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In a significant shift, the government has clarified that capital gains tax exemptions on Sovereign Gold Bonds (SGBs) will only apply to original subscribers who hold the bonds to maturity, effective April 1. This change, aimed at promoting long-term investment and discouraging speculative trading, means that investors purchasing SGBs in the secondary market will no longer benefit from tax exemptions. The announcement has led to a sharp decline of 6-10% in SGB prices on stock exchanges, as experts warn that the new tax implications may diminish the attractiveness of these bonds compared to other investment options, such as exchange-traded funds. The government’s move seeks to eliminate arbitrage opportunities and ensure uniform tax treatment across all SGB issuances, reinforcing the importance of holding these bonds to maturity for tax benefits. This policy shift underscores the government's commitment to fostering stable investment behavior in sovereign instruments. 
Published: Feb 01 2026, 5 pmeznews.inIn a significant boost for India's coastal economy, Finance Minister Nirmala Sitharaman has announced new promotional schemes in the Budget, elevating coconut from a traditional crop to a high-value product. This initiative aims to diversify farm outputs, enhance productivity, and create employment opportunities for the 30 million people reliant on coconuts, including 10 million farmers. A key component is the Coconut Promotion Scheme, which focuses on rejuvenating ageing plantations by replacing senile trees with high-yielding varieties in major coconut-producing states like Kerala and Tamil Nadu. The government has allocated ₹125 crore for various initiatives under the 2025-26 scheme, marking a significant increase from previous years. This recognition of coconut as a high-value crop is expected to enhance branding and marketing efforts in global markets, while also addressing the current shortage of raw materials for industries reliant on coconut shells.
Published: Feb 01 2026, 6 pmeznews.inThe Indian government is set to launch a coastal cargo promotion scheme aimed at increasing the share of inland waterways and coastal shipping from 6% to 12% by 2047, as part of its 2026-27 Union Budget. Finance Minister Nirmala Sitharaman announced plans to operationalise 20 new national waterways over the next five years, addressing the current reliance on road and rail transport, which dominate freight movement at 65% and 26%, respectively. The initiative includes establishing dedicated freight corridors, such as one connecting Dankuni in the East to Surat in the West, and enhancing connectivity to mineral-rich areas in Odisha. Experts emphasize the need for effective execution to create a competitive maritime ecosystem, while the promotion of locally manufactured containers is expected to improve logistics efficiency. Currently, only 2-3% of freight is transported via inland waterways, despite India having 14,500 km of navigable routes.
Published: Feb 01 2026, 6 pmeznews.inIn a significant boost to the education sector, the Union Budget for 2026-27 has announced the establishment of a new National Institute of Design (NID) in eastern India, alongside a range of initiatives aimed at enhancing educational infrastructure. Union Finance Minister Nirmala Sitharaman revealed plans for five university townships near major industrial corridors, the creation of girls' hostels in every district, and the introduction of content creator labs in 15,000 schools. The budget allocates over Rs 1.39 lakh crore for education, including Rs 55,727 crore for higher education. Additionally, a loan-linked support scheme for veterinary colleges and a reduction in the tax collection at source (TCS) rate for education-related remittances from 5% to 2% were proposed. Union Education Minister Dharmendra Pradhan praised the budget as a blueprint for future development, emphasizing its focus on education and employment creation.
Published: Feb 01 2026, 6 pmeznews.inUnion Defence Minister Rajnath Singh has hailed the record budget allocation of ₹7.85 lakh crore for the defence sector in the Union Budget 2026-27, emphasizing its potential to bolster military capabilities and promote indigenous manufacturing. Singh expressed gratitude to Prime Minister Narendra Modi, linking the budget to the success of Operation Sindoor and highlighting its role in enhancing the security-development-self-reliance balance. Notably, over ₹2.19 lakh crore is allocated for capital expenditure, with ₹1.85 lakh crore earmarked for capital acquisition, marking a 24% increase from the previous fiscal year. The budget also prioritizes veteran welfare, with a 45.49% increase in funding for the Ex-Servicemen Contributory Health Scheme. Industry leaders, including the Society of Indian Defence Manufacturers, view the allocation as a catalyst for growth and innovation in the defence sector, while measures to simplify customs duties and support MSMEs are expected to further enhance domestic production capabilities.
