Budget highlights: Capex boost, data centre tax holiday, cheaper cancer drugs

India Today

In her 124-minute speech -- after which the Sensex plunged over 1,600 points before staging a partial recovery -- Finance Minister Nirmala Sitharaman announced a higher capital expenditure outlay of Rs 12.2 lakh crore for FY27 and set a fiscal deficit target of 4.3 per cent of GDP.

Transcript

00:00:00Sir, with your permission, I rise to lay on the table a copy each of the following papers,

00:00:07Hindi and English versions, under Article 281 of the Constitution, Report for 2026 to

00:00:162031, Volume 1, Main Report of the 16th Finance Commission.

00:00:212. Report for 2026-2031, Volume 2, Annexures of the 16th Finance Commission.

00:00:323. Explanatory Memorandum as to the action taken on the recommendations contained in the above report.

00:00:43Item No. 2, Mani Bittmanti Nirmala Sitalmanji.

00:00:51Honourable Speaker Sir, on the sacred occasion of Magh Purnima and the birth anniversary of Guru Ravi Das,

00:01:11I present the budget for the year 2026-2027.

00:01:19Since we assumed office 12 years ago, India's economic trajectory has been marked by stability,

00:01:29fiscal discipline, sustained growth and moderate inflation.

00:01:34This is the result of conscious choices we have made, even in times heightened uncertainty and disruption.

00:01:44Our government, led by Honourable Prime Minister Modi, has decisively and consistently chosen action over ambivalence,

00:01:55reform over rhetoric and people over populism.

00:01:59We have pursued far-reaching structural reforms, fiscal prudence and monetary stability,

00:02:08whilst maintaining a strong trust on public investment.

00:02:12Keeping Atmanirbarta as a lodestar, we have built domestic manufacturing capacity,

00:02:19energy security and reduced critical import dependencies.

00:02:23Simultaneously, we have ensured that citizens benefit from every action of the government,

00:02:30undertaking reforms to support employment generation, agricultural productivity,

00:02:36household purchasing power and universal services to people.

00:02:41These measures have delivered a high growth rate of around 7% and helped us make substantial strides

00:02:53in poverty reduction and improvement in the lives of our people.

00:02:58Today, we face an external environment in which trade and multilateralism are impaired

00:03:05and access to resources and supply chains are disrupted.

00:03:10New technologies are transforming production systems,

00:03:13while sharply increasing demands on water, energy and critical minerals.

00:03:20India will continue to take confident steps towards Vikasit Bharat,

00:03:25balancing ambition with inclusion.

00:03:28As a growing economy with expanding trade and capital needs,

00:03:34India must also remain deeply integrated with global markets,

00:03:42exporting more and attracting stable long-term investment.

00:03:48As I begin Part A, I want to express my gratitude to the people

00:03:54for standing firmly with us as we forge our way together towards

00:03:59becoming one of the largest economies of the world.

00:04:08Our aim is to transform aspiration into achievement

00:04:12and potential into performance

00:04:14as we ensure that the dividends of growth reach every farmer,

00:04:20the scheduled caste, the scheduled tribes,

00:04:23the nomads, the youth, the poor and the women.

00:04:29In Vikasit Bharat Young Leaders Dialogue 2026,

00:04:33several innovative ideas were shared with our Prime Minister,

00:04:38which have inspired many of the proposals,

00:04:42making this a unique, Yuba Shakti-driven budget.

00:04:50Our government's sankalp is to focus on our poor,

00:04:54underprivileged and the disadvantaged.

00:04:58To deliver on this sankalp,

00:05:00and given that this is the first budget prepared in Kartavya Bhavan,

00:05:05we are inspired by three Kartavya.

00:05:12Our first Kartavya is to accelerate and sustain economic growth

00:05:18by enhancing productivity and competitiveness

00:05:22and building resilience to volatile global dynamics.

00:05:28Our second Kartavya is to fulfil aspirations of our people

00:05:32and build their capacity,

00:05:35making them strong partners in India's path to prosperity.

00:05:40Our third Kartavya, aligned with our vision of

00:05:44Sapka Sat, Sapka Vikas,

00:05:47is to ensure that every family, community, region and sector

00:05:54has access to resources, amenities and opportunities

00:05:58for meaningful participation.

00:06:02This three-fold approach requires a supportive ecosystem.

00:06:06The first requirement is to sustain the momentum

00:06:10of structural reforms,

00:06:13continuous, adaptive and forward-looking.

00:06:17Second, a robust and resilient financial sector

00:06:21is central to mobilising savings,

00:06:24allocating capital efficiently and managing risks.

00:06:28Third, cutting-edge technologies,

00:06:31including AI applications,

00:06:32can serve us as force multipliers

00:06:37for better governance.

00:06:40Reform Express.

00:06:43Our government has undertaken comprehensive reforms

00:06:46towards creating employment,

00:06:48boosting productivity and accelerating growth.

00:06:52After the Prime Minister's announcement

00:06:56On Independence Day in 2025,

00:07:00over 350 reforms have been rolled out.

00:07:04This includes GST simplification,

00:07:08notification of labour codes

00:07:10and rationalisation of mandatory quality control orders.

00:07:15High-level committees have been formed

00:07:17and in parallel,

00:07:19the central government is working with the state governments

00:07:22on deregulation and reducing compliance requirements.

00:07:28The reform Express is well on its way

00:07:31and will maintain its momentum

00:07:34to help us fulfil our Kartavya.

00:07:37I now move to specific proposals.

00:07:41Under our first Kartavya,

00:07:44to accelerate and sustain economic growth,

00:07:47I propose interventions in six areas.

00:07:51One, scaling up manufacturing

00:07:55in seven strategic and frontier sectors.

00:08:00Two, rejuvenating legacy industrial sectors.

00:08:05Three, creating champion MSMEs.

00:08:09Four, delivering a powerful push for infrastructure.

00:08:14Five, ensuring long-term security and stability.

00:08:19And six, developing city economic regions.

00:08:27Scaling up of manufacturing

00:08:29in seven strategic and frontier sectors.

00:08:33Biopharma Shakti,

00:08:35meaning biopharma strategy for health advancement

00:08:39through knowledge, technology and innovation.

00:08:44India's disease burden is observed

00:08:47to be shifting towards non-communicable diseases

00:08:50like diabetes, cancer and autoimmune disorders.

00:08:56Biologic medicines are key to longevity

00:08:59and quality of light at affordable costs.

00:09:04To develop India as a global biopharma manufacturing hub,

00:09:09I propose the biopharma Shakti

00:09:17with an outlay of 10,000 crores

00:09:19over the next five years.

00:09:23This will build the ecosystem

00:09:25for domestic production of biologics

00:09:28and biosimilars.

00:09:30The strategy will include

00:09:31a biopharma focused network

00:09:33with three new national institutes

00:09:35of pharmaceutical education and research,

00:09:39popularly known as NIPERS.

00:09:41And upgrading seven existing ones.

00:09:45It will also create a network

00:09:47of 1,000 accredited India clinical trials sites.

00:09:52We propose to strengthen

00:09:53the central drug standard control organization

00:09:56to meet global standards

00:09:58and approve time frames

00:10:00through an approval time frames

00:10:04through a dedicated scientific review cadre

00:10:06and specialists.

00:10:10India's semiconductor mission.

00:10:131.0 expanded India's semiconductor sector capabilities.

00:10:18Building on this,

00:10:19we will launch ISM 2.0

00:10:21to produce equipment and materials,

00:10:24design full-stack Indian IP

00:10:26and fortify supply chains.

00:10:29We will also focus on

00:10:30industry-led research and training centers

00:10:33to develop technology

00:10:34and skilled workforce.

00:10:37The electronics components manufacturing scheme

00:10:40launched in April 2025

00:10:42with an outlay of 22,919 crores

00:10:47already has investment commitments

00:10:49at double the targets.

00:10:51We propose to increase

00:10:53the outlay to 40,000 crores

00:10:58to capitalize on this momentum.

00:11:05A scheme for rare earth permanent magnets

00:11:09was launched in 2025 November.

00:11:13We now propose to support

00:11:15the mineral-rich states

00:11:17of Odisha, Kerala, Andhra Pradesh

00:11:20and Tamil Nadu

00:11:22to establish dedicated rare earth corridors

00:11:25to promote mining, processing,

00:11:29research and manufacturing.

00:11:32To enhance domestic chemical production

00:11:35and reduction import dependency

00:11:37and reduce import dependency,

00:11:39we will launch a scheme

00:11:41to support states in establishing

00:11:43three dedicated chemical parks

00:11:46through challenge route

00:11:48on a cluster-based plug-and-play model.

00:11:52Strong capital goods

00:11:54strong capital goods capability

00:12:06is a determinant

00:12:08of productivity and quality

00:12:10across different sectors.

00:12:12Towards building this capacity,

00:12:15I propose the following.

00:12:17High-tech tool rooms

00:12:18will be established

00:12:19by central public sector enterprises

00:12:22at two locations

00:12:24as digitally enabled

00:12:25automated service bureaus

00:12:27that locally design, test

00:12:29and manufacture

00:12:30high-precision components

00:12:32at scale and at lower cost.

00:12:36Two, a scheme for enhancement

00:12:38of construction

00:12:39and infrastructure equipments

00:12:41will be introduced

00:12:42to strengthen domestic manufacturing

00:12:44manufacturing of high-value

00:12:46and technologically advanced CIE.

00:12:52This can range from lifts

00:12:55in a multi-storeyed apartment

00:12:57or firefighting equipment

00:12:59in multiplexes, large or small,

00:13:03and to tunnel-boring equipments

00:13:05for building metros

00:13:06and high-altitude roads.

00:13:08I also propose a scheme

00:13:13for container manufacturing

00:13:15to create a globally competitive

00:13:17container manufacturing ecosystem

00:13:19with a budgetary allocation

00:13:22of 10,000 crores

00:13:23over a five-year period.

00:13:26For the labour-intensive textile sector,

00:13:30I propose an integrated programme

00:13:32with five sub-parts.

00:13:34One, the National Fibre Scheme

00:13:38for self-reliance

00:13:39in natural fibres

00:13:40such as silk, wool, and jute,

00:13:43man-made fibres,

00:13:45and new-age fibres.

00:13:48Textile expansion

00:13:49and employment scheme

00:13:51to modernise traditional clusters

00:13:53with capital support

00:13:55for machinery,

00:13:56technology upgradation,

00:13:58and common testing

00:13:59and certification centres.

00:14:02Three,

00:14:02the National Handloom

00:14:04and Handicraft Program

00:14:05to integrate

00:14:07and strengthen

00:14:08existing schemes

00:14:09and ensure targeted support

00:14:12for weavers and artisans.

00:14:17TexEco Initiative

00:14:18to promote globally competitive

00:14:20and sustainable textiles

00:14:22and apparels.

00:14:25Sumarth 2.0

00:14:26to modernise

00:14:27and upgrade

00:14:29the textile skilling ecosystem

00:14:31through collaboration

00:14:32with industry

00:14:34and academic institutions.

00:14:40Further,

00:14:42I propose to set up

00:14:43a Megar textile...

00:14:44I propose to set up

00:14:46Megar textile parks

00:14:48in challenge mode.

00:14:50They can also focus

00:14:51on bringing value addition

00:14:53to technical textiles.

00:14:54I propose to launch

00:14:57the Mahatma Gandhi

00:14:59Gram Swaraj Initiative

00:15:01to strengthen

00:15:03khadi handloom

00:15:05and handicrafts.

00:15:07This will help

00:15:08in global market linkage

00:15:11and branding.

00:15:12It will streamline

00:15:13and support

00:15:14training,

00:15:15skilling,

00:15:16quality of process

00:15:17and production.

