Centre's capex thrust intact, FY27 target at Rs 12.22 lakh cr

In a continuation of the Centre's thrust on public investment post the Covid-19 pandemic, the government has allocated Rs 12.22 lakh crore for FY27, up 11.5% from the revised estimate (RE) of Rs 10.96 lakh crore for FY26. The capex level, which continues to account for 3.1% of the GDP, indicates the Centre will continue with the heavy lifting when it comes to investments, with private investments struggling to lift off.

FY27 debt-to-GDP target at 55.6%; nominal GDP growth pegged at 10%

In the first year of the Finance Ministry's pivot to the debt-to-GDP ratio as its primary fiscal target, Finance Minister Nirmala Sitharaman on Sunday said the Centre will aim to bring down the ratio to 55.6% in FY27 from 56.1% this year, with the country's nominal GDP assumed to grow by 10% to Rs 393 lakh crore. 

Another bumper RBI dividend expected in FY27, disinvestments seen at Rs 80,000 cr

Over the years, dividend from the RBI has become an increasingly important source of revenue for the Centre.

7 City Economic Regions in 5 yrs; Surat, Varanasi, Vizag to benefit

The centre will set up seven City Economic Regions, including in Surat, Varanasi and Visakhapatnam, at an expenditure of Rs 5,000 crore each over a five-year period, according to the Budget 2026-2027 presented by Union Finance Minister Nirmala Sitharaman on Sunday. 

Railways, highways continue to be primary drivers, take 47% of capex

The road transport and highways sector, alongside Railways, continues to be a primary driver of India's infrastructure. The two sectors account for almost 47% of the total capital expenditure allocation for financial year 2026-27.

Tax holiday for foreign firms setting up data hubs

To Capitalise on the boom in data centres led by the rapid adoption of artificial intelligence (AI) technology, Union Finance Minister Nirmala Sitharaman on Sunday proposed to provide a tax break until 2047 to foreign companies looking to set up such infrastructure in the country.

Road cleared to revive 200 legacy industrial clusters

A Niti Aayog report last year pointed out that manufacturing has contributed 15-17% to GDP, a figure significantly lower than that of East Asian economies like China and South Korea, where it accounted for over 25-30%. 

Manufacturing gets big boost as govt slashes customs duties

The duty cuts are largely aimed at aiding the textile, footwear and marine sectors. 

Those residing outside India can now invest more in equities

There will also be a comprehensive review of non-debt instruments rules under the FEMA to create a more contemporary user-friendly framework for foreign investment. 

NIMHANS-2 in North; institutes in Tezpur, Ranchi to be upgraded

In a significant step for mental health, India is set to get a second NIMHANS-this one in North India-while two other Centre-run mental health institutes, in Tezpur and Ranchi, will be strengthened. The announcement in this regard was made by Union Finance Minister Nirmala Sitharaman while presenting the Union Budget 2026-2027 on Sunday. 

In fresh chip push, focus shifts to supply chains, IP and equipment

FinMin has allocated Rs 1,000cr for FY27 for the phase two of India Semiconductor Mission. 

Budget positions India to govern growth with judgement and resilience

The challenges of building coalitions will include finance, investment, energy, climate, biodiversity and security. The Budget implicitly acknowledges these. 

Finance Minister has bypassed large parts of farm sector

Invest in agricultural research and development. India spends less than 0.5 per cent of its agricultural GDP on R&D, well below the 1 per cent benchmark associated with sustained productivity growth. 

Balancing prudence and ambition as old order gives way to the new

How does India jumpstart FDI to shore up capital flows and safely finance the current account deficit? How does India balance investments in strategic sectors with energising labour-intensive sectors?. 

5 varsity townships, girls hostel in each district soon: FM

Five University townships in the vicinity of industrial and logistics corridors, and a girls' hostel in every district were among the key announcements for the education sector in the Union Budget.

After bids to boost consumption, focus back on supply side

The Budget for the next financial year presumes a nominal GDP growth rate of 10%. That's two percentage points higher than the current year's figure but still considerably lower than past benchmarks. Further, considering that the Economic Survey expects real GDP to be around 7%, most of the increase in nominal GDP growth is likely to come in the form of higher inflation.

Given the weak prospect of nominal GDP, and how it hurts expenditures across the board, there was limited fiscal space for a "big-bang" announcement. The major change in this Budget is that after trying to boost consumption over the past three Budgets, the government is back to focusing on the supply side of the economy.

Most of the pronouncements are pointed interventions aimed at alleviating the economic stress in India's manufacturing, especially in the micro, small and medium enterprises sector and in tier 2 and tier 3 cities. It is this landscape that was the worst affected, not just by domestic events since 2016 such as demonetisation, the adoption of GST, the MSME financial crisis, and the pandemic lockdowns - but also by Trump's tariffs and associated disruptions in supply chains.