Government spending continues to be channelled towards large-scale infrastructure — including highways, rail freight corridors, ports, inland waterways and urban infrastructure.
 

Key Manufacturing Initiatives

• ISM 2.0: Strengthening domestic manufacturing ecosystems

• Electronics components: ₹40,000 crore allocation

• Biopharma Shakti: ₹10,000 crore

• Container manufacturing: ₹10,000 crore

  Customs & Input Cost Relief

  Import duty concessions have been extended for strategic sectors such as lithium-ion batteries, solar glass, critical minerals, aviation components and nuclear power projects, with some benefits valid until 2035.
   

  🚢  Trade, Exports & Logistics

  To enhance export competitiveness, the government announced targeted duty exemptions for seafood, leather, footwear and textile industries, along with relaxed export fulfilment timelines. High-seas fishing exports will also benefit from duty-free facilitation.
   

  Logistics Reforms

  • Instant cargo clearance for trusted importers

  • Enhanced AEO framework

  • Modernised warehousing systems

  • AI-based container scanning at major ports
    
    These steps aim to reduce turnaround time and improve overall trade efficiency.
    
     

    💰 Taxation & Capital Market Reforms

    Key Market Measures

    • Securities Transaction Tax (STT) increased:

      • Futures: 0.05%

      • Options: 0.15%

    • Share buyback taxation shifted to capital gains, including additional promoter-level levies

    • Minimum Alternate Tax (MAT) reduced to 14%, but MAT credit utilisation restricted from April 2026
       

      Relief & Compliance

    • TCS on foreign travel and remittances under LRS cut to 2%

    • Simplified ITR timelines

    • Rule-based lower or nil TDS system

    • Easier compliance for NRIs and small taxpayers
      
       

      🚀 Future-Oriented Sectors

      Major Highlight

      A landmark move was the announcement of a tax exemption until 2047 for global cloud service providers operating data centres in India — positioning the country as a global digital infrastructure hub.

      Other Focus Areas

      • Clean and renewable energy

      • Nuclear power expansion

      • AI-driven public services

      • Services exports (target of 10% global market share by 2047)

      • Medical tourism clusters
        
         

        🎯  Sectoral Impact

        Positive Outlook

        Infrastructure, capital goods, logistics, electronics, renewable energy, data centres, fisheries and agri-processing

        Neutral to Mixed

        Capital markets (STT hike balanced by compliance ease), IT sector (due to buyback taxation changes)

  
   

  Final Outlook

  Budget 2026 is designed to strengthen India’s economic foundation rather than deliver short-lived stimulus. The combination of fiscal discipline, infrastructure-led investment and structural reforms creates a stable environment for sustainable growth while keeping financial markets well-balanced.