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In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman unveiled a comprehensive strategy to elevate Micro, Small, and Medium Enterprises (MSMEs) as key growth drivers. Central to this initiative is a ₹10,000 crore SME Growth Fund aimed at providing equity support to promising enterprises. Additionally, the government plans to enhance liquidity through the Trade Receivables Discounting System (TReDS), which has already facilitated over ₹7 lakh crore in funding for MSMEs. Key measures include mandating TReDS for all Central Public Sector Enterprises (CPSEs) purchases, introducing a credit guarantee mechanism for invoice discounting, and linking TReDS with the government e-marketplace to streamline financing. Furthermore, the initiative will establish 'Corporate Mitras'—trained professionals from institutions like ICAI and ICSI—to assist MSMEs in compliance at lower costs, particularly in smaller towns. This multifaceted approach aims to solidify the role of MSMEs in India's economic landscape. 
Published: Feb 01 2026, 2 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.inIndia'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.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 pmeznews.inThe Indian government has unveiled plans to enhance mining and processing of critical minerals, particularly in mineral-rich states like Odisha and Tamil Nadu, as part of its Union Budget 2026-27. Finance Minister Nirmala Sitharaman announced the proposal for dedicated Rare Earth Corridors and an exemption on import duties for capital goods essential for processing these minerals, which are crucial for electric vehicles, renewable energy, and defence applications. The initiative includes a reduction of customs duty on Monazite, a key ore for rare-earth elements, to zero. This follows the approval of a Rs 7,280 crore scheme aimed at establishing integrated Rare Earth Permanent Magnet (REPM) manufacturing facilities in India, expected to double the country's REPM consumption by 2030. The move is designed to bolster self-reliance, create jobs, and support India's commitment to achieving Net Zero emissions by 2070.
Published: Feb 01 2026, 2 pmeznews.inIn a significant overhaul, the Union Budget has restructured the taxation of share buybacks, transitioning proceeds into the capital gains framework and reversing the 2024 policy that classified buyback income as dividends. This reform aims to simplify tax administration, eliminate shareholder treatment distortions, and align buybacks with standard equity transactions. Previously, buyback gains were taxed as dividend income, complicating compliance and misrepresenting the economic nature of buybacks. Under the new proposal, buyback proceeds will be taxed as capital gains, allowing investors to benefit from standard equity capital gains rules, including lower long-term rates. However, large shareholders and promoters will face higher effective tax rates—22% for corporates and around 30% for non-corporates—to prevent tax arbitrage. Experts welcome the capital gains treatment but emphasize the importance of the detailed regulations surrounding promoter taxation. Overall, the reform aims to enhance transparency and consistency in shareholder payouts.
Published: Feb 01 2026, 2 pmeznews.inIn a bid to alleviate financial pressures amid declining remittances, the Union Budget has proposed significant tax reforms for the Reserve Bank of India's liberalised remittance scheme. The Tax Collected at Source (TCS) for remittances related to education and medical treatment will be slashed from 5% to 2% for amounts starting at ₹10 lakh. S. Sriram, an Executive Partner at Lakshmikumaran & Sridharan Attorneys, noted that this change will ease liquidity for families and reduce the need for tax refunds, thereby unblocking funds. Additionally, the TCS on overseas tour packages will be standardised to a 2% rate, eliminating the previous tiered structure of 5% and 20% based on remittance amounts. This follows last year's increase in the minimum threshold for TCS collection from ₹7 lakh to ₹10 lakh. As of November 2025, total remittances have fallen to $1,937.2 million, an 18% drop from the previous month.
Published: Feb 01 2026, 2 pmeznews.inIn a significant boost for India's seafood export sector, the Union Budget has approved duty-free imports of 18 processing inputs, increasing the limit from 1% to 3% of the Free on Board (FOB) value. The Seafood Exporters Association of India (SEAI) welcomed this move, which includes essential items like batter, bread crumbs, and food additives, as it is expected to lower processing costs and enhance competitiveness. K.N. Raghavan, SEAI Secretary General, emphasized that this change, first introduced in 2005, will particularly benefit value-added seafood exports. Utham Gowda, CEO of Captain Fresh, noted that the tariff relief addresses supply chain economics and could attract multinational players to India's fragmented seafood industry. He highlighted the global seafood market's $600 billion value as a strategic opportunity for India to emerge as a nutritional powerhouse, underscoring the importance of these structural changes in fostering industrial growth.
Published: Feb 01 2026, 2 pm
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