Finance Minister Nirmala Sitharaman presented her ninth Union Budget on February 1, 2026. The budget size stands at nearly ₹55 lakh crore, reflecting the government’s continued push toward infrastructure growth, healthcare expansion, digital transformation, and industrial development.

In her 85-minute budget speech, the Finance Minister clarified that there would be no change in income tax slabs this year. Instead, the focus remains on capital investment, innovation, and long-term structural reforms aimed at achieving the vision of a “Developed India” (Viksit Bharat).

From high-speed rail corridors to biotechnology hubs and new AIIMS institutions, the budget outlines ambitious plans for the next five years. Here are the 10 most important announcements from Budget 2026:

🔹 1. Bio-Pharma Shakti Mission

The government will establish a Bio-Pharma Shakti initiative with an investment of ₹10,000 crore over the next five years.
Three new institutions will be set up to develop India into a global hub for bio-pharmaceutical manufacturing. This move is expected to generate large-scale employment and strengthen India’s presence in the global pharmaceutical supply chain.

🔹 2. Strengthening the Corporate Bond Market

To deepen India’s financial markets, a new market-making framework has been proposed for corporate bond indices.
Access to bond-linked funds and derivatives will be expanded, allowing investors more flexibility and helping companies raise long-term capital efficiently.

🔹 3. Increase in Capital Expenditure (Capex)

Government capital spending for FY2027 has been raised from ₹11.2 lakh crore to ₹12.2 lakh crore.
This increase will directly support infrastructure projects such as highways, railways, ports, and urban development, boosting job creation and economic growth.

🔹 4. Seven New High-Speed Rail Corridors

Seven eco-friendly high-speed rail corridors have been announced to improve inter-city travel.
The proposed routes include:

• Mumbai–Pune




• Pune–Hyderabad




• Hyderabad–Bengaluru




• Hyderabad–Chennai




• Chennai–Bengaluru




• Delhi–Varanasi




• Varanasi–Siliguri

These corridors aim to reduce travel time, cut pollution, and enhance regional connectivity.

🔹 5. India Semiconductor Mission 2.0

Building on the earlier semiconductor program, the government has launched India Semiconductor Mission (ISM) 2.0 with an allocation of ₹40,000 crore.
The mission will expand chip manufacturing capacity and make India more self-reliant in electronics and advanced technology production.

🔹 6. High-Level Committee on Banking Reforms

A special committee will be formed to review the entire banking system.
Its purpose is to suggest reforms that will strengthen banks and prepare the financial sector for India’s next phase of economic expansion under the “Viksit Bharat” vision.

🔹 7. Three New AIIMS and Medical Tourism Hubs

The Finance Minister announced the establishment of three new AIIMS institutions.
In addition, Ayush pharmacies will be upgraded, and five medical tourism hubs will be developed in partnership with state governments, making India a global healthcare destination.

🔹 8. Atmanirbhar Bharat Fund for MSMEs

To support small and medium enterprises (MSMEs), an additional ₹4,000 crore will be infused into the Atmanirbhar Bharat Fund in 2026–27.
A new ₹10,000 crore fund will also be set up to help MSMEs scale up into larger enterprises and create a globally competitive ecosystem, including a scheme for container manufacturing.

🔹 9. Education-to-Employment Committee

An Education-to-Employment Standing Committee will be formed to strengthen India’s service sector.
This body will identify sectors with high growth potential, employment generation capacity, and export opportunities, ensuring alignment between education and job markets.

🔹 10. Higher Investment Limits for NRIs

The government has raised the investment limit for Non-Resident Indians (NRIs) from 5% to 10%, and the overall investment cap from 10% to 24%.
This is expected to attract more overseas capital and improve long-term foreign fund participation in India’s economy.

Conclusion

Budget 2026 clearly prioritizes infrastructure, healthcare, technology, and financial reforms. With increased capital spending, new rail corridors, semiconductor expansion, and support for MSMEs, the government aims to lay a strong foundation for sustained economic growth.

The 10 major announcements reflect a long-term strategy focused on innovation, global competitiveness, and inclusive development—bringing India closer to its goal of becoming a developed nation.