Vision for Viksit Bharat:- India’s goal is to achieve rapid progress in every sector, with infrastructure as a key pillar for development by 2047

1. Infrastructure Development Challenges:

1. Ongoing issues like land acquisition hurdles, limited private sector participation, and lack of sustainability focus continue to delay projects.
2. Over 63% of more than 1,740 central government projects have exceeded deadlines, and 25% have faced cost overruns.
3. Budget Allocation:
   1. Infrastructure spending has grown from ₹5 lakh crore to ₹11.11 lakh crore in the last three years, but utilization rates have remained at 55-60% in 2024 due to election-year disruptions.
   2. The momentum is expected to continue, with Anurag Gupta predicting improvement in the coming months.
4. Affordable Housing Crisis:
   1. Despite significant government allocations (e.g., ₹10 lakh crore for urban poor), affordable housing has faced setbacks due to rising costs in materials, labor, and land.
   2. Pradhan Mantri Aavas Yojna (PMAY) faced challenges as incentives and subventions like interest subvention were withdrawn after a few years.
5. Gap Between Policy and Reality:
   1. Urban poor earning ₹70,000 or less are not adequately addressed by the government schemes, making housing unaffordable despite policy intent.
   2. Rising interest rates (8-9%) have significantly increased EMI costs, making home loans unaffordable for many, as EMIs account for over 50% of income.
6. Luxury Housing vs. Affordable Housing: While the luxury housing market is thriving, affordable housing has seen a 30-35% drop in unit sales over the last two years (2023-2024), with fewer affordable homes being sold than expected.

Clean Tech Manufacturing
Given the commitment to climate-friendly development, the Mission will also support Clean Tech manufacturing. This will aim to improve domestic value addition and build our ecosystem for solar PV cells, EV batteries, motors and controllers, electrolyzers, wind turbines, very high voltage transmission equipment and grid scale batteries.

Building Rural Prosperity and Resilience
A comprehensive multi-sectoral ‘Rural Prosperity and Resilience’ programme will be launched in partnership with states. This will address under[1]employment in agriculture through skilling, investment, technology, and invigorating the rural economy. The goal is to generate ample opportunities in rural areas so that migration is an option, but not a necessity. The programme will focus on rural women, young farmers, rural youth, marginal and small farmers, and landless families.

BharatTradeNet
A digital public infrastructure, ‘BharatTradeNet’ (BTN) for international trade will be set-up as a unified platform for trade documentation and financing solutions. This will complement the Unified Logistics Interface Platform. The BTN will be aligned with international practices.

Support for integration with Global Supply Chains
Support will be provided to develop domestic manufacturing capacities for our economy’s integration with global supply chains. Sectors will be identified based on objective criteria.  Facilitation groups with participation of senior officers and industry representatives will be formed for select products and supply chains. Through this, there are huge opportunities related to Industry 4.0, which needs high skills and talent. Our Government will support the domestic electronic equipment industry to leverage this opportunity for the benefit of the youth.

Relief for Cancer Patients
To provide relief for cancer patients, those suffering from rare diseases, and chronic conditions, the government will add 36 life-saving drugs to the list of medicines fully exempt from basic customs duty.a. Six life-saving medicines will be added to a list with a concessional customs duty of 5%
          b.  Full exemption and concessional duty will apply to bulk drugs used for manufacturing these medicines.

Electronics Equipment Industry
Finance Minister Nirmala Sitharaman emphasized the government’s commitment to bolstering the domestic electronic equipment industry, creating opportunities for youth. A national framework will be developed to guide states in promoting Global Capability Centers (GCCs) in emerging Tier-2 cities, focusing on talent availability, infrastructure upgrades, bylaw reforms, and industry collaboration.

• Propose to continue exemption on BCD for manufacture of ships and its parts for 10 years. The FM proposed full exemption of Basic Customs Duty (BCD) on cobalt powder and lithium-ion battery waste, scrap, and 12 other critical minerals.
  • This is aimed at securing the availability of these materials for manufacturing in India and creating job opportunities for the youth.
  • To support Make India and domestic electronic manufacturing, the government has revised the Basic Customs Duty (BCD) on interactive flat panel displays from 10% to 20% and reduce the BCD on open cell and other components for LCDs and LEDs to 5%. The move will benefit contract manufacturers such as Dixon Technologies.

