Tag Archives: budget 2026

Budget 2026 Puts Technology At Heart Of Inclusive Growth, Says Nasscom

Posted on by
Reply

Industry body Nasscom on Sunday welcomed the Union Budget 2026, saying it firmly positions technology as a central driver of inclusive and sustainable economic growth under the government’s Viksit Bharat vision.

Reacting to Finance Minister Nirmala Sitharaman’s ninth consecutive Budget, Nasscom described it as forward-looking and consultative, reinforcing the partnership between government and industry while strengthening India’s ambition to remain a global technology and services hub.

Tax Certainty, Ease Of Doing Business Boost For IT Sector

Nasscom said a key positive for the technology industry was the rationalisation of international taxation and transfer pricing rules, noting that tax policy has been effectively deployed as a competitiveness lever.

It highlighted the consolidation of software development services, IT-enabled services, knowledge process outsourcing and contract R&D into a single category of Information Technology services, along with a uniform safe harbour margin of 15.5 per cent. The move, coupled with the expansion of the safe harbour eligibility threshold from Rs 300 crore to Rs 2,000 crore, is expected to significantly widen access to certainty mechanisms for routine cross-border IT service models.

The industry body also welcomed steps to strengthen the Advance Pricing Agreement (APA) framework, particularly the proposal to fast-track unilateral APAs for IT services with a targeted two-year resolution timeline, addressing long-standing concerns over delays and uncertainty.

Cloud, Semiconductors And Digital Infrastructure In Focus

Nasscom said the Budget made a decisive intervention to strengthen India’s cloud and digital infrastructure ecosystem. It pointed to the proposed tax holiday till 2047 for foreign companies providing global cloud services using Indian data centres, calling it a strong signal to attract long-term global investment and expand India’s compute capacity.

The industry body also welcomed the emphasis on building domestic capability in strategic technologies, including the launch of India Semiconductor Mission 2.0 and the enhanced Rs 40,000 crore outlay for the Electronics Components Manufacturing Scheme.

Taken together, Nasscom said, the measures reflect a more mature policy approach that places technology, digital infrastructure and tax certainty at the core of India’s long-term competitiveness, setting a clear direction for sustainable growth driven by innovation and manufacturing depth.

Indian Markets Crash After Budget Disappointment Over STT Hike

Posted on by
Reply

Indian equity markets witnessed a sharp sell-off on Budget Day, with benchmark indices sliding nearly 2 per cent after Finance Minister Nirmala Sitharaman announced a steep hike in Securities Transaction Tax (STT) on futures and options, unsettling investor sentiment in a special Sunday trading session.

The Sensex closed at 80,723, while the Nifty ended at 24,825, down 495 points, marking the steepest Budget Day decline in six years. The fall reflected disappointment over higher trading costs and the absence of immediate growth or sentiment-boosting triggers for the markets.

Sharp Intraday Volatility As Traders Unwind Positions

Markets were far more volatile during the session. The Sensex plunged nearly 3,000 points from the day’s high to hit an intraday low of 79,899.42, while the Nifty slipped to 24,572, before recovering modestly towards the close.

Traders attributed the sharp swings to rapid unwinding of leveraged positions following the STT announcement. The tax on futures trades was raised to 0.05 per cent from 0.02 per cent, while STT on options premium was increased to 0.15 per cent from 0.10 per cent, significantly raising transaction costs in the derivatives segment that drives daily market volumes.

PSU Banks, Metals Drag As Volatility Spikes

The sell-off was broad-based, extending well beyond frontline stocks. The Nifty Midcap 100 fell about 2 per cent, while the Nifty Smallcap 100 dropped nearly 2.7 per cent, underlining the risk-off mood across the market. Investor anxiety surged, with the India VIX jumping nearly 12 per cent, signalling heightened volatility.

Sector-wise, PSU banks were the worst hit, with the Nifty PSU Bank index tumbling close to 6 per cent, followed by metal stocks, which fell around 4 per cent. Banking and financial services indices declined over 2 per cent each. Among individual stocks, Bharat Electronics, Hindalco and ONGC fell about 6 per cent, while IT stocks offered limited relief, with Wipro, TCS and Max Healthcare gaining around 2 per cent each.

