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Markets had their worst software selloff in years on Monday, erasing $285 billion in market value, after Anthropic released plugins that let its Claude AI handle legal contracts, sales research, and financial analysis without human supervision. The storm hit everything from legacy software giants to Indian outsourcers. Thomson Reuters lost $8.2 billion in a single day, its steepest drop ever. Infosys fell 8%, TCS 6%, and the Nifty IT index shed Rs 1.9 lakh crore, dropping below Rs 30 lakh crore for the first time in months.&nbsp;What tensed investors wasn’t the technology itself. It was realising that companies might soon pay for one AI agent instead of ten software licenses, or a hundred consulting hours.<h3>What changed on January 30</h3>Anthropic launched Claude Cowork on January 12 as a desktop tool for non-coders. Users could tell it to draft documents, analyse spreadsheets, or organise files. Handy, but not revolutionary. Then came the plugins.&nbsp;On January 30, the company open-sourced 11 specialised add-ons on GitHub: contract reviews, NDA screening, compliance checks, legal briefings, sales prospecting, CRM integration, financial modelling, and marketing automation.The AI could now execute multi-step workflows autonomously, plan tasks, spawn sub-processes, and deliver results.&nbsp;&nbsp;“When we released Claude Code, we expected developers to use it for coding,” Anthropic explained in a blog post. “They did, and then quickly began using it for almost everything else. This prompted us to build Cowork: a simpler way for anyone, not just developers, to work with Claude in the very same way.” That “same way” is the problem for software companies. Claude doesn’t just assist anymore. It executes.<h3>The billable-hour apocalypse</h3>Traders coined a new term Monday: “SaaSpocalypse.” Goldman Sachs’ software basket plunged 6%, matching its worst day since April’s tariff selloff. The Nasdaq 100 dropped 2.4% before recovering to close 1.6% down. Financial services stocks tumbled 7%.&nbsp;Indian IT services took the hardest hit. These companies built empires on delivering skilled labour for tasks AI can now automate. HCL Technologies and LTIMindtree fell 5-7%, Wipro dropped 4%. The Nifty IT index posted its worst month since October 2008, down 15% in January alone.<h3>Panic or prophecy?</h3>Industry experts watching the carnage split on whether markets overreacted or saw the future clearly.Adv. Varun Singh, founder and managing partner at Foresight Law Offices India, believes the selloff reflects shifting value perception rather than immediate extinction. “The way the market’s reacted demonstrates the speed with which AI programs are altering people’s ideas of what software should cost,” Varun said.&nbsp;“The substantial decline suggests concern that AI can consolidate various SaaS roles into one smart unit, leading to fewer tools being necessary to do specialised tasks.” But he sees evolution, not apocalypse.&nbsp;“This doesn’t mean big, established SaaS firms will suddenly become obsolete. The core systems remain deeply implemented and critical to business success across verticals. The actual disruption will materialise in value distribution, with businesses favouring platforms that combine legal, operational, and strategic intelligence.&nbsp;Consequently, incumbents will be forced to either evolve or risk margin compression rather than outright extinction.”Suyash Lahoti, partner at Wit &amp; Chai group, believes investors missed the point. The threat isn’t software becoming irrelevant overnight, he argues. It’s that business models built on selling tools plus manpower face a shift.&nbsp;“AI tools like Claude Cowork don’t magically replace large SaaS players immediately,” Lahoti said. “What they replace are inefficient layers, repetitive workflows, businesses that build scale on human effort rather than differentiated thinking.”