Big TDS announcements

• Rationalizing tax deduction at source (TDS) by reducing the number of rates and thresholds above which TDS is deducted.
• Increasing threshold amounts for better clarity and uniformity.
• Doubling the limit for tax deduction on interest for senior citizens from Rs 50,000 to Rs 1,00,000.
• Raising the annual limit for TDS on rent from Rs 2.40 lakh to Rs 6 lakh, benefiting small taxpayers receiving smaller payments.
• Increasing the threshold to collect Tax Collected at Source (TCS) on remittances under the RBI’s Liberalised Remittance Scheme (LRS) from Rs 7 lakh to Rs 10 lakh.

Tourism in focus
Government would develop 50 tourist destinations to promote tourism and boost employment. Spiritual tourism as well as medical tourism would be focus areas to boost tourism. Government is planning e-visa facilities as well as visa fee waivers for select countries. Focus on tourism is positive for hotel companies like Indian Hotels Company, EIH Limited, Lemon Tree Hotels, Royal Orchid Hotels, Juniper Hotels as well as luggage companies like VIP Industries and Safari Industries.

The Government’ gross and net borrowing for FY26 is budgeted at Rs 14.82 lakh crore and Rs 11.54 lakh crore respectively. The planned market issuances are almost the same as FY25. Gross and net borrowing for FY25 stood at Rs 14.13 lakh crore and Rs 11.75 lakh crore. The same level of G-Sec supply implies that Government borrowing will not crowd out the private credit incrementally in FY26. The limited supply will boost the rally in G-Sec.

New Business Reforms
The finance minister has announced a committee to review and recommend new reforms to enhance the ease of doing business. This initiative aims to streamline regulations, improve efficiency, and attract investments.

Tariffs in focus
Budget streamlines tariff rates further, focuses of deregulation, gives a push to grassroot economy. Largely remains reform focused. Sets out a prudent target of 4.4% for FY 26-staying on the path of fiscal consolidation.

New income tax code next week. New Income Tax bill to be simpler to understand and will reduce litigation. Tax department will trust first, scrutinize later, says FM. Propose to introduce new Income Tax bill next week

BIG Announcement for Middle Class
No income tax payable up to Rs 12 lakh, Here are the new slabs under new regime

• ₹ 0 to 4 lakh – 0%
• ⁠₹ 4 to 8 lakh – 5%
• ₹ 8 to 12 lakh – 10%
• ₹ 12 – 16 lakh – 15%
• ₹ 16 – 20 lakh – 20%
• ₹ 20 – 24 lakh – 25%
• 24 lakh plus – 30% income tax slab

Exports is 4th engine of growth
Promotion Mission with sectorial and ministerial targets, launched. Digital public infrastructure for international trade will be set up for financing solutions. Support will be provided for domestic manufacturing to join global supply chains. National framework as guidance to States to promote GCCs in tier two cities

Institute to be set up in Bihar for food processing : National Manufacturing Mission to further make in India

India to become global hub for toys
New scheme to be launched for 5 lakh women, first time entrepreneurs for term loans for next 5 years. Credit Guarantee Scheme for Startups increased to 20Cr

MSMEs is the 2nd engine of growth
MSMEs responsible for 45% of our exports. Classification limit of MSMEs enhanced for them to boost their growth. For micro enterprises, customised credit cards to be issued

Big KCC announcement – loan limit increased
The Finance Minister announced that Kisan Credit Cards (KCC) will continue to facilitate short-term loans for 7.7 crore farmers, fishermen, and dairy farmers. Additionally, the loan limit under the modified interest subvention scheme will be increased from ₹3,000 to ₹5,000 for loans taken through the KCC, providing greater financial support for agricultural production.

A plan for healthier India
The Finance Minister highlighted a comprehensive program for vegetables and fruits, acknowledging the growing awareness among the population about their nutritional needs. This shift reflects a healthier society, with rising income levels leading to an increase in the consumption of vegetables, fruits, and other nutritious foods. The government aims to support this trend with targeted initiatives to further promote the availability and accessibility of these essential food items, ensuring that the benefits of improved nutrition reach a wider segment of the population.