00:15:18This will benefit

00:15:20of weavers,

00:15:21village industries,

00:15:23one district,

00:15:24one product,

00:15:24ODOP initiative

00:15:26and also

00:15:27our rural youth.

00:15:32India

00:15:32has the potential

00:15:34to emerge

00:15:35as a global hub

00:15:36for high quality,

00:15:38affordable sports goods.

00:15:40I propose a dedicated

00:15:42initiative

00:15:43for sports goods

00:15:44that will promote

00:15:45manufacturing,

00:15:47research

00:15:47and innovation

00:15:48in equipment design

00:15:50as well as

00:15:51material sciences.

00:15:56Rejuvenation

00:15:57of legacy

00:15:58industrial clusters.

00:16:00I propose

00:16:01to introduce

00:16:02a scheme

00:16:02to revive

00:16:03200 legacy

00:16:05industrial clusters

00:16:06to improve

00:16:07their cost

00:16:08competitiveness

00:16:09and efficiency

00:16:10through infrastructure

00:16:12and technology

00:16:13upgradation.

00:16:18Creating

00:16:19champion SMEs

00:16:21and supporting

00:16:22micro enterprises.

00:16:25Recognizing

00:16:25MSMEs

00:16:27as a vital

00:16:28engine of growth,

00:16:29I propose

00:16:30a three-pronged

00:16:31approach

00:16:31to help them

00:16:32grow as

00:16:33champions.

00:16:35Equity

00:16:35support.

00:16:37I propose

00:16:37to introduce

00:16:38a dedicated

00:16:3910,000 crores

00:16:41SME growth

00:16:42fund

00:16:43to create

00:16:45future

00:16:45champions

00:16:46incentivizing

00:16:48enterprises

00:16:49based on

00:16:51select

00:16:53criteria.

00:16:54I also

00:16:55propose

00:16:56to top up

00:16:57the self-reliant

00:16:58India fund

00:16:59set up

00:17:00in 2021

00:17:01with

00:17:032,000 crores

00:17:04to continue

00:17:05to continue

00:17:05support to

00:17:06micro enterprises

00:17:07and maintain

00:17:09their access

00:17:09to risk

00:17:10capital.

00:17:12Liquidity

00:17:13support.

00:17:14With

00:17:15treads,

00:17:15more than

00:17:167,000 crores

00:17:17has been made

00:17:18available to

00:17:19MSMEs.

00:17:20To leverage

00:17:21its full

00:17:22potential,

00:17:23I propose

00:17:24four measures.

00:17:26One,

00:17:26mandate

00:17:27treads as the

00:17:28transaction

00:17:29settlement

00:17:29platform

00:17:30for all

00:17:31purchases

00:17:32from

00:17:32MSMEs

00:17:33by

00:17:34CPSEs,

00:17:35serving as

00:17:38a benchmark

00:17:38for other

00:17:39corporates.

00:17:41Two,

00:17:42introduce

00:17:42a credit

00:17:43guarantee

00:17:44support

00:17:44mechanism

00:17:45through

00:17:46CGT-MSE

00:17:47for invoice

00:17:48discounting

00:17:49on

00:17:49treads

00:17:50platform.

00:17:51Three,

00:17:52link

00:17:53gem

00:17:53with

00:17:53treads

00:17:54for

00:17:54sharing

00:17:55information

00:17:55with

00:17:56financiers

00:17:57about

00:17:57government

00:17:58purchases

00:17:58from

00:17:59MSMEs,

00:18:01encouraging

00:18:02cheaper

00:18:03and quicker

00:18:03financing.

00:18:05Four,

00:18:06introduce

00:18:06treads

00:18:07receivables

00:18:08as

00:18:09asset-backed

00:18:10securities,

00:18:11helping develop

00:18:12a secondary

00:18:13market,

00:18:15enhancing

00:18:15liquidity

00:18:16and settlement

00:18:17of

00:18:17transactions.

00:18:19Professional

00:18:21Support

00:18:21Government

00:18:22will

00:18:23facilitate

00:18:23professional

00:18:24institutions

00:18:25such as

00:18:26the ICAI,

00:18:28ICSI,

00:18:29ICMAI

00:18:30to

00:18:31design

00:18:31short-term

00:18:32modular

00:18:33courses

00:18:33and

00:18:34practical

00:18:35tools

00:18:35to

00:18:36develop

00:18:36a

00:18:37cadre

00:18:37of

00:18:37corporate

00:18:39mitras,

00:18:40especially

00:18:41in

00:18:41tier 2

00:18:42and

00:18:42tier 3

00:18:44towns.

00:18:45These

00:18:46accredited

00:18:46paraprofessionals

00:18:48will help

00:18:49MSMEs meet

00:18:50compliance

00:18:51requirements

00:18:52at affordable

00:18:53costs.

00:18:55Infrastructure

00:18:56During this

00:18:57past decade,

00:18:59our government

00:18:59has undertaken

00:19:00several

00:19:01initiatives

00:19:01for large-scale

00:19:03enhancement

00:19:04of public

00:19:04infrastructure,

00:19:06including

00:19:06through new

00:19:08financing

00:19:08instruments

00:19:09such as

00:19:10infrastructure

00:19:11investment

00:19:12trust

00:19:12and real

00:19:14estate

00:19:14investment

00:19:15trust

00:19:16rates

00:19:16and

00:19:17institutions

00:19:18like

00:19:19NIIF

00:19:20and

00:19:21NABFID.

00:19:22We shall

00:19:23continue to

00:19:24focus on

00:19:25developing

00:19:25infrastructure

00:19:26in cities

00:19:27with over

00:19:285 lakh

00:19:29population,

00:19:29that is

00:19:30tier 2,

00:19:30tier 3

00:19:31cities,

00:19:32which have

00:19:33expanded to

00:19:34become

00:19:34growth

00:19:35centres.

00:19:37Public

00:19:38capital

00:19:38expenditure

00:19:39has

00:19:40increased

00:19:40manifold

00:19:41from 2

00:19:42lakh crore

00:19:43in 2014-15

00:19:44to an

00:19:45allocation

00:19:46of 11.2

00:19:47lakh crore

00:19:48in

00:19:49BE 25-26.

00:19:52In this

00:19:53coming year,

00:19:55that is

00:19:55financial year

00:19:572026-27,

00:19:58I propose

00:20:00to increase

00:20:00it to

00:20:0112.2

00:20:02lakh crores

00:20:03to continue

00:20:04the momentum.

00:20:07To

00:20:08strengthen

00:20:09the confidence

00:20:10of private

00:20:10developers

00:20:11regarding

00:20:13risks

00:20:13during

00:20:14infrastructure

00:20:15development

00:20:15and

00:20:16construction

00:20:17phase,

00:20:18I propose

00:20:19to set

00:20:20up an

00:20:20infrastructure

00:20:20risk

00:20:21guarantee

00:20:22fund

00:20:22to provide

00:20:24prudentially

00:20:25calibrated

00:20:25partial

00:20:26credit

00:20:27guarantee

00:20:27to

00:20:28lenders.

00:20:28over the

00:20:33years,

00:20:34rights

00:20:34have

00:20:35emerged

00:20:36as a

00:20:36successful

00:20:37instrument

00:20:37for

00:20:38asset

00:20:38monetisation.

00:20:40I propose

00:20:40to accelerate

00:20:41recycling

00:20:42of

00:20:42significant

00:20:43real estate

00:20:44assets

00:20:44of the

00:20:45CPSCs

00:20:46through

00:20:46the

00:20:47setting

00:20:47up

00:20:47of

00:20:48dedicated

00:20:49rights.

00:20:51To

00:20:51promote

00:20:52environmentally

00:20:52sustainable

00:20:53movement

00:20:54of

00:20:54cargo,

00:20:55I propose

00:20:56to

00:20:56establish

00:20:58new

00:20:58dedicated

00:20:59freight

00:21:00corridors

00:21:00connecting

00:21:02Dankuni

00:21:03in the

00:21:04east

00:21:04to

00:21:05Surat

00:21:05in the

00:21:06west.

00:21:07Operationalize

00:21:0820 new

00:21:09national

00:21:10waterways

00:21:10over the

00:21:11next five

00:21:12years.

00:21:12starting with

00:21:16national

00:21:16waterways

00:21:18five in

00:21:19Orissa to

00:21:20connect mineral

00:21:21rich areas of

00:21:22Talcher and

00:21:23Angul and

00:21:25industrial centres

00:21:27like Kalinga

00:21:27Nagar to the

00:21:29ports of

00:21:29Paradeep and

00:21:30Damra.

00:21:31Training institutes

00:21:33will be set up as

00:21:34regional centres of

00:21:35excellence for

00:21:37development of

00:21:37required manpower

00:21:39for these

00:21:40waterways.

00:21:41This will

00:21:42benefit youth in

00:21:43the entire

00:21:43stretch of

00:21:44the waterways

00:21:44to train and

00:21:46acquire skills.

00:21:48Further,

00:21:49a ship

00:21:50repair ecosystem

00:21:51catering to

00:21:52inland waterways

00:21:54will also be

00:21:55set up at

00:21:57Varanasi

00:21:57and Patna

00:21:58and sea

00:22:01launch a

00:22:02coastal cargo

00:22:03promotion scheme

00:22:04for incentivising

00:22:06a modal

00:22:07shift from

00:22:08rail to

00:22:09road to

00:22:10increase the

00:22:11share of

00:22:11inland waterways

00:22:12and coastal

00:22:13shipping from

00:22:146% to

00:22:1612% by

00:22:172047.

00:22:21To enhance

00:22:22last mile and

00:22:23remote connectivity

00:22:24and promote

00:22:26tourism, I

00:22:27propose to give

00:22:28incentives to

00:22:29indigenise

00:22:30manufacturing of

00:22:32seaplanes.

00:22:33A seaplane

00:22:34VGF scheme

00:22:36will be also

00:22:37introduced to

00:22:38provide support

00:22:39for operations.

00:22:43Carbon capture,

00:22:45utilisation and

00:22:46storage.

00:22:47Aligning with the

00:22:48roadmap launched in

00:22:49December 2025,

00:22:51the carbon

00:22:52capture, utilisation

00:22:55and storage

00:22:56technologies at

00:22:58scale will

00:22:59achieve higher

00:23:01readiness and

00:23:03in end-use

00:23:03application across

00:23:05five industrial

00:23:07sectors, including

00:23:09power, steel,

00:23:10cement, refineries

00:23:12and chemicals.

00:23:14An outlay of

00:23:1620,000 crore is

00:23:17proposed over the

00:23:18next five years for

00:23:19this purpose.

00:23:21City economic

00:23:23regions.

00:23:24Cities are

00:23:25India's engines of

00:23:26growth, innovation

00:23:27and opportunities.

00:23:28We shall now focus on

00:23:30tier two, tier three

00:23:32cities and even

00:23:33temple towns, which

00:23:35need modern

00:23:36infrastructure and

00:23:37basic amenities.

00:23:39This budget aims to

00:23:40further amplify the

00:23:42potential of cities to

00:23:43deliver the economic

00:23:45power of

00:23:46agglomerations by

00:23:47mapping city economic

00:23:49regions based on

00:23:52their specific growth

00:23:53drivers.

00:23:55An allocation of

00:23:565,000 crore per

00:23:57CER over five years

00:24:00is proposed for

00:24:02implementing their

00:24:03plans through a

00:24:04challenge mode with

00:24:06a reform-come-result

00:24:07based financing

00:24:08mechanism.

