Union Budget 2026 Made Simple: Capex Boost, MSME Support and Market Opportunities
India’s growth journey has entered a new phase-one that looks forward instead of backward. This shift can be observed in the Union Budget 2026, presented by the Finance Minister Nirmala Sitharaman. The budget is not about recovery, but rather it is about preparedness – preparedness to invest, innovate, employ & economic resilience in the long run.
Presented as a Yuva Shakti-oriented Budget with a clear vision of Viksit Bharat, the current Union Budget brings together ambition and practicality. It is addressed to business persons, MSMEs, investors, professionals and ordinary citizens as well, with an aim of creating opportunities without compromising on sustainability in the long term.
In this blog, we break down the key highlights of the recent Union Budget-focusing on what matters and how the budget impacts you.
A Clear Vision: Growth, Capacity, and Inclusion
The India Union Budget 2026 is around three national kartavyas:
- Fast tracking sustainable economic growth.
- Fulfilling people’s aspirations by building capacity
- Ensuring inclusive access to resources
With this transparency, the finance budget of India becomes easier to understand – growth will be investment-led, innovation-driven, and employment-focused.
Capex Push: Building the Backbone of Growth
One of the strongest signals in the Union Budget 2026 is increase in capital expenditure to INR 12.2 lakh crore. This continued capex impulse supports the infrastructure-first strategy in India.
Major infrastructure announcements such as:
- New special freight corridors connecting Dankuni (East) to Surat (West).
- 5-year plan to operationalise 20 more waterways.
- Reduced duties on civil aircraft parts
- Duty free on raw materials used in aircraft and nuclear manufacturing.
This level of investment strengthens logistics, lowers supply chain costs, and creates long-term jobs which is also a key theme or you can say the core theme of the Union Budget 2026.
MSME & Micro Enterprise Support
Nirmala Sitharaman budget places MSMEs at the core of the Indian engine of growth.
Major allocations include:
- INR 10,000 crore SME Growth Fund
- INR 2,000 crore top up -Self-Reliant India Fund for micro enterprises.
These are the measures of the Union Budget 2026 India which enhance access to capital, formalisation, and sustainable scaling up of small businesses, particularly in manufacturing, services, and export-oriented sectors.
Technology, Semiconductors & Healthcare Innovation
The current Union Budget 2026 pays special attention to the future-ready sectors:
- INR 10,000 crore investment in Bio-Pharma to enhance the digital healthcare environment in India.
- ISM 2.0 expansion of the Semiconductor Mission to increase domestic component production.
- Tax holiday till 2047 to foreign companies offering data centre services.
These measures are an indication that the finance budget of India does not only view technology as a sector, but as a growth enabler across industries.
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Ease of Doing Business & Investment Reforms
The recent Union Budget continues India’s reform journey with notable investment-friendly initiatives:
- Portfolio Investment Scheme (PROI) limits for individuals increased from 5% to 10%. Overall PROI investment limits as PFI raised from erstwhile 10% to 24% in listed entities.
- Simplified TDS on sale of immovable property by a non resident based on PAN mechanism.
- MAT reduced from 15% to 14%
Collectively, these reforms enhance investor confidence and reinforce India’s global positioning under the India Union Budget.
Tax Reforms: Simpler, Fairer, More Predictable
Tax compliance sees meaningful simplification in the Union Budget 2026:
- New Income Tax Act effective 1 April 2026.
- Revised filing timeline of returns extended to 31 March of the assessment year
- No interest charged till the first appellate authority stage
- Rationalisation of prosecution and penalty system.
- One-time 6-month foreign asset disclosure scheme with relief from prosecution
- Unilateral APAs of IT companies aimed to close in less than 2 years.
People-First Growth: Jobs, Health, and Inclusion
The Union Budget also places people at the center of policy:
- Tourism-led job creation through digital documentation and eco-tourism
- Jobs to the physically disabled.
- Introduction of NIMHANS 2.0 in North India with New National Mental Health Institutes.
- INR 4 lakh crore allocated to states as Finance Commission grants
- Resolution to establish SHE MARTS in order to empower women entrepreneurs.
- Expansion of Ayurveda institutions and AYUSH infrastructure
- India to host the first-ever Big CAT Summit
Fiscal Discipline Maintained
Despite higher spending, fiscal prudence remains intact:
- FY26 fiscal deficit: 4.4% of GDP
- FY27 estimate: 4.3% of GDP
This balance between growth and stability enhances the credibility of the Union Budget 2026 India.
How MBG Corporate Services Can Help You?
With the Union Budget 2026 introducing wide-ranging reforms across taxation, MSMEs, foreign investment, and compliance, expert guidance becomes essential. MBG Corporate Services supports businesses in interpreting budget changes, optimising tax structures, managing compliance under the new Income Tax Act, and aligning expansion plans with government incentives. Whether you are an MSME, multinational, investor, or startup, MBG helps you convert policy announcements into practical business advantages.