Union Budget 2026: Key Announcements and Implications

The Union Budget 2026, presented by Finance Minister Nirmala Sitharaman, includes several big plans.

The government will spend Rs 20,000 crore over five years on Carbon Capture technology.

There will be a focus on building infrastructure in smaller cities and launching new initiatives like Biopharma SHAKTI and India Semiconductor Mission 2.0.

A rare earth minerals corridor will be created in four states to boost domestic manufacturing.

The budget also includes tax exemptions for lithium-ion battery production and cheaper cancer medicines, aiming to reduce costs for patients and improve access to vital treatments.

Additionally, the budget proposes a special one-time measure allowing SEZ manufacturing units to sell goods in the domestic market at concessional duty rates.

The budget also reduces the tariff rate on all dutiable goods imported for personal use from 20 percent to 10 percent.

It also provides relief to the textile sector, which is facing challenges due to higher US tariffs, by announcing an integrated programme aimed at modernising the labour-intensive sector.

The budget also exempts customs duty on medicines and specialised foods for seven rare diseases when imported for personal use, aiming to make critical treatments more affordable.