Finance minister Nirmala Sitharaman says, “For the labour-intensive textile sector, I propose an integrated programme with five sub-parts. One, the National Fibre Scheme for self-reliance in natural fibres such as silk, wool and jute, man-made fibres, and new-age fibres. Two, the Textile Expansion and Employment Scheme to modernise traditional clusters with capital support for machinery, technology upgradation, and common testing and certification centres. Three, the National Handloom and Handicraft Programme to integrate and strengthen existing schemes and ensure targeted support for weavers and artisans. Four, the Text-ECON initiative to promote globally competitive and sustainable textiles and apparel. Five, SAMARTH 2.0 to modernise and upgrade the textile skilling ecosystem through collaboration with industry and academic institutions. Further, I propose to set up mega textile parks in challenge mode. They can also focus on bringing value addition to technical textiles. I also propose to launch the Mahatma Gandhi Gram Swaraj initiative to strengthen handloom and handicrafts. This will help in global market linkages and branding. It will streamline and support training, skilling, and quality processes in production. These measures will benefit our weavers, village industries, the One District, One Product (ODOP) initiative, and our rural youth.

Finance Minister Nirmala Sitharaman said she is proposing a new scheme to promote container manufacturing, aimed at building a globally competitive ecosystem for the sector, with a budgetary allocation of Rs 10,000 crore spread over five years.

Rs 10,000 crore proposed in Budget to create champion SMEs
It includes the creation of a Rs 10,000 crore SME Growth Fund to support future job-creating enterprises and a Rs 2,000 crore top-up to the Self Reliant India Fund for micro-enterprise risk capital. A major liquidity package is reinforced with four measures, including mandatory use of TReDS for CPSE purchases, credit guarantee backing for invoice discounting, integration of GeM and TReDS to ease financing, and development of a secondary market for trade receivables. Professional institutions will also train ‘corporate mitras’ to help MSMEs meet compliance needs affordably, especially in Tier 2 and Tier 3 cities.

Presenting the Union Budget 2026, Finance Minister Nirmala Sitharaman announced the launch of the India Semiconductor Mission (ISM) 2.0, with an outlay of Rs 40,000 crore, aimed at building on the gains of the earlier phase and accelerating growth in the semiconductor sector.

FM Sitharaman proposed setting up a High-Powered ‘Education to Employment and Enterprise’ Standing Committee to strengthen the services sector as a key driver of Viksit Bharat, targeting a 10% global services share by 2047.
The committee will focus on boosting growth, jobs, and exports, and assess the impact of emerging technologies, including AI, on employment and skill needs.

FM announced a ₹2,000 crore top-up to the Self Reliant India Fund to strengthen risk capital access for micro-enterprises. To deepen MSME liquidity and scale impact, four measures were proposed:

1. Mandatory TReDS settlement for all CPSE purchases from MSMEs,
2. Credit guarantee support via CGTMSE for invoice discounting on TReDS,
3. Linking GeM with TReDS for seamless data and settlement, and
4. Corporate Mitras to train paraprofessionals for MSME compliance and support.

Banking:

FM Nirmala Sitharaman proposed a high-level banking committee for Viksit Bharat to review the sector and align it with future growth while ensuring financial stability, inclusion, and consumer protection.

Clear targets outlined for NBFC credit expansion and technology adoption. As a first step to improve scale and efficiency in public sector NBFCs, the government will restructure Power Finance Corporation and Rural Electrification Corporation.

Income Tax Act 2025:
New income tax framework to take effect from 1 April 2026 with simplified rules and redesigned forms. The government has proposed a staggered timeline for filing income tax returns. Individuals filing ITR-1 and ITR-2 will continue to have the July 31 deadline, while non-audit business entities and trusts will be allowed to file their returns up to August 31.

TCS Rates: Reduction of TCS on overseas tour program packages and on LRS remittances for education and medical purposes to 2%.

Manpower Services: Supply of manpower services brought under contractor payments for TDS purposes to eliminate ambiguity.