6-year mission aimed at achieving self-reliance in pulses
The Finance Minister announced that the government will launch a 6-year mission aimed at achieving self-reliance in pulses, with a special focus on tur and masoor. Central agencies such as NAFED and NCCF will be prepared to procure these three pulses from farmers who register with the agencies and enter into agreements. This initiative will run over the next four years, ensuring support and guaranteed procurement for farmers.

Broadband Connectivity to Government Secondary Schools and PHCs
Broadband connectivity will be provided to all Government secondary schools and primary health centres in rural areas under the Bharatnet

National Centres of Excellence for Skilling
Building on the initiative announced in the July 2024 Budget, five National Centres of Excellence for skilling will be set up with global expertise and partnerships to equip our youth with the skills required for “Make for India, Make for the World” manufacturing. The partnerships will cover curriculum design, training of trainers, a skills certification framework, and periodic reviews.

Centre of Excellence in AI for Education
FM announced three Centres of Excellence in Artificial Intelligence for agriculture, health, and sustainable cities in 2023. Now a Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of ` 500 crore.

Social Security Scheme for Welfare of Online Platform Workers
Gig workers of online platforms provide great dynamism to the new age services economy. Recognising their contribution, Government will arrange for their identity cards and registration on the e-Shram portal. They will be provided healthcare under PM Jan Arogya Yojana. This measure is likely to assist nearly 1 crore gig-workers.

Asset Monetization Plan 2025-30
Building on the success of the first Asset Monetization Plan announced in 2021, the second Plan for 2025-30 will be launched to plough back capital of ` 10 lakh crore in new projects. Regulatory and fiscal measures will be fine tuned to support the Plan.

Jal Jeevan Mission
Since 2019, 15 crore households representing 80 per cent of India’s rural population have been provided access to potable tap water connections. 11 To achieve 100 per cent coverage, I am pleased to announce the extension of the Mission until 2028 with an enhanced total outlay.

The Mission’s focus will be on the quality of infrastructure and O&M of rural piped water supply schemes through “Jan Bhagidhari”. Separate MoUs will be signed with states/UTs, to ensure sustainability and citizen-centric water service delivery. Urban Sector Reform

Nuclear Energy Mission for Viksit Bharat
Development of at least 100 GW of nuclear energy by 2047 is essential for our energy transition efforts. For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up.
A Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of ` 20,000 crore will be set up. At least 5 indigenously developed SMRs will be operationalized by 2033

Lithium Ion Battery
To the list of exempted capital goods, FM propose to add 35 additional capital goods for EV battery manufacturing, and 28 additional capital goods for mobile phone battery manufacturing. This will boost domestic manufacture of lithium-ion battery, both for mobile phones and electric vehicles.

Electronic Goods
In line with our ‘Make in India’ policy, and to rectify inverted duty structure, FM propose to increase the BCD on Interactive Flat Panel Display (IFPD) from 10% to 20% and reduce the BCD to 5% on Open Cell and other components. In 2023 -24 Budget, for the manufacture of Open Cells of LCD/LED TVs, FM had reduced the BCD on parts of Open Cells from 5% to 2.5% . To further boost the manufacture of such Open Cells, the BCD on these parts will now stand exempted.

Telecommunication
To prevent classification disputes, FM propose to reduce the BCD from 20% to 10% on Carrier Grade ethernet switches to make it at par with Non Carrier Grade ethernet switches.

Handicraft Goods
To facilitate exports of handicrafts, FM propose to extend the time period for export from six months to one year, further extendable by another three months, if required. FM also propose to add nine items to the list of duty-free inputs

Voluntary Compliance
FM propose to introduce a new provision that will enable importers or exporters, after clearance of goods, to voluntarily declare material facts and pay duty with interest but without penalty. This will incentivise voluntary compliance. However, this will not apply in cases where department has already initiated audit or investigation proceedings.

Extended Time for End Use
For industry to better plan their imports, FM propose to extend the time limit for the end-use of imported inputs in the relevant rules, from six months to one year. This will provide operational flexibility in view of cost and uncertainty of supply. Further, such importers will now have to file only quarterly statements instead of a monthly statement.