Budget 2026-27: Here are 10 key takeaways

Union Finance Minister Nirmala Sitharaman on Sunday (February 1) presented the third Budget of the third Narendra Modi government. In her ninth consecutive budget, she unveiled several measures, including a capex hike to proposing high-speed railway corridors, to setting up regional medical hubs.

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Here are 10 key takeaways on Sitharaman's Budget 2026-27 speech:

• Emphasising the continuous rise in government capital expenditure (capex) over the years, she suggested raising the government capex to Rs 12.2 lakh crore for FY27, up from Rs 11.2 lakh crore in FY26.
• The finance minister suggested the addition of seven high-speed rail corridors: from Mumbai to Pune, Pune to Hyderabad, Hyderabad to Bengaluru, Hyderabad to Chennai, Chennai to Bengaluru, Delhi to Varanasi, and Varanasi to Siliguri, with the objective of encouraging environmentally sustainable passenger travel.
• The investment cap for Non-Resident Indians (NRIs) has been raised from 5 per cent to 10 per cent, while the total investment limit has been elevated from 10 per cent to 24 per cent. This change is anticipated to facilitate enhanced involvement of NRI capital and to provide better access to long-term foreign funds.

• Sitharaman announced the establishment of a high-level committee focused on banking for Viksit Bharat. She stated that the committee will conduct a comprehensive review of the banking system and propose modifications to facilitate India's next stage of economic development.

Also read: Sitharaman unveils major tourism push in Budget 2026-27; eyes job generation

• The defence ministry is anticipated to obtain a 20 per cent increase in its budget allocation, which reflects the growing border tensions and strategic necessities. The proposed plans encompass the relaxation of foreign direct investment (FDI) regulations in defence manufacturing, the establishment of defence industrial corridors, and the aim of achieving a USD 5.5 billion defence export target by the year 2029.

• Budget 2026-27 is set to enhance medical education, improve rural healthcare, upgrade hospital infrastructure, and advance digital health platforms, thereby building upon previous investments in public health and pandemic readiness.
• Reforms will persist in facilitating foreign direct investment (FDI), streamlining labour regulations, liberalising the nuclear and defence industries, and promoting green and digital infrastructure, thereby drawing both foreign and domestic investment.

Also read: Budget 2026: FM announces AYUSH push, new Ayurveda institutes

• The Centre plans to develop 15 archaeological sites, which include Lothal, Dholavira, Rakhigarhi, Sarnath, and Hastinapur, according to FM Sitharaman.
• The budget suggests a tax exemption lasting until 2047 for foreign firms that offer cloud services to clients across the globe by leveraging data centres located in the country.
• Education remains a primary emphasis, with ongoing allocations aimed at increasing medical education capacity by 75,000 seats over a period of five years, enhancing IIT infrastructure, and bolstering school retention initiatives. The Budget seeks to close the divide between nearly universal enrollment and actual learning outcomes, particularly at the secondary education level.