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The 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 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 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 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 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.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 pm
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