&nbsp;He draws parallels to marketing’s evolution over the past decade. Tools didn’t kill advertising agencies; agencies that refused to adapt killed themselves. The winners focused on strategy and creativity while letting technology handle execution. “AI won’t take away all jobs,” Lahoti said. “It will take away complacency.”&nbsp;Umair Mohammed, founder-CEO of Nitro Commerce, sees deeper structural shifts. Having built both SaaS and AI systems for years, he believes this marks a fundamental break, not a temporary panic.&nbsp;“Agentic AI now threatens business models anchored in human-hour economics,” Mohammed said. Studies suggest 40% of work tasks are automatable. The World Economic Forum projects that over 90 million roles could be displaced by 2030 if reskilling doesn’t keep pace.&nbsp;But Mohammed’s warning cuts both ways. The real danger isn’t AI replacing jobs, it’s organisations deploying it without ethics, governance, or transition plans. “If used responsibly, AI amplifies human intelligence,” he said. “Used recklessly, it destabilises work, trust, and economies faster than we’re prepared to manage.”<h3>The evolution argument</h3>Venugopal Ganganna, co-founder and CIO at LS Digital, argues markets are pricing in capability shifts, not immediate death. “Market reactions often exaggerate the immediate impact,” Ganganna said. “What they’re reacting to is intelligence becoming embedded directly into workflows rather than sitting as a layer on top of software.”&nbsp;He doesn’t see established platforms disappearing overnight. Their roles will evolve, he argues. Value shifts from feature-heavy software to outcome-focused systems that compress decision time and reduce cognitive effort.For his marketing teams, that means faster synthesis, better first drafts, and more informed judgment. The competitive edge comes from interpreting signals quickly, shaping narratives, and acting with confidence, not from managing platforms or producing volume.&nbsp;“The winners will integrate AI with domain expertise, governance, and human accountability,” Ganganna added. “Not treat it as a substitute for software or people.”<h3>What markets are really saying</h3>Anthropic’s documentation for its legal plugin explicitly states: “All outputs should be reviewed by licensed attorneys.” The company frames itself as an assistant, not a replacement.&nbsp;Markets spent Monday pricing in a different scenario, one where AI providers don’t stop at selling infrastructure but capture application revenue directly. The numbers support investor concern. Claude Code reportedly reached nearly $1 billion in annual recurring revenue within months of launch. Anthropic is preparing a $20 billion fundraise at a reported $350 billion valuation. The $285 billion wipeout delivered a clear message: AI is no longer just supporting software, it’s absorbing entire workflows.&nbsp;Lahoti frames the choice starkly: “Will AI disrupt SaaS? Absolutely. Will it replace the giants? Highly unlikely. The winners will rebuild their offerings around AI rather than bolt it on as a feature. The losers will be companies selling time, manpower, or basic automation dressed up as innovation.”&nbsp;Ganganna puts it differently but arrives at the same place: “This reinforces the need to design operations where AI augments thinking. The competitive edge comes from embedding AI into planning and performance interpretation while retaining human judgment over brand, ethics, and long-term equity.”&nbsp;The SaaSpocalypse isn’t about AI killing software. It’s about forcing every software company, and every business that uses it, to answer one question: What value do you create that autonomous intelligence cannot? For $285 billion worth of market capitalisation, investors decided Monday they don't have good answers yet. &nbsp;

