Budget 2026: Analysis

Summary: The Budget 2026 analysis highlights a broad-based reform agenda focused on fiscal discipline, growth acceleration, and compliance simplification. With real GDP growth projected at about 7.4%, the Budget balances consolidation with continued high capital expenditure, raising capex to ₹12.2 lakh crore to crowd in private investment. A landmark change is the rollout of the Income-tax Act, 2025 from April 2026, simplifying tax law structure while retaining existing slabs. Major relief measures include rationalised TDS/TCS rates, extended return-filing and revision timelines, electronic issuance of lower or nil TDS certificates, exemption of interest on motor accident compensation, and alignment of employee contribution deductions with return filing due dates. Litigation reduction is a recurring theme through decriminalisation of technical defaults, conversion of penalties into fees, expanded immunity provisions, and clarity on reassessment procedures. Sector-specific measures support MSMEs, cooperatives, IT services, global investment, IFSCs, and clean energy, while indirect tax reforms simplify customs, excise, and GST, including major relief for service exporters through changes in intermediary services taxation.

Author’s Note

Hi Readers, I am CA Aman Rajput, a practicing Chartered Accountant, in depth I had gone through the Budget 2026, both bare act as well as memorandum, here is a detailed analysis of the same. In case I left something will be glad to see that in comments below. Happy Reading:)

 Macroeconomic Overview

• India’s real GDP growth for FY 2025-26 is projected robustly at ~7.4 % reflecting resilient domestic demand and investment.
• Government reiterates commitment to fiscal discipline while maintaining momentum in growth-oriented spending.

Fiscal Framework

a. Fiscal Deficit & Debt

• Fiscal deficit target for FY 2026-27 set at 3 % of GDP, signalling restraint from expansionary deficit.
• Debt-to-GDP ratio estimated at 6 % in BE 2026-27, with policy aim towards medium-term consolidation.

b. Borrowing

• Gross market borrowings approved at Rs. 17.2 trillion, higher than market expectations.
• Net borrowings targeted at Rs. 11.7 trillion, slightly lower than previous year, reflecting calibrated financing strategy.

 Implication: Discipline in public finances balanced with continued capital spending supports creditworthiness and market confidence.

3. Capital Expenditure (CapEx)

• CapEx raised to ₹12.2 lakh crore, an increase over current year allocation.
• Major allocations earmarked for roads, railways, metros, logistics & urban infrastructure.

 Analysis: Sustained high public investment intends to crowd-in private sector and enhance long-term productive capacity.

4. Tax Regime & Direct Tax Changes

a. New Income Tax Act

• Budget includes rollout of Income-tax Act, 2025replacing Income-tax Act, 1961 from 1 Apr 2026.
• Act simplifies tax laws, reduces sections substantially, and aims to improve clarity and compliance.

b. Tax Slabs & Relief

• No change in basic tax slabs, existing rates retained.
• For assessee having income from profits and gains of business or profession (it even covers the Partnership firms and trusts) whose accounts  are not required to be audited along with the Partner of a firm whose accounts are not required to be audited under any or the spouse of such partner (if section 10 applies to such spouse) then, date of ITR is extended to 31^stAugust from 31^st July of Assessment/tax year wef. 1^st March 2026

 Analysis: Explanation 2 to section 139(1) is amended to include above proviso

c. TDS/TCS Related changes wef 1 April 2026

Sl. No.	Nature of Receipt	Current TCS Rate	Proposed TCS Rate (from TY 2026-27)	Remarks / Impact
1	Sale of alcoholic liquor for human consumption	1%	2%	Rate increased for revenue rationalisation
2	Sale of tendu leaves	5%	2%	Significant relief to forest produce trade
3	Sale of scrap	1%	2%	Rate aligned with other commodity trades
4	Sale of minerals (coal, lignite or iron ore)	1%	2%	Uniformity across mineral sector
5	Remittance under LRS for education or medical treatment (exceeding ₹10 lakh)	5%	2%	Relief to genuine education & medical remittances
6	Remittance under LRS for other purposes	20%	20%	No change – deterrence retained
7	Sale of overseas tour programme package (up to ₹10 lakh)	5%	2%	Rate reduced
8	Sale of overseas tour programme package (exceeding ₹10 lakh)	20%	2%	High relief and uniform rate
9	Threshold for overseas tour programme package	Applicable	Removed	TCS @ 2% irrespective of amount

TCS on Overseas Tour Programme Package (Section 394)

Change

• TCS rate rationalised to a uniform 2%.
• Threshold of ₹10 lakh removed.
• Applies irrespective of amount.

