Budget 2026 at a glance: 10 key moves that could shape India’s economy and your wallet

Currently 35 banks have opened shop in Gift City who put together manage over $10 billion worth assets and have deposits to a tune of $7.9 billion.

• Nirmala Sitharaman's 9th Union Budget emphasizes growth and stability.
• FY27 fiscal deficit target set at 4.3% of GDP, indicating fiscal discipline
• Record capital expenditure and major support for MSMEs announced in the Budget

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Finance Minister Nirmala Sitharaman on Saturday presented her ninth Union Budget in Parliament, outlining a mix of fiscal restraint, infrastructure push and targeted sectoral incentives as the government seeks to balance growth with stability amid global economic uncertainty and trade tensions.

The Economic Survey projected India’s potential growth at around 7 per cent, with GDP expansion in FY27 estimated at 6.8-7.2 per cent, driven by domestic demand and structural reforms, despite a fragile global backdrop.

From record capital expenditure and tax holidays for data centres to tighter rules on derivatives trading and fresh support for MSMEs, the Budget sets the tone for the financial year 2026–27. Here are the 10 biggest takeaways.

1. Fiscal deficit target trimmed The government pegged the fiscal deficit for FY27 at 4.3 per cent of GDP, marginally lower than the 4.4 percent target for the current year, signalling continued focus on fiscal consolidation and macroeconomic discipline.
2. Debt-to-GDP glide path reaffirmed India’s debt-to-GDP ratio is projected to fall to 55.6 per cent in FY27 from 56.1 per cent, with the Centre reiterating its medium-term goal of bringing the ratio close to 50 per cent by FY31.
3. Record capital expenditure outlay Capital expenditure is set to cross Rs 12.2 lakh crore for the first time, aimed at sustaining infrastructure creation and crowding in private investment. An Infrastructure Risk Guarantee Fund will also be created to provide partial credit guarantees to lenders.
4. Tax holiday for global cloud players A landmark tax holiday till 2047 was proposed for foreign companies providing global cloud services using data centres located in India, a move designed to position the country as a major AI and data infrastructure hub while ensuring Indian reseller participation.
5. Major MSME and SME support package The Budget announced a Rs 10,000 crore SME Growth Fund to create “SME champions” and a Rs 2,000 crore top-up to the Self-Reliant India Fund. Mandatory use of the TReDS platform for CPSE payments to MSMEs and a new cadre of “Corporate Mitras” aim to ease liquidity and compliance challenges.
6. Higher securities transaction tax on derivatives To curb excessive speculation in futures and options, the securities transaction tax on futures was raised from 0.02 per cent to 0.05 per cent, while the levy on option premiums and exercise was also increased.
7. Buybacks to be taxed as capital gains Share buybacks will now be taxed in the hands of shareholders as capital gains, with promoters facing an additional buyback tax, tightening rules around corporate cash returns.
8. Rare earth corridors in four states Dedicated rare earth corridors will be developed in Odisha, Kerala, Andhra Pradesh and Tamil Nadu to strengthen domestic mining, processing and manufacturing of critical minerals and reduce import dependence.
9. High-speed rail and freight corridor push Seven new high-speed rail corridors connecting major economic centres were announced alongside a new dedicated freight corridor from Dankuni to Surat to promote faster, greener passenger and cargo movement.
10. TCS on overseas education & medical remittances cut to 2%The Tax Collected at Source (TCS) under the Liberalised Remittance Scheme (LRS) for education and medical purposes has been reduced from 5% to 2%. This reduction results in a lower upfront cash outflow for families sending money abroad for studies or medical treatment. Although TCS is adjustable against the final tax liability, this cut improves immediate liquidity for families.Students and families funding overseas education or medical care will benefit from this change. Additionally, education loans obtained through financial institutions remain exempt from TCS.