00:24:10In order to promote

00:24:12environmentally

00:24:13sustainable passenger

00:24:14systems, we will

00:24:16develop seven

00:24:17high-speed rail

00:24:19corridors between

00:24:20cities as

00:24:23growth

00:24:23connectors, namely

00:24:26Mumbai to

00:24:27Pune, Pune to

00:24:29Hyderabad, Hyderabad to

00:24:31Bengaluru, Hyderabad to

00:24:33Chennai, Chennai to

00:24:35Bengaluru, Delhi to

00:24:37Varanasi, Varanasi to

00:24:39Siliguri.

00:24:51Financial sector.

00:24:52The Indian banking

00:24:54sector today is

00:24:56characterized by strong

00:24:57balance sheet, historic

00:24:59highs in profitability,

00:25:01improved asset quality,

00:25:03and coverage exceeding

00:25:0498% of villages in the

00:25:08country.

00:25:09At this juncture, we are

00:25:11well placed to

00:25:11futuristically evaluate the

00:25:13measures needed to

00:25:14continue on the path of

00:25:16reform-led growth of this

00:25:18sector.

00:25:18I propose setting up a

00:25:22high-level committee on

00:25:24banking for Vikasith Bharat,

00:25:26high-level committee on

00:25:28banking for Vikasith Bharat,

00:25:30to comprehensively review

00:25:32the sector and align it

00:25:36with India's next phase of

00:25:38growth, while safeguarding

00:25:40financial stability,

00:25:42inclusion, and consumer

00:25:44protection.

00:25:45The vision for NBFCs for

00:25:48Vikasith Bharat has been

00:25:50outlined with clear

00:25:51targets for credit

00:25:53disbursement and

00:25:54technology adoption.

00:25:55In order to achieve scale

00:25:57and improve efficiency in the

00:26:00public sector NBFCs, as a

00:26:02first step, it is proposed to

00:26:04restructure the power

00:26:06finance corporation and rural

00:26:08electrification corporation.

00:26:12I propose a comprehensive

00:26:15review of the foreign

00:26:16exchange management non-debt

00:26:19instruments rules to create

00:26:22a more contemporary, user-

00:26:24friendly framework for

00:26:26foreign investments,

00:26:28consistent with India's

00:26:29evolving economic priorities.

00:26:34Corporate bond market.

00:26:35I propose to introduce a

00:26:40market-making framework with

00:26:42suitable access to funds and

00:26:44derivatives on corporate bond

00:26:46indices.

00:26:48I also propose to introduce

00:26:50total return swaps on

00:26:52corporate bonds.

00:26:55Municipal bonds.

00:26:56To encourage the issuance of

00:26:58municipal bonds of higher value

00:27:01by larger cities, I propose an

00:27:04incentive of 100 crore rupees for

00:27:08a single bond issuance.

00:27:13100 crore rupees for a single

00:27:16bond issuance of more than

00:27:191,000 crore.

00:27:21The current scheme under

00:27:22AMRIT,

00:27:24the current scheme under AMRIT,

00:27:30which incentivizes issuances up to

00:27:34200 crores only, will also

00:27:36continue to support smaller and

00:27:39medium towns.

00:27:40Will also, that will also

00:27:42continue to support the smaller

00:27:44and medium towns.

00:27:45Ease of doing business.

00:27:47Individual persons resident

00:27:49outside India, P-R-O-I,

00:27:52will be permitted to invest in

00:27:54equity instruments of listed

00:27:57Indian companies through the

00:27:59Portfolio Investment Scheme.

00:28:02It is also proposed to increase

00:28:05the investment limit for an

00:28:07individual P-R-O-I under the

00:28:11scheme from 5% to 10% with an

00:28:15overall investment limit for all

00:28:18individual P-R-O-I's to 24% from

00:28:23the current 10%.

00:28:25Emerging technologies including AI.

00:28:3121st century is technology-driven.

00:28:34Adoption of technology is for the

00:28:37benefit of all people.

00:28:39Farmers in the field,

00:28:41women in STEM,

00:28:43youth keen to upskill,

00:28:45and Divyangjan to access

00:28:47newer opportunities.

00:28:48The government has taken several

00:28:51steps to support new technologies

00:28:54through AI mission,

00:28:56National Quantum Mission,

00:28:58Anusandhan National Research Fund,

00:29:02and Research and Development,

00:29:04and Innovation Fund.

00:29:05Our second Kartavya is to

00:29:09fulfil aspirations and build

00:29:11capacities.

00:29:13Close to 25 crore individuals

00:29:15have come out of

00:29:17multi-dimensional poverty

00:29:19through a decade of our

00:29:21government's sustained and

00:29:22reform-oriented efforts.

00:29:24Our government has therefore

00:29:34decided to place a renewed

00:29:37emphasis on the service sector

00:29:39to provide a pathway to

00:29:42fulfilling aspirations of a

00:29:44youthful India with the

00:29:46following measures.

00:29:48I propose to set up a high-powered

00:29:51education to employment and

00:29:54enterprises standing committee

00:29:56to recommend measures that

00:29:59focus on services sector as a

00:30:02core driver of Vikasit Bharat.

00:30:07This will make us a global

00:30:10leader in services with a 10%

00:30:13global share by 2047.

00:30:16The committee will prioritise

00:30:19areas to optimise the potential

00:30:21for growth, employment, and

00:30:24exports.

00:30:26They will also assess the impact

00:30:27of emerging technologies,

00:30:30including AI, on jobs and skill

00:30:33requirements, and propose

00:30:34measures thereof.

00:30:37To create a range of skilled

00:30:41career pathways, a new range of

00:30:44skilled career pathways for our

00:30:47youth, I propose interventions in

00:30:49the following sectors.

00:30:51Health.

00:30:52Existing institutions for allied

00:30:55health professionals will be

00:30:57upgraded and new AHP institutions

00:31:00established in private and

00:31:02government sectors.

00:31:04This will cover 10 selected

00:31:06disciplines, including optometry,

00:31:10radiology, anesthesia, OT technology,

00:31:13applied psychology, and behavioral

00:31:16health, and add 1 lakh AHPs over the

00:31:22next five years.

00:31:25A strong care system covering

00:31:29geriatric and allied care services

00:31:31will be built.

00:31:33A variety of NSQF aligned programs

00:31:36will be developed to train multi-skilled

00:31:39caregivers, combining core care and

00:31:43allied skills, such as wellness, yoga,

00:31:46and operation of medical assistive

00:31:49devices.

00:31:51In the coming year, 1.5 lakh

00:31:54caregivers will be trained.

00:32:01Hubs for Medical Value Tourism

00:32:03To promote India as a hub for medical

00:32:07tourism services, I propose to launch a

00:32:10scheme to support states in establishing

00:32:13five regional medical hubs in partnership

00:32:18with the private sector.

00:32:21These hubs will serve as integrated

00:32:24healthcare complexes that combine medical,

00:32:27educational, and research facilities.

00:32:29They will have Ayush centers, medical

00:32:33value tourism facilitation centers, and

00:32:36infrastructure for diagnostics, post-care,

00:32:40and rehabilitation.

00:32:41These hubs will provide diverse

00:32:44opportunities, job opportunities, for

00:32:47health professionals, including doctors and AHPs.

00:32:54Ancient Indian yoga, already respected in

00:32:58several parts of the world, was given a

00:33:01mass global recognition when Honorable

00:33:04Prime Minister took it to the UN.

00:33:07Post-COVID, Ayurveda gained a similar

00:33:11global acceptance and recognition.

00:33:14Exporting quality Ayurveda products

00:33:17helps farmers who grow the herbs and

00:33:20youth who process the products.

00:33:22To meet growing global demand, a few more

00:33:26steps are being taken.

00:33:27I propose to, one, set up three new

00:33:31all-India institutes of Ayurveda.

00:33:36Two, upgrade Ayush pharmacies and drug testing

00:33:42labs for higher standards of certification

00:33:45ecosystem and make available more skilled personnel.

00:33:50Three, upgrade the WHO Global Traditional

00:33:54Medicine Center in Jamnagar to bolster evidence-based

00:33:58research, training, and awareness for

00:34:02traditional medicine.

00:34:07Animal has been ruined.

00:34:10Livestock contributes close to 16% of farm income,

00:34:15including of poor and marginal households.

00:34:18To scale up availability of veterinary professionals

00:34:22by more than 20,000, I propose to roll out a loan-linked

00:34:27capital subsidy support scheme for establishment of

00:34:31veterinary and para-weternary colleges, veterinary hospitals,

00:34:37diagnostic laboratories, and breeding facilities and private sector.

00:34:43Collaboration between Indian and foreign institutions

00:34:46will also be facilitated.

00:34:49Orange economy.

00:34:51India's animation, visual effects, gaming, and comics sector,

00:34:56ABGC sector, is a growing industry projected to require

00:35:01two million professionals by 2030.

00:35:04I propose to support the Indian Institute of Creative Technologies Mumbai

00:35:14in setting up ABGC content creator labs

00:35:18in 15,000 secondary schools all over the country

00:35:23and 500 colleges.

00:35:25The Indian design industry is expanding rapidly and yet

00:35:33there is a shortage of Indian designers.

00:35:36I propose to establish, through Challenge Root,

00:35:40a new National Institute of Design

00:35:43to boost design education and development

00:35:47in the eastern region of India.

00:35:50Education.

00:35:51Our government will support states through Challenge Root

00:35:59in creating five university townships

00:36:03in the vicinity of major industrial and logistics corridors.

00:36:08These planned academic zones will host multiple universities, colleges,

00:36:15and research institutions, skill centres, and residential complexes.

00:36:20In higher education, STEM institutions' prolonged hours of study

00:36:27and laboratory work pose some challenges for girls' students.

00:36:34Through VGF, Viability Gap Funding or Capital Support,

00:36:41one girls' hostel will be established in every district.

00:36:46To promote astrophysics and astronomy via immersive experiences,

00:37:05four telescope infrastructure facilities will be set up or upgraded.

00:37:11The National Large Solar Telescope,

00:37:14the National Large Optical Infrared Telescope,

00:37:18the Himalayan Chandra Telescope,

00:37:21and the Cosmos 2 Planetarium.

00:37:25Tourism.

00:37:27The tourism sector has the potential to play a large role

00:37:30in the employment generation,

00:37:33forex earnings,

00:37:35and expanding the local economy.

00:37:36I propose to set up a National Institute of Hospitality

00:37:41by upgrading the existing National Council for Hotel Management

00:37:46and Catering Technology.

00:37:50It will function as a bridge between academia, industry, and government.

00:37:57I also propose a pilot scheme

00:38:00for upskilling 10,000 guides

00:38:03in 20 iconic tourist sites

00:38:06through a standardized, high-quality,

00:38:1112-week training course

00:38:13in hybrid mode

00:38:14in collaboration with

00:38:16the Indian Institute of Management.

00:38:20A national destination digital knowledge grid

00:38:25will be established

00:38:26to digitally document all places of significance,

00:38:31cultural, spiritual, and heritage.

00:38:35This initiative will create

00:38:38a new ecosystem of jobs

00:38:42for local researchers, historians,

00:38:45content creators, and technology partners.

00:38:48India has the potential

00:38:51and opportunity to offer

00:38:53world-class trekking and hiking experience.

00:38:59We will develop

00:39:00ecologically sustainable

00:39:03mountain trails

00:39:04in Himachal Pradesh,

00:39:07Uttarakhand,

00:39:08and Jammu Kashmir.

00:39:09Also in

00:39:13Arakku Valley

00:39:15in the Eastern Guards

00:39:16and Podhigai Malai

00:39:17in the Western Guards.

00:39:22Turtle trails

00:39:24along key nesting sites

00:39:26in the coastal areas

00:39:28of Orisha,

00:39:29Karnataka,

00:39:30and Kerala.

