Presenting her record ninth consecutive Union Budget, Finance Minister Nirmala Sitharaman laid out an economic roadmap that seems to be in sync with targeted shifts aimed at growth, resilience and long-term competitiveness. Here are the key highlights and takeaways from this year’s Budget:
Capital expenditure up
Public capital expenditure has been raised to Rs 12.2 lakh crore for FY27 from Rs 11.2 lakh crore in FY26. The government has emphasised that infrastructure-led growth remains a central policy lever.
Rare earths strategy
Another major strategic announcement was a recommendation to establish dedicated rare earth corridors in Odisha, Andhra Pradesh, Tamil Nadu and Kerala. The government also plans to set up high-tech tool rooms and digitally enabled automation service bureaus to promote precision manufacturing.
Export norms eased
The Finance Minister announced easing of export norms for seafood and leather sectors in view of the steep tariffs announced by the US. This measure is targeted at reducing India’s dependence on global supply chains dominated by China. Sitharaman said the initiative is in line with the broader Atmanirbhar Bharat push.
High-speed rail corridors
Seven high-speed rail corridors will be developed to promote environmentally sustainable passenger transport and improve regional connectivity. The corridors will connect Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi and Varanasi-Siliguri.
SME funding and industrial clusters
The Budget announced a Rs 2,000 crore top-up to the Self Reliant India Fund to support micro enterprises which remain under-capitalised despite credit guarantee schemes. Besdies, a Rs 10,000-crore SME Growth Fund will be launched to facilitate the scaling of high-potential firms, with incentives linked to productivity, formalisation and export readiness. The government also announced a scheme to revive 200 legacy industry clusters hit by credit stress and outdated technology.
Simplification of taxes
Simplified Income Tax rules and forms will be notified shortly after a review of the Income Tax Act. The new Income Tax Act, 2025 will come into force from April 1. The deadline for filing revised returns will be extended to March 31, subject to a nominal fee. However, the Budget offered no changes in tax rates, providing no direct relief to individual taxpayers.
Textiles and handloom
The Budget mooted mega textile parks focused on technical textiles and value addition. An integrated textile programme with five sub-components will consolidate existing schemes. New initiatives for khadi, natural fibres, handloom and handicrafts were also announced to support rural livelihoods.
Thrust on tourism
The FM identified tourism as a sector with high employment potential. The government will set up a National Institute of Hospitality and launch a pilot programme to train 10,000 tourist guides across 20 locations. Eco-tourism initiatives, including trekking trails and wildlife tourism circuits, were also announced.
Cloud and digital infrastructure
The Budget announced a tax holiday till 2047 for foreign companies providing cloud services through data centres in India. The Central government also committed to resolving advance pricing agreement cases for IT services firms within two years.
Investment limits for NRIs raised
NRIs will be allowed to invest in Indian equities through the Portfolio Investment Scheme. Individual investment limits for Persons Resident Outside India have been raised from 5 per cent to 10 per cent, while the aggregate limit has been increased from 10 per cent to 24 per cent.
Also read: Budget charts clear roadmap for Viksit Bharat: PM Modi
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