The Governmentโ gross and net borrowing for FY26 is budgeted at Rs 14.82 lakh crore and Rs 11.54 lakh crore respectively. The planned market issuances are almost the same as FY25. Gross and net borrowing for FY25 stood at Rs 14.13 lakh crore and Rs 11.75 lakh crore. The same level of G-Sec supply implies that Government borrowing will not crowd out the private credit incrementally in FY26. The limited supply will boost the rally in G-Sec.
๐ – To provide relief for cancer patients, those suffering from rare diseases, and chronic conditions, the government will add 36 life-saving drugs to the list of medicines fully exempt from basic customs duty.
– Six life-saving medicines will be added to a list with a concessional customs duty of 5%.
– Full exemption and concessional duty will apply to bulk drugs used for manufacturing these medicines.
๐ Propose to continue exemption on BCD for manufacture of ships and its parts for 10 years. The FM proposed full exemption of Basic Customs Duty (BCD) on cobalt powder and lithium-ion battery waste, scrap, and 12 other critical minerals.
This is aimed at securing the availability of these materials for manufacturing in India and creating job opportunities for the youth.
๐ FY25 revised capex at rs 10.18 lakh cr
๐ The government proposes to levy no more than one cess or surcharge. A social welfare surcharge will be exempted on 82 tariff lines.
๐ New reforms
Committee to drive further ease of doing business reforms
The Finance Minister has announced a committee to review and recommend new reforms to enhance the ease of doing business. This initiative aims to streamline regulations, improve efficiency, and attract investments.
๐ Fiscal deficit in focus
Fiscal deficit as a percentage of GDP is on a declining path as targeted. Revised estimate for capex at INR 10.18 lakh crore, falls short of BE of FY25
๐ Tariffs in focus
Budget streamlines tariff rates further, focuses of deregulation, gives a push to grassroot economy. Largely remains reform focused. Sets out a prudent target of 4.4% for FY 26-staying on the path of fiscal consolidation
๐ Fiscal deficit for FY25 at 4.8%, FY26 estimated at 4.4%
๐ Jan Vishwas Bill 2.0 to be introduced to decriminalise over 100 provisions
Investment friendly index of States to be launched in 2025
๐ FM on mergers
Speedy approvals for company mergers will be ensured and scope of such norms to be expanded
Govt has shown steadfast commitment to ease of doing business
Govt will develop modern, people friendly, trust-based regulatory framework
๐ Government has, in the past, introduced faceless assessment, faster tax returns and five vivad se vishwas schemes.
Insurance FDI hiked 74% to 100%
๐ New income tax code next week. New Income Tax bill to be simpler to understand and will reduce litigation
Tax department will trust first, scrutinize later, says FM
Propose to introduce new Income Tax bill next week
๐ Exports is 4th engine of growth: Export Promotion Mission with sectorial and ministerial targets, launched
Digital public infrastructure for international trade will be set up for financing solutions
Support will be provided for domestic manufacturing to join global supply chains
National framework as guidance to States to promote GCCs in tier two cities
๐ National geo spatial mission announced: India to start a national geo spatial mission to develop spatial data to modernize land records
๐ Deep tech fund of funds will be explored
๐ Medical tourism & heal in India will be promoted along with pvt sector including easier visa norms
๐ PM Gatishakti data for private sector: access to relevant data and maps to be provided to private sector
Tourism for employment led growth. Top 22 destinations will be developed in partnership with states
๐ SWAMI scheme: 50,000 dwelling units completed, another 40,000 to be completed
SWAMI Fund 2 will be established of Rs 15,000 crore
๐ 4 crore additional passengers, greenfield airports to be facilitated in Bihar
๐ The Finance Minister highlighted key power sector reforms aimed at strengthening electricity distribution and transmission. The government will incentivize states to undertake reforms in electricity distribution and enhance intrastate transmission capacity. These measures will improve the financial health and operational efficiency of power companies. To support states in implementing these reforms, an additional borrowing allowance of 0.5% of GSDP will be granted, contingent on their progress in this sector.
๐ UDAN has enabled 1.5 crore middle class people connecting 88 airports, with 619 routes. Modified UDAN to be launched to 120 new destinations
๐ Shipbuilding financial assistance scheme to be restarted, as government thrusts to shipbuilding. Ship building clusters to be facilitated
Maritime development fund with corpus of Rs 25000 cr to be set up
๐ Nuclear energy mission for Viksit Bharat: 100 GW of nuclear energy
Amendments to the atomic energy act will be taken up for this
๐ Jal jeevan mission extended till 2028 to ensure 100 percent coverage. Since 2019, 80 percent coverage of rural population has been achieved.