Markets lost $285 billion in a single session after Anthropic released Claude Cowork plugins automating legal, marketing, and sales work. Goldman Sachs software basket crashed 6%, matching the worst decline in years.

Markets had their worst software selloff in years on Monday, erasing $285 billion in market value, after Anthropic released plugins that let its Claude AI handle legal contracts, sales research, and financial analysis without human supervision. The storm hit everything from legacy software giants to Indian outsourcers. Thomson Reuters lost $8.2 billion in a single day, its steepest drop ever. Infosys fell 8%, TCS 6%, and the Nifty IT index shed Rs 1.9 lakh crore, dropping below Rs 30 lakh crore for the first time in months. What tensed investors wasn’t the technology itself. It was realising that companies might soon pay for one AI agent instead of ten software licenses, or a hundred consulting hours. What changed on January 30 Anthropic launched Claude Cowork on January 12 as a desktop tool for non-coders. Users could tell it to draft documents, analyse spreadsheets, or organise files. Handy, but not revolutionary. Then came the plugins. On January 30, the company open-sourced 11 specialised add-ons on GitHub: contract reviews, NDA screening, compliance checks, legal briefings, sales prospecting, CRM integration, financial modelling, and marketing automation. The AI could now execute multi-step workflows autonomously, plan tasks, spawn sub-processes, and deliver results. “When we released Claude Code, we expected developers to use it for coding,” Anthropic explained in a blog post. “They did, and then quickly began using it for almost everything else. This prompted us to build Cowork: a simpler way for anyone, not just developers, to work with Claude in the very same way.” That “same way” is the problem for software companies. Claude doesn’t just assist anymore. It executes. The billable-hour apocalypse Traders coined a new term Monday: “SaaSpocalypse.” Goldman Sachs’ software basket plunged 6%, matching its worst day since April’s tariff selloff. The Nasdaq 100 dropped 2.4% before recovering to close 1.6% down. Financial services stocks tumbled 7%. Indian IT services took the hardest hit. These companies built empires on delivering skilled labour for tasks AI can now automate. HCL Technologies and LTIMindtree fell 5-7%, Wipro dropped 4%. The Nifty IT index posted its worst month since October 2008, down 15% in January alone. Panic or prophecy? Industry experts watching the carnage split on whether markets overreacted or saw the future clearly. Adv. Varun Singh, founder and managing partner at Foresight Law Offices India, believes the selloff reflects shifting value perception rather than immediate extinction. “The way the market’s reacted demonstrates the speed with which AI programs are altering people’s ideas of what software should cost,” Varun said. “The substantial decline suggests concern that AI can consolidate various SaaS roles into one smart unit, leading to fewer tools being necessary to do specialised tasks.” But he sees evolution, not apocalypse. “This doesn’t mean big, established SaaS firms will suddenly become obsolete. The core systems remain deeply implemented and critical to business success across verticals. The actual disruption will materialise in value distribution, with businesses favouring platforms that combine legal, operational, and strategic intelligence. Consequently, incumbents will be forced to either evolve or risk margin compression rather than outright extinction.” Suyash Lahoti, partner at Wit & Chai group, believes investors missed the point. The threat isn’t software becoming irrelevant overnight, he argues. It’s that business models built on selling tools plus manpower face a shift. “AI tools like Claude Cowork don’t magically replace large SaaS players immediately,” Lahoti said. “What they replace are inefficient layers, repetitive workflows, businesses that build scale on human effort rather than differentiated thinking.” He draws parallels to marketing’s evolution over the past decade. Tools didn’t kill advertising agencies; agencies that refused to adapt killed themselves. The winners focused on strategy and creativity while letting technology handle execution. “AI won’t take away all jobs,” Lahoti said. “It will take away complacency.” Umair Mohammed, founder-CEO of Nitro Commerce, sees deeper structural shifts. Having built both SaaS and AI systems for years, he believes this marks a fundamental break, not a temporary panic. “Agentic AI now threatens business models anchored in human-hour economics,” Mohammed said. Studies suggest 40% of work tasks are automatable. The World Economic Forum projects that over 90 million roles could be displaced by 2030 if reskilling doesn’t keep pace. But Mohammed’s warning cuts both ways. The real danger isn’t AI replacing jobs, it’s organisations deploying it without ethics, governance, or transition plans. “If used responsibly, AI amplifies human intelligence,” he said. “Used recklessly, it destabilises work, trust, and economies faster than we’re prepared to manage.” The evolution argument Venugopal Ganganna, co-founder and CIO at LS Digital, argues markets are pricing in capability shifts, not immediate death. “Market reactions often exaggerate the immediate impact,” Ganganna said. “What they’re reacting to is intelligence becoming embedded directly into workflows rather than sitting as a layer on top of software.” He doesn’t see established platforms disappearing overnight. Their roles will evolve, he argues. Value shifts from feature-heavy software to outcome-focused systems that compress decision time and reduce cognitive effort. For his marketing teams, that means faster synthesis, better first drafts, and more informed judgment. The competitive edge comes from interpreting signals quickly, shaping narratives, and acting with confidence, not from managing platforms or producing volume. “The winners will integrate AI with domain expertise, governance, and human accountability,” Ganganna added. “Not treat it as a substitute for software or people.” What markets are really saying Anthropic’s documentation for its legal plugin explicitly states: “All outputs should be reviewed by licensed attorneys.” The company frames itself as an assistant, not a replacement. Markets spent Monday pricing in a different scenario, one where AI providers don’t stop at selling infrastructure but capture application revenue directly. The numbers support investor concern. Claude Code reportedly reached nearly $1 billion in annual recurring revenue within months of launch. Anthropic is preparing a $20 billion fundraise at a reported $350 billion valuation. The $285 billion wipeout delivered a clear message: AI is no longer just supporting software, it’s absorbing entire workflows. Lahoti frames the choice starkly: “Will AI disrupt SaaS? Absolutely. Will it replace the giants? Highly unlikely. The winners will rebuild their offerings around AI rather than bolt it on as a feature. The losers will be companies selling time, manpower, or basic automation dressed up as innovation.” Ganganna puts it differently but arrives at the same place: “This reinforces the need to design operations where AI augments thinking. The competitive edge comes from embedding AI into planning and performance interpretation while retaining human judgment over brand, ethics, and long-term equity.” The SaaSpocalypse isn’t about AI killing software. It’s about forcing every software company, and every business that uses it, to answer one question: What value do you create that autonomous intelligence cannot? For $285 billion worth of market capitalisation, investors decided Monday they don't have good answers yet.

