Budget 2026 launches Bharat-VISTAAR AI advisory for farmers and raises agriculture spending to boost diversified rural livelihoods.
Budget 2026 raises agriculture and allied allocation to Rs 1,62,671 crore and restructures schemes while advancing diversification and income-enhancement measures. It funds a multilingual AI advisory platform, Bharat-VISTAAR (Rs 150 crore), integrates AgriStack and ICAR practices, and reallocates scheme funding (Krishnionnati Yojana Rs 700 crore; Makhana central scheme Rs 90 crore; PM-KISAN Rs 63,500 crore). Fisheries measures include nil duty on EEZ/high seas catch by Indian vessels with export treatment and safeguards, an increased duty-free import threshold to 3 per cent FOB, development of 500 reservoirs, and higher Pradhan Mantri Sampada Yojana funding to Rs 2,500 crore. A loan-linked subsidy aims to add veterinary capacity and Rs 350 crore supports high-value crop promotion.

SEZ units allowed one time domestic sales at concessional import duty rates subject to quantitative limits and exclusions.
A one time measure allows manufacturing units in Special Economic Zones to sell to the Domestic Tariff Area at concessional import duty rates, limited by prescribed quantitative restrictions tied to export volumes; regulatory amendments will set eligibility, duty rebate mechanics, and safeguards to preserve a level playing field while maintaining export predominance and permitting certain sectoral exclusions.

India defence budget rises, boosting capital acquisition and exempting customs duty on aircraft components to aid domestic defence manufacturing.
The budget raises the defence allocation to Rs 7,84,678 crore for 2026-27, with Rs 2,19,306 crore for capital expenditure and Rs 1.85 lakh crore for capital acquisition (a 24% increase), allocating Rs 63,733 crore for aircraft and Rs 25,023 crore for the naval fleet. Approximately Rs 1.39 lakh crore (75% of capital acquisition) is to be procured from domestic industry. The budget also exempts basic customs duty on aircraft components and raw materials for maintenance, repair and overhaul to support the defence aerospace sector.

Nuclear power imports: customs duty exemption extended to 2035 and expanded to all plants to boost capacity targets.
The proposal extends the basic customs duty exemption on imports of goods required for nuclear power projects until 2035 and expands it to all nuclear plants irrespective of capacity, alongside SHANTI law measures enabling private participation. It pairs fiscal support-Rs 24,123.92 crore for the Department of Atomic Energy, including Rs 9,966.41 crore for capital expenditure-with plans for Rare Earth Corridors in four states and targets to reach 22 GW by 2032 and 100 GW by 2047, emphasising small modular reactors and domestic value chain development.

MSME growth fund and TREDS mandate aim to boost capital access, resolve receivables and strengthen sector competitiveness.
The Budget proposes a dedicated Rs 10,000 crore MSME Growth Fund to supply capital for innovation, modernisation and scaling, addressing liquidity constraints and competitiveness; it also mandates CPSUs to use the TREDS platform for receivables resolution, reserves Rs 2,000 crore for the micro sector under the Self Reliant India Fund, and establishes Corporate Mitras and sectoral support for textiles and leather to strengthen MSME integration into value chains.

Tax holiday for foreign cloud providers until 2047 aims to spur data centres and AI-focused digital infrastructure in India.
The budget grants a tax holiday to foreign companies providing cloud services to global customers using data centres located in India until 2047, as a central incentive to attract investment in data centres and accelerate AI and digital infrastructure development; this measure is presented alongside broader measures to boost exports, manufacturing and sectoral reforms.

India Semiconductor Mission 2.0 expands chip ecosystem and doubles ECMS funding to Rs 40,000 crore.
Launches India Semiconductor Mission 2.0 to broaden support for an end to end domestic semiconductor ecosystem, adding industry led research and training centres and extending focus to equipment, materials, design tools, packaging and testing, indigenous IP and supply chain resilience. Doubles the Electronics Components Manufacturing Scheme outlay to Rs 40,000 crore to incentivise high value component manufacturing and accelerate capacity expansion, technology adoption and deeper integration of domestic firms into global supply chains.

India launches Mega Textile Parks and a five part integrated textile programme, plus extension of export obligation to 12 months.
The Budget establishes Mega Textile Parks to create integrated infrastructure and value addition hubs, and launches a five part Integrated Programme including a National Fibre Scheme, a Textile Expansion and Employment Scheme with capital support and testing facilities, a National Handloom and Handicraft Programme, the Tex Eco Initiative, SAMARTH 2.0 skill development, and a dedicated sports goods initiative. It also launches the Mahatma Gandhi Gram Swaraj Initiative and extends the export obligation period from six to twelve months for specified exporters using duty free inputs.

India defence budget boost funds capital acquisitions, prioritises domestic procurement and customs duty relief for aerospace supply chains.
The 2026-27 defence budget raises total outlay to Rs 7,84,678 crore with capital expenditure at Rs 2,19,306 crore, prioritising aircraft, naval assets and modernisation. About 75% of capital acquisitions are reserved for domestic procurement. The Finance Minister proposes exempting basic customs duty on aircraft components, parts and raw materials used for manufacture and maintenance by defence units to bolster the defence and civil aerospace industrial base. Allocations also increase for border infrastructure, defence R&D and the Ex-Servicemen Contributory Health Scheme.

Budget proposes seaplane VGF, customs duty exemptions for aircraft components and revised international baggage duty-free rules.
The Budget proposes a basic customs duty exemption for components and parts used in manufacture of civilian, training and other aircraft and for raw materials imported to make parts for defence-sector MRO; introduces incentives to indigenise seaplane manufacturing and a Seaplane VGF Scheme to support operations; and revises international baggage clearance rules to enhance duty-free allowances and clarify temporary carriage of goods.