๐ State capex linked loans at 1.5 lakh crore for FY26
Urban challenge fund to be set up of Rs 1 lakh crore for redevelopment of cities
๐ 2025-30 asset monetisation plan to be launched
๐ Each Infra ministry will come up with a 3 year list of PPP projects
Each infrastructure ministry to come up with 3 PPP proposals, Rs 1.5 lakh crore interest free loans for capex and incentives for reforms
๐ GIG WORKERS TO BE PROVIDED HEALTHCARE, WILL ASSIST 1 CRORE GIG WORKERS
๐ Cancer centres in all district hospitals
๐ 3 Centres of Excellence on AI for education will be setup with outlay of Rs 500 crore
๐ FM on investments
Bharatiya Bhasha Pustak Scheme for mothertongue language
National Manufacturing Mission to support clean tech manufacturing to support domestic production of EV batteries, solar panels
5 National centres of excellence for skilling will be set up
Additional infra to be created in 5 IITs started after 2014 for 6500 more students
๐ Investment is the 3rd engine of growth
Saksham Anganwadi and Poshan 2.0m programme to provide support for 8 crore children
Atal Tinkering Labs to be setup in government schools in next five years.
๐ Will set up Manufacturing mission to provide policy support to industries, says FM
๐ Institute to be set up in Bihar for food processing
Institute to be set up in Bihar for food processing
National Manufacturing Mission to further make in India
๐ India to become global hub for toys
New scheme to be launched for 5 lakh women, first time entrepreneurs for term loans for next 5 years
Credit Guarantee Scheme for Startups increased to 20Cr
๐ MSMEs is the 2nd engine of growth
MSMEs responsible for 45% of our exports. Classification limit of MSMEs enhanced for them to boost their growth
For micro enterprises, customised credit cards to be issued
๐ Big KCC announcement – loan limit increased
The Finance Minister announced that Kisan Credit Cards (KCC) will continue to facilitate short-term loans for 7.7 crore farmers, fishermen, and dairy farmers. Additionally, the loan limit under the modified interest subvention scheme will be increased from โน3,000 to โน5,000 for loans taken through the KCC, providing greater financial support for agricultural production.
๐ A plan for healthier India
The Finance Minister highlighted a comprehensive program for vegetables and fruits, acknowledging the growing awareness among the population about their nutritional needs. This shift reflects a healthier society, with rising income levels leading to an increase in the consumption of vegetables, fruits, and other nutritious foods. The government aims to support this trend with targeted initiatives to further promote the availability and accessibility of these essential food items, ensuring that the benefits of improved nutrition reach a wider segment of the population.
๐ FM on agriculture sector
– Dhan Dhanya Krishi Yojana To Focus On 100 Low Productivity Districts
– Agri Programme To Help 1.7 Cr Farmers
– Agri Plan To Cover 100 Districts With Low Productivity
– National Mission For Edible Oil & Seeds Aims At Aatmanirbharta In The Sector
– Will Launch 6 Year Mission To Become Aatmanirbhar In Pulses
– Central Agencies To Procure Tur, Urad, Masur In Next 4 Years
– Makhana Board In Bihar To Be Created To Improve Processing, Value Addition
๐ A 6-year mission aimed at achieving self-reliance in pulses
The Finance Minister announced that the government will launch a 6-year mission aimed at achieving self-reliance in pulses, with a special focus on tur and masoor. Central agencies such as NAFED and NCCF will be prepared to procure these three pulses from farmers who register with the agencies and enter into agreements. This initiative will run over the next four years, ensuring support and guaranteed procurement for farmers.
๐ FM speaks on Crop diversification
Crop diversification, irrigation facilities, availability of credit to help 1.7 cr farmers
The scheme will adopt crop diversification, augment post harvest storage. It will help 1.7 cr farmers
๐ FM says Budget aims at ‘transformative’ reforms in 6 areas
Finance Minister says Budget aims at ‘transformative’ reforms in 6 areas including Taxation, financial sector, power sector, urban development, mining, regulatory reforms.
๐ Agri as the first engine of growth, says FM
Developing agri districts programme to be initiated on lines of aspirational districts programme.
Crop diversification, irrigation facilities, availability of credit to help 1.7 cr farmers
The scheme will adopt crop diversification, augment post harvest storage. It will help 1.7 cr farmers
๐ Garib, Youth, Annadata and Nari focus of Budget, says FM
Focus on farmers, youth, farmers and women (GYAN)
Securing energy supplies, promoting exports are focus areas
Power engines for grwoth agri, msmes, exports
๐ FM says Our economy is fastest growing among major economies
The Budget 2025-26 continues our government’s efforts to accelerate growth
Our economy is fastest growing among major economies
The Budget 2025-26 continues our government’s efforts to secure inclusive development, uplift household sentiment and enhance the power of India’s middle class.
๐ Focus of this budget is to accelerate growth, says FM