00:39:31And three,

00:39:32bird-watching trails

00:39:34along the Pulikat Lake

00:39:35in Andhra Pradesh,

00:39:37Tamil Nadu.

00:39:38It's on the border.

00:39:41Under the visionary leadership

00:39:44of Honorable Prime Minister,

00:39:46we established

00:39:47the International Big Cat Alliance

00:39:49in 2024.

00:39:52This year,

00:39:54India is hosting

00:39:55the first-ever global

00:39:57Big Cat Summit

00:39:58where heads of governments

00:40:01and ministers

00:40:02from 95 range countries

00:40:06will deliberate

00:40:07on collective strategies

00:40:08for conservation.

00:40:11Heritage and Culture Tourism.

00:40:14I propose to develop

00:40:1515 archaeological sites

00:40:17including

00:40:18Lothal,

00:40:20Dolavira,

00:40:21Rakigadi,

00:40:22Adichanallu,

00:40:23Saranath,

00:40:24Hastinapur,

00:40:26and Le Palace

00:40:27into vibrant,

00:40:29experiential,

00:40:30cultural destinations.

00:40:32Excavated landscapes

00:40:36will be open

00:40:37to the public

00:40:38through curated walkways.

00:40:41Immersive storytelling skills

00:40:43and technologies

00:40:45will be introduced

00:40:46to help conservation labs,

00:40:49interpretation centres,

00:40:51and guides.

00:40:53The sports sector

00:40:54provides multiple means

00:40:57of employment,

00:40:58skilling,

00:40:58and job opportunities.

00:41:00Taking forward

00:41:01the systematic nurturing

00:41:03of sports talent

00:41:04which is set in motion

00:41:05through the Kelo India

00:41:06program earlier,

00:41:08I propose to launch

00:41:10a Kelo India mission

00:41:12to transform

00:41:13the sports sector

00:41:15over the next decade.

00:41:18The mission will facilitate

00:41:20A, an integrated talent

00:41:23development pathway

00:41:24supported by training centres

00:41:27which are foundational,

00:41:28intermediate,

00:41:29and elite levels.

00:41:31B, systematic development

00:41:33of coaches

00:41:33and support staff.

00:41:35C, integration of sports

00:41:37science and technology.

00:41:39D, competitions and leagues

00:41:41to promote sports culture

00:41:43and provide platforms.

00:41:45and E, development

00:41:47of sports infrastructure

00:41:48for training

00:41:49and competition.

00:41:52Our third Kartavya

00:41:54aligns with our vision

00:41:56of Sapka Saat,

00:41:57Sapka Vikas

00:41:57towards Vikasit Bharat.

00:41:59This requires targeted efforts

00:42:01for, one,

00:42:02increasing farmer incomes

00:42:04through productivity enhancement

00:42:06and entrepreneurship

00:42:07with special attention

00:42:09to small and marginal farmers.

00:42:13B, empowering Divyangjan

00:42:15through access

00:42:16to livelihood opportunities,

00:42:18training,

00:42:19and high-quality

00:42:19assistive devices.

00:42:22C, empowering the vulnerable

00:42:24to access mental health

00:42:26and trauma care.

00:42:27D, focus on the Purwodha estates

00:42:31and the northeast region

00:42:33to accelerate development

00:42:34and employment opportunities.

00:42:38Fisheries.

00:42:39We will undertake initiatives

00:42:41for integrated development

00:42:43of 500 reservoirs

00:42:45and Amart Sarovars.

00:42:47Two, strengthen the fisheries

00:42:49value chain in coastal areas

00:42:52and enable market linkages

00:42:54involving start-ups

00:42:55and women-led groups

00:42:57together with fish farmer

00:42:59producer organizations.

00:43:02Animal husbandry.

00:43:03To provide quality employment opportunities

00:43:06in rural and peri-urban areas,

00:43:09we will support

00:43:10the animal husbandry sector

00:43:11in entrepreneurship development

00:43:14through A, a credit-linked subsidy program.

00:43:18B, scaling up

00:43:20and modernization

00:43:20of livestock enterprises.

00:43:23C, enhance creation

00:43:24of livestock, dairy,

00:43:26and poultry...

00:43:28...

00:43:29Encourage...

00:43:33Sorry, I'll read that again.

00:43:35Enhanced creation

00:43:36of livestock, dairy,

00:43:37and poultry-focused

00:43:39integrated value chains.

00:43:40And D, encourage creation

00:43:42of livestock farmer-producer

00:43:44organizations.

00:43:46High-value agriculture.

00:43:49To diversify farm outputs,

00:43:53increase productivity,

00:43:55enhance farmers' incomes,

00:43:56and create new employment opportunities,

00:43:59we will support

00:44:01high-value crops

00:44:02such as coconut,

00:44:04sandalwood,

00:44:06cocoa,

00:44:07cashew

00:44:07in the coastal areas,

00:44:11agar trees

00:44:12in northeast,

00:44:14and nuts

00:44:14such as almonds,

00:44:16walnuts,

00:44:17and pine nuts

00:44:18in our hilly regions.

00:44:20These, all of them,

00:44:21will be supported.

00:44:23India is the world's

00:44:24largest producer

00:44:24of coconuts.

00:44:26About 30 million people,

00:44:28including nearly

00:44:2910 million farmers,

00:44:31depend on coconuts

00:44:33for their livelihood.

00:44:35To further enhance

00:44:36competitiveness

00:44:37in coconut production,

00:44:39I propose

00:44:39a coconut promotion scheme

00:44:41to increase production

00:44:43and enhance productivity

00:44:44through various interventions,

00:44:47including replacing

00:44:51and non-productive trees

00:44:53with new saplings

00:44:55or plants

00:44:56or varieties

00:44:57in major coconut

00:44:59growing states.

00:45:02A dedicated program

00:45:04is proposed

00:45:05for Indian cashew

00:45:07and cocoa

00:45:08to make

00:45:09India

00:45:10self-reliant

00:45:11in raw cashew

00:45:12and coconut production

00:45:13and processing,

00:45:15enhance export competitiveness,

00:45:17and transform

00:45:19Indian cashew

00:45:20and Indian cocoa

00:45:21into premium global brands

00:45:24by 2013.

00:45:27Sandalwood.

00:45:29Sandalwood is closely linked

00:45:31to India's social

00:45:32and cultural heritage.

00:45:34Our government

00:45:35will partner

00:45:36with state governments

00:45:37to promote

00:45:38focused cultivation

00:45:39and post-harvest processing

00:45:41to restore the glory

00:45:43of the Indian sandalwood ecosystem.

00:45:46To rejuvenate

00:45:47old,

00:45:49low-yielding orchards

00:45:51and expand

00:45:52high-density cultivation

00:45:54of walnuts,

00:45:55amends,

00:45:56and pine nuts,

00:45:58we will support

00:45:58a dedicated program

00:45:59to enhance farmer incomes

00:46:01and in bringing value addition

00:46:03by engaging youth.

00:46:07Bharat Vistar,

00:46:09that is,

00:46:10Virtually Integrated System

00:46:12to Access Agricultural Resources.

00:46:15I propose

00:46:16to launch

00:46:17Bharat Vistar,

00:46:18a multilingual AI tool

00:46:20that shall integrate

00:46:21the AgriStack portals

00:46:23and the ICAR package

00:46:26on agricultural practices

00:46:28with AI systems.

00:46:31This will enhance

00:46:32farm productivity,

00:46:34enable better decisions

00:46:35for farmers,

00:46:36and reduce risk

00:46:37by providing

00:46:38providing

00:46:40customized

00:46:41advisory support.

00:46:44She marches

00:46:45for rural

00:46:45women-led

00:46:46enterprises.

00:46:49Building on the success

00:46:50of

00:46:51Lakpati Didi program,

00:46:53I propose

00:46:54to help women

00:46:55take the next step

00:46:56from credit-linked

00:46:57livelihoods

00:46:58to being

00:46:58owners of enterprises.

00:47:01Self-help

00:47:03entrepreneur,

00:47:04she

00:47:04marches

00:47:05will be set up

00:47:07as community-owned

00:47:09retail outlets

00:47:10within the cluster-level

00:47:12federations

00:47:13through enhanced

00:47:14and innovative

00:47:15financing instruments.

00:47:18Empowering

00:47:19Divyangjan

00:47:19Kaushal

00:47:22Yojana

00:47:23Information

00:47:24Technology,

00:47:26AVGC

00:47:27sectors,

00:47:28hospitality

00:47:29and food

00:47:30and beverages

00:47:31sectors

00:47:31often

00:47:32offer

00:47:33task-oriented

00:47:35and process-driven

00:47:36roles

00:47:37which are suitable

00:47:38for Divyangjan.

00:47:40We will ensure

00:47:41dignified

00:47:43livelihood

00:47:43opportunities

00:47:44through

00:47:45industry-relevant

00:47:46and customized

00:47:47training

00:47:48specific

00:47:49to each

00:47:50Divyangjan

00:47:51group.

00:47:53Divyang

00:47:54Sahara

00:47:54Yojana

00:47:55Timely access

00:47:57to high-quality

00:47:58assistive devices

00:47:59for all eligible

00:48:00Divyangjan

00:48:01is a fundamental

00:48:02need.

00:48:04I propose

00:48:04to

00:48:05one,

00:48:06support the

00:48:07artificial

00:48:07limbs

00:48:08manufacturing

00:48:09corporation

00:48:10of India

00:48:11to set up

00:48:13and to scale up

00:48:14production

00:48:15of

00:48:16assistive

00:48:17devices,

00:48:18invest in

00:48:19R&D

00:48:20and AI

00:48:21integration,

00:48:22strengthen

00:48:22PM

00:48:23Divyasha

00:48:24Kendras

00:48:25and

00:48:26support

00:48:26setting up

00:48:28of

00:48:29assistive

00:48:30technology

00:48:30marts

00:48:31as modern

00:48:32retail

00:48:33style

00:48:35centers

00:48:35where

00:48:36Divyangjan

00:48:37and senior

00:48:37citizens

00:48:38can see,

00:48:39try and

00:48:40purchase

00:48:41assistive

00:48:42products,

00:48:42reaffirming

00:48:45our commitment

00:48:46to mental

00:48:46health

00:48:47and trauma

00:48:47care.

00:48:50There are

00:48:50no national

00:48:51institutes

00:48:52for mental

00:48:53health care

00:48:53in North

00:48:54India.

00:48:55We will

00:48:56therefore set

00:48:56up a

00:48:57NIMHANCE

00:48:582 and

00:48:59also upgrade

00:49:00national

00:49:01mental health

00:49:02institutes

00:49:03in Ranchi

00:49:04and in

00:49:05Thaispur

00:49:06as regional

00:49:07apex

00:49:07institutions.

00:49:09Emergencies

00:49:13expose

00:49:14families,

00:49:16particularly

00:49:16the poor

00:49:17and vulnerable

00:49:18to unexpected

00:49:20expenditure.

00:49:22We will

00:49:22strengthen

00:49:22and increase

00:49:24these capacities

00:49:25by 50%

00:49:27in district

00:49:28hospitals

00:49:28by establishing

00:49:30emergency

00:49:31and trauma

00:49:32care centers.

00:49:36Focus

00:49:37on poor

00:49:37Odeya

00:49:38states

00:49:38and

00:49:39northeastern

00:49:40regions.

00:49:41Poor

00:49:41Odeya

00:49:42I propose

00:49:43the development

00:49:44of an

00:49:44integrated

00:49:45east coast

00:49:45industrial

00:49:46corridor

00:49:47with a

00:49:48well-connected

00:49:48node

00:49:49at

00:49:49Durgapur,

00:49:51creation

00:49:51of five

00:49:52tourism

00:49:53destinations

00:49:53in five

00:49:55poor

00:49:55Odeya

00:49:55states

00:49:56and the

00:49:57provision

00:49:57of 4,000

00:49:59e-buses.

