eznews.inIn 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.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 pmeznews.inThe Indian government has announced a ₹20,000 crore investment over the next five years to advance carbon capture utilisation and storage (CCUS) technology, aimed at reducing emissions in hard-to-abate sectors such as power, steel, and refineries. Finance Minister Nirmala Sitharaman highlighted that this initiative aligns with a roadmap established in December 2025, targeting enhanced readiness for CCUS applications across five key industries. Experts, including Suddhasatta Kundu from Nangia Global, welcomed the funding, noting its potential to facilitate blue hydrogen production. Atanu Mukherjee, CEO of Dastur Energy, emphasized the importance of CCUS in addressing the 30-35% of carbon emissions attributed to industries in India. Preliminary assessments indicate that India possesses approximately 600 billion tonnes of geological CO₂ storage potential. Dastur Energy has been proactive in this area, collaborating with NITI Aayog in 2021 to create the country's first CCUS policy framework, laying the groundwork for a national CCUS mission.
Published: Feb 01 2026, 1 pmeznews.inIn a significant move to bolster India's biopharmaceutical sector, the recent Budget announcement allocated ₹10,000 crore for development over the next five years. This initiative aims to enhance biopharmaceutical education through institutions like the National Institute of Pharmaceutical Education and Research (NIPERS) and improve regulatory frameworks via the Central Drugs Standard Control Organisation (CDSCO). The plan includes establishing over 1,000 clinical trial sites to address the rising burden of noncommunicable diseases, which have surpassed communicable diseases as the leading cause of death in India. Indian pharmaceutical companies, notably Biocon, which derives over 60% of its H1FY26 revenues from biologics and biosimilars, are increasingly focusing on this sector. Other firms, including Sun Pharma and Dr. Reddy, have also developed biosimilars, while Aurobindo and Cipla are in the development phase. Enhanced approval timelines and a broader talent pool are expected to facilitate this transition from small molecules to biologics.
Published: Feb 01 2026, 1 pmeznews.inIndia's Union Budget for 2026-2027, themed "Viksit Bharat," aims to transform aspirations into achievements while prioritizing stability, fiscal discipline, and sustained growth. With a projected growth rate of 7%, the budget emphasizes energy security, reduced import dependencies, and structural reforms. It focuses on the underprivileged, promoting a "Yuva Shakti-driven" approach through three key duties: enhancing economic growth, fulfilling citizen aspirations, and ensuring inclusive development. Over 350 reforms have been introduced, including tax incentives for manufacturing and services, alongside initiatives to bolster MSMEs and agriculture. Infrastructure investment is set to rise significantly, with a commitment to energy security and urban development. The budget also outlines fiscal consolidation goals, targeting a debt-to-GDP ratio of 50% by 2030. Overall, the budget reflects a commitment to people-centric governance and ease of doing business, aiming to foster a robust economic environment for all citizens.
Published: Feb 01 2026, 1 pmeznews.inIn her Budget 2026-27 presentation, Finance Minister Nirmala Sitharaman announced a series of measures aimed at easing the tax burden on ordinary taxpayers and small filers. Key proposals include exempting interest awarded by the Motor Accident Claims Tribunal from income tax and eliminating TDS on such interest. The Tax Collected at Source (TCS) rate for overseas tour packages and education and medical remittances will be reduced from 5% to 2%. A new automated process will allow small taxpayers to obtain lower or nil TDS certificates without needing to approach assessing officers. Additionally, the deadline for revising tax returns will be extended to March 31, and a one-time disclosure window for overseas assets will be introduced. The budget also aims to lower tariffs on personal imports from 20% to 10% and clarify baggage rules, enhancing duty-free allowances.
Published: Feb 01 2026, 1 pmeznews.inIndia's Finance Minister Nirmala Sitharaman announced significant support for the country's burgeoning Animation, Visual Effects, Gaming, and Comics (AVGC) sector during her budget presentation on February 1, 2026. The government plans to establish AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges, aiming to cultivate a workforce projected to reach 2 million professionals by 2030. A report by FICCI and EY highlighted that the AVGC sector's revenues, which stood at ₹113 billion in 2025, are expected to grow at a CAGR of 12.5% to ₹147 billion by 2027. Industry leaders praised the initiative, emphasizing its potential to enhance skill development, foster regional talent, and position India as a global hub for digital content creation. The move is seen as a pivotal step in formalizing India's creator economy, which significantly influences consumer spending and is poised for substantial growth in the coming years.
Published: Feb 01 2026, 1 pm
For the fastest, latest, not so wokest news, 'experts say' you need to visit Eznews
India
World
Economy
Science
Health
Showbiz
Contact