Earlier structure

• 5% up to ₹10 lakh, 20% beyond ₹10 lakh.

No TDS on Interest paid to Co-operative Banks wef 01.04.2026

No TDS on interest (other than securities) paid to co-operative societies engaged in banking, including co-operative land mortgage banks.

Jurisdiction to issue notice u/s 148 & pre-assessment u/s 148A

Clarification retrospective from 1-4-2021

Only jurisdictional AO (not NaFAC / assessment units) can conduct 148A enquiry and issue notice u/s 148. Faceless system applies only after issuance of 148 notice.

DIN-related defects not to invalidate assessments (Section 292B) wef 1-4-2026

Assessment not invalid merely due to non-quoting / defective quoting of DIN, if DIN is referenced in any manner.

Time limits under Section 144C (DRP cases)

Section 153(wef 1.4.2009) / 153B (wef 1.10.2009) apply only till draft order stage, Final assessment timelines governed solely by section 144C(4)/(13).

Computation of 60 days for TPO order (Section 92CA) wef 1-6-2007

• Date of limitation included while counting 60 days.
• Overrides adverse judicial rulings.

Tonnage Tax Scheme: Inland Vessels wef 01.04.2026

• Aligns Chapter XIII-G with Inland Vessels Act, 2021.
• Recognises certificate of registration, Inland Waterways Authority of India, and inland vessel training norms.

Crypto-asset reporting: penalty introduced wef 01.04.2026

Penalty

• ₹200 per day for non-furnishing statement.
• ₹50,000 for inaccurate information.

Guidelines under TDS/TCS to be binding wef 01.04.2026

CBDT guidelines under section 400(2) binding on tax authorities, and deductors / collectors.

d. other reliefs

Rationalising the due date to credit employee contribution by the employer to claim such contribution as deduction

Currently, Under section 29(1)(e), employee contribution to PF/ESI etc. is allowed as a deduction only if deposited within the due date prescribed under the respective labour laws (PF Act, ESI Act, etc.). Any delay beyond such statutory due date results in permanent disallowance, even if paid before filing the return.

Proposed amendment:

Section 29(1)(e) is proposed to be amended to rationalise the due date. Going forward, employee contribution will be allowed as a deduction if credited on or before the due date of filing the return of income under section 263(1), Applicable from 1 April 2026, i.e. Tax Year 2026-27 onwards.

 Analysis

It aligns employee contribution treatment with employer contribution, Removes harsh disallowance for minor procedural delays and Substantially reduces litigation arising from delayed deposits by few days.

Exemption on interest income under the Motor Vehicles Act, 1988

Earlier, Section 11 of the Income-tax Act, 2025 grants exemption to specified persons listed in Schedule III, subject to conditions. Compensation awarded under the Motor Vehicles Act, 1988 often includes interest on compensation, which till now was generally taxable.

Proposed amendment:

Schedule III is proposed to be amended to specifically exempt interest income awarded under the Motor Vehicles Act, 1988, where such interest is received by the accident victim, or the legal heir (in case of death), Applicable from 1 April 2026, i.e. Tax Year 2026-27 onwards.

Scope of exemption:

• Applies only to interest on compensation, not to other unrelated interest income.
• Covers cases of death, permanent disability, or bodily injury awarded by the Motor Accident Claims Tribunal (MACT).

Analysis: This is a clear relief-oriented amendment, recognising that interest on accident compensation is compensatory, not income in the real sense. It removes hardship, avoids litigation, and aligns tax law with social-welfare intent.

 No tax to be deducted at source in respect of interest on compensation amount awarded by Motor Accidents Claims Tribunal (MCAT) to an individual

It is proposed that no tax shall be deducted at source at all on interest on compensation awarded by MACT to an individual, irrespective of the amount wef. 1^st April 2026.

Enabling electronic verification and issuance of certificate for deduction of income-tax at lower rate or no deduction of income-tax

Currently, Section 395(1) provides for issuance of Nil / lower TDS certificates, but the application is required to be made before the Assessing Officer, involving manual scrutiny and officer-level discretion.

Proposed amendment Applicable from 1 April 2026.

