The Economic Times

Indian markets saw a sharp fall on Budget Day. Investors reacted to a tax hike on futures and options. While the Budget offers long-term growth, near-term volatility is expected. Several companies like BEL, HAL, and Hero MotoCorp are in focus due to budget announcements and financial results. Adani Green also issued a clarification.

Global markets experienced a downturn on Monday. Stocks and precious metals saw significant losses. The Japanese yen weakened considerably. This sentiment follows a volatile week and precedes crucial central bank decisions and economic reports. Investors are adjusting expectations amid these developments.

India's recent hike in Securities Transaction Tax (STT) on futures and options has triggered a significant market downturn, mirroring a similar event in 2004. The move, aimed at curbing speculation, has increased trading costs for all participants, impacting brokers and foreign investors particularly hard.

The budget introduces a significant change in how share buybacks are taxed. Individual shareholders will now pay a lower 12.5% tax on buyback proceeds, moving from dividend taxation to capital gains. Promoters will face different rates, with foreign promoters taxed at 30% and Indian promoters at 22%.

Looking ahead The focus is on strengthening the foundations for next phase of economic growth rather than near-term outcomes; equities may see a good year if global markets stay stable

India is opening a new avenue for foreign investors to buy listed stocks directly. This move aims to attract global wealth seeking exposure to the Indian market. The government has increased investment limits for individuals residing outside India. This initiative provides an alternative to existing investment channels and seeks to build resilience against foreign portfolio investor outflows.

The government's budget introduced changes impacting capital markets, including increased trading costs for futures and options, and revised tax treatment for Sovereign Gold Bonds. While buybacks are now more tax-friendly, efforts are underway to boost corporate bond liquidity and support export-competitive sectors like deep-tech and manufacturing.

India's latest budget balances fiscal discipline with growth support, aiming for an investment-grade economy through targeted measures and enhanced productivity. Prioritizing long-term stability, it features a credible consolidation path and a significant increase in planned capital expenditure, while a hike in securities transaction tax on equity derivatives poses a negative surprise for markets.

The Indian budget offers a modest economic boost with increased capital expenditure, focusing on strategic sectors. While positive for earnings, market sentiment faces headwinds from higher STT on derivatives and a large divestment target. Investors should expect moderate returns amid valuation concerns and potential de-rating.

India's Finance Minister Nirmala Sitharaman has announced a significant tax holiday for foreign companies establishing data centers in India until 2047. This move aims to attract global investment and boost economic growth. The budget also focuses on fiscal consolidation and increased government spending on infrastructure. However, proposed changes to stock transaction tax and buyback taxation have raised concerns among investors.

Nirmala Sitharaman's ninth budget emphasized continuity, focusing on GDP growth and increased capital expenditure. While fiscal consolidation continues slowly, the budget introduced a securities transaction tax hike on derivatives and taxed buybacks, aiming to curb speculation and tax arbitrage. Asset monetisation is also being prioritized over outright PSU privatization.

The government has chosen to prioritise investment, productivity and job creation. Public capex remains the backbone of the budget, with continued emphasis on infrastructure, manufacturing, logistics and industrial ecosystems. Alongside this, the sustained focus on micro, small and medium enterprises (MSMEs), startups and skilling is significant. These areas are central to sustained employment generation and income growth, particularly for young workers and small enterprises that anchor our loca

The budget simplifies tax collection with revised Tax Collected at Source (TCS) rates, significantly benefiting overseas travelers, students, and those seeking medical treatment abroad. Changes include a reduced 2% TCS on education, medical, and tour packages under 10 lakh, easing upfront costs.

India's latest budget places a strong emphasis on high-value agricultural products and supporting industries. This forward-thinking approach not only aims to cut down on imports but also seeks to elevate farmers' earnings and increase export potential.

Finance Minister Nirmala Sitharaman's Budget 2026-27 prioritizes stability and resilience. The fiscal deficit remains controlled, while capital expenditure sees a historic rise. Strategic sectors like electronics and biopharma receive a boost. The services sector, a key growth driver, gains renewed emphasis with tax reforms. Direct tax laws are simplified.

The Sixteenth Finance Commission proposes ending revenue deficit grants. States' share in divisible taxes remains 41% from April 1, 2026. A new criterion, states' GDP contribution, is added for fund distribution. Stricter fiscal discipline is advised for states. The Centre has accepted most recommendations, including vertical and horizontal devolution.

A new partial credit guarantee fund will support private developers. This will help lenders by reducing risks. Investments will flow into long-gestation and urban infrastructure projects. Finance Minister Nirmala Sitharaman stated the fund aims to boost private sector confidence. This initiative will lower capital costs, making public services more affordable.

