Archive · 2 Feb 2026
India's 2026 Budget Boosts Manufacturing, Healthcare, and Infrastructure
India's Finance Minister, Nirmala Sitharaman, presented the 2026 Budget with big plans to make India stronger and more self-reliant.
Foreigners can now buy Indian stocks directly, and they can own more shares in Indian companies.
This is to attract more money from around the world.
The government also plans to set up special paths for rare earth minerals in four states to make India less dependent on China.
Additionally, there will be a big investment in making medicines from living things and a new focus on making computer chips in India.
The budget also includes plans for new high-speed train routes to connect big cities and make travel faster.
There are also new plans to support farmers, fishermen, and small businesses.
The budget aims to make India's markets stronger and support important industries.
Union Minister L Murugan said these measures will help India grow and become more self-reliant.
The budget also includes new tax rules and incentives for different sectors, aiming to make India a better place for business and investment.
Foreign individuals can now invest directly in Indian equities through the Portfolio Investment Scheme, with increased ownership limits.
Dedicated rare earth corridors to be established in Tamil Nadu, Kerala, Odisha, and Andhra Pradesh to boost domestic production.
₹10,000 crore investment proposed in the biopharma sector over the next five years, focusing on biopharmaceutical production and clinical trial sites.
Semiconductor Mission 2.0 to focus on producing equipment and materials with Indian intellectual property.
Seven high-speed rail corridors announced to connect major cities and promote environmentally sustainable passenger systems.
- Who
- Finance Minister Nirmala Sitharaman and Union Minister L Murugan
- What
- Announced new financial and industrial initiatives in Budget 2026
- When
- February 1, 2026
- Where
- India
- Why
- To accelerate industrial growth, boost self-reliance, and support key sectors
Government and Industry
Critics and Farmer Unions
Agriculture and Farmers Welfare
Government and Industry
The government announced unprecedented support for farmers, including the integrated development of 500 reservoirs, the launch of BHARAT VISTAAR for AI-based agricultural advisory, and the highest-ever budgetary support for the fisheries sector. The budget also includes significant allocations for fertiliser subsidies and rural development.
Critics and Farmer Unions
Critics and farmer unions argue that the budget shows a disregard for farmers, with a reduction in budgetary allocations to agriculture and allied sectors. They point out that the government's promise to double farmer incomes by 2022 remains unfulfilled and that climate risks are inadequately addressed.
- New Foreign Investment Route
- Direct equity investment for individuals
- Ownership Limits Increased
- Individual: 5% to 10%, Combined: 10% to 24%
- Rare Earth Corridors
- Tamil Nadu, Kerala, Odisha, Andhra Pradesh
- Biopharma Investment
- ₹10,000 crore over 5 years
- Semiconductor Mission 2.0
- Focus on Indian IP equipment and materials
- Biopharma SHAKTI
- Development of biopharmaceutical production and clinical trial sites
- High-Speed Rail Corridors
- Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi, Varanasi-Siliguri
- Healthcare Allocation Increase
- 10% compared to FY25
- NIMHANS 2.0
- National Institute of Mental Health and Neuro Sciences in Ranchi, Jharkhand
- Biopharma Manufacturing Hub
- ₹10,000 crore outlay
- Electronics Components Manufacturing Scheme
- Outlay raised to ₹40,000 crore
- Data Centre Tax Holiday
- Till 2047 for foreign companies providing cloud services
- Sports Goods Manufacturing
- ₹500 crore allocation
- Fisheries Sector Support
- ₹2,761.80 crore total annual budgetary support
- Cooperative Taxation Reforms
- Extension of income-tax deduction for primary cooperative societies
- Dedicated Freight Corridor
- Surat in the West to Dankuni in the East
- Bio-CNG Tax Incentives
- Exclusion of biogas value in excise duty calculation
- Cooperative Education
- ₹300 crore allocation
- Livestock FPO
- ₹450 crore to National Cooperative Exports Limited
- Capital Expenditure Outlay
- ₹12.2 lakh crore
- SME Growth Fund
- Dedicated ₹10,000 crore fund
- Tax on Buyback
- Taxed as capital gains for all types of shareholders
- TCS on Overseas Remittances
- Reduced to 2% for tour packages, education, and medical expenses
- New IT Act
- Implementation from April 1, 2026
- Foreign Asset Disclosure Scheme
- One-time 6-month scheme
- Investment Limits for Foreign Individuals
- Individual cap under Portfolio Investment Scheme rises from 5% to 10%, aggregate ceiling for all PROIs climbs from 10% to 24%
- STT on Futures and Options
- Increased to 0.05% for futures and 0.15% for options
Sources
Budget 2026: Foreigners Can Buy Indian Stocks Directly Now. Heres the Fine Print Nirmala Sitharaman
Union Budget proposes ₹10,000 crore investment in biopharma over next 5 years
Sitharaman Announces Rare Earth Corridors In 4 States, Including Tamil Nadu
Union Budget 2026: FM Sitharaman proposes Biopharma SHAKTI with Rs 10,000 crore outlay
FM proposes 5 medical tourism hubs
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Biopharma SHAKTI: Stocks in focus after budget 2026
Budget announcements would accelerate industrial growth: Union min Murugan
Budget proposes Rs 10,000 cr investment in biopharma over next 5 years
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