• An additional electronic route is being introduced.
• The payee may apply electronically before a prescribed income-tax authority (not necessarily the AO).
• The authority may:
  • issue the certificate, if prescribed conditions are fulfilled, or
  • reject the application, if conditions are not met or application is incomplete.

Analysis

• Reduces physical interface with tax officers.
• Faster and more standardised processing for small taxpayers.
• Likely to be rule-based / system-driven, improving certainty and transparency.

Hence, This is a compliance-friendly procedural reform, shifting Nil / lower TDS certification from a purely discretionary AO process to a technology-enabled mechanism, while retaining safeguards through prescribed conditions.

 Relaxation from obtaining TAN for purchase of property from Non-Resident

Existing issue

• Resident buyer (Individual/HUF) must obtain TAN when purchasing immovable property from a non-resident seller, even for a one-time transaction.
• This was inconsistent with resident-seller transactions (where PAN-based TDS works).

 Proposed amendment

Section 397(1)(c) amended to exempt resident Individual/HUF from obtaining TAN for TDS on purchase of immovable property from a non-resident, covered under section 393(2) (Table Sl. No. 17) wef 1^st October 2026

Filing declaration for No TDS through Depository (Section 393(6))

Existing position

• Investor must submit separate declarations to each payer (AMC, company, issuer).
• Payers must report declarations monthly leading to a heavy compliance.

 Proposed changes wef 1^st April 2027

• Investor may file single declaration with the depository.
• Depository will share declaration with all payers.
• Reporting by payer to tax authority shifted from monthly to quarterly basis.

 Conditions

Applicable only where:

• Securities/units are held in depository, and
• Securities are listed on recognised stock exchange.

TDS clarity on supply of manpower

Problem

Long-standing ambiguity whether manpower supply attracts:

• Contractor TDS (1% / 2%), or
• Professional / technical services TDS (2% / 10%).

 Proposed amendment wef 1^st April 2026

• “Supply of manpower” to be explicitly included in “work” under section 402(47).
• Accordingly, Section 393(1) contractor TDS rates will apply.

 Rates applicable

• 1% for Individual/HUF contractor
• 2% for Others

 Allowing deduction to non-life insurance business where TDS default is cured later

Issue

For non-life insurers:

• Expenses disallowed under section 35(b) (TDS not deducted/paid) are added back.
• Unlike section 37 payments, there was no mechanism to allow deduction later when TDS is paid.

Proposed amendment

New sub-paragraph inserted in Schedule XIV to allow deduction in the year when TDS is deducted and paid, even if disallowed earlier with effect from 1 April 2026 (TY 2026-27 onwards)

 Exemption on compulsory acquisition of land under RFCTLARR Act, 2013

Existing legal position

• Section 11 read with Schedule III already exempts capital gains on transfer of agricultural land to Individuals/HUFs, subject to conditions.
• Section 96 of RFCTLARR Act, 2013 clearly provides that no income-tax shall be levied on any award or agreement (except u/s 46).
• CBDT Circular No. 36/2016 clarified that such compensation is exempt even if not specifically mentioned in the Income-tax Act, 1961.

 Issue

Exemption was based on external statute and circular, not expressly embedded in the new Act which led to a scope for ambiguity.

 Proposed amendment wef 1 April 2026

Schedule III to be amended to expressly exempt any income arising from:

• any award or agreement
• on compulsory acquisition of any land
• under RFCTLARR Act
• excluding section 46 cases (private purchase for companies).

Exemption for Disability Pension: Armed & Paramilitary Forces

• Historically exempt under 1922 Act and it continued via savings clause, circulars and administrative instructions.
• Lack of clear statutory provision in the new Act could cause interpretational issues.

Proposed amendment wef 1^st April 2026

Disability pension (both):

• Service element, and
• Disability element
  shall be fully exempt, only if:
• individual is invalided out of service, and
• disability is attributable to or aggravated by service.

Exemption not available where retirement is on superannuation or otherwise (non-disability), it also extended to paramilitary personnel as well.

Extension of Time Limit for Filing Revised Return

Currently, Revised and belated returns both had the same deadline (9 months), leaving no scope to revise a belated return filed at the end.

Proposed amendment from 1 April 2026

• Time limit for revised return extended to 12 months from end of tax year.
• Small fee introduced for revised returns filed beyond 9 months.

Updated Return: Allowing Reduction of Loss

Currently, Updated return could not be a return of loss, nor reduce tax liability.