Budget 2026: India's latest budget prioritizes manufacturing and supply chain strength for Viksit Bharat. It boosts public spending and outlines fiscal responsibility. The plan supports electric mobility and energy transition with new incentives. Investments in infrastructure and rural development aim to drive economic progress. This budget sets a clear path for India's future growth and self-reliance.

The government has also signalled higher duty-free allowances for Indians returning from overseas travel, potentially widening the benefit for frequent flyers and international shoppers. The move could drop the landed cost of everything from electronics to fashion that customers import privately, mostly because they are unavailable in India or would be launched later, industry executives said.

Budget 2026: The government has proposed an 8.9% increase in capital spending for the next fiscal, reaching Rs 12.2 lakh crore, with a focus on asset creation in tier 2 and 3 cities. This move aims to stimulate private investment and maintain economic growth, particularly in infrastructure development, with significant allocations to roads and railways.

In an era of economic transformation, the Union Budget puts a spotlight on job creation and skill enhancement, laying the groundwork for a robust manufacturing sector. By championing micro, small, and medium enterprises (MSMEs) and cultivating new industries, this initiative is set to stimulate growth and establish formal employment pathways.

Government borrowing is increasingly financing capital expenditure, boosting economic growth potential as effective capital spending surpasses the fiscal deficit. Conservative tax revenue growth, alongside non-tax receipts and asset sales, provides a cushion. While revenue spending is managed, a slight increase in the budget size is observed, with a focus on easing the debt burden towards targets.

In her latest address, Finance Minister Nirmala Sitharaman unveiled a budget dedicated to long-term growth strategies. Highlights include significant investments in the electronics industry and the creation of rare earth corridors aimed at decreasing reliance on imports. Additionally, the budget outlines extensive support for MSMEs through a comprehensive framework.

India is launching a significant support plan for micro, small, and medium enterprises. This initiative will provide equity, liquidity, and professional help to boost businesses. Tax filing timelines are extended, easing compliance burdens. Professional bodies will create training and support tools. Simplified tax rules for manpower supply are also introduced.

With an eye on fiscal strength, the government is targeting a significant 80,000 crore through disinvestment and asset monetisation by the end of FY27. Major transactions like the sale of IDBI Bank and Life Insurance Corporation of India are expected to play pivotal roles in achieving this goal. This strategic move illustrates an ongoing commitment to monetising public assets.

India's latest budget prioritizes fiscal consolidation with a gentle approach, focusing on capital expenditure to counter elusive private investment and geopolitical risks. The industrial strategy aims to boost electronics, support labor-intensive sectors against rising tariffs, and derisk critical supply chains. However, risks include state fiscal wobbles, potential disruption in rural employment schemes, and neglect of mega-city livability.

India plans to significantly boost its global services sector share to ten percent by 2047. A new panel will identify growth areas and assess technology's impact on jobs. The government is emphasizing digital services, health, education, and tourism. Tax holidays are offered for cloud services using Indian data centers.

India's 2026 budget focuses on predictable growth. It aims to attract global investment with clear tax rules for technology and data centers. Manufacturing in critical areas like defense and advanced electronics is also a priority. Reforms simplify business operations. This strategy positions India for long-term growth and a key role in global supply chains.

India's new budget champions manufacturing, aiming to significantly increase its contribution to the nation's GDP. Key sectors like semiconductors, electronics, and textiles receive substantial funding. Initiatives like the Biopharma SHAKTI program and production-linked incentives are designed to build domestic capacity and reduce reliance on imports. This strategic focus supports job creation and economic growth.

In an exciting move, the government is unveiling a comprehensive plan aimed at rejuvenating 200 historic industrial clusters across the nation. With a substantial 3,000 crore budget earmarked for state-of-the-art plug-and-play industrial parks, this initiative promises to elevate infrastructure and technology, enhancing their competitive edge.

India Budget: The Finance Bill 2026 introduces significant changes to the Income Tax Act. Minor and technical tax offenses will no longer lead to criminal proceedings. Instead, these will be resolved through fines and penalties. This move aims to streamline tax processes and ease the compliance burden for businesses.

In an effort to support its economy, India is slashing import duties on marine products and footwear, seeking to counterbalance tariffs imposed by the US. Additionally, the government is extending the timelines for exporters in the leather and textile sectors, allowing for improved financial management and reduced uncertainties.

India's Union Budget 2026-27 introduces a comprehensive customs overhaul, featuring duty relief for manufacturing and exports, and a single digital window for faster clearances. Measures aim to boost competitiveness in sectors like textiles and footwear, while rationalizing duties on strategic imports to enhance market access with the US.

On budget day, investors and savers will notice that life goes on as usual. Despite some tweaks in tax regulations and the investment arena, there are no dramatic upheavals. The updates include slight modifications to the securities transaction tax affecting equity derivatives and capital gains on sovereign gold bonds. Meanwhile, the emphasis on nurturing a vibrant corporate bond market persists.

