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India's Finance Minister Nirmala Sitharaman unveiled the Union Budget for 2026-27 on February 1, 2026, showcasing a digital tablet in a traditional red pouch. The budget allocates nearly $133 billion to enhance infrastructure and manufacturing across various sectors, including textiles and electronics, while raising taxes on equity futures to mitigate speculative trading. Sitharaman emphasized the need for economic protection amid global uncertainties and ongoing US tariffs. Key initiatives include a $1.1 billion investment in biopharmaceuticals, a $4.3 billion boost for electronic manufacturing, and tax incentives for cloud service providers. While sectors like pharmaceuticals and textiles saw stock gains, the increased transaction tax led to declines in brokerage stocks and state-owned banks. The clean energy sector expressed disappointment over the lack of expected tax reforms. Overall, the budget aims to stimulate growth while addressing challenges in the current economic landscape. 
Published: Feb 01 2026, 3 pmeznews.inUnion Finance Minister Nirmala Sitharaman unveiled the Union Budget for 2026-2027 in the Lok Sabha, outlining a total estimated expenditure of ₹53.5 lakh crore aimed at fostering economic growth, fulfilling citizen aspirations, and promoting inclusive development under the "Sabka Sath, Sabka Vikas" initiative. A key focus of the budget is a substantial increase in capital expenditure to ₹12.2 lakh crore, part of a broader strategy to strengthen the economy while maintaining a fiscal deficit target of 4.3% of GDP. Notable initiatives include the Biopharma SHAKTI scheme, aimed at positioning India as a global hub for biologics, and the launch of India Semiconductor Mission 2.0. Tax reforms include the new Income Tax Act, effective April 1, 2026, which simplifies the tax regime, alongside exemptions for interest from Motor Accident Claims and a reduced Tax Collected at Source for overseas tour packages.
Published: Feb 01 2026, 4 pmeznews.inIn the 2026 Budget, the Indian government has significantly increased its funding for nuclear research, allocating ₹2,410.48 crore for R&D projects under the Department of Atomic Energy, marking an 88% rise from the previous year's revised estimate of ₹1,284.77 crore. Notably, capital expenditure for nuclear research has surged by 113% to ₹1,977.20 crore, while revenue expenditure saw a modest increase to ₹433.38 crore. The Bhabha Atomic Research Centre (BARC) received a substantial boost, with its total budget rising to ₹1,800 crore, a 95% increase, aimed at supporting various research initiatives, including small modular reactors. The Indira Gandhi Centre for Atomic Research also benefited, with funding for its projects increasing to ₹226 crore. However, overall budgetary support for the Department of Atomic Energy has slightly decreased to ₹24,123.92 crore, attributed to reduced capital expenditure for the financially stable Nuclear Power Corporation of India.
Published: Feb 01 2026, 4 pmeznews.inThe Union Budget for 2026-27 has unveiled a range of customs duty and tax changes aimed at reshaping the tariff landscape, resulting in lower prices for some imported goods while increasing costs for others. Notably, the tariff rate on dutiable goods for personal use has been halved from 20% to 10%, benefiting consumers. Additionally, the budget exempts basic customs duty on 17 essential drugs and medicines, providing relief to patients. However, certain items will become more expensive; the Tax Collected at Source (TCS) on alcoholic beverages and specific minerals, including coal and lignite, will rise from 1% to 2%. Furthermore, while the basic customs duty on imported umbrellas remains at 20%, a new specific duty of ₹60 per piece may lead to higher prices for these items.
Published: Feb 01 2026, 4 pmeznews.inIn a significant policy shift, the Indian government has increased investment limits for non-resident individuals (NRIs) and overseas investors under the Portfolio Investment Scheme (PIS). The individual investment cap has been raised from 5% to 10%, while the aggregate limit for all such investors has surged from 10% to 24%. This move aims to broaden India's equity capital base, enhance market depth, and attract stable, long-term capital, particularly from the Indian diaspora. Analysts suggest that this change will encourage greater NRI participation in fundamentally strong companies, reducing reliance on short-term foreign flows. Experts believe that direct access for individual investors could improve market liquidity, price discovery, and corporate governance, ultimately making Indian markets more resilient to global capital volatility. The success of this initiative will depend on regulatory clarity and market sentiment moving forward.
