Times Of India• Jan 31, 2026• 11:39:31Interview

Budget 2026 LIVE | FM Nirmala Sitharaman’s Big Announcements In 9th Budget | Tax Exemptions & More

Nirmala Sitharaman•Finance Minister of India

Executive Summary

The Indian government announced a comprehensive budget focused on achieving a 'Vikasit Bharat' (Developed India) by targeting four key growth engines: agriculture, MSMEs, investments, and exports.
Major policy initiatives aim to boost agricultural self-reliance through targeted missions for pulses and cotton, and to empower MSMEs and startups with enhanced credit guarantees and a new 10,000 crore rupee Fund of Funds.
Significant tax reforms were introduced, including a major overhaul of the personal income tax structure to benefit the middle class and a rationalization of customs duties to promote domestic manufacturing under the "Make in India" policy.
The budget outlines strategic investments in human capital and infrastructure, including plans for 50,000 new tech labs in schools, an AI Center of Excellence, and expanded broadband connectivity in rural areas.

12 quotes

Concerns Raised

Execution risk associated with implementing numerous large-scale national missions and schemes simultaneously.
Potential fiscal pressure from significant tax cuts and increased government spending.
Long-term effectiveness of tariff adjustments in fostering globally competitive domestic industries.

Opportunities Identified

Growth in domestic manufacturing in targeted sectors like electronics, EV batteries, and clean technology.
Increased private investment in the startup ecosystem catalyzed by the new Fund of Funds.
A significant boost in domestic consumption driven by substantial personal income tax relief for the middle class.
Modernization and increased productivity in the agriculture sector through new technology and mission-mode programs.

Key Themes

Agricultural Self-Reliance and Rural Prosperity

The government is launching targeted national missions to achieve self-sufficiency ('Atmanirbarta') in key commodities like pulses and to improve cotton productivity. These efforts are complemented by a district-level program (PM Dhan Dhania Krishiyojana) and a rural prosperity initiative to enhance farmer incomes, improve infrastructure, and create non-farm employment.

This signals a strategic focus on securing India's food supply, reducing import dependency, and addressing structural challenges in the agricultural sector, which is critical for the livelihoods of a large portion of the population.

Empowering MSMEs and Startups as Growth Engines

The budget provides substantial support for Micro, Small, and Medium Enterprises (MSMEs) and the startup ecosystem. Key measures include increasing investment limits for MSME classification, doubling credit guarantee covers, and establishing a new Fund of Funds to catalyze private investment.

This highlights the government's strategy of leveraging the MSME sector—a major employer and exporter—to drive manufacturing growth, innovation, and job creation.

Boosting Domestic Manufacturing and 'Make in India'

A multi-pronged approach is being taken to strengthen domestic manufacturing, combining direct support schemes for labor-intensive sectors like footwear and toys with strategic tariff adjustments. The National Manufacturing Mission will specifically support clean technology, while customs duty changes are designed to encourage local production of electronics, EV batteries, and other critical goods.

This underscores a concerted effort to build a resilient domestic industrial base, reduce reliance on imports for strategic components, and position India as a competitive global manufacturing hub.

Middle-Class Focused Tax Reform and Ease of Doing Business

The budget introduces a significant overhaul of the personal income tax regime, raising the tax-free income limit to 12 lakh rupees to increase disposable income for the middle class. Concurrently, procedural reforms like rationalizing TDS/TCS and setting time limits for customs assessments aim to simplify compliance and improve the overall business environment.

These reforms are designed to stimulate domestic consumption, a key driver of the economy, while also making the regulatory landscape more predictable and attractive for both domestic and foreign investment.

Investing in Human Capital and Digital Infrastructure

The government is allocating significant resources to build a future-ready workforce and a digitally connected nation. Initiatives include establishing 50,000 Atal Tinkering Labs in schools, creating a Center of Excellence in AI for Education, expanding medical education seats, and providing broadband to all rural primary health centers and secondary schools.

This long-term strategy focuses on developing the skills and infrastructure necessary for India to compete in the global knowledge economy and ensure that the benefits of growth are widely distributed.

Get started free

Topics

Indian Economy Union Budget Government Policy Economic Development Tax Reform Personal Income Tax Customs Duty Agriculture MSMEs Startups Make in India Atmanirbarta (Self-Reliance)Manufacturing Rural Development Infrastructure Investment

Processed Apr 20, 2026 yt-dlp + mlx-whisper + Gemini