Budget 2026-27 LIVE: Operation Sindoor: Major hike in defence spending

'A bland Budget for health sector'

Dr. Ravi Wankhedkar, former National President, Indian Medical Association (IMA), said, "The Union Budget 2026 is highly disappointing and directionless for the health sector. There is nothing special or transformative for healthcare in this budget. As usual, maximum emphasis and priority have been given to the pharmaceutical and AYUSH sectors, while primary healthcare and public health infrastructure have been completely neglected.

"The promotion of medical tourism will not benefit the common man; instead, it will largely help the private corporate hospital sector. There is no concrete policy or incentive for boosting the manufacturing of medical devices in India, which is a major missed opportunity under the “Make in India” initiative.

"There is no real increase in health sector allocation in percentage terms. In fact, after adjusting for inflation, the effective allocation is actually reduced. The only positive aspect of this budget is the proposal to develop and strengthen paramedical manpower, which can contribute meaningfully to healthcare delivery in the long run. Overall, this is a bland and uninspiring budget for the health sector, and the government has missed a crucial opportunity to strengthen primary healthcare and public health systems in India."

IT services: Safe harbour margin

FM: "India is a global leader in software development services, IT-enabled services, knowledge process outsourcing services and contract R&D services relating to software development These business segments are quite interconnected with each other. All these services are proposed to be clubbed under a single category Information Technology Services with a common safe harbour margin of 15.5 per cent applicable to all."

The threshold for availing safe harbour for IT services is being enhanced substantially from Rs 300 crore to Rs 2,000 crore.

Orange Economy

"India’s Animation, Visual Effects, Gaming, and Comics (#AVGC) sector is a growing industry, projected to require 2 million professionals by 2030. I propose to support the Indian Institute of Creative Technologies, Mumbai, in setting up AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges. The Indian Design industry is expanding rapidly. I propose to establish a new National Institute of Design to boost design education & development in the eastern region of India," said FM.

Customs duty exempted on 17 drugs

FM: "To rationalise the customs duty structure for goods imported for personal use, I propose to reduce the tariff rate on all dutiable goods imported for personal use from 20 per cent to 10 per cent. To provide relief to patients, particularly those suffering from cancer, I propose to exempt basic customs duty on 17 drugs or medicines. I propose also to add seven more rare diseases for the purposes of exempting import duties on personal imports of drugs, medicines and food for special medical purposes used in their treatment."

Manufacture of civilian training and other aircraft: Basic customs duty on components exempted

FM: "I propose to exempt basic customs duty on components and parts required for the manufacture of civilian training and other aircraft. It is also proposed to exempt basic customs duty on raw materials imported for the manufacture of aircraft parts to be used in maintenance, repair, or overhaul requirements by units in the defence sector."

Buyback proceeds for all types of shareholders will be taxed as capital gains: FM

FM Sitharaman said buyback proceeds for all types of shareholders will be taxed as capital gains.

Sitharaman also proposed to raise Securities Transaction Tax to 0.05 per cent on commodity futures from 0.02 per cent.

She further said MAT (Minimum Alternate Tax ) will be made final tax and the rate will be reduced to 14 per cent from current 15 per cent.

She also said the government has proposed a joint panel of Corporate Affairs Ministry and CBDT for incorporation of income computation and disclosure standards.

National Destination Digital Knowledge Grid will be established to digitally document all places of significance, she added.

FM concludes her Budget speech, Lok Sabha adjourned

Lok Sabha to reconvene tomorrow at 11 am.

Finance Bill 2026 introduced in Lok Sabha

FM introduces the Finance Bill 2026 in the Lok Sabha.

Artificial Limbs Manufacturing Corporation of India

FM proposes to support Artificial Limbs Manufacturing Corporation of India to scale up production of assisted devices for divyangjan.

Time period extended for exports of leather, textile garments

Govt proposes to extend time period of exports of final products from 6-month to 1-year for exporters of leather, textile garments.