Markets lost $285 billion in a single session after Anthropic released Claude Cowork plugins automating legal, marketing, and sales work. Goldman Sachs software basket crashed 6%, matching the worst decline in years.

Claude's Cowork chaos: $285B vanishes as markets question Software's future

Ever since Trump first threatened tariffs in his push for Greenland acquisition, gold has moved up 8.6% to new highs near $5,000, while bitcoin has lost 6.6 % of its value. So in the coming days, let's try to understand which is a safe haven for investors to invest amid a crisis.

Ever since Trump first threatened tariffs in his push for Greenland acquisition, gold has moved up 8.6% to new highs near $5,000, while bitcoin has lost 6.6 % of its value. So in the coming days, let's try to understand which is a safe haven for investors to invest amid a crisis.

Gold vs Bitcoin: Which is the real safe haven for investors in 2026? Details inside

After weeks of uncertainty, The Washington Post announced on Wednesday (Feb. 4) that the organisation laid off around one-third of its staff across all departments. The Executive Editor, Matt Murray, described the step as “painful" but necessary to secure the paper’s future. He told the employees the newspaper was undergoing a “strategic reset" to better position itself in a crowded environment.&nbsp;“Today, the Washington Post is taking a number of actions across the company to secure our future," Murray said during a Zoom call with staff, adding: “We all recognize the actions we are taking today will be painful – most of all, of course, for those of you who are directly affected, but for everybody."&nbsp;Murray said the Post’s international reporting will be scaled back, but about 12 bureaus will remain, focusing on national security issues. Its popular daily podcast, Post Reports, will also be suspended.&nbsp;This came after the Post employees sent at least three letters to Bezos urging him to protect the organisation's robust coverage. But they remained unanswered. On January 25, 2026, employees sent the first plea to Bezos. The plea was signed by 60 people at the organisation asking him to protect the company’s foreign news operation, which is rumoured to be a major target of cost-cutting. After two days, the employees sent another letter to the owner asking him to preserve the newspaper’s local coverage, which was at risk of heavy cuts. Once again, they remained unanswered. “Should you allow Post management to lay off the local staff, which has been cut in half in the last five years, the effect on this region and the people in it will be immeasurable,” the staffers wrote. The Post's White House reporters sent a letter to Bezos at the end of last week and urged him to avoid cutting coverage areas central to its readership. They also went unanswered.&nbsp; &nbsp; &nbsp;

The Washington Post laid off nearly one-third of its workforce in a major restructuring, scaling back international coverage and suspending its flagship podcast as part of a “strategic reset.”

After weeks of uncertainty, The Washington Post announced on Wednesday (Feb. 4) that the organisation laid off around one-third of its staff across all departments. The Executive Editor, Matt Murray, described the step as “painful" but necessary to secure the paper’s future. He told the employees the newspaper was undergoing a “strategic reset" to better position itself in a crowded environment. “Today, the Washington Post is taking a number of actions across the company to secure our future," Murray said during a Zoom call with staff, adding: “We all recognize the actions we are taking today will be painful – most of all, of course, for those of you who are directly affected, but for everybody." Murray said the Post’s international reporting will be scaled back, but about 12 bureaus will remain, focusing on national security issues. Its popular daily podcast, Post Reports, will also be suspended. This came after the Post employees sent at least three letters to Bezos urging him to protect the organisation's robust coverage. But they remained unanswered. On January 25, 2026, employees sent the first plea to Bezos. The plea was signed by 60 people at the organisation asking him to protect the company’s foreign news operation, which is rumoured to be a major target of cost-cutting. After two days, the employees sent another letter to the owner asking him to preserve the newspaper’s local coverage, which was at risk of heavy cuts. Once again, they remained unanswered. “Should you allow Post management to lay off the local staff, which has been cut in half in the last five years, the effect on this region and the people in it will be immeasurable,” the staffers wrote. The Post's White House reporters sent a letter to Bezos at the end of last week and urged him to avoid cutting coverage areas central to its readership. They also went unanswered.

