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The Union Budget for FY27 has slashed funding for the PM Internship Scheme following poor response, with an allocation of ₹4,788 crore, compared to over ₹10,000 crore budgeted for in FY26.
The tax holiday for companies operating from IFSC has been doubled to 20 years. Besides, they will pay a lower tax of 15% once the tax holiday ends, compared to the current rates of 25-35%.
Telecom analysts question where this extra ₹60,000 crore is going to come from for the communications ministry, as it has already shown an earning of about ₹80,000 crore as of December end from sources such as licence fee from private telecom operators.
Nirmala Sitharaman’s Union budget emphasizes reducing public debt and achieving fiscal targets despite lower tax revenues. The budget includes strategic investments in domestic production and infrastructure, addressing geopolitical threats and aiming for economic growth.
There was little for farmers battling a crash in crop prices and incomes, and funds for agri research were slashed amid growing climate risks and a productive crisis.
The Union Budget for 2026-27 has proposed to treat TReDS receivables as asset-backed securities, aiming to boost liquidity and widen funding options for small businesses.
By prioritizing regional initiatives like rare earth corridors, chemical parks, and coconut cultivation schemes, the government addresses specific economic needs while maintaining a nationally applied development strategy.
Moody’s Ratings has termed India’s Union Budget tactical but not groundbreaking, noting that fiscal consolidation won’t alter the country’s credit profile.
The capital gains tax exemption on SGBs will only be available to original subscribers holding these bonds till maturity. Others who buy SGBs from stock exchanges or other holders will have to pay tax.
A key plank of the export push is targeted customs relief for labour-intensive sectors. The Budget also uses customs policy as a tool to strengthen domestic manufacturing capabilities in strategic sectors.