00:50:02Buddhist

00:50:03sites in

00:50:03northeastern

00:50:04region.

00:50:05The

00:50:05northeastern

00:50:06region is

00:50:07a

00:50:07civilizational

00:50:08confluence

00:50:09of

00:50:10Theravada

00:50:10and

00:50:11Mahayana

00:50:11or

00:50:12Vajrayana

00:50:12traditions.

00:50:14I propose

00:50:15to launch

00:50:15a scheme

00:50:16for development

00:50:16of Buddhist

00:50:17circuits

00:50:18in Arunachal

00:50:19Pradesh,

00:50:20Sikkim,

00:50:21Assam,

00:50:22Manipur,

00:50:23Mizoram

00:50:24and Tripura.

00:50:26The scheme

00:50:27will cover

00:50:27preservation

00:50:28of temples

00:50:29and monasteries,

00:50:31pilgrimage

00:50:32interpretation

00:50:32centers,

00:50:34connectivity

00:50:34and

00:50:35pilgrim

00:50:36amenities.

00:50:3916th

00:50:40Finance

00:50:40Commission.

00:50:41On 17th

00:50:43November

00:50:432025,

00:50:45the 16th

00:50:46Finance

00:50:46Commission

00:50:47submitted its

00:50:48report to

00:50:48the President.

00:50:50As mandated

00:50:51under Article

00:50:52281 of the

00:50:53Constitution,

00:50:54the government

00:50:55is to lay

00:50:55the report

00:50:56along with

00:50:57the explanatory

00:50:58memorandum

00:50:59on the

00:51:00action-taken

00:51:01report on

00:51:02the recommendations

00:51:03of the

00:51:03Commission

00:51:04in Parliament,

00:51:05which,

00:51:05Sir,

00:51:06Honorable

00:51:06Speaker,

00:51:07you've allowed

00:51:07me to do

00:51:08with the

00:51:08commencement of

00:51:09the session.

00:51:10The government

00:51:10has accepted

00:51:11the recommendation

00:51:12of the

00:51:13Commission

00:51:13to retain

00:51:15the vertical

00:51:15share of

00:51:16devolution

00:51:16at 41%.

00:51:18As recommended

00:51:22by the

00:51:23Commission,

00:51:24I have

00:51:24provided

00:51:251.4

00:51:27lakh crores

00:51:28of rupees

00:51:29to the

00:51:29states

00:51:30for the

00:51:30year

00:51:302026-2027

00:51:33as

00:51:34Finance

00:51:35Commission

00:51:35grants.

00:51:37These

00:51:37include

00:51:38rural and

00:51:39urban local

00:51:40body and

00:51:41disaster

00:51:41management

00:51:42grants.

00:51:45Fiscal

00:51:46consolidation.

00:51:48Government

00:51:48has been

00:51:49delivering on

00:51:49our fiscal

00:51:50commitments

00:51:51consistently

00:51:52without

00:51:52compromising

00:51:54on social

00:51:55needs.

00:51:56To strive

00:51:57towards

00:51:57accepted

00:51:58standards of

00:51:59fiscal

00:51:59management

00:52:00in budget

00:52:0125-26,

00:52:02I had

00:52:03indicated

00:52:04that the

00:52:05central

00:52:05government

00:52:05would target

00:52:06reaching a

00:52:07debt-to-GDP

00:52:07ratio of

00:52:0950 plus

00:52:10or minus

00:52:101% by

00:52:122030-31.

00:52:14In line

00:52:15with this,

00:52:16the debt-to-GDP

00:52:17ratio is

00:52:18estimated to

00:52:18be 55.6%

00:52:20of GDP

00:52:21in BE

00:52:2226-27,

00:52:24compared to

00:52:2556.1%

00:52:27of GDP in

00:52:28RE 25-26.

00:52:32A declining

00:52:33debt-to-GDP

00:52:34ratio will

00:52:35gradually free

00:52:36up resources

00:52:37for priority

00:52:38sector lending

00:52:39and expenditure

00:52:40by reducing

00:52:42the outgo

00:52:42on interest

00:52:44payments.

00:52:45One of the

00:52:45main operational

00:52:46instruments for

00:52:47debt-targeting

00:52:48is the

00:52:49fiscal deficit.

00:52:51I am happy

00:52:51to inform this

00:52:52August house

00:52:53that I

00:52:54fulfilled my

00:52:55commitment made

00:52:56in 2021-2022

00:52:58to reduce

00:53:00fiscal deficit

00:53:01below 4.5%

00:53:03of GDP

00:53:04by 25-26.

00:53:08In RE 25-26,

00:53:11the fiscal

00:53:12deficit has

00:53:12been estimated

00:53:13at par

00:53:14with BE

00:53:15of 25-26,

00:53:172025-26,

00:53:19at 4.4%

00:53:21of GDP.

00:53:24In line

00:53:25with the

00:53:25new fiscal

00:53:27prudence path

00:53:28of debt

00:53:29consolidation,

00:53:30the fiscal

00:53:31deficit

00:53:32in BE 26-27

00:53:34is estimated

00:53:36to be

00:53:364.3%

00:53:38of the GDP.

00:53:47The revised

00:53:48estimates

00:53:49of the

00:53:51non-debt

00:53:51receipts

00:53:52are 34

00:53:53lakh crore

00:53:53rupees,

00:53:54of which

00:53:54the centre's

00:53:55net tax

00:53:57receipts

00:53:57are 26.7

00:53:59lakh crore.

00:54:00The revised

00:54:01estimate of

00:54:01the total

00:54:02expenditure

00:54:02is 49.6

00:54:05lakh crore

00:54:05rupees,

00:54:06of which

00:54:06the capital

00:54:07expenditure

00:54:07is about

00:54:0911 lakh

00:54:09crores.

00:54:13Budget

00:54:14estimates

00:54:142026

00:54:16to 2027.

00:54:17coming to

00:54:1926-27,

00:54:21the non-debt

00:54:22receipts

00:54:22and the

00:54:23total

00:54:23expenditure

00:54:24are estimated

00:54:25as 36.5

00:54:27lakh crore

00:54:27and 53.5

00:54:29lakh crore

00:54:29respectively.

00:54:31The centre's

00:54:31net tax

00:54:32receipts

00:54:33are estimated

00:54:34at 28.7

00:54:36lakh crore

00:54:36rupees.

00:54:37To finance

00:54:38the fiscal

00:54:39deficit,

00:54:40the net

00:54:41market

00:54:41borrowings

00:54:42from dated

00:54:43securities

00:54:44are estimated

00:54:45at 11.7

00:54:46lakh crore

00:54:47rupees.

00:54:48The balance

00:54:48financing

00:54:49is expected

00:54:50to come

00:54:51from small

00:54:51savings

00:54:52and other

00:54:52sources.

00:54:54The gross

00:54:55market

00:54:55borrowings

00:54:56are estimated

00:54:57at 17.2

00:54:59lakh crore

00:55:00rupees.

00:55:01I'll now

00:55:02move to

00:55:02part B.

00:55:05Part B,

00:55:08direct

00:55:09taxes.

00:55:09Part B,

00:55:09direct

00:55:09taxes.

00:55:09Part B,

00:55:10direct

00:55:11taxes.

00:55:11Part B,

00:55:11direct

00:55:13taxes.

00:55:13Part B,

00:55:15Honourable

00:55:17Speaker,

00:55:17I now

00:55:19present my

00:55:20proposals

00:55:20on direct

00:55:22taxes.

00:55:23New

00:55:23Income

00:55:24Tax

00:55:24Act.

00:55:27In

00:55:27July

00:55:282024,

00:55:29I

00:55:30announced

00:55:30a

00:55:30comprehensive

00:55:31review of

00:55:31the Income

00:55:32Tax

00:55:32Act

00:55:321961.

00:55:34This

00:55:35was

00:55:35completed

00:55:35in a

00:55:36record

00:55:36time and

00:55:37the Income

00:55:37Tax

00:55:37Act

00:55:382025

00:55:39will

00:55:40come into

00:55:40effect

00:55:40from

00:55:411st

00:55:41April

00:55:4120

00:55:4226.

00:55:45Simplified

00:55:46Income

00:55:46Tax

00:55:47Rules

00:55:47and

00:55:47Forms

00:55:48will be

00:55:48notified

00:55:49shortly,

00:55:50giving adequate

00:55:51time to

00:55:52taxpayers to

00:55:52acquaint

00:55:53themselves

00:55:54with its

00:55:55requirements.

00:55:56The forms

00:55:57have been

00:55:57redesigned such

00:55:58that ordinary

00:55:59citizens can

00:56:01comply without

00:56:02difficulty.

00:56:04Ease of

00:56:04living.

00:56:05I propose that

00:56:06any interest

00:56:07awarded by the

00:56:08Motor Accident

00:56:09Claims

00:56:10Tribunal

00:56:10to a

00:56:12natural

00:56:12person

00:56:13will be

00:56:14exempt

00:56:14from

00:56:15income

00:56:15tax

00:56:16and

00:56:16any

00:56:17TDS

00:56:17on this

00:56:18account

00:56:18will be

00:56:19done away

00:56:20with.

00:56:22I

00:56:22propose to

00:56:23reduce

00:56:23TCS

00:56:24rate

00:56:25on the

00:56:25sale of

00:56:26overseas

00:56:27tour

00:56:27program

00:56:28package

00:56:28from

00:56:29the

00:56:29current

00:56:295%

00:56:30and

00:56:3120%

00:56:32to

00:56:322%

00:56:33without

00:56:34any

00:56:35stipulation

00:56:35of

00:56:35amount.

00:56:36I

00:56:39propose to

00:56:40reduce

00:56:40TCS

00:56:41rate

00:56:41for

00:56:42pursuing

00:56:43education

00:56:43and for

00:56:44medical

00:56:44purposes

00:56:45under

00:56:46the

00:56:46Liberalized

00:56:47Remittance

00:56:48Scheme

00:56:48popularly

00:56:49known as

00:56:49LRS

00:56:50from

00:56:515%

00:56:52to

00:56:532%.

00:56:54Supply

00:56:56of

00:56:56manpower

00:56:56services

00:56:57is proposed

00:56:58to be

00:56:58specifically

00:56:58brought

00:56:59within

00:56:59the

00:56:59ambit

00:57:00of

00:57:00payment

00:57:01to

00:57:01contractors

00:57:02for

00:57:02the

00:57:02purpose

00:57:03of

00:57:03TDS

00:57:03to

00:57:04avoid

00:57:05ambiguity.

00:57:06Thus,

00:57:07TDS

00:57:08on

00:57:08these

00:57:08services

00:57:09will

00:57:09be

00:57:09at

00:57:09the

00:57:09rate

00:57:10of

00:57:10either

00:57:101%

00:57:11or

00:57:122%

00:57:12only.

00:57:14I

00:57:14propose

00:57:15a

00:57:15scheme

00:57:15for

00:57:16small

00:57:16taxpayers

00:57:17wherein

00:57:18a

00:57:18rule-based

00:57:19automated

00:57:20process

00:57:20will

00:57:21enable

00:57:22obtaining

00:57:23a

00:57:23lower

00:57:23or

00:57:24nil

00:57:24deduction

00:57:25certificate

00:57:26instead

00:57:26of

00:57:27filing

00:57:28an

00:57:28application

00:57:28with

00:57:29the

00:57:29assessing

00:57:30officer

00:57:31for

00:57:32the

00:57:32ease

00:57:32of

00:57:32taxpayer

00:57:33holding

00:57:34securities

00:57:35in

00:57:36multiple

00:57:36companies.

