The Union Budget 2026-27 stands as a historic fiscal document, being the first of its kind prepared and presented in the newly inaugurated Kartavya Bhawan. Anchored in the philosophical bedrock of the 3 Kartavyas (Duties), this budget serves as an aggressive roadmap for India’s transition into a developed nation by 2047. It balances massive public capital expenditure with disciplined fiscal consolidation, targeting a 4.3 percent fiscal deficit while pushing capital outlay to a record 12.2 lakh crore.

1. The Philosophical Framework: The 3 Kartavyas

This budget is not merely a statement of accounts but a pledge of duty toward the nation. The government has restructured its spending and policy priorities around three core pillars:

• 1st Kartavya: Accelerate and Sustain Economic Growth. This focuses on boosting productivity, global competitiveness, and building economic resilience against global shocks.
• 2nd Kartavya: Fulfill Aspirations and Build Capacity. This pillar is dedicated to human capital development, ensuring that the youth are equipped for the future economy.
• 3rd Kartavya: Sabka Sath, Sabka Vikas. Centered on inclusive development, ensuring the fruits of growth reach farmers, Divyangjan, and the North-Eastern states.

2. Fiscal Estimates at a Glance (2026-27)

The fiscal health of the nation shows a trajectory of strengthening resilience and declining debt-to-GDP ratios. Here are the primary numbers that define the 2026-27 fiscal landscape:

3. The First Kartavya: Strategic Economic Growth

The government has identified six strategic interventions to transform India into a global manufacturing and logistics hub. The primary focus is on high-tech sectors where India can build global intellectual property (IP).

I. Scaling Up Manufacturing in 7 Strategic Sectors

• Biopharma SHAKTI: A flagship 10,000 cr allocation over five years to create a global manufacturing hub. This includes setting up 3 new NIPERs, upgrading 7 existing ones, and accrediting 1000+ clinical trial sites.
• Semiconductors (ISM 2.0): Transitioning to the next phase of the India Semiconductor Mission, focusing on equipment, materials, and domestic supply chains.
• Electronics: The Electronics Components Scheme outlay has been significantly increased to 40,000 cr to promote localized manufacturing.
• Rare Earth Corridors: Specialized mining and processing corridors to be established in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.
• Chemicals: 3 dedicated Chemical Parks to be developed through the challenge route with plug-and-play facilities.
• Capital Goods: A 10,000 cr allocation for container manufacturing and the establishment of high-tech tool rooms by CPSEs.
• Textiles: Launch of the National Fibre Scheme and the Mahatma Gandhi Gram Swaraj for global market linkage of Khadi.

II. Infrastructure and Logistics Growth Connectors

Public CapEx has been pushed to 12.2 lakh cr, supported by new risk guarantee funds. A key highlight is the identification of 7 High-Speed Rail (HSR) corridors as growth connectors:

• Mumbai-Pune | Pune-Hyderabad | Hyderabad-Bengaluru
• Hyderabad-Chennai | Chennai-Bengaluru
• Delhi-Varanasi | Varanasi-Siliguri

III. Green Logistics and Waterways

• Rail: Completion of new Dedicated Freight Corridors (DFC), specifically the Dankuni to Surat stretch.
• Waterways: Plan to develop 20 new National Waterways within the next 5 years.
• Coastal Cargo: Target to increase the share of coastal cargo from 6 percent to 12 percent by 2047.
• Air: Introduction of a VGF scheme for seaplane manufacturing and operations.

4. The Second Kartavya: Aspirations and Capacity Building

This section focuses on the transition from "Education to Employment and Enterprise." The goal is to build a workforce that is not just employable but capable of global leadership.

• Education Townships: 5 elite University Townships to be developed via the challenge route near major industrial corridors.
• Healthcare Manpower: Target to train 1,00,000 Allied Health Professionals (AHPs) in 5 years by upgrading existing institutions.
• Orange Economy (Creative Industries): Establishing Content Creator Labs in 15,000 schools and 500 colleges for AVGC (Animation, Visual Effects, Gaming, Comics).
• Animal Husbandry: Increasing veterinary professionals by 20,000 through capital subsidies for private colleges and hospitals.
• Tourism: Upgrading NCHMCT to the National Institute of Hospitality and developing 15 major archaeological sites including Lothal and Sarnath.

5. The Third Kartavya: Sabka Sath, Sabka Vikas

The budget ensures that growth is inclusive, focusing on farmer incomes, Divyangjan empowerment, and the North-East region.

• Farmer Income: Development of 500 new reservoirs and Amrit Sarovars. Launch of Bharat-VISTAAR, a multilingual AI tool for real-time agricultural practices.
• Divyangjan: The Divyangjan Kaushal Yojana will focus on task-oriented roles in IT, Hospitality, and Food & Beverages.
• Mental Health: Establishment of NIMHANS-2 in North India and upgrading Ranchi and Tezpur institutes to Regional Apex status.
• North-East: Introduction of 4,000 e-buses and development of Buddhist Circuits in Arunachal, Sikkim, and Mizoram.

6. Part B: Direct and Indirect Tax Reforms

Corporate and Sectoral Tax Changes

• MAT Rate: Reduced from 15 percent to 14 percent as the final tax for companies.
• STT: Increased for Futures (to 0.05 percent) and Options (to 0.15 percent) to regulate speculative trading.
• IT Sector: Safe Harbour threshold increased from 300 cr to 2,000 cr with a common margin rate of 15.5 percent.

Customs and Indirect Taxes

• Personal Imports: Tariff on dutiable goods for personal use reduced from 20 percent to 10 percent.
• Healthcare: 17 drugs and 7 rare diseases added for duty-free personal import.
• E-commerce: Removal of the 10 lakh cap per consignment for courier exports to boost small businesses.
• Battery Manufacturing: BCD exemption extended for capital goods used in Lithium-Ion battery cell production.