The Indian budget aims for long-term economic growth, competitiveness, and future readiness. It focuses on strategic sectors like nuclear power, data centers, and semiconductors. Incentives are provided for manufacturing and global capability centers. The budget also supports MSMEs with a new growth fund. This plan offers a credible path to boost the economy.

The Union Budget has allocated significant funds for Parliament's operations. The Lok Sabha will receive Rs 1,009 crore, covering staff, MPs' facilities, and Sansad TV. The Rajya Sabha is allocated Rs 482.99 crore for its secretariat, chairman, deputy chairman, and leader of the opposition. The Vice President's secretariat also receives funds for staff and expenses.

The Union Budget 2026-27 provides a substantial boost to India's skilling initiatives. The Ministry of Skill Development and Entrepreneurship receives a significant allocation of over Rs 9,800 crore. This funding aims to modernize Industrial Training Institutes and enhance youth employability. The budget focuses on strengthening the education-to-employment pipeline, creating new opportunities across various cities.

The Union Budget for 2026-27 earmarks Rs 3,400 crore for the Ministry of Minority Affairs. This represents an increase from the previous year's estimate. A significant portion, Rs 831.7 crore, is dedicated to educational empowerment for minority students. Central sector schemes and projects receive Rs 1,197.97 crore.

The Union Budget 2026-27 is set to boost economic growth. Morgan Stanley reports the budget balances fiscal consolidation with growth support. Capital expenditure remains a focus, aiding near-term expansion and future capacity. The budget signals a strategic shift towards manufacturing, particularly in high-value sectors like semiconductors. Support for services exports aims to increase India's global trade share.

The Union Budget 2026-27 boosts funding for pollution control initiatives. Allocations for schemes like the National Clean Air Programme and the Central Pollution Control Board have seen increases. The budget also earmarks funds for Carbon Capture Utilisation and Storage projects. This move signals a commitment to environmental protection and a green transition.

India is significantly boosting its weather forecasting. Finance Minister Nirmala Sitharaman has allocated Rs 1,342 crore for Mission Mausam. This ambitious initiative will use advanced technologies and computing to improve weather monitoring and prediction. The Ministry of Earth Sciences receives a total of Rs 3,789.23 crore. The Deep Ocean Mission also receives funding for exploration and technology development.

NSEs long-awaited IPO may debut in 78 months after Sebi approval, with 44.5% stake sold via offer for sale. CEO Ashish Chauhan said pricing will depend on market conditions, aiming mainly to provide liquidity to existing shareholders and transparency.

Delhi's budget for 2026-27 stands at Rs 1,348 crore, unchanged from the previous year. Chief Minister Rekha Gupta welcomed the allocation. Funds will support revenue and capital projects, including water infrastructure upgrades. A grant for 1984 riot victims and disaster response is also included. Delhi's connection to a high-speed rail network is highlighted as a significant development.

National Intelligence Grid (NATGRID) funding has been significantly reduced by 27.11% in the Union Budget 2026-27, with an allocation of Rs 108.98 crore. This marks a substantial decrease from previous years, suggesting a shift in expenditure towards operations rather than infrastructure enhancement for combating terrorism and internal security threats.

Indian markets fell sharply in Budget weekend trade after a surprise STT hike on futures and options. Sensex and Nifty slid nearly 2% as analysts warned of volatility, weak sentiment below key levels, and continued pressure from derivatives taxation changes.

The Union Budget 2026-27 earmarks over Rs 1471 crore for upgrading forensic capabilities. Funds will boost safety of women initiatives, modernize Central Forensic Science Laboratories, and establish a National Forensic Data Centre. The Inter-Operable Criminal Justice System receives Rs 550 crore for seamless data sharing. Criminology and Forensic Science sees a significant hike, supporting R&D and regional labs.

To discourage misuse of tax arbitrage, promoters will be subject to an additional buyback tax, raising the effective tax rate to 22 per cent for corporate promoters and 30 per cent for non-corporate promoters, she stated.

The Centre anticipates Rs 3.16 lakh crore in dividends and surpluses from the RBI, nationalised banks, and financial institutions for 2026-27, a 3.75% increase. This, along with Rs 75,000 crore from public sector enterprises, contributes to an expected Rs 6.66 lakh crore in non-tax revenue for the next fiscal year.

Finance Minister Nirmala Sitharaman has called the 10 percent nominal GDP growth estimate for the financial year beginning April 1, 2026, realistic. This projection is based on current GDP base year and methodology. India's GDP is estimated at Rs 393 lakh crore. The government will soon revise base years for key economic indicators like GDP and CPI.

Gold prices rebounded nearly 7% on MCX after a brutal selloff ahead of Budget 2026. Profit booking, margin pressures and lack of jewellery-sector relief weighed on bullion, while silver stayed flat after historic volatility following record crashes in both metals.