Published: Feb 01 2026, 4 pmeznews.inIn the Union Budget 2026, the Indian government has unveiled a series of initiatives aimed at regional development, particularly in mineral-rich states such as Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. A key proposal is the establishment of dedicated Rare Earth Corridors to enhance the mining, processing, and manufacturing of rare earth elements, vital for advanced technology sectors. Additionally, the Purvodaya initiative aims to boost Eastern India through the development of an integrated East Coast Industrial Corridor, five new tourism destinations, and the introduction of 4,000 e-buses to improve connectivity. The North-Eastern Region will also benefit from a new scheme focused on developing Buddhist Circuits across several states, enhancing tourism infrastructure. On a national scale, ₹1.4 lakh crore in Finance Commission Grants will be allocated to support local bodies and disaster management, fostering grassroots development throughout the country.
Published: Feb 01 2026, 4 pmeznews.inIn India's Union Budget for 2026-27, the Information and Broadcasting Ministry has been allocated Rs 4,551.94 crore, with significant funding directed towards Prasar Bharati, the country's public broadcaster. The budget sees an increase in information and publicity spending to Rs 1,476.83 crore, up from Rs 1,207.67 crore in the previous year. Prasar Bharati will receive Rs 2,291.88 crore for salaries and operational costs. Additionally, Rs 509.24 crore is earmarked for broadcasting infrastructure development, while Rs 344.55 crore is allocated for promoting Indian cinema through festivals and new productions. The budget also supports community radio with Rs 8 crore and invests Rs 250 crore in talent development in the animation, visual effects, and gaming sectors. Notable allocations include Rs 89.97 crore for the Film and Television Institute of India and Rs 80 crore for the Satyajit Ray Film and Television Institute.
Published: Feb 01 2026, 3 pmeznews.inIn a significant move to bolster India's position as a global hub for artificial intelligence and digital infrastructure, the Union Budget 2026-27 has proposed a tax holiday until 2047 for foreign companies offering cloud services from Indian data centres. Finance Minister Nirmala Sitharaman emphasized the need for critical infrastructure, stating that the policy aims to transform India into an export hub for cloud computing while ensuring that services are also provided to Indian customers through local resellers. The initiative comes as India prepares to host the India AI Impact Summit in February 2026, which will gather global leaders and industry experts to discuss AI advancements. With investments in AI infrastructure already nearing USD 70 billion, industry leaders believe this budget will enhance India's capability to design and manage core platforms for global enterprises, reinforcing its commitment to data sovereignty and a resilient digital economy.
Published: Feb 01 2026, 3 pmeznews.inThe National Stock Exchange's CEO, Ashish Chauhan, has assured that the recent increase in Securities Transaction Tax (STT) will not significantly impact the asset quality of stock brokers or listed companies. In an interview with ANI, he stated that the market typically absorbs such changes and adjusts accordingly, emphasizing that India's robust economic growth will continue to attract investors. The government’s proposed STT hike, which raises the tax on futures and options trades, may increase trading costs for frequent traders but is not expected to disrupt the broader market ecosystem. Chauhan also highlighted tax relief measures benefiting students and travelers, alongside the government's commitment to fiscal discipline and infrastructure development in the Union Budget 2026. He noted a reduction in the fiscal deficit and a roadmap to lower the debt-to-GDP ratio, calling the budget growth-oriented yet fiscally conservative.
Published: Feb 01 2026, 3 pmeznews.inFinance Minister Nirmala Sitharaman presented India's Union Budget for 2026-27 on February 1, 2026, showcasing a digital tablet in a traditional red 'bahi-khata' pouch. Moody's Ratings described the budget as "tactical" but lacking in breakthrough measures, noting that the planned fiscal consolidation will reduce the budget gap to 4.3% from 4.4% without altering India's credit profile. Despite a projected economic growth of 7.4% and inflation near 2%, Guzman highlighted that the fiscal metrics have not improved sufficiently post-COVID. The budget emphasizes manufacturing growth, aiming to increase its contribution to GDP from under 20% to 25%, supported by a recent EU free trade agreement. However, tax reforms are expected to hinder revenue growth, while significant government borrowing could crowd out private investment and worsen the interest payments-to-revenue ratio. The government plans to reduce its debt-to-GDP ratio to 55.6% from 56.1%.
Published: Feb 01 2026, 4 pm
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