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Union Budget 2026 focuses on agriculture, MSMEs, infrastructure, tax reforms, AI, jobs, and inclusive growth with major announcements for farmers, women, youth, and economic stability.
Strong push for agriculture, animal husbandry, and fisheries
₹12.2 lakh crore capital expenditure for infrastructure
Major support for MSMEs and domestic manufacturing
New Income Tax Act from April 1, 2026
Focus on AI, jobs, women empowerment, and green growth
The Honorable Finance Minister, Smt. Nirmala Sitharaman, presented the much-awaited Union Budget 2026 on February 1, 2026, at 11:00 a.m. in Parliament. This is her ninth Union Budget, creating a new record. The Budget was presented for the first time at Kartavya Bhavan and focused on balancing long-term reforms with economic stability, while giving special attention to farmers, laborers, women, youth, MSMEs, and the poor.
The government stated that the main duty is to maintain fast and long-term economic growth, meet people’s expectations, and increase their capacity through reforms, technology, and investment.
Budget 2026 places strong emphasis on agriculture, manufacturing, MSMEs, exports, infrastructure, AI, and urban development, while also strengthening social security and financial stability.
The government identified six major focus areas:
Expansion of manufacturing
Revitalization of the energy sector
Strengthening MSMEs
Infrastructure development
Economic stability
Development of City Economic Regions
Special emphasis has been given to AI-based technologies, skill development, and employment generation.
Agriculture remains at the heart of Budget 2026. The government announced several measures to improve productivity, diversification, exports, and rural income.
Focus on increasing agricultural productivity
High-value agriculture to be promoted through diversification
Priority crops include coconut, cashew, sandalwood, cocoa, and other high-value crops
1 crore farmers are involved in coconut cultivation, with focus on improving productivity
Indian cashew and coconut to get global brand recognition
Special push to restore sandalwood cultivation and orchards
Crop diversification to increase farm income and production
Agricultural exports to be further strengthened
Livestock contributes 16% of total farm income
Development of 500 reservoirs for fisheries
Emphasis on fisheries self-reliance
Focus on improving dairy and poultry farming
Expansion of animal husbandry, livestock, poultry, and dairy
Loan facilities for farmers engaged in animal husbandry
Subsidy on veterinary medicines
Increase in veterinarians and focus on animal health
Mission for Self-Reliance in Pulses to continue
NAFED and NCCF will continue pulse procurement
Support for tur, urad, and masoor dal farmers
Cotton productivity mission to continue with focus on long staple cotton
Makhana Board initiative to move forward, especially benefiting Bihar
Focus on makhana cultivation, processing, and marketing
Launch of AI Tool “Bharat Vistaar Program” for farmers
Digital portal to provide farming information, resources, and decisions virtually
Use of AI to improve agricultural efficiency and decision-making
Focus on increasing income of small farmers
The government announced a three-pronged approach to strengthen MSMEs and domestic manufacturing:
₹10,000 crore Development Fund for SMEs
₹2,000 crore top-up support for Atmanirbhar Bharat Abhiyan
Emphasis on government procurement from MSMEs
Promotion of domestic manufacturing in the textile industry
Launch of Mahatma Gandhi Handloom Scheme
India to become a global hub for affordable sporting goods
Semiconductor Mission 2.0 launched
Focus on low-cost sports goods manufacturing
Capital expenditure set at ₹12.2 lakh crore for 2026–27
7 high-speed rail corridors to be built
22 new waterways proposed
20 new Inland Waterways to be launched in the next 5 years
Training youth for employment in waterways
Development of ship repair facilities in Varanasi and Patna
Special focus on cities with population above 5 lakh
Holistic development of Tier-2 and Tier-3 cities
Pilgrimage sites to be developed in small towns
₹5,000 crore investment proposed for each Economic City over 5 years
Development of City Economic Regions
4,000 e-buses proposed for North-Eastern states
₹20,000 crore allocated for carbon capture, utilisation and storage
Solar-related products to become cheaper
Basic customs duty exemption on lithium-ion batteries
Import exemption on sodium antimonate extended till 2035
Shoes and batteries to become more affordable
Establishment of new AHP institutes in private, government, and PGR sectors
Target to train 1 lakh AHP professionals in 5 years
Upgrade of National Institutes of Mental Health at Ranchi and Tezpur
Five medical regions to be developed for medical tourism
Integrated healthcare complexes including AYUSH, rehabilitation, and post-care
3 new All-India Institutes of Ayurveda
WHO Global Centre at Jamnagar to be upgraded
Girls hostel in every district
Promotion of women entrepreneurship
Expansion of Lakhpati Didi Scheme
Launch of She-Marts for rural women to sell products
Emphasis on employment opportunities for disabled persons
Establishment of an organization for artificial limbs
Panel to promote the service sector
Target to create 2 million professionals by 2030 under the Orange Economy
Content Creator Labs to be set up in the AVGC sector
Big push for medical tourism
Training of 10,000 tourist guides at 20 major destinations
Promotion of veterinary medicine
Emphasis on Khelo India Mission
Sports equipment to become cheaper
Promotion of sports in villages for rural youth
New Income Tax Act to be implemented from April 1, 2026
Simplified tax rules for ordinary citizens
More compliance time for taxpayers
Fiscal deficit estimated at 4.3% of GDP
Debt-to-GDP ratio has declined
Income tax exemption on interest awarded by Motor Accident Claims Tribunal
Non-audit business return filing deadline extended to August 31
Other businesses deadline set at March 31
Limit of undisclosed income increased to ₹1 crore
New rules to reduce litigation
Fees to replace penalties for technical defaults
Foreign travel TCS reduced to 5%
MAT credit adjustment allowed at 14%
Exemption for companies setting up data centers in India
Non-resident individuals involved in toll construction exempt from tax for 5 years
Basic customs duty exempted on 17 cancer medicines
No new income tax exemption announced
The Finance Minister emphasized that developed villages and developed cities are the foundation of a developed India. Agriculture, MSMEs, rural infrastructure, and job creation remain the backbone of this vision.
Union Budget 2026 aims to strengthen the economy, empower farmers and youth, boost manufacturing and exports, promote sustainability, and ensure inclusive growth for all sections of society.
Also Read: Union Budget 2026: 7 Major Expectations Farmers Are Watching Closely This Year
Union Budget 2026 presents a balanced roadmap for India’s future with strong focus on agriculture, jobs, MSMEs, infrastructure, and tax reforms. It aims to boost farmers’ income, strengthen manufacturing, promote AI and digital growth, and support women and youth. With major investments in health, cities, and sustainability, the budget targets long-term economic stability while ensuring inclusive and people-centric development across rural and urban India.