Published: Feb 01 2026, 6 pmeznews.inIn a bid to stimulate the issuance of high-value municipal bonds, India's Union Budget for FY2027 has introduced a ₹100 crore incentive for cities issuing bonds exceeding ₹1,000 crore. This initiative complements the existing Atal Mission for Rejuvenation and Urban Transformation (AMRUT), which continues to support smaller towns with incentives for bond issuances up to ₹200 crore. Union Finance Minister Nirmala Sitharaman highlighted that this move aligns with the Reserve Bank of India's efforts to enhance the municipal bond market, including its November 2025 decision to accept these bonds as collateral for repo transactions. Experts, including Venkatakrishnan Srinivasan of Rockfort Fincap LLP, noted that the new budgetary incentives encourage municipalities to pursue larger, benchmark-sized issuances, potentially lowering borrowing costs below 5.5%. This layered approach marks a significant policy shift towards making municipal bonds a mainstream financing source for urban infrastructure.
Published: Feb 01 2026, 6 pmeznews.inIn the 2026-27 Budget, Finance Minister Nirmala Sitharaman has adopted a pragmatic approach to agriculture, focusing on technological advancements and high-value sectors such as fisheries and cash crops. The budget includes a new scheme, Bharat-VISTAAR, which aims to provide farmers with AI-driven, customized advisory support, backed by an initial allocation of ₹150 crore. Sitharaman also announced a ₹350-crore initiative for High Value Agriculture to support the cultivation of crops like coconut and cocoa, aiming to diversify outputs and enhance farmers' incomes. While the interest subsidy for agricultural credit remains unchanged at ₹22,600 crore, there is no funding for the Cotton Technology Mission or the National Mission on Hybrid Seeds, which have faced implementation challenges. Additional proposals include the Mahatma Gandhi Gram Swaraj initiative to bolster khadi and handicrafts, and various support schemes for livestock and dairy sectors, reflecting a comprehensive strategy to revitalize Indian agriculture.
Published: Feb 01 2026, 5 pmeznews.inIn the Union Budget for 2026-27, the Indian government has increased public capital expenditure by approximately 9% to ₹12.2 lakh crore, underscoring its commitment to infrastructure development as a driver of economic growth. A significant portion of this budget is allocated to enhancing the transport network, with the Ministry of Road Transport and Highways receiving ₹2.94 lakh crore for the development of National Highways and expressways. Indian Railways is also set to benefit from a capital outlay of ₹277,830 crore, aimed at expanding railway infrastructure, including the construction of new lines and doubling existing tracks. Additionally, the budget outlines plans for seven new High-Speed Rail corridors and the operationalisation of 20 new National Waterways. Digital connectivity is prioritized with a ₹47,274 crore allocation for telecom infrastructure. The establishment of an Infrastructure Risk Guarantee Fund aims to bolster private investment in infrastructure projects, enhancing national productivity and competitiveness.
Published: Feb 01 2026, 5 pmeznews.inLakshmamma, a 60-year-old millet farmer from Telangana's Sangareddy District, has thrived for 40 years with the support of the Deccan Development Society (DDS) and a self-help group (SGH). She sells her produce through DDS's facilities and expressed the need for further assistance following Finance Minister Nirmala Sitharaman's announcement of "SHE-Marts" aimed at empowering rural women-led enterprises. These community-owned retail outlets are designed to enhance women's economic participation and support small entrepreneurship, potentially leading to inclusive rural growth. Experts emphasize that the success of SHE-Marts hinges on addressing challenges such as digital skills gaps and infrastructure issues. Lakshmamma advocates for better support for biodiverse farming and fair pricing for millets, highlighting the need for institutional credit for women farmers. The initiative represents a significant shift towards sustainable enterprise-led growth, with the potential to transform women from participants into business owners.
Published: Feb 01 2026, 5 pmeznews.inTamil Nadu Chief Minister M.K. Stalin has expressed strong discontent with the Union Budget presented by Finance Minister Nirmala Sitharaman, describing it as a significant letdown for the state. In a statement released on February 1, 2026, Stalin criticized the budget for neglecting the needs of the poor, women, farmers, and marginalized communities, asserting that Tamil Nadu's interests have been overlooked. As the state approaches assembly elections, he lamented the lack of recognition from the central government, stating that expectations for a more equitable distribution of resources were unmet. He specifically highlighted the failure to address demands from various states, including Tamil Nadu, to increase their share of total tax revenue from 41% to 50%, calling the decision to maintain the current devolution rate "disappointing."
Published: Feb 01 2026, 5 pm
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