Finance Minister Nirmala Sitharaman announced seven high-speed rail corridors and dedicated rare earth corridors as cornerstone infrastructure initiatives in Union Budget 2026. These projects anchor India’s next growth phase alongside record ₹12.2 lakh crore capex targeting FY 2026–27.
Capex Surge to ₹12.2 Lakh Crore
Public capital expenditure increases from ₹11.2 lakh crore to ₹12.2 lakh crore, funding high-speed rail connectors between major cities that slash travel times and boost economic linkages. The Infrastructure Risk Guarantee Fund and dedicated REITs accelerate private participation in asset monetization.
Fiscal Prudence with 4.3% Deficit Target
Fiscal deficit targets 4.3% of GDP (down from 4.4%), balancing ₹53.5 lakh crore total expenditure with ₹28.7 lakh crore net tax receipts and ₹1.4 lakh crore state devolution. Debt-to-GDP trajectory declines steadily, maintaining the 3-4% comfort zone for sustained growth.
Strategic Mineral Self-Reliance
Rare earth corridors in mineral-rich states develop full value chains for clean energy, EVs, defense, and electronics. Complemented by chemical parks, electronics outlay doubling to ₹40,000 crore, and ISM 2.0, these secure supply chains against global disruptions.
Income Tax Act 2025 Activation
New Income Tax Act, 2025 launches April 1, 2026 with simplified forms and rules, cutting compliance complexity by 50%. Staggered ITR deadlines and TDS refund flexibilities enhance taxpayer experience.