Budget 2026 Raises Aid For Nepal, Afghanistan; Allocation To Bangladesh Cut

Posted on by
Reply

India has recalibrated its neighbourhood development assistance in the Union Budget 2026–27, increasing allocations for countries such as Nepal, Afghanistan, Bhutan and Sri Lanka, while sharply reducing aid to Bangladesh, signalling a selective realignment of regional priorities.

According to Budget documents, India’s development assistance to Bhutan has been raised to Rs 2,288.56 crore, reaffirming Thimphu’s position as the largest recipient of Indian aid. Allocation for Afghanistan has been increased from Rs 100 crore to Rs 150 crore, indicating that New Delhi expects to scale up development projects in the country despite continuing political uncertainty.

Aid to Nepal has been enhanced by Rs 100 crore to Rs 800 crore, while Sri Lanka will receive Rs 400 crore, up from Rs 300 crore in the previous Budget. India has also significantly increased assistance to Mongolia, raising the allocation from Rs 5 crore to Rs 25 crore.

Bangladesh Aid Halved

In contrast, financial support for Bangladesh has been halved, with the allocation reduced from Rs 120 crore to Rs 60 crore. Assistance to the Maldives has been marginally cut from Rs 600 crore to Rs 550 crore, while funding for Myanmar has been lowered from Rs 350 crore to Rs 300 crore.

Beyond the immediate neighbourhood, allocations for Eurasian countries have been reduced to Rs 38 crore, while development assistance to Latin American nations has been increased to Rs 120 crore, reflecting a broader diversification of India’s external engagement.

3 Kartavyas

Overall, the Ministry of External Affairs’ budget has been increased to Rs 22,118.97 crore, up from Rs 20,516.62 crore in the previous financial year, providing additional headroom for diplomatic, development and strategic initiatives.

Presenting the Budget in Parliament, Finance Minister Nirmala Sitharaman said the government’s spending priorities were guided by three kartavyas—accelerating economic growth, empowering citizens, and ensuring inclusive development—an approach that now appears to extend to India’s external development partnerships as well.

The revised aid allocations are expected to be closely watched in the region, particularly in the context of evolving diplomatic ties and India’s broader neighbourhood-first and global outreach strategies.

Budget 2026 Signals A Clear Outreach To NRIs

Posted on by
Reply

• NRI equity investment limit per company doubled to 10%, aggregate cap raised to 24%.
• MAT exemption announced for non-residents under presumptive taxation.
• TCS on foreign education and medical remittances cut to 2%.
• Property sale compliance eased; buyers no longer need a separate TAN.

The Union Budget 2026–27 has marked a notable shift in the Centre’s approach towards Non-Resident Indians, positioning the global Indian diaspora as a more active participant in India’s investment and growth story. Finance Minister Nirmala Sitharaman unveiled a series of measures aimed at easing compliance, lowering tax friction and expanding investment access for non-residents, particularly in equities and real estate.

The most significant reform relates to equity investments. The budget has doubled the individual investment limit for NRIs and overseas residents in listed Indian companies from 5% to 10% of paid-up capital. At the same time, the overall ceiling for all non-resident investors has been increased to 24%. Officials see this as a move to deepen capital markets and attract stable overseas capital at a time of global financial uncertainty.

Tax relief formed the second pillar of the government’s NRI-focused initiatives. Non-resident taxpayers opting for the presumptive taxation regime will now be exempt from Minimum Alternate Tax (MAT), a change intended to simplify filings and reduce disputes. The finance ministry said the exemption would reduce compliance burdens and provide greater clarity to overseas taxpayers with limited operations in India.

Liberalised Remittance Scheme

The budget also addressed concerns around remittances under the Liberalised Remittance Scheme. Tax Collected at Source on overseas spending for education and medical treatment has been reduced to 2% from 5%, offering immediate relief to families supporting students and patients abroad. The move is expected to improve cash flows without altering reporting requirements.