00:57:37I

00:57:37propose

00:57:38to

00:57:38enable

00:57:38depositories

00:57:39to

00:57:40accept

00:57:40Form

00:57:4015G

00:57:41or

00:57:42Form

00:57:4315H

00:57:44from

00:57:45the

00:57:45investor

00:57:45and

00:57:46provide

00:57:46it

00:57:46directly

00:57:47to

00:57:47various

00:57:48relevant

00:57:48companies.

00:57:50I

00:57:51propose

00:57:51to

00:57:52extend

00:57:52time

00:57:53available

00:57:53for

00:57:53revising

00:57:54returns

00:57:55from

00:57:5531st

00:57:56December

00:57:57to

00:57:57up

00:57:58to

00:57:5831st

00:57:59March

00:57:59with

00:58:00the

00:58:00payment

00:58:00of

00:58:01a

00:58:01nominal

00:58:01fee.

00:58:02I

00:58:03also

00:58:03propose

00:58:04to

00:58:04stagger

00:58:04the

00:58:05timeline

00:58:05for

00:58:06filing

00:58:07of

00:58:07tax

00:58:07returns.

00:58:09Individuals

00:58:09with

00:58:10ITR1

00:58:11and

00:58:11ITR2

00:58:12returns

00:58:13will

00:58:13continue

00:58:14to

00:58:14file

00:58:14till

00:58:1531st

00:58:16July

00:58:16and

00:58:17non-audit

00:58:18business

00:58:18cases

00:58:19or

00:58:19trusts

00:58:20are

00:58:21proposed

00:58:21to be

00:58:22allowed

00:58:22time

00:58:22till

00:58:2331st

00:58:24August.

00:58:25TDS

00:58:26on sale

00:58:27of

00:58:27immobile

00:58:28property

00:58:28by a

00:58:29non-resident

00:58:30is proposed

00:58:31to be

00:58:31deducted

00:58:32and

00:58:32deposited

00:58:33through

00:58:34resident

00:58:34buyers

00:58:35and

00:58:36his

00:58:36or

00:58:37her

00:58:37TAN

00:58:38based

00:58:38chalan

00:58:39instead

00:58:39of

00:58:40requiring

00:58:40a TAN

00:58:41which is

00:58:41a

00:58:41temporary

00:58:42accounting

00:58:43number.

00:58:46To

00:58:47address

00:58:47practical

00:58:48issues

00:58:48of small

00:58:49taxpayers

00:58:49like

00:58:50students

00:58:51young

00:58:51professionals

00:58:52tech

00:58:53employees

00:58:54relocated

00:58:55NRIs

00:58:56and such

00:58:56others

00:58:57I

00:58:57propose

00:58:58to

00:58:58introduce

00:58:58a

00:58:58one

00:58:59time

00:58:59six

00:59:00month

00:59:00foreign

00:59:01asset

00:59:01disclosure

00:59:02scheme

00:59:03for

00:59:04these

00:59:04taxpayers

00:59:05to

00:59:06disclose

00:59:06income

00:59:07or

00:59:07assets

00:59:08below

00:59:09a

00:59:09certain

00:59:09size.

00:59:11This

00:59:11scheme

00:59:11would be

00:59:12applicable

00:59:12for

00:59:13two

00:59:13categories

00:59:13of

00:59:14taxpayers

00:59:14namely

00:59:15A

00:59:17who

00:59:17did

00:59:17not

00:59:18disclose

00:59:18their

00:59:19overseas

00:59:19income

00:59:20or

00:59:20assets

00:59:21and

00:59:22B

00:59:22who

00:59:23disclosed

00:59:23their

00:59:24overseas

00:59:24income

00:59:26and

00:59:27or

00:59:27paid

00:59:28due

00:59:28tax

00:59:29but

00:59:29could

00:59:30not

00:59:30declare

00:59:30the

00:59:31asset

00:59:31acquired.

00:59:32For

00:59:33category

00:59:33A

00:59:33the

00:59:34limit

00:59:34of

00:59:35undisclosed

00:59:35income

00:59:36or

00:59:36asset

00:59:37is

00:59:37proposed

00:59:38to be

00:59:38up to

00:59:381

00:59:39crore

00:59:39rupees.

00:59:40They

00:59:40need

00:59:41to pay

00:59:4130%

00:59:42of

00:59:42fair

00:59:43market

00:59:43value

00:59:43of

00:59:43asset

00:59:44or

00:59:4430%

00:59:45of

00:59:45undisclosed

00:59:46income

00:59:47as

00:59:47tax

00:59:48and

00:59:4830%

00:59:49as

00:59:49additional

00:59:50income

00:59:51tax

00:59:51in lieu

00:59:52of

00:59:52penalty

00:59:53and

00:59:54would

00:59:54thereby

00:59:54get

00:59:54immunity

00:59:55from

00:59:56prosecution.

00:59:58For

00:59:58category

00:59:59B

00:59:59asset

01:00:00value

01:00:01is

01:00:01proposed

01:00:01to be

01:00:02up to

01:00:025 crore

01:00:03rupees.

01:00:04Here

01:00:04immunity

01:00:05from

01:00:06both

01:00:06penalty

01:00:07and

01:00:07prosecution

01:00:08will be

01:00:08available

01:00:09with a

01:00:10payment

01:00:10of

01:00:10fee

01:00:10of

01:00:111

01:00:11lakh

01:00:12rupees.

01:00:13Rationalizing

01:00:14penalty

01:00:15and

01:00:15prosecution

01:00:16multiplicity

01:00:18of

01:00:18proceedings

01:00:19are

01:00:19hindrance

01:00:20to the

01:00:20ease

01:00:21of

01:00:21doing

01:00:21business.

01:00:22I

01:00:22propose

01:00:22to

01:00:23integrate

01:00:23assessment

01:00:24and penalty

01:00:25proceedings

01:00:25by way

01:00:26of a

01:00:27common

01:00:27order

01:00:27for

01:00:28both.

01:00:29There

01:00:29will

01:00:29be

01:00:29no

01:00:30interest

01:00:30liability

01:00:30on the

01:00:31taxpayer

01:00:31on the

01:00:32penalty

01:00:32amount

01:00:33for the

01:00:34period

01:00:34of

01:00:34appeal

01:00:34before

01:00:35the

01:00:35first

01:00:36appellate

01:00:36authority

01:00:37irrespective

01:00:38of the

01:00:38outcome

01:00:39of

01:00:39appeal

01:00:40process.

01:00:41Further,

01:00:44quantum

01:00:44of prepayment

01:00:45is being

01:00:46reduced

01:00:46from 20%

01:00:48to 10%

01:00:49and will

01:00:50continue to

01:00:50be calculated

01:00:51only on

01:00:52core tax

01:00:53demand.

01:00:54As an

01:00:55additional

01:00:55measure for

01:00:56reducing

01:00:56litigation,

01:00:58I propose

01:00:58to allow

01:00:59taxpayers

01:00:59to update

01:01:03their

01:01:03returns

01:01:04even after

01:01:05reassessment

01:01:06proceedings

01:01:07have been

01:01:07initiated

01:01:08and an

01:01:09additional

01:01:0910%

01:01:10tax rate

01:01:11over and

01:01:12above the

01:01:13rate applicable

01:01:14for the

01:01:14relevant year.

01:01:15The assessing

01:01:16officer will

01:01:17then use

01:01:18only this

01:01:18updated

01:01:19return in

01:01:20his

01:01:20proceedings.

01:01:21There is

01:01:22already a

01:01:23framework for

01:01:24immunity from

01:01:25penalty and

01:01:26prosecution in

01:01:26the cases of

01:01:27under-reporting.

01:01:29I propose to

01:01:30apply this

01:01:31framework for

01:01:32immunity to

01:01:33misreporting

01:01:33too.

01:01:34However, in

01:01:35such a case,

01:01:37the taxpayer will

01:01:37need to pay

01:01:38100% of the

01:01:39tax amount as

01:01:41an additional

01:01:41income tax

01:01:42over and

01:01:44above the

01:01:44tax and

01:01:45interest due.

01:01:46penalties for

01:01:48certain technical

01:01:49defaults, such

01:01:50as failure to

01:01:51get accounts

01:01:51audited,

01:01:53non-furnishing

01:01:54of transfer

01:01:55pricing audit

01:01:56report, and

01:01:57default in

01:01:58furnishing statement

01:01:59for financial

01:02:00transactions are

01:02:01proposed to be

01:02:02converted into

01:02:03fee.

01:02:04I propose to

01:02:14rationalise

01:02:15prosecution

01:02:15framework under

01:02:16Income Tax

01:02:17Act while

01:02:18maintaining a

01:02:19careful balance

01:02:20for deterrence in

01:02:21some serious

01:02:22offence.

01:02:24Non-production

01:02:25of books of

01:02:27account and

01:02:28documents and

01:02:29requirement of

01:02:30tedious payment

01:02:31where payment is

01:02:33made in kind

01:02:33are being

01:02:34decriminalised.

01:02:37Further, minor

01:02:38offences will

01:02:39attract fine

01:02:40only.

01:02:43The remaining

01:02:44prosecutions will

01:02:45be graded,

01:02:45commensurate with

01:02:46a quantum

01:02:46offence.

01:02:48They will

01:02:48entail only

01:02:49simple

01:02:50imprisonment with

01:02:51maximum

01:02:52imprisonment reduced

01:02:53to two years

01:02:54and power to

01:02:55courts to

01:02:56convert even

01:02:58those into

01:02:59fines.

01:03:00There is no

01:03:01penalty.

01:03:03There is no

01:03:05penalty presently

01:03:06for non-disclosure

01:03:08of non-immovable

01:03:09foreign assets

01:03:10with aggregate

01:03:11value less than

01:03:1320 lakh rupees.

01:03:14I propose to

01:03:16also provide them

01:03:17with immunity

01:03:18from prosecution

01:03:20with retrospective

01:03:21effect from

01:03:221-10-20-24.

01:03:24co-operatives.

01:03:31Deduction is

01:03:32already allowed to

01:03:32a primary

01:03:33cooperative society

01:03:34engaged in

01:03:36supplying milk,

01:03:37oilseeds,

01:03:38fruits or

01:03:38vegetables raised

01:03:40or grown by

01:03:41its members.

01:03:43I propose to

01:03:44extend this

01:03:45deduction to

01:03:46also include

01:03:47supply of

01:03:48cattle feed and

01:03:49cotton seed

01:03:50produced by

01:03:51its members.

01:03:53I propose to

01:03:54allow inter-cooperative

01:03:56society dividend

01:03:58income as

01:03:59deduction under

01:04:00the new tax

01:04:01regime to the

01:04:02extent it is

01:04:03further distributed

01:04:03to its members.

01:04:05I further propose

01:04:06to allow exemption

01:04:07for a period of

01:04:08three years to

01:04:10dividend income

01:04:11received by a

01:04:12notified National

01:04:13Cooperative

01:04:14Federation on

01:04:15their investments

01:04:16made in companies

01:04:17up to 31-1-20-26.

01:04:21This exemption

01:04:22would be allowed

01:04:24only for dividends

01:04:25further distributed

01:04:27to its member

01:04:28cooperatives.

01:04:31Supporting IT

01:04:32sector as

01:04:33India's growth

01:04:34engine.

01:04:35India is a

01:04:35global leader in

01:04:36software development

01:04:37services, IT

01:04:38enabled services,

01:04:40knowledge process

01:04:41outsourcing services

01:04:42and contract

01:04:43R&D services

01:04:44relating to

01:04:46software development.

01:04:47These businesses

01:04:48and their segments

01:04:50are quite

01:04:51interconnected with

01:04:51each other.

