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On 1 February 2026, India’s Union Budget for FY 2026–27 was tabled in Parliament by Nirmala Sitharaman, marking a significant moment in the country’s economic journey. This Budget is special not just for its scale, but because it is the first Budget prepared in Kartavya Bhawan, guided by a strong sense of duty (Kartavya) towards citizens and the nation.

At its core, the Budget reflects a clear vision: accelerated growth, empowered people, and inclusive development—all aligned with the goal of Viksit Bharat.

The Three Kartavyas: The Soul of Budget 2026–27

The Finance Minister structured the Budget around three guiding duties:

1️⃣ Accelerating and Sustaining Economic Growth

By strengthening productivity, competitiveness, manufacturing capacity, infrastructure, and resilience against global uncertainties.

2️⃣ Fulfilling Aspirations and Building Capacity

Ensuring people—especially youth, women, professionals, MSMEs, and farmers—are equipped to actively participate in India’s growth story.

3️⃣ Sabka Sath, Sabka Vikas

Guaranteeing that every family, region, and sector has access to opportunities, resources, and dignity.

Big Numbers, Strong Discipline

• Total Expenditure: ₹53.5 lakh crore
• Non-Debt Receipts: ₹36.5 lakh crore
• Capital Expenditure: ~₹11 lakh crore
• Fiscal Deficit (BE 2026–27): 4.3% of GDP
• Debt-to-GDP Ratio: Reduced to 55.6%

These numbers signal growth with fiscal responsibility, keeping long-term stability firmly in focus.

First Kartavya: Powering Growth Through Industry & Infrastructure

 Manufacturing in Strategic Sectors

• Biopharma SHAKTI with ₹10,000 crore outlay to make India a global biologics hub
• India Semiconductor Mission 2.0 to strengthen chip design, IP, and supply chains
• Boost to electronics components manufacturing (₹40,000 crore)
• Dedicated Rare Earth Corridors in mineral-rich states
• New Chemical Parks and advanced Hi-Tech Tool Rooms

 Textile Sector Transformation

From fibre to fashion, the integrated textile programme focuses on:

• Natural & man-made fibres
• Mega Textile Parks
• Handloom, handicrafts & khadi revival
• Global branding, skilling, and market linkages

 Infrastructure Push

• Public capex raised to ₹12.2 lakh crore
• New Dedicated Freight Corridors and 20 National Waterways
• Coastal cargo promotion & seaplane connectivity
• Seven High-Speed Rail Corridors connecting major growth centres

First Kartavya: Powering Growth Through Industry & Infrastructure

Manufacturing in Strategic Sectors

• Biopharma SHAKTI with ₹10,000 crore outlay to make India a global biologics hub
• India Semiconductor Mission 2.0 to strengthen chip design, IP, and supply chains
• Boost to electronics components manufacturing (₹40,000 crore)
• Dedicated Rare Earth Corridors in mineral-rich states
• New Chemical Parks and advanced Hi-Tech Tool Rooms

 Textile Sector Transformation

From fibre to fashion, the integrated textile programme focuses on:

• Natural & man-made fibres
• Mega Textile Parks
• Handloom, handicrafts & khadi revival
• Global branding, skilling, and market linkages

 Infrastructure Push

• Public capex raised to ₹12.2 lakh crore
• New Dedicated Freight Corridors and 20 National Waterways
• Coastal cargo promotion & seaplane connectivity
• Seven High-Speed Rail Corridors connecting major growth centres

Third Kartavya: Inclusion, Farmers & Regional Balance

 Farmers First

• Integrated development of 500 reservoirs and Amrit Sarovars
• Support for high-value crops like coconut, cocoa, and sandalwood
• Launch of Bharat-VISTAAR, a multilingual AI platform integrating AgriStack and ICAR

 Social Empowerment

• Divyangjan Kaushal Yojana for job-oriented skilling
• Expansion of mental health care with NIMHANS-2 and upgraded regional institutes

Regional Growth

• East Coast Industrial Corridor
• Tourism destinations in Purvodaya states
• Buddhist circuit development in the North-East
• 4,000 e-buses for sustainable mobility

Major Tax Reforms: Simpler, Fairer, Modern

???? New Income Tax Act, 2025

• Effective from April 2026
• Simplified rules & redesigned forms
• Extended timelines for return revisions
• Relief for small taxpayers and NRIs

 IT & Global Investment Boost

• Unified IT services category with 15.5% safe harbour
• Safe harbour threshold raised to ₹2,000 crore
• Tax holiday till 2047 for foreign cloud service providers using Indian data centres

 Rationalised Penalties

• Fewer prosecutions
• Decriminalisation of minor technical defaults
• One-time foreign asset disclosure window

Customs & Ease of Doing Business

• Import duty on personal goods cut from 20% to 10%
• Exemptions for critical minerals, lithium-ion batteries, drugs, and rare diseases
• Single digital window for cargo clearance
• Trust-based customs systems and faster exports for MSMEs and startups
• Final Takeaway
• The Union Budget 2026–27 is not just a financial document—it is a statement of intent. It combines ambition with inclusion, technology with tradition, and growth with responsibility.
• By putting people, productivity, and purpose at the centre, this Kartavya-driven Budget lays a strong foundation for India’s next phase of development—confident, inclusive, and future-ready.