In the real estate segment, long-standing procedural hurdles for NRIs were eased. Buyers of property from non-resident sellers will no longer be required to obtain a separate Tax Deduction and Collection Account Number to deduct TDS. The government said this simplification would reduce delays in transactions and encourage smoother property sales involving overseas Indians.

Taken together, the budget measures underline a broader policy intent to integrate NRIs more closely into India’s financial ecosystem, moving beyond remittances to long-term investment participation. Market experts note that while the reforms are structurally positive, their success will depend on clarity in implementation and stability in global markets.

The 2026 budget, analysts say, sends a clear signal that the government sees the Indian diaspora not just as external stakeholders, but as strategic partners in the country’s next phase of economic expansion.

‘Very Disappointing, No Relief For Ordinary People’: Opposition Slams Union Budget 2026

Posted on by
Reply

Opposition parties mounted a sharp attack on the Union Budget 2026 on Sunday, accusing the government of failing to address the concerns of ordinary citizens, farmers, unemployed youth and small businesses, even as Finance Minister Nirmala Sitharaman presented her ninth consecutive Budget in Parliament.

Leaders across parties said the Budget lacked concrete relief measures, ignored key states and sectors, and prioritised headline announcements over tackling deeper economic challenges.

Congress MP Shashi Tharoor said the Budget speech made no reference to Kerala, calling it disappointing though he noted that finer details would emerge once the documents were studied. “The speech itself contains very few details that are actually necessary,” he said.

Another Congress MP, Ujjwal Raman Singh, said the Budget lacked the energy required to revive confidence. “Farmers, unemployed youth and even large states like Uttar Pradesh have been neglected. People expected announcements for regions like Prayagraj, but there was nothing,” he said, alleging that several schemes appeared skewed towards election-bound states.

Congress leaders air opposition

Former Uttarakhand Chief Minister Harish Rawat said the Budget offered little to vulnerable sections. “There is nothing here for the poor, farmers or women. It is buried under slogans about a developed India by 2047,” he said.

Congress Rajya Sabha MP Jebi Mather echoed concerns over Kerala’s exclusion, saying the state had hoped for specific initiatives, including high-speed rail projects. “Kerala has once again been ignored,” she said.

Congress MP Shashikant Senthil described the Budget as lacking policy direction. “There is nothing that stands out as a major decision. There is nothing substantial for common citizens, farmers or MSMEs,” he said.

Raising broader economic concerns, former Union Minister Manish Tewari said structural issues remained unaddressed. “Nominal GDP growth has weakened, tax buoyancy is poor and private investment is not picking up. Increased public capital expenditure only highlights the lack of private investment momentum,” he said, adding that foreign direct investment was also slowing.

Congress MP Imran Masood criticised the absence of export-related relief, particularly for regions affected by global tariffs. “Exports have collapsed in places like Moradabad and Saharanpur, but there is no support for exporters,” he said.

SP slams Budget as ‘Disappointing’

Leaders from other opposition parties also voiced dissatisfaction. Aam Aadmi Party MP Malwinder Singh Kang said Punjab and Haryana had been overlooked in tourism and expressway projects, while inflation relief was missing. “The poor have received nothing from this Budget,” he said.

Samajwadi Party MP Rajeev Kumar Rai called the Budget confusing and disappointing, alleging it favoured a few corporate houses. His party colleague Neeraj Kushwaha Maurya said farmers and large states had been ignored, adding that welfare schemes such as MGNREGA had not received adequate support.

Shiv Sena (UBT) MP Priyanka Chaturvedi said the Budget fell short at a time of global economic uncertainty. “Exporters are suffering, common people have received nothing, and markets reacted negatively. A truly visionary Budget would have inspired confidence,” she said.

Shiv Sena (UBT) spokesperson Anand Dubey said the Budget failed to deliver fresh ideas. “There was no tax relief, no meaningful push for jobs or startups. It does not bring happiness to ordinary people,” he said.

The Opposition said it would examine the detailed Budget documents in the coming days but maintained that the initial presentation failed to inspire confidence or address pressing economic anxieties facing households and businesses.