01:04:53All these services

01:04:54are proposed to

01:04:54be clubbed under

01:04:56a single category

01:04:57of information

01:04:58technology services

01:05:00with a common

01:05:01safe harbor margin

01:05:02of 15.5%

01:05:06applicable to

01:05:07all.

01:05:08The threshold

01:05:09for availing

01:05:10safe harbor

01:05:10for IT services

01:05:12is being enhanced

01:05:13substantially

01:05:14from 300 crore

01:05:16rupees

01:05:16to 2,000 crore

01:05:18rupees.

01:05:21Safe harbor

01:05:22for IT services

01:05:23shall be approved

01:05:24by an automated

01:05:26rule-driven

01:05:26process

01:05:27without any

01:05:28need for

01:05:29tax officer

01:05:30to examine

01:05:31and accept

01:05:32the application.

01:05:33Once applied

01:05:34by an IT services

01:05:35company,

01:05:36the same safe harbor

01:05:37can be continued

01:05:38for a period

01:05:39of five years

01:05:40at a stretch

01:05:42at its choice.

01:05:43For IT services

01:05:47companies who

01:05:47want to conclude

01:05:48Advanced Pricing

01:05:49Agreement,

01:05:50APA,

01:05:51I propose to

01:05:52fast-track

01:05:53unilateral

01:05:53APA process

01:05:54for IT services

01:05:56and endeavor

01:05:57to conclude it

01:05:58within a period

01:05:58of two years.

01:06:00The period

01:06:00of two years

01:06:01can be extended

01:06:02by a further

01:06:03period of six months

01:06:04on taxpayers'

01:06:05request.

01:06:07I propose to

01:06:07extend the

01:06:08facility of

01:06:08modified returns

01:06:10available to

01:06:11the entity

01:06:12entering APA

01:06:13to its

01:06:14associated

01:06:15entities also.

01:06:18Attracting

01:06:18global business

01:06:19and investment,

01:06:21recognizing

01:06:21the need

01:06:22to enable

01:06:23critical

01:06:23infrastructure

01:06:24and boost

01:06:25investment

01:06:25in data

01:06:26centers,

01:06:27I propose

01:06:28to provide

01:06:30tax holiday

01:06:33till 2047

01:06:34to any

01:06:36foreign company

01:06:37that provides

01:06:38cloud services

01:06:39to customers

01:06:40globally

01:06:41by using

01:06:43data center

01:06:44services from

01:06:45India.

01:06:46It will

01:06:46however need

01:06:47to provide

01:06:47services to

01:06:48Indian customers

01:06:49through an

01:06:50Indian

01:06:50reseller

01:06:51entity.

01:06:53I also

01:06:54propose to

01:06:58provide a

01:06:59safe harbor

01:06:59of 15%

01:07:01on cost

01:07:01in case the

01:07:02company providing

01:07:03data center

01:07:04services from

01:07:05India is a

01:07:06related entity.

01:07:07to harness

01:07:10the efficiency

01:07:11of just-in-time

01:07:12logistics for

01:07:13electronic

01:07:14manufacturing,

01:07:15I propose to

01:07:16provide safe

01:07:17harbor to

01:07:17non-residents

01:07:18for component

01:07:19warehousing in

01:07:21a bonded

01:07:21warehouse at a

01:07:22profit margin

01:07:23of 2% of

01:07:25the invoice

01:07:26value.

01:07:28The resultant

01:07:29tax of about

01:07:300.7%

01:07:32will be much

01:07:33lower than in

01:07:35competing

01:07:36jurisdictions.

01:07:37To provide

01:07:39Philip II

01:07:40tall manufacturing

01:07:41in India,

01:07:43I propose to

01:07:44provide exemption

01:07:44from income

01:07:45tax for five

01:07:46years to any

01:07:48non-resident who

01:07:49provides capital

01:07:50goods,

01:07:50equipment or

01:07:52tooling to

01:07:53any tall

01:07:54manufacturer in

01:07:55a bonded

01:07:55zone.

01:07:57To encourage

01:07:58vast pool of

01:07:59global talent to

01:07:59work in India

01:08:01for a longer

01:08:01period of time,

01:08:03I propose to

01:08:04provide exemption

01:08:04to global,

01:08:06non-India-sourced

01:08:07income of a

01:08:09non-resident

01:08:10expert for a

01:08:12stay period of

01:08:13five years under

01:08:14notified schemes.

01:08:18I propose to

01:08:19provide exemption

01:08:20from minimum

01:08:22alternate tax,

01:08:24the MAT,

01:08:25to all non-residents

01:08:26who pay tax on

01:08:28presumptive basis.

01:08:30Tax administration,

01:08:32I propose to

01:08:34constitute a

01:08:34joint committee

01:08:35of Ministry of

01:08:36Corporate Affairs

01:08:37and Central

01:08:37Board of

01:08:38Direct Taxes for

01:08:39incorporating the

01:08:40requirements of

01:08:41income computation

01:08:42and disclosure

01:08:44standards, the

01:08:45ICDS, in the

01:08:47Indian accounting

01:08:48standards,

01:08:49INDAS,

01:08:50INDAS itself.

01:08:53Separate accounting

01:08:54requirement based

01:08:55on ICDS will be

01:08:57done away with

01:08:58from the tax

01:08:59year 27-28.

01:09:01To support

01:09:02Prime Minister

01:09:03Modi's vision of

01:09:04homegrown accounting

01:09:06and advisory

01:09:07firms to become

01:09:09global leaders,

01:09:11I propose to

01:09:12rationalise the

01:09:13definition of

01:09:14accountant for the

01:09:15purposes of

01:09:16safe harbour

01:09:17rules.

01:09:20Other tax

01:09:21proposals.

01:09:22Change in

01:09:22taxation of

01:09:23buyback was

01:09:25brought in to

01:09:27address the

01:09:29improper use of

01:09:31buyback route by

01:09:33promoters.

01:09:34In the interest of

01:09:35minority shareholders,

01:09:37I propose to

01:09:38tax buyback for

01:09:40all types of

01:09:41shareholders as

01:09:42capital gains.

01:09:43However, to

01:09:45disincentivise

01:09:47misuse of

01:09:52tax arbitrage,

01:09:54promoters will

01:09:54pay an

01:09:55additional buyback

01:09:56tax.

01:09:57This will make

01:09:58effective tax

01:10:0122% for

01:10:02corporate

01:10:02promoters.

01:10:04For non-corporate

01:10:05promoters, the

01:10:05effective tax

01:10:06will be 30%.

01:10:08TCS rate for

01:10:09sellers of

01:10:10specific goods,

01:10:11namely, alcoholic

01:10:13liquor, scrap

01:10:15and minerals will

01:10:16be rationalised to

01:10:182%.

01:10:19And that on

01:10:20tendu leaves will

01:10:22be reduced from

01:10:235% to 2%.

01:10:25I propose to

01:10:29raise the

01:10:30STT on

01:10:31futures to

01:10:320.05% from

01:10:35the present

01:10:360.02%.

01:10:38STT on

01:10:40options premium

01:10:41and exercise

01:10:42of options

01:10:43are both

01:10:44proposed to

01:10:45be raised to

01:10:450.15%

01:10:48from the

01:10:49present rate

01:10:50of 0.1%

01:10:52and 0.125%

01:10:55respectively.

01:10:57We

01:10:57reformed the

01:10:58taxation

01:10:59landscape

01:10:59for

01:11:01corporates

01:11:01in 2019

01:11:02by providing

01:11:04them a

01:11:04simplified

01:11:05regime with

01:11:06lower tax

01:11:07rate so

01:11:07that they

01:11:08could

01:11:08productively

01:11:09focus on

01:11:10business rather

01:11:11than on

01:11:11claim of

01:11:12deductions and

01:11:13exemptions.

01:11:14To encourage

01:11:15companies to

01:11:17shift to the

01:11:18new regime,

01:11:19set off of

01:11:21brought forward

01:11:22MAT credit,

01:11:24minimum

01:11:25alternate tax

01:11:26credit, is

01:11:27proposed to be

01:11:28allowed to

01:11:29companies only

01:11:31in the new

01:11:31regime.

01:11:33Set off using

01:11:34available MAT

01:11:35credit is

01:11:36proposed to be

01:11:37allowed to an

01:11:38extent of

01:11:38one-fourth of

01:11:40the tax

01:11:40liability in

01:11:41the new

01:11:41regime.

01:11:44MAT is

01:11:46proposed to

01:11:47be made

01:11:48final tax,

01:11:50so there will

01:11:51be no further

01:11:52credit accumulation

01:11:53from 1st

01:11:54April 2026.

01:11:57In line with

01:11:58this change,

01:12:00the rate of

01:12:00final tax is

01:12:02being reduced

01:12:03to 14% from

01:12:05the current

01:12:05MAT rate of

01:12:0715%.

01:12:08The brought

01:12:10forward MAT

01:12:11credit of

01:12:12taxpayers,

01:12:13accumulated till

01:12:1430th March

01:12:152026, will

01:12:17continue to be

01:12:18available to

01:12:18them for set

01:12:19off as

01:12:20above.

01:12:22Indirect

01:12:23taxes.

01:12:24I shall now

01:12:25take up proposals

01:12:26related to

01:12:26indirect taxes.

01:12:28My proposals for

01:12:29customs and

01:12:29central excise aim

01:12:31to further

01:12:32simplify the

01:12:32tariff structure,

01:12:34support domestic

01:12:35manufacturing,

01:12:36promote export

01:12:38competitiveness, and

01:12:39correct inversion in

01:12:41duty.

01:12:42To continue

01:12:44weeding out long

01:12:45continuing customs

01:12:46duty exemptions, I

01:12:48propose to remove

01:12:50certain exemptions on

01:12:52items which are being

01:12:54manufactured in

01:12:55India or where the

01:12:57imports are

01:12:58negligible.

01:12:59Similarly, to

01:13:00further simplify the

01:13:02process of

01:13:02ascertaining the

01:13:04rate of duty

01:13:04applicable on a

01:13:06particular item, I

01:13:07propose to

01:13:08incorporate certain

01:13:10effective rates in

01:13:11various customs

01:13:12notifications to the

01:13:14tariff schedule

01:13:15itself.

01:13:16I shall now take up

01:13:17sector-specific

01:13:19proposals.

01:13:21Promotion of

01:13:22exports of marine,

01:13:24leather, and

01:13:25textile products.

01:13:26I propose to

01:13:27increase the

01:13:28limit for duty-free

01:13:29imports of

01:13:31specified inputs

01:13:32used for

01:13:34processing seafoods

01:13:35for export from

01:13:37the current 1% to

01:13:393% of FOB value of

01:13:42the previous year's

01:13:44export turnover.

01:13:46I also propose to

01:13:48allow duty-free

01:13:49imports of

01:13:50specified inputs

01:13:52which is currently

01:13:53available for exports

01:13:54of leather or

01:13:56synthetic footwear to

01:13:58exports of shoe

01:13:59uppers as well.

01:14:03I propose to

01:14:04extend the time

01:14:05period for export of

01:14:07final product from

01:14:08the existing six

01:14:10months to one year

01:14:11for exporters of

01:14:13leather or textile

01:14:14garments, leather or

01:14:17synthetic footwear, and

01:14:19other leather products.

01:14:21Energy transition and

01:14:23security.

01:14:24I propose to

01:14:25extend the basic

01:14:25customs duty

01:14:26exemption given to

01:14:28capital goods used

01:14:29for manufacturing

01:14:30lithium-ion cells

01:14:32for batteries to

01:14:33those used for

01:14:34manufacturing lithium-ion

01:14:36cells for battery

01:14:37energy storage

01:14:38systems also.