The Washington Post laid off nearly one-third of its workforce in a major restructuring, scaling back international coverage and suspending its flagship podcast as part of a “strategic reset.”

Washington Post lays off 1/3rd of its staff across all departments in ‘painful but necessary’ step

Following the reduction in tariffs and a potential shift of portfolio flows towards India, the Indian Rupee is likely to find support in the near to medium term from improving trade prospects with the US, as per Trinh Nguyen, Senior Economist for Emerging Markets at Natixis based in Hong Kong.&nbsp;Nguyen stated that sentiment toward India has started to move more constructively after a phase of intense volatility, during which the rupee briefly slid to about 92 per dollar, even as the US dollar was weakening globally. "If you look at the rupee, it was depreciating to 92 to a dollar against the picture where the dollar was depreciating -- it was the worst FX in Asia. Yesterday, it turned out to be the best and was appreciated very sharply. I think that the sentiment is shifting for India," Nguyen said, news agency ANI reported.&nbsp;Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds.&nbsp;"I think that this trade deal will allow it to have more export income, and as a result, will provide more support," she said. "And I think another part of that equation, of course, is FDI and portfolio flows."<h3>Inflows of FDI</h3>Beyond short-term flows, Nguyen underscored the importance of ups and downs in foreign direct investment. The inflows of the gross FDI into India remain positive; however, net FDI has frequently been neutral or even negative, reflecting fund repatriation. "I think net FDI should be positive for India," Nguyen said. "Because if it's a country with a lot of potential, it should be reinvested."&nbsp;She also argued that recent progress in the rupee has lifted a massive burden on the currency. The rupee weighed heavily when the US imposed a 50 per cent tariff in 2025, unsettling both investors and policymakers. "Much of the challenge for India is really this drag. Suddenly it just kind of faces that 50 per cent tariff, which is a big shock, to be honest, for everybody," she said. "And I think that huge burden on the rupee is being lifted (now)."&nbsp;Although Nguyen does not foresee a steep or prolonged rise in the rupee against the US dollar, she said the currency could regain some of its previous losses and settle at firmer levels. "Will it appreciate significantly against the dollar? I don't think so," she said. "But I do think that there's room for it to appreciate a bit and kind of retrace a lot of the losses."&nbsp;Commenting on monetary policy, Nguyen noted that she does not anticipate an immediate interest rate cut by the Reserve Bank of India, even though economic conditions remain manageable. She added that maintaining current rates would keep the interest-rate gap between India and the US relatively wide, which could continue to draw foreign investment.&nbsp;Also read: <a href="https://www.wionews.com/world/pm-modi-thanks-trump-as-us-tariffs-on-indian-exports-come-down-from-50-to-18-1770057507354">PM Modi thanks Trump, as US tariffs on Indian exports come down from 50% to 18%</a>

Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds.