 Proposed relaxation wef 1 April 2026

Updated return allowed where taxpayer reduces the quantum of loss earlier claimed in a timely filed return.

Updated Return after Reassessment Notice

Currently, Updated return not permitted once reassessment proceedings initiated.

Proposed amendment wef 1 March 2026

• Updated return allowed even after notice of reassessment (u/s 280 / 148), if filed within time specified in the notice.
• Additional 10% extra taxover existing additional tax.
• Penalty immunity for income so disclosed.

FAST-DS 2026- Foreign Assets of Small Taxpayers: To be notified via Finance Bill, 2026

It targets legacy / inadvertent non-disclosures of foreign assets (ESOPs, RSUs, dormant accounts, overseas insurance, etc.). Based on increasing data from Automatic Exchange of Information (AEOI).

Key features

• Time-bound disclosure scheme.
• Payment of tax / fee depending on nature of asset.
• Limited immunity from penalty & prosecution under Black Money Act.
• Excludes cases involving prosecution or proceeds of crime.

Relaxation of Prosecution under the Black Money Act

Change proposed retrospectively from 1 October 2024

Sections 49 & 50 amended to exclude prosecution for foreign assets other than immovable property, where aggregate value ≤ Rs. 20 lakh. Covers minor / inadvertent non-disclosures and Aligns prosecution with penalty framework.

Rationalisation of Prosecution Provisions wef 1 March 2026

Key principles adopted

• From a rigorous imprisonment to Simple imprisonment.
• Maximum imprisonment reduced from 7 years to 2 years (3 years for repeat offences).
• Only fine where tax involved ≤ Rs. 10 lakh.
• Graded punishment linked to amount of tax evaded.
• Certain offences fully decriminalised.

Major highlights

• TDS/TCS defaults largely decriminalised, criminal liability retained only for serious cases.
• Failure to produce books on notice is fully decriminalised.
• False statements / falsification for this now punishment is graded on tax impact.
• Headings rationalised for clarity.

Block Assessment: Relief for “Other Persons”

(a) Shorter block period for third parties

If undisclosed income of a third person relates only to limited years, full block assessment is no longer mandatory, wef searches initiated on or after 1 April 2026

(b) Uniform limitation period

• Time limit now linked to initiation of search, not last authorisation.
• Limitation extended to 18 months.

Penalties Converted into Fees (Technical Defaults) wef 1 April 2026

• Audit default then graded fee (₹75,000 / ₹1,50,000).
• Transfer pricing report delay then graded fee.
• SFT / reportable account delays then fee with cap.

Penalty for Under-Reporting to be Imposed within Assessment Order

Change Applies to assessments made on or after 1 April 2027

• Penalty u/s 270A to be part of assessment order itself.
• Separate penalty proceedings eliminated.
• Interest u/s 220(2) deferred till appellate outcome.

Increase in Penalty for Non-Cooperation in Information Collection

Penalty u/s 466 increased from ₹1,000 to ₹25,000 wef 1 April 2026

Unexplained Income: Tax & Penalty Rationalised

Changes wef 1 April 2026

• Tax rate on unexplained income decreased from 60% to 30%
• Separate penalty u/s 443 omitted.
• Penalty now covered under misreporting (s.439).

Expanded Immunity from Penalty & Prosecution wef 1 March 2026

(a) Under Income Tax Act, 2025, in Section 440, Immunity extended to misreporting cases also:

• Pay 100% additional tax (normal misreporting),
• 120% additional tax for unexplained income cases.

(b) Under Income Tax Act, 1961, in Section 270AA there are Similar immunity extended to misreporting cases.

 5. Corporative Societies

Deduction on Dividends received by Co-operative Societies (Section 149)

Currently, Deduction u/s 149(2)(d) is available only in the old tax regime for interest or dividend received from another co-operative society. Dividends received by a co-operative society from companies are fully taxable.

 Proposed amendments wef 1 April 2026

(a) New tax regime relief

Deduction to be allowed in the new tax regime also, but restricted to dividends received from other co-operative societies, and only to the extent such dividends are further distributed to members.

(b) Special relief to notified federal co-operatives

Deduction allowed for dividends received from companies for 3 years (up to TY 2028-29) available under both old and new regimes, only for investments made up to 31-01-2026, and only if dividends are distributed to members.

 Widening scope of deduction: Ancillary activities (Section 149(2)(b)) wef 1 April 2026

 Currently, there is 100% deduction for primary co-operative societies supplying milk, oilseeds, fruits, vegetables (grown by members).

