Union Budget 2026-27: LIVE

Emerging Technologies including AI:

FM Sitharaman states that the govt has taken several steps to support new technologies through AI Mission, National Quantum Mission, Anusandhan National Research Fund, and Research, development and Innovation Fund. 

Close to 25 crore individuals have come out of multi-dimensional poverty through a decade of sustained and reform oriented efforts by the current govt. 

Placing a renewed emphasis on the service sector, a high-powered education to employment enterprises standing committee has been proposed to recommend measures for Service sector as a core-driver of Viksit Bharat. 

This will lead to a 10% global share by 2047

Ease of Doing Business

Individual persons residing outside India (PROI) will be permitted to invest in equity instruments of listed Indian companies through the portfolio investment scheme. 

It is also proposed to increase the investment limit for an individual PROI under the scheme from 5% to 10% with an overall investment limit to 24%. 

Financial Sector

Speaking on the Financial Sectors, Ms. Sitharaman proposes the setting up of a high-level committee on banking for Viksit Bharat to comprehensively review the sector and align it with India's next phase of growth.

• FM proposes the restructuring of Power Finance Corporation and Rural Electrification Corporation.
• She also proposes a comprehensive review of the Foreign Exchange Management non-debt instruments rules to create a more contemporary and user friendly framework for foreign investments.
• Proposed a market making framework with suitable access to funds for Corporate and Municipal Bonds.
• Proposed an incentive of 100 crore for a single bond issuance of more than 1,000 crore.

City Economic Regions

Acknowledging cities as India's engines of growth, innovation and opportunities, she stated that there should be a focus on tier II, tier III and temple towns which require modern infrastructure and basic amenities. 

She announced allocation of Rs. 5,000 crore per CER over five years for implementing plans through a challenged mode with a reform-cum-result based financing mechanism.

She also reaffirmed that the Union Budget 2026-27 aims amplifies the potential of cities to deliver economic power of agglomeration by mapping city economic regions based on their specific growth drivers. 

The ministry will also develop seven high-speed rail corridors between cities as "growth connectors". She cited, "from Mumbai to Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi and Varanasi-Siliguri."

Carbon capture utilisation and storage

Aligning with the roadmap launched in Decemeber 2025, FM proposed an outlay of Rs. 20,000 crore over the next five years for the purpose of Carbon capture utilisation and storage.

Infrastructure

In the past decade, Sitharaman stated that govt has undertaken several initiatives for large scale enhancement of public infrastructure. 

She announced a committed and continued focus to develop infrastructure in cities with over 5 Lakh population that is,  tier II and tier III, also calling them growth centres. 

She noted that Public Capital Expenditure has increased from 2 lakh crore in 2014-15 to 11.2 lakh crore in 2025-26. In the FY 2026-27, FM proposes to increase it to 12.2 lakh crores. 

Alongside, she also proposes to set up an infrastructure risk guarantee fund so as to provide partial credit guarantee to lenders. 

Moreover, FM  proposed to establish new dedicated freight corridors connecting Dankuni in the East to Surat in the West. She also announced a proposal to operationalise 20 new waterways over next five years starting with National Waterways 5 in Odisha. 

A ship-repair ecosystem catering to inland waterways will be set up in Varanasi and Patna. 

There will be a launch of coastal cargo promotion scheme for incentivising model shift from rail to road, so as to increase the share of inland waterways and coastal shipping from 6% to 12% by 2047. 

Three pronged approach to champion MSME's

• Recognising MSME's as a vital engine of growth, she proposed equity support by a dedicated Rs 10,000 crores SME growth fund.
• To top-up the self-reliant India fund with Rs. 2,000 crore (first set up in 2021)
• Liquidity support through TREDS platform

GOI also proposes to facilitates support to professional institutions such as ICAI, ICSI, ICMAI to design short term modular courses and practical tools to develop a cadre of Corporate Mitras, especially in tier II and tier III towns.

Rejuvenation of legacy industrial clusters

Proposes a scheme to revive 200 legacy industrial clusters to improve the cost competitiveness and efficiency through infrastructure and technology upgradation. 

FM announces for a dedicated Initiative for sports goods to promote manufacturing, research and innovation in equipment design as well as material sciences

Integrated Program for labour intensive textile sector:

She proposed a program for labour intensive textile sector with five subparts:

• The National Fibre Scheme for self-reliance in natural fibres, such as silk, wool and jute, man-made fibres and new age fibres.
• Textile expansion and employment scheme 
• The National Handloom and Handicraft Program (To integrate and strengthen existing schemes)
• Text-eco initiative 
• Samarth 2.0
• Setting up of mega textile parks 
• Launch the Mahatma Gandhi Gram Swaraj Initiative