LIVE BLOG: Nirmala Sitharaman presents Union Budget 2026

Waiver of basic customs duty on components and parts used in the manufacture of civilian training and other aircraft

The government has proposed a waiver of basic customs duty on components and parts used in the manufacture of civilian training and other aircraft. It has also announced duty exemptions on imported raw materials used for producing aircraft parts for maintenance, repair and overhaul by defence units, a move aimed at boosting growth and self-reliance in the aviation sector.

Immunity from prosecution to individuals who fail to disclose non-immovable foreign assets with an aggregate value of less than ₹20 lakh

Finance Minister Nirmala Sitharaman said the government has proposed granting immunity from prosecuion to individuals who fail to disclose non-immovable foreign assets with an aggregate value of less than ₹20 lakh.

The relief will apply retrospectively from October 1, 2024, a move aimed at easing compliance for small-value foreign asset holders.

IT sector gets massive boost

Presenting the Union Budget 2026, Finance Minister Nirmala Sitharaman announced a set of measures aimed at strengthening India’s IT services sector and attracting global investment.

She said the government will fast-track the Advanced Pricing Agreement (APA) process to two years, with a provision for a six-month extension, to provide greater certainty to companies on transfer pricing issues. The facility to file modified returns will also be extended to associated entities entering into APAs.

To promote investment in digital infrastructure, the finance minister announced a tax holiday until 2047 for foreign companies providing global cloud services using Indian data centres, positioning India as a competitive hub for data and cloud-based services.

Sitharaman announces tax holiday till 2047 to any foreign company that provides cloud services by setting up data centres in India

Reduction in TCS under the LRS for education and medical treatment abroad

FM also announced a reduction in TCS under the Liberalised Remittance Scheme (LRS) for education and medical treatment abroad, bringing the rate down from 5% to 2%, easing the financial burden on students and patients. In addition, to eliminate ambiguity in tax rules, the supply of manpower services will be treated as payments to contractors, attracting a lower Tax Deducted at Source (TDS) of 1% or 2%, a step aimed at reducing compliance friction for businesses and workers.

Check out the key moment in Sitharaman's speech

TDS on the sale of immovable property by non-residents

Finance Minister Nirmala Sitharaman said that TDS on the sale of immovable property by non-residents will now be deducted and deposited by resident buyers using a PAN-based challan, removing the requirement for a TAN and significantly easing compliance.

Lakhpati Didi programme

Building on the success of the Lakhpati Didi programme, Finance Minister Nirmala Sitharaman said the government will support women in transitioning from credit-linked livelihoods to full-fledged enterprise ownership. As part of this push, self-help entrepreneur marts will be set up as community-owned retail outlets within cluster-level federations, backed by enhanced and innovative financing to help women scale up their entrepreneurial ventures.

Sitharaman pegs India's fiscal deficit at 4.3% of GDP for FY27

Finance Minister Nirmala Sitharaman, in her Budget speech, pegged India’s fiscal deficit at 4.3% of GDP for FY27, marginally above market expectations, while setting the debt-to-GDP ratio at 55.6%.

She also announced gross market borrowings of ₹17.2 lakh crore for the year, a figure higher than earlier estimates, signalling continued reliance on borrowing even as the government maintains its medium-term fiscal consolidation path.

New Income Tax Act to be effective from April 2026: FM

Allied Health Professionals

NIMHANS

In her address, Nirmala Sitharaman announced the government plans to set up NIMHANS 2.0 and a National Mental Health Centre in North India to address trauma and care gaps.

FM proposes an outlay of ₹20,000 crore over the next 5 years in Carbon Capture Utilization and Storage (CCUS) technologies to scale up and achieve higher readiness levels in end-use applications across

One girl hostel to be established in every district: Nirmala

Ayush pharmacies will be upgraded, says FM

FM : 40,000 crore outlay for Indian Semiconductor Mission (ISM). The government will launch ISM 2.0 to produce equipment and materials, develop full-stack Indian IP, and strengthen supply chains.

FM says India will capture 10 percent global services share by 2047

Mahatma Gandhi Gram Swaraj Initiative

Mahatma Gandhi Gram Swaraj Initiative to strengthen khadi, handloom, and handicraft sectors. The initiative aims to provide global market linkages and branding support while streamlining training, skilling, and quality of production.

FM said it will benefit weavers, village industries, the One District One Product (ODOP) programme, and rural youth.

Biopharma SHAKTI initiaitve

To develop India as a global Biopharma manufacturing hub, FM Nirmala Sitharaman proposed the Biopharma SHAKTI with an outlay of ₹ 10,000 crores over the next 5 years.

Scaling up manufacturing

FM announces Rs 10,000 crore SME growth fund to create champions among MSMEs A three-pronged approach to help MSMEs grow - equity support via MSME growth fund FM proposes to top up self-reliant Indian Fund with Rs 2,000 crore

FM proposes to support the mineral rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu by establishing a dedicated rare earth corridors

FM said in the technology sector, the India Semiconductor Mission will be expanded with the launch of ISM 2.0, and the outlay for electronics component manufacturing will be increased to ₹40,000 crore to strengthen domestic production and innovation.

Biopharma Shakti with an outlay of ₹10,000 crore will include a biopharma-focused network featuring three new institutes.

The BioPharma Strategy for Health Advancement through Knowledge, Technology and Innovation will strengthen India’s digital ecosystem in healthcare, said FM

New technologies enhancing production but sharply increasing demand on water and energy: FM

Sitharaman meets Droupadi Murmu ahead of Budget presentation

India must deeply integrated with global markets exporting more and attracting foreign investment: FM

We have maintained fiscal prudence and monetary stability whilst maintaining a strong thrust on public investments: Nirmala Sitharaman

India will continue to take confident steps towards viksit bharat, balancing ambition with inclusion.

We have made substantial strides in poverty reduction, says FM

LIVE: Sitharaman presenting Union Budget 2026