Proposed expansion

Deduction extended to profits from cattle feed, and cotton seeds supplied by members. 

Inclusion of Multi-State Co-operative Societies in definition

 Currently there is a gap in definition of “co-operative society” did not expressly include societies registered under the Multi-State Cooperative Societies Act, 2002.

 Proposed amendment

Such multi-state co-operatives to be explicitly included in section 2(32) wef 1 April 2026

6. Supporting IT Sector as India’s Growth Engine

APA: Filing of return / modified return by Associated Enterprises (Section 169: APA effect)

Issue

Only the APA signatory could file a modified return, Associated Enterprises (AEs), though impacted by APA, had no statutory mechanism to revise returns or claim refunds.

Amendment wef 1 April 2026

Where income is modified due to an APA, then APA signatory shall, and Associated Enterprise may,
file a return or modified return in line with the APA within 3 months from end of month in which APA is entered.

7. Attracting Global Business & Investment

 Exemption to foreign companies procuring data centre services in India

Foreign company exempt on income arising in India from procuring data centre services from a specified data centre , such exemption is available up to Tax Year 2046-47

Conditions

Specified data centre:

• Approved & notified by MeitY
• Owned and operated by an Indian company
• Services to Indian users must be routed via an Indian reseller.

Deduction for prospecting & exploration of critical minerals

(Section 51 read with Schedule XII)

Change

• Schedule XII expanded to include critical minerals.
• Prospecting & exploration expenditure eligible for deferred deduction.

Exemption for foreign companies supplying capital equipment to electronics manufacturers in bonded areas

Scope

Exemption on income from supplying capital goods, equipment, tooling to Indian contract manufacturers in custom bonded warehouses, and is available till Tax Year 2030-31

Exclusion from MAT for additional presumptive businesses of non-residents

Businesses newly excluded from MAT

• Operation of cruise ships
• Services / technology for setting up electronics manufacturing facilities

Exemption for non-resident individuals rendering services under notified schemes

Non-resident individuals rendering services in India under a notified scheme are exempt on foreign-sourced income, this exemption is available for 5 consecutive tax years.

8. IFSC: Strengthening Global Financial Hub

 Extension of tax holiday & concessional tax rate for IFSC units

Tax holiday for 20 years out of 25 years (earlier 10 yrs/15 yrs), Post-holiday business income taxed at 15%.

 Rationalisation of ‘dividend’ exclusion for IFSC treasury centres (aligned with IFSCA regulations)

Loan/advance between group entities excluded from “dividend” only if other group entity is in a notified foreign jurisdiction, and Parent / principal entity is listed outside India.

9. Rationalisation Of Corporate Tax Regime

Currently, MAT u/s 206 applies at 15% of book profits (9% for IFSC units) and is applicable only under the old tax regime. Excess MAT over normal tax is allowed as MAT credit, carry-forwardable for 15 years.

Proposed changes (from Tax Year 2026-27)

• MAT rate reduced from 15% to 14%of book profits.
• Tax paid under MAT in the old regime will be treated as final tax.
• No fresh MAT credit to be allowed going forward in the old regime.

Restricted utilisation of MAT credit in new regime

• Domestic companies:
  • MAT credit set-off allowed only in the new tax regime,
  • limited to 25% of the normal tax liability.
• Foreign companies:
  • Set-off allowed to the extent of difference between normal tax and MAT,
  • only in the year where normal tax exceeds MAT.

Analysis

• Encourage migration to the new tax regime.
• Gradual phasing out of MAT credit distortion.
• Provide certainty by treating MAT as a terminal taxin the old regime.

10. Non-Profit Organisations (NPOs)

Merger of NPOs wef 01.04.2026

No exit tax if both are registered NPOs, same/similar objects, and are prescribed conditions met.

 Violation rationalisation

Commercial activity under “GPU” removed from specified violation. 

Certain funds exempted from registration

Funds earlier exempt under ITA 1961 need not register again.

Belated Return for Non-Profit Organisations (Section 349) wef 01.04.2026

Existing position

• Registered NPOs could file return only within due date u/s 263(1)(c).
• No provision for belated return, unlike IT Act, 1961.

Amendment

Reference to section 263(4) inserted that enables belated return filing by NPOs.

11. Disallowance of Interest against Dividend / MF Income (Section 93)

Currently, Interest expenditure allowed up to 20% of dividend / MF income.