01:14:41I propose to

01:14:42exempt basic

01:14:43customs duty on

01:14:44import of

01:14:46sodium

01:14:47anti-monate for

01:14:49use in

01:14:49manufacture of

01:14:50solar glass.

01:14:53nuclear power.

01:14:55I propose to

01:14:56extend the

01:14:57existing basic

01:14:58customs duty

01:14:59exemption on

01:15:01imports of

01:15:02goods required for

01:15:03nuclear power

01:15:04projects till the

01:15:05year 2035 and

01:15:07expand it for all

01:15:09nuclear plants

01:15:10irrespective of

01:15:11their capacity.

01:15:15Critical minerals.

01:15:17It is proposed

01:15:18to provide basic

01:15:19customs duty

01:15:20exemption to the

01:15:22import of capital

01:15:23goods required for

01:15:24the processing of

01:15:25critical minerals in

01:15:26India.

01:15:28Biogas blended

01:15:30CNG.

01:15:31I propose to

01:15:32exclude the

01:15:33entire value of

01:15:34biogas while

01:15:36calculating the

01:15:37central excise duty

01:15:38payable on

01:15:39biogas blended

01:15:41CNG.

01:15:45Civil and

01:15:46defense aviation.

01:15:47I propose to

01:15:48exempt basic

01:15:49customs duty on

01:15:50components and

01:15:51parts required for

01:15:53the manufacture of

01:15:54civilian training and

01:15:55other aircrafts.

01:15:57It is proposed to

01:15:59exempt basic

01:16:01customs duty on

01:16:03raw materials

01:16:04imported for the

01:16:05manufacture of

01:16:06parts of

01:16:07aircraft to be

01:16:09used in

01:16:09maintenance,

01:16:11repair or

01:16:12overall requirements

01:16:13by units in the

01:16:15defense sector.

01:16:17Electronics.

01:16:19To deepen value

01:16:20addition in the

01:16:21consumer electronics

01:16:22sector, I propose

01:16:23to exempt basic

01:16:24customs duty on

01:16:26specified parts

01:16:27used in the

01:16:28manufacture of

01:16:29microwave ovens.

01:16:31Special economic

01:16:32zone.

01:16:33To address the

01:16:35concerns arising

01:16:36about utilization of

01:16:38capacity by

01:16:39manufacturing units

01:16:41in the special

01:16:42economic zones due

01:16:43to global trade

01:16:44disruptions, I

01:16:46propose as a

01:16:47special one-time

01:16:48measure to

01:16:49facilitate sales by

01:16:51eligible manufacturing

01:16:52units in

01:16:54SEZs to the

01:16:56domestic tariff

01:16:57area at

01:16:58concessional rates

01:17:00of duty.

01:17:02The quantity of

01:17:04such sales will be

01:17:05limited to a

01:17:06prescribed proportion

01:17:07of their exports.

01:17:09necessary regulatory

01:17:11changes will be

01:17:14undertaken to

01:17:15operationalize the

01:17:16measures while

01:17:18ensuring level

01:17:19playing field for

01:17:21the units working

01:17:22in the DTA.

01:17:24Ease of living.

01:17:25To rationalize the

01:17:26customs duty

01:17:27structure for goods

01:17:28imported for

01:17:29personal use, I

01:17:31propose to reduce

01:17:32the tariff rate on

01:17:34all dutiable

01:17:35goods imported for

01:17:37personal use from

01:17:3920% to 10%.

01:17:41To provide relief

01:17:46to patients,

01:17:47particularly those

01:17:49suffering from

01:17:50cancer, I

01:17:52propose to exempt

01:17:53basic customs

01:17:54duty on 17

01:17:56drugs or

01:17:57medicines.

01:18:01I propose also

01:18:03to add seven

01:18:04more rare

01:18:05diseases for

01:18:07the purposes of

01:18:08exempting import

01:18:09duties on

01:18:10personal imports

01:18:12of drugs,

01:18:13medicines and

01:18:14food for special

01:18:15medical purposes

01:18:16used in their

01:18:17treatment.

01:18:19Customs

01:18:20process.

01:18:21India's role and

01:18:23share in the

01:18:24global trade is

01:18:25poised for a

01:18:26major leap in

01:18:27line with our

01:18:28ambition and

01:18:29journey towards

01:18:30Vikasit Bharat.

01:18:31in this regard, I

01:18:33propose many

01:18:34measures for

01:18:35custom processes

01:18:36to have minimal

01:18:37intervention for

01:18:39smoother and

01:18:40faster movement of

01:18:41goods and greater

01:18:42certainty to the

01:18:43trade.

01:18:44Trust-based systems.

01:18:46I propose to

01:18:47enhance duty

01:18:48deferral period for

01:18:49tier 2 and tier 3

01:18:51authorized economic

01:18:52operators, known as

01:18:54AEOs, from 15 days

01:18:57to 30 days.

01:18:58I propose to

01:18:59provide eligible

01:19:01manufacturer importers

01:19:02the same duty

01:19:04deferral facility.

01:19:05This should

01:19:06encourage them to

01:19:07get themselves

01:19:09accredited as a

01:19:10full-fledged tier 3

01:19:12AEO in due course.

01:19:16To provide greater

01:19:18certainty and for

01:19:19better business

01:19:19planning, I propose

01:19:21to extend validity

01:19:22period of advanced

01:19:24ruling binding on

01:19:25customs from the

01:19:27present three years

01:19:28to five years.

01:19:29In the spirit of

01:19:30the whole of

01:19:31government approach,

01:19:38government agencies

01:19:39will be encouraged

01:19:40to leverage AEO

01:19:42accreditation for

01:19:45preferential treatment

01:19:46in clearing their

01:19:47cargo.

01:19:49Regular importers

01:19:49with trusted

01:19:51long-standing supply

01:19:53chains will be

01:19:54recognized in the

01:19:55risk system so that

01:19:57the need for

01:19:57verification of

01:19:58their cargo every

01:20:00time can be

01:20:01minimized.

01:20:02Export cargo using

01:20:03electronic sealing

01:20:05will be provided

01:20:13through clearance from

01:20:14the factory premises

01:20:15to the ship.

01:20:18For import of goods

01:20:19not needing any

01:20:21compliance, filing of

01:20:23bill of entry by a

01:20:24trusted importer, an

01:20:26arrival of goods will

01:20:27automatically notify

01:20:29customs for completing

01:20:30their clearance

01:20:31formalities.

01:20:32This will enable goods

01:20:33to be released

01:20:34immediately on arrival.

01:20:36The customs warehouse

01:20:38framework will be

01:20:39transformed into a

01:20:40warehouse operator

01:20:41centric system with

01:20:43a self-declarations,

01:20:45electronic tracking,

01:20:46and risk-based audit.

01:20:48These reforms will move

01:20:49away from the current

01:20:51system of officer

01:20:53dependent approvals

01:20:55and reduce transaction

01:20:56delays and compliance

01:20:58costs.

01:21:01Ease of doing business

01:21:03Approvals required for

01:21:06cargo clearance from

01:21:08various government

01:21:09agencies will be

01:21:10seamlessly processed

01:21:11through a single and

01:21:13interconnected digital

01:21:14window by the end of

01:21:16the financial year.

01:21:17processes involved in

01:21:20clearance of food,

01:21:22drugs, plant, and

01:21:24animal and wildlife

01:21:25products, accounting

01:21:26for about 70% of

01:21:28interdited cargo, will

01:21:31be operationalized on

01:21:32this system by April

01:21:342026 itself.

01:21:37For goods not having

01:21:38any compliance

01:21:39requirement, clearance

01:21:41will be done by

01:21:42customs immediately

01:21:43after online registration

01:21:45is completed by the

01:21:47importer, subject to

01:21:48the payment of duty.

01:21:52Customs integrated

01:21:53system will be rolled

01:21:54out in two years as a

01:21:56single integrated and

01:21:57scalable platform for

01:21:59all customs processes.

01:22:03Utilization of

01:22:04non-intrusive scanning

01:22:06with advanced imaging

01:22:08and AI technology for

01:22:10risk assessment will be

01:22:12expanded in a phased

01:22:13manner with the

01:22:15objective to scan

01:22:16every container across

01:22:19all the major ports.

01:22:23New export opportunities

01:22:25to support Indian

01:22:27fishermen to fully

01:22:28harness the economic

01:22:29value of marine

01:22:31resources beyond our

01:22:32territorial waters, the

01:22:34following measures will

01:22:36be taken.

01:22:37A fish catch by an

01:22:39Indian fishing vessel in

01:22:41exclusive economic zone

01:22:43or on the high seas will

01:22:46be made free of duty.

01:22:51Landing of such fish on

01:22:54foreign port will be

01:22:55treated as export of

01:22:57goods.

01:22:58Safeguards will be put in

01:23:00place to prevent misuse

01:23:01during fish catch, transit

01:23:04or transshipment.

01:23:06To support aspirations of

01:23:08India's small businesses,

01:23:09artisans and start-ups to

01:23:12access global markets

01:23:13through e-commerce, I am

01:23:15pleased to announce

01:23:16complete removal of the

01:23:18current value cap of 10

01:23:20lakh rupees per

01:23:21consignment on courier

01:23:23exports.

01:23:25In addition, handling of

01:23:28rejected and returned

01:23:30consignments will be

01:23:31improved with effective use

01:23:33of technology for

01:23:34identifying such

01:23:36consignments.

01:23:37I propose to revise

01:23:39provisions governing

01:23:40baggage clearance during

01:23:42international travel to

01:23:44address genuine concerns

01:23:46of passengers.

01:23:48The revised rules will

01:23:49enhance duty-free

01:23:51allowances in line with

01:23:53the present-day travel

01:23:54realities and provide

01:23:55clarity in temporary

01:23:57carriage of goods brought

01:23:59in or taken out.

01:24:01There are honest taxpayers

01:24:03who are willing to settle

01:24:04disputes by paying all their

01:24:06dues, but they get

01:24:08deterred due to negative

01:24:10connotation associated with

01:24:12penalty.

01:24:15They will now be able to

01:24:16close cases by paying an

01:24:19additional amount in lieu of

01:24:21penalty.

01:24:22Honourable Speaker, sir,

01:24:24with this, I commend the

01:24:27budget to this August house.

01:24:28One and a half hours.

01:24:39Item number three, Mane

01:24:44Vittmantiji.

01:24:51Item number two, sir.

01:24:52Three.

01:24:53Three.

01:24:53Sir, with your permission, I

01:24:57rise to lay on the table of

01:24:58the table, the following

01:25:00statements under section

01:25:02three, one of the fiscal

01:25:04responsibility and budget

01:25:05management act of 2003,

01:25:07medium term fiscal policy

01:25:09come fiscal policy strategy

01:25:10statement and macro

01:25:12economic framework statement.

01:25:14Item number four, Mane

01:25:16Vittmantiji.

01:25:17Sir, with your permission, I

01:25:19move for leave to introduce

01:25:21the finance bill, 2026.

01:25:43Sir, I introduce the bill.

01:25:45Maane� suggestion,

01:25:48you know,

01:25:49is that the

01:25:51Godness

01:25:52Vittmantiji

01:25:52said,

01:25:52that the

01:25:53budget

01:25:53listened.

01:25:54The

01:25:54publication

01:25:55Contra

01:25:55will be

01:25:56laid out.

01:25:56Budget

01:25:57bahsian

01:25:57and the

01:25:57budget

01:25:58of

01:25:58the

01:25:58template.

01:25:58to

01:25:59your

01:26:00mobile phone

01:26:01and member

01:26:02portals

01:26:03will be

01:26:03developed.

Category

Transcript

Comments

Recommended