Following the reduction in tariffs and a potential shift of portfolio flows towards India, the Indian Rupee is likely to find support in the near to medium term from improving trade prospects with the US, as per Trinh Nguyen, Senior Economist for Emerging Markets at Natixis based in Hong Kong. Nguyen stated that sentiment toward India has started to move more constructively after a phase of intense volatility, during which the rupee briefly slid to about 92 per dollar, even as the US dollar was weakening globally. "If you look at the rupee, it was depreciating to 92 to a dollar against the picture where the dollar was depreciating -- it was the worst FX in Asia. Yesterday, it turned out to be the best and was appreciated very sharply. I think that the sentiment is shifting for India," Nguyen said, news agency ANI reported. Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds. "I think that this trade deal will allow it to have more export income, and as a result, will provide more support," she said. "And I think another part of that equation, of course, is FDI and portfolio flows." Inflows of FDI Beyond short-term flows, Nguyen underscored the importance of ups and downs in foreign direct investment. The inflows of the gross FDI into India remain positive; however, net FDI has frequently been neutral or even negative, reflecting fund repatriation. "I think net FDI should be positive for India," Nguyen said. "Because if it's a country with a lot of potential, it should be reinvested." She also argued that recent progress in the rupee has lifted a massive burden on the currency. The rupee weighed heavily when the US imposed a 50 per cent tariff in 2025, unsettling both investors and policymakers. "Much of the challenge for India is really this drag. Suddenly it just kind of faces that 50 per cent tariff, which is a big shock, to be honest, for everybody," she said. "And I think that huge burden on the rupee is being lifted (now)." Although Nguyen does not foresee a steep or prolonged rise in the rupee against the US dollar, she said the currency could regain some of its previous losses and settle at firmer levels. "Will it appreciate significantly against the dollar? I don't think so," she said. "But I do think that there's room for it to appreciate a bit and kind of retrace a lot of the losses." Commenting on monetary policy, Nguyen noted that she does not anticipate an immediate interest rate cut by the Reserve Bank of India, even though economic conditions remain manageable. She added that maintaining current rates would keep the interest-rate gap between India and the US relatively wide, which could continue to draw foreign investment. Also read: PM Modi thanks Trump, as US tariffs on Indian exports come down from 50% to 18%

Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds.

Is rupee making comeback? Economist sees support from India–US trade and portfolio inflows

Prime Minister Narendra Modi confirmed the trade deal with the United States on Monday and appreciated President Donald Trump’s leadership, terming it “vital for global peace, stability, and prosperity”.&nbsp;“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” PM Modi wrote on X.&nbsp;<h2>‘Two large economies and world’s largest democracies…’</h2>&nbsp;“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” the PM added.“President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights,” the Indian PM added further on his social media post.&nbsp;Also Read: <a href="https://www.wionews.com/world/trump-dials-indian-pm-modi-says-us-ambassador-sergio-gor-1770048397476">‘We agreed to trade deal’: Trump dials PM Modi, reduces tariffs on India from 25% to 18%</a>&nbsp;Trump had imposed a 25% tariff on Indian exports late last year as his deadline to sign a deal with countries had lapsed. Trump later doubled the tariffs on India to 50% as he accused Delhi of continuing to buy oil from Russia and thereby supporting Moscow in its war against Ukraine.&nbsp;<h2>Trade deal, tariff reduction huge fillip for India&nbsp;</h2>&nbsp;The trade deal with the United States is a huge fillip for India, and the reduction in tariffs from 50% to 18% puts it in an advantageous position in comparison to competing economies.&nbsp;&nbsp;India now has lower tariffs compared to several competing economies. After the announcement, US tariffs on India are 18%, while Indonesia faces 19%, Vietnam 20%, Bangladesh 20%, and China 34%.&nbsp;&nbsp;Also Read: <a href="https://www.wionews.com/world/-rogue-drone-sightings-near-uk-military-bases-doubled-in-2025-troops-to-get-shooting-down-powers-1770050063503">‘Rogue drone’ sightings near UK military bases doubled in 2025, troops to get shooting down powers</a>&nbsp;The resilience of Indian negotiators finally ended on a happy note after months of trade tensions and inappropriate criticism from Trump’s trade adviser Peter Navarro several times.&nbsp;PM Modi and Trump had spoken on multiple instances in recent times, raising hopes of the trade deal being sealed eventually.&nbsp;&nbsp;<h2>‘Limitless potential,’ says US Ambassador Sergio Gor</h2>&nbsp;The deal comes just days after US Ambassador to India Sergio Gor took charge. Just a few minutes before Trump announced the deal, Gor wrote on his handle on X, “President Trump just spoke to PM Modi. STAY TUNED...”&nbsp;After the trade deal announcement, Gor hailed the development and said the relationship between the United States and India has “limitless potential”.&nbsp;Also Read: <a href="https://www.wionews.com/world/iran-s-president-masoud-pezeshkian-orders-start-of-nuclear-talks-with-us-report-1770037263043">Iran‘s President Masoud Pezeshkian orders start of nuclear talks with US: Report</a>&nbsp;In his following post on X, the US Ambassador wrote, “As I have said many times, President Trump genuinely considers Prime Minister Modi a great friend! Thrilled by the news of the trade deal this evening. The relationship between the United States and India has LIMITLESS POTENTIAL!”&nbsp;Gor also confirmed that the US tariffs had in fact come down from 50 per cent to 18 per cent.&nbsp;Also Read: <a href="https://www.wionews.com/world/epstein-files-stash-reveals-norway-diplomat-terje-r-d-larsen-s-derogatory-remark-on-indians-social-media-erupts-1770028653881">Epstein files stash reveals Norway diplomat Terje Rød-Larsen’s derogatory remark on ‘Indians’; social media erupts</a>&nbsp;When asked by CNN News 18 whether the additional 25 per cent tariffs on India have been removed, Gor said, “That is correct. As you saw in the Truth of the President wrote, part of the agreement is that all nations around the world stop buying oil from Russia in order to bring peace. I know the Prime Minister deeply cares about bringing peace in that conflict, as does President Trump. So the number as it gets finalised will be 18 per cent.”&nbsp;In his Truth Social post, Trump had only mentioned that reciprocal tariffs were being reduced from 25 per cent to 18 per cent with no clarification on the status of the additional 25 per cent tariffs imposed on India later for buying Russian oil. &nbsp;&nbsp;&nbsp;Commerce Minister Piyush Goyal and Minister of External Affairs Dr S Jaishankar also hailed the deal and retweeted PM Modi’s post on X.