Amendment

No deduction at all for interest incurred to earn dividend income, or income from mutual fund units.

12. Schedule XI: Changes related to Recognised Provident Funds wef 01.04.2026

• Legacy, percentage-based limits removed.
• Full alignment with EPF Act, 1952 and Unified monetary cap of Rs. 7.5 lakh u/s 17(1)(h).

Major omissions / amendments

• Employer-employee parity rules removed.
• 12% salary-based ceiling removed.
• Shareholder-employee distinction removed.
• Rigid cap on Government securities investment removed.

13. Exemption on Sovereign Gold Bonds (Section 70(1)(x)) wef 1 April 2026

Capital gains exemption allowed only if SGB subscribed at original issue, and held continuously till redemption.

14. Market related changes wef 01.04.2026

Increase in Securities Transaction Tax (STT)

Revised STT rates

• Options (sale): 10% to 0.15%
• Options (exercise): 125% to 0.15%
• Futures: 02% to 0.05%

Taxation of Buy-back of Shares

Existing regime

• Buy-back proceeds taxed as dividend.
• Cost recognised separately as capital loss.

New regime

• Buy-back consideration taxed as capital gains.
• Special effective tax for promoter (individual) is 30% and for Promoter company it is 22%

15. Indirect Taxes and Tariff Changes

A. Customs

Policy direction: Clear shift towards tariff simplification, domestic manufacturing support, critical minerals security, defence & energy self-reliance, and reduced litigation.

Structural reforms:

• Customs law extended beyond territorial waters for fishing activities.
• Advance Rulings validity fixed at 5 years, improving certainty.
• Removal of officer permissions for warehouse-to-warehouse transfer → ease of logistics.

Tariff rationalisation:

• Large-scale movement of exemption rates into Tariff itself, reducing dependence on notifications.
• Creation of new tariff lines for better product identification & monitoring (chemicals, pharma, agri, electronics).

Sectoral thrust:

• Critical minerals, EVs, semiconductors, renewable energy, defence, aircraft MRO, nuclear power receive duty relief.
• MSME protection via specific duty floors (umbrellas, parts).
• Concessional duty for SEZ sales to DTA
• Customs duty on personal imports reduced from 20% to 10%.
• 17 life-saving drugs fully exempt from customs duty

Passenger & trade facilitation:

New Baggage Rules 2026, monthly deferred duty payment, new eligible importer class.

Revenue balancing:

Some exemptions allowed to lapse; SWS extended to personal imports (9804).

B. Excise

Tobacco: NCCD rates revised, but effective tax unchanged for anti-evasion, not revenue shock.

 Green energy push: Biogas/CBG portion excluded from excise valuation in blended CNG which is a strong clean-energy signal.

 To control Inflation: Higher excise on unblended diesel deferred till 31.03.2028.

C. GST: Litigation Reduction & Export Relief 

Trade-friendly changes:

• Post-sale discounts simplified: no mandatory pre-agreement linkage if ITC reversed.
• Provisional refund extended to inverted duty structure.
• No threshold for export refunds with payment of tax.

Institutional fix: Interim mechanism introduced for National Appellate Authority till formal constitution.

Major reform is that the Intermediary services place of supply shifted to section 13(2) which aligns with global GST norms, major relief for exporters.

16. Strategic Sectoral Initiatives

a. Infrastructure Connectivity

• Seven New High-Speed Rail Corridorsannounced connecting major economic centres (e.g., Mumbai-Pune, Hyderabad-Bengaluru).

b. Manufacturing & Technology

• Launch of India Semiconductor Mission 2.0with ₹40,000 cr outlay to strengthen chip ecosystem.
• Dedicated rare earth corridorsin multiple states to boost critical mineral supply chains.

c. Agriculture Innovation

• Introduction of Bharat Vistar, a multilingual AI-driven agri-tool to enhance farm productivity.

Implication: Aggressive focus on strategic & high-tech sectors aligns with global competitiveness and import-substitution goals.

17. MSMEs & Entrepreneurship Support

MSME Growth Fund and enhanced liquidity support aim to ease credit access and scale small enterprises.

18. Social & Inclusive Measures

Budget emphasises inclusive growth through infrastructure in tier-2/3 cities, health and education investments, hence balanced regional development and human capital emphasis contribute to equitable economic expansion.

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Author can be contacted at aman.rajput@mail.ca.in