Budget 2026 Sets Growth Push With Manufacturing, Infra, Tax Overhaul At Core

Posted on by
Reply

Finance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026–27, outlining an ambitious growth strategy anchored in manufacturing expansion, infrastructure investment and sweeping tax reforms, while maintaining a tight fiscal framework amid global economic uncertainty.

The Budget, the first to be prepared at Kartavya Bhawan, is built around three stated kartavyas—accelerating economic growth, building people’s capabilities, and ensuring inclusive access to opportunities under the vision of Sabka Sath, Sabka Vikas.

For 2026–27, the government pegged total expenditure at ₹53.5 lakh crore and non-debt receipts at ₹36.5 lakh crore, with net tax receipts estimated at ₹28.7 lakh crore. The fiscal deficit is projected at 4.3% of GDP, marginally lower than 4.4% in 2025–26, while the debt-to-GDP ratio is expected to ease to 55.6%.

Manufacturing, Infrastructure Take Centre Stage

A major thrust has been placed on scaling up manufacturing across seven strategic and frontier sectors, including biopharma, semiconductors, electronics, textiles, chemicals, capital goods and critical minerals.

The government announced a ₹10,000 crore Biopharma SHAKTI programme, expanded the Electronics Components Manufacturing Scheme to ₹40,000 crore, and unveiled India Semiconductor Mission 2.0 to strengthen domestic design, equipment and materials capacity.

To reduce dependence on imports of critical inputs, dedicated rare earth corridors will be developed in Odisha, Kerala, Andhra Pradesh and Tamil Nadu, covering mining, processing, research and manufacturing.

Public capital expenditure will rise to ₹12.2 lakh crore, alongside the creation of an Infrastructure Risk Guarantee Fund to crowd in private investment. Seven high-speed rail corridors have been proposed as growth connectors, while 20 national waterways will be operationalised over the next five years to promote greener logistics.

Support For SMEs, Textiles And Cities

The Budget proposed a ₹10,000 crore SME Growth Fund to nurture “Champion SMEs”, additional funding for the Self-Reliant India Fund, and schemes to modernise 200 legacy industrial clusters.

An integrated textile programme—including national fibre initiatives, mega textile parks and cluster modernisation—aims to boost exports and employment, particularly in traditional hubs.

Urban development will be driven through City Economic Regions, with ₹5,000 crore per region over five years, and incentives to encourage large municipal bond issuances.

On human capital, the government announced steps to bridge education and employment gaps, expand allied health institutions, establish regional medical hubs for medical tourism, and support creative industries under the “orange economy”.

Tourism and heritage also feature prominently, with 15 archaeological sites, including Adichanallur and Lothal, to be developed as experiential cultural destinations.

Major Tax Reforms Announced

A key highlight is the rollout of a new Income Tax Act from April 2026, aimed at simplifying compliance through redesigned rules and forms.

Personal tax relief measures include tax exemption on interest awarded by Motor Accident Claims Tribunals, rationalisation of TCS on overseas travel and remittances, and automated systems for lower or nil TDS certificates for small taxpayers.

The government also announced a major overhaul of penalties and prosecutions to reduce litigation, along with reforms to advance pricing agreements and safe harbour rules to support India’s IT services sector.

On capital markets, the Budget raised Securities Transaction Tax on futures and options, a move that triggered sharp market volatility on Budget Day.

On the indirect tax front, the Budget focused on tariff simplification, easing customs duties for critical minerals, clean energy inputs, electronics, aviation and nuclear power projects. Customs processes are set to move towards trust-based, technology-driven clearances, with AI-enabled risk assessment and a single digital window by FY26-end.

Fiscal Balance Maintained

Despite the scale of announcements, the Finance Minister reiterated the government’s commitment to fiscal discipline, with borrowing and deficit numbers signalling a calibrated approach to growth spending.

Overall, Budget 2026–27 signals a decisive push towards manufacturing-led growth, infrastructure expansion and tax simplification, while attempting to balance long-term structural reforms with macroeconomic stability.