The trade deal with the United States is a huge fillip for India, and the reduction in tariffs from 50% to 18% puts it in an advantageous position in comparison to competing economies. US tariffs on India now are 18%, while Indonesia faces 19%, Vietnam 20%, Bangladesh 20%, and China 34%.

Prime Minister Narendra Modi confirmed the trade deal with the United States on Monday and appreciated President Donald Trump’s leadership, terming it “vital for global peace, stability, and prosperity”. “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” PM Modi wrote on X. ‘Two large economies and world’s largest democracies…’ “When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” the PM added. “President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights,” the Indian PM added further on his social media post. Also Read: ‘We agreed to trade deal’: Trump dials PM Modi, reduces tariffs on India from 25% to 18% Trump had imposed a 25% tariff on Indian exports late last year as his deadline to sign a deal with countries had lapsed. Trump later doubled the tariffs on India to 50% as he accused Delhi of continuing to buy oil from Russia and thereby supporting Moscow in its war against Ukraine. Trade deal, tariff reduction huge fillip for India The trade deal with the United States is a huge fillip for India, and the reduction in tariffs from 50% to 18% puts it in an advantageous position in comparison to competing economies. India now has lower tariffs compared to several competing economies. After the announcement, US tariffs on India are 18%, while Indonesia faces 19%, Vietnam 20%, Bangladesh 20%, and China 34%. Also Read: ‘Rogue drone’ sightings near UK military bases doubled in 2025, troops to get shooting down powers The resilience of Indian negotiators finally ended on a happy note after months of trade tensions and inappropriate criticism from Trump’s trade adviser Peter Navarro several times. PM Modi and Trump had spoken on multiple instances in recent times, raising hopes of the trade deal being sealed eventually. ‘Limitless potential,’ says US Ambassador Sergio Gor The deal comes just days after US Ambassador to India Sergio Gor took charge. Just a few minutes before Trump announced the deal, Gor wrote on his handle on X, “President Trump just spoke to PM Modi. STAY TUNED...” After the trade deal announcement, Gor hailed the development and said the relationship between the United States and India has “limitless potential”. Also Read: Iran‘s President Masoud Pezeshkian orders start of nuclear talks with US: Report In his following post on X, the US Ambassador wrote, “As I have said many times, President Trump genuinely considers Prime Minister Modi a great friend! Thrilled by the news of the trade deal this evening. The relationship between the United States and India has LIMITLESS POTENTIAL!” Gor also confirmed that the US tariffs had in fact come down from 50 per cent to 18 per cent. Also Read: Epstein files stash reveals Norway diplomat Terje Rød-Larsen’s derogatory remark on ‘Indians’; social media erupts When asked by CNN News 18 whether the additional 25 per cent tariffs on India have been removed, Gor said, “That is correct. As you saw in the Truth of the President wrote, part of the agreement is that all nations around the world stop buying oil from Russia in order to bring peace. I know the Prime Minister deeply cares about bringing peace in that conflict, as does President Trump. So the number as it gets finalised will be 18 per cent.” In his Truth Social post, Trump had only mentioned that reciprocal tariffs were being reduced from 25 per cent to 18 per cent with no clarification on the status of the additional 25 per cent tariffs imposed on India later for buying Russian oil. Commerce Minister Piyush Goyal and Minister of External Affairs Dr S Jaishankar also hailed the deal and retweeted PM Modi’s post on X.

