tax holiday till 2047 to any foreign company that provides cloud services to customers globally by using data center services from India," said FM.
• TCS rates for alcoholic liquor, scrap and minerals will be rationalised to 2%
• FM proposed raising STT on futures to 0.02%. "I propose to raise the STT on futures to 0.05% from the present 0.02%. STT on options premium and exercise of options are both proposed to be raised to 0.15% from the present rate of 0.1% and 0.125%, respectively," FM said.
• FM proposed many customs duty changes: (1) Exempt duty on goods used for nuclear projects (2) Exempt specific custom duty on microwaves (3) Duty-free imports of specified inputs, which is currently available for exports of leather or synthetic footwear, to exports of shoe uppers (4) Basic customs duty exemption given to capital goods used for manufacturing lithium-ion cells for batteries to those used for manufacturing lithium-ion cells for battery energy storage systems (5) Basic customs duty exemption on import of sodium antimonate for use in manufacture of solar glass
  
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