Union Budget accelerates grid scale energy storage by extending BCD exemptions for lithium ion manufacturing and solar glass.
The Budget extends Basic Customs Duty exemptions on capital goods for lithium ion cell and Battery Energy Storage System manufacture to accelerate grid scale energy storage and renewable integration; it exempts Basic Customs Duty on sodium antimonate for solar glass manufacture to bolster domestic solar supply chains and announces a Rs 20,000 crore Carbon Capture Utilization and Storage scheme.

Fisheries and livestock measures expand rural income options via zero-duty marine catch and subsidies for veterinary services.
The budget imposes zero duty on fish caught by Indian vessels in the exclusive economic zone and high seas, raises the duty-free import limit for specified inputs from 1% to 3% of seafood FOB value, and commits integrated development of 500 reservoirs and coastal value-chain strengthening. It establishes a loan-linked capital subsidy to add over 20,000 veterinary and para-veterinary professionals and supports private veterinary infrastructure. The package also promotes high-value crops (coconut, sandalwood, cocoa, cashew, agar, tree nuts) and reduces TCS on tendu leaves to 2%.

India defence budget raises capital outlay and exempts customs duty on aircraft components to boost the aerospace industry.
Defence budget raised to Rs 7.85 lakh crore for 2026-27 with capital expenditure prioritized at Rs 2,19,306 crore to support modernisation, technological innovation and streamlined procurement. The budget includes targeted tariff measures: exempting basic customs duty on components and parts for manufacture of civilian, training and other aircraft and waiving basic customs duty on raw materials for manufacture of aircraft parts used in maintenance, repair or overhaul by defence units, and increases funding for ex-servicemen welfare under the contributory health scheme.

Customs duty changes make certain cancer drugs and industrial components cheaper, while umbrellas and ATMs become costlier.
Customs duty changes in the Union Budget 2026-27 reduce duties on cancer drugs, drugs and food for special medical purposes for seven rare diseases, drugs imported for personal use, and on industrial/project inputs including microwave oven components, aircraft components, solar glass ingredients, goods for nuclear power projects and capital goods for critical minerals; concurrently, basic customs duty increases on low-cost imported umbrellas, potassium hydroxide, ATM/cash dispenser machines and parts, film and broadcasting equipment for foreign crews, imported zoo animals and birds, specified fertiliser inputs (ammonium phosphate / nitro-phosphate and naphtha), coffee roasting/brewing/vending machines and castor oil cake.

Budget 2026-27 customs regime waives duty on 17 cancer drugs and eases baggage and personal import duties.
Budget 2026-27 establishes a trust-based customs regime with a single-window for cargo clearances, reduced verification for regular importers, expanded AEO payment norms, AI-assisted port scanning, and a two-year rollout of a Customs Integrated System; it extends advance rulings' binding period to five years and allows dispute settlement by payment in lieu of penalty. The Budget waives customs duty on 17 cancer drugs, reduces tariff on personal-use imports from 20% to 10% (excluding motor vehicles, alcohol, tobacco), revises baggage duty-free allowances, and reforms customs warehousing toward warehouse-operator centric self-declarations, electronic tracking, and risk-based audits.

Critical minerals: customs duty exemption for capital goods and dedicated rare earth corridors to boost processing.
The Budget proposes a basic customs duty exemption for capital goods imported for processing critical minerals and the establishment of dedicated Rare Earth Corridors in mineral rich States, alongside reducing customs duty on monazite to zero and implementing a funded Scheme to establish 6,000 MTPA integrated REPM manufacturing covering conversion from oxides to finished magnets.

Biopharma SHAKTI proposes Rs 10,000 crore to build biologics manufacturing, clinical trial sites, and strengthen drug regulation.
The Budget proposes Biopharma SHAKTI with Rs 10,000 crore over five years to build domestic biologics and biosimilars manufacturing capacity, expand NIPER education infrastructure, create 1,000 accredited clinical trial sites, and strengthen the Central Drugs Standard Control Organisation with a scientific review cadre to meet global approval timeframes; it also exempts basic customs duty on 17 drugs and extends import duty exemptions for personal imports related to seven additional rare diseases.

Leather exports: duty-free inputs, extended export period, and customs exemptions announced to boost competitiveness.
Proposal to allow duty-free imports of specified inputs for the leather exports sector, extend the export period for final leather and textile garment products from six months to one year, and exempt parts used to manufacture microwave ovens from basic customs duty; measures also include support to scale up production at the Artificial Limbs Manufacturing Corporation of India and development of 15 archaeological sites.

Electronics manufacturing outlay increased to Rs 40,000 crore; schemes for tool rooms, container manufacturing and chemical parks.
Budget 2026-27 raises the electronics manufacturing outlay to Rs 40,000 crore and proposes high-tech tool rooms at two sites, a container manufacturing scheme to foster a competitive ecosystem, and three chemical parks to enhance domestic production and reduce import dependence, contextualised by recent large-scale growth in mobile manufacturing, rising exports including iPhone shipments, and approval of semiconductor projects with substantial cumulative investment.

NGT fines stadiums for failing to report groundwater use and seeks police explanation for inspection security failures.
The regulator imposed modest fixed fines on multiple cricket stadia for failing to submit required groundwater use details for irrigation, enforcing reporting obligations on groundwater management. Separately, the regulator requested an explanation from law enforcement for failing to provide adequate security and facilitation during an inspection of alleged illegal red category industrial units, signaling enforcement of inspection facilitation and public safety obligations.