Profit by knowlytics
The Union Budget 2026-27, delivered by Finance Minister Nirmala Sitharaman, covers key sectors and outlines revenue sources such as taxes and borrowings. The budget highlights government spending on state taxes, interest payments, and defence, among other allocations.
The Budget’s goodies for the MSME sector include a dedicated ₹10,000 crore SME Growth Fund to create future ‘Champions’, a top-up to the Self-Reliant India Fund with ₹2,000 crore; and reforms to the TReDS platform.
India’s power distribution companies achieved a net profit in FY25 after significant losses in previous years. The government plans to invest ₹18,000 crore in FY27 to further support reforms, including the RDSS scheme, despite ongoing financial issues within the sector.
The new approach comes after the Centre sharply reduced its fiscal deficit from pandemic-era highs, and at a time of rising global uncertainty driven by trade disruptions, geopolitical risks and volatile capital flows.
Unlike last year, Budget 2026—the ninth presented by Nirmala Sitharaman—avoids big-bang moves, opting instead for calibrated steps to support growth, avoid the middle-income trap, and stay on track towards developed-nation status.
An analysis of a decade of Budget speeches shows how the government’s priorities have evolved with changing economic and global conditions.
Budget 2026 avoids headline tax cuts, choosing clarity, certainty and structural reform—reshaping buy-back taxation, MAT, GIFT City incentives and compliance to align tax outcomes with long-term growth.
The proposed customs duty exemption on aircraft components in the budget is anticipated to lower costs for manufacturers and airlines, support the growth of the aviation sector, and enhance India’s capabilities in aircraft maintenance and production.
While costs to trade both options and futures will rise after the STT hike, overall trading expense in options will be half that of futures, resulting in a likely shift towards options.
The budget documents show that older interest subsidy schemes have been phased out, while funding is being redirected towards export insurance, trade enforcement and streamlined export support programmes.