The trade deal with the United States is a huge fillip for India, and the reduction in tariffs from 50% to 18% puts it in an advantageous position in comparison to competing economies. US tariffs on India now are 18%, while Indonesia faces 19%, Vietnam 20%, Bangladesh 20%, and China 34%.

PM Modi thanks Trump, as US tariffs on Indian exports come down from 50% to 18%

India's increased aid allocation to Afghanistan in its latest Union Budget has been welcomed by the Islamic Emirate of Afghanistan govt, with a senior Afghan diplomat describing it as a sign of strengthening bilateral ties. New Delhi's decision to raise its development assistance to Afghanistan from Rs 100 crore to Rs 150 crore in the 2026-27 Union Budget signals a continued commitment to humanitarian and developmental support for the landlocked country.&nbsp;The allocation, announced as part of the Ministry of External Affairs' funding, represents a Rs 50 crore increase over the previous year's figure. It comes against the backdrop of gradually improving engagement between India and the Islamic Emirate of Afghanistan since the Taliban returned to power in 2021.Also read | <a href="https://www.wionews.com/india-news/what-budget-2026-means-for-your-salary-is-there-a-change-in-income-tax-slabs-all-you-need-to-know-middle-class-union-budget-2026-1769931020866">What Budget 2026 means for your salary: Is there a change in income tax slabs? All you need to know</a>Suhail Shaheen, Ambassador of the Islamic Emirate of Afghanistan to Qatar, welcomed the move. "I think the increase of budget allocation by India for Afghanistan indicates that both countries want to boost up their current level of relations and increase cooperation," he told WION.&nbsp;Shaheen highlighted the deep historical bonds between the two nations. "Afghanistan and India have remained traditional friends throughout history, in terms of both government-to-government and people-to-people relations," he added.&nbsp;He also pointed to economic potential as Afghanistan rebuilds. "As we build Afghanistan almost from scratch, I think, there are a lot of opportunities in Afghanistan for Indian investment and trade in the country and in India which need to be explored and benefited from," Shaheen said.&nbsp;The increased funding is seen as paving the way for more Indian-backed projects in Afghanistan. India has maintained a focus on humanitarian assistance, including food aid, medicines, and infrastructure support for Afghanistan.Also read | <a href="https://www.wionews.com/india-news/budget-2026-24-82-crore-indians-escaped-multidimensional-poverty-under-modi-govt-sitharaman-tells-parliament-1769926760965">Budget 2026: 24.82 crore Indians escaped multidimensional poverty under Modi govt, Sitharaman tells Parliament</a>Ties have shown signs of thaw in recent months. Last year, India upgraded its technical mission in Kabul to full embassy status. In January, the Islamic Emirate appointed a diplomat in New Delhi, further normalising engagements.&nbsp;&nbsp;For Afghanistan, still recovering from decades of conflict and facing severe economic challenges, the assistance is expected to support reconstruction efforts in areas such as infrastructure, education, and health, sectors where India has historically been active.&nbsp;

Suhail Shaheen, Ambassador of the Islamic Emirate of Afghanistan to Qatar, welcomed the move. "I think the increase of budget allocation by India for Afghanistan indicates that both countries want to boost up their current level of relations and increase cooperation," he told WION.

India's increased aid allocation to Afghanistan in its latest Union Budget has been welcomed by the Islamic Emirate of Afghanistan govt, with a senior Afghan diplomat describing it as a sign of strengthening bilateral ties. New Delhi's decision to raise its development assistance to Afghanistan from Rs 100 crore to Rs 150