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The Prime Minister Of India is addressing the nation on the Union Budget of 2026.

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Carbon Capture And Utilisation over the next 5 years.

The FM announced an increase in the capital expenditure for the economy.

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The Nifty is trading over 200 points below; the index is now below 25,100. These are the top contributors.

One of the worst-hit segments in today’s fall has been the Nifty PSU bank index.

The shares of public-owned Bank Of India declined over 6%, making it one of the top PSU Bank losers.

The shares of Bank of Maharashtra declined by over 4% after the Union Budget.

During the presentation of the Union Budget 2026–2027, Union Finance Minister Nirmala Sitharaman made no announcements on the Production Linked Incentive (PLI) program for the automotive and auto components industry. Nonetheless, the sector remains a crucial component of both India’s manufacturing strategy and the larger PLI framework.

The Green Energy Corridor (GEC), a major project to improve the nation’s transmission infrastructure for renewable energy, received a boost from the Union Budget 2026. In contrast to the increased estimate of ₹800.00 crore for FY25–26, Finance Minister Nirmala Sitharaman announced an allocation of ₹599.99 crore for FY26–27.

FY27 defence expenditure at ₹5.94 lk cr vs ₹5.68 lk cr in FY26

Defence capex increase is 21% over last year with a 24% increase in budget for defence modernisation

The government’s emphasis on infrastructure-led growth and public investment as a crucial demand anchor for the economy is reaffirmed in the Union Budget 2026, which has set capital expenditure (capex) at ₹12.2 lakh crore, up from the revised projection of ₹10.9 lakh crore for FY 2025–26. The allotment is 9% more than the capital expenditure budgeted for the prior year.

As FM focused on healthcare and improvement in services, here is a look at India’s health budget.

Projected STT collection for FY 2025-26 was ₹78k crores. Collection so far (until Jan 11) is ~₹45k crores. Even if we estimate another ₹12k crores by March 31, that brings the total to ₹57k crores, almost 25% below the projection.

The Nifty index has bounced back from lows, recovering over 450 from lows.

For her budget statement this year, Finance Minister Nirmala Sitharaman wore a traditional Kanchivaram saree made of handwoven silk. The act has political overtones in addition to showcasing India’s rich textile legacy. The finance minister wore a West Bengali Laal Paad saree in 2021, the year Tamil Nadu, West Bengal, and other states held elections.

Suchitra K Ella, President Designate, CII, Co-Founder & MD, Bharat Biotech on Budget 2026 expectations

In percentage terms, the comparison of the capital expenditure (capex) between the Revised Estimates (RE) for FY 2025-26 and the Budget Estimates (BE) for FY 2026-27 is as follows:

Capital Expenditure Growth

Total Capital Expenditure: There is an estimated increase of 11.5% in the total capital expenditure for FY 2026-27 (₹12,21,821 crore) compared to the revised estimates for FY 2025-26 (₹10,95,755 crore).

Effective Capital Expenditure: This broader measure (which includes grants-in-aid for the creation of capital assets) is projected to grow by 22.1%, rising from ₹14,03,906 crore in FY 2025-26 (RE) to ₹17,14,523 crore in FY 2026-27 (BE).

Expenditure as a Percentage of GDP

Total Capital Expenditure: This remains steady at approximately 3.1% of the GDP for both FY 2025-26 (RE) and FY 2026-27 (BE).

Effective Capital Expenditure: This is expected to increase as a share of the economy, rising from 3.9% of GDP in FY 2025-26 (RE) to 4.4% of GDP in FY 2026-27 (BE).

Defence Allocation in the “Rupee Goes To” Pie

Current Allocation: For the FY 2026-27 Budget, Defence is allocated 11% (11 paise out of every rupee) of the total government expenditure.

Specific Capex Note: The document specifies that the “Central Sector Scheme” (allocated 17% or 17 paise) excludes capital outlay on defence.

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Exempt basic customs duty on raw materials imported for MRO

Buyback proceeds are taxed like dividends in the shareholder’s hands. You pay tax as per your slab. Companies deduct 10% TDS before paying you.

FM announces tax holiday till 2047 to any foreign companies that provides cloud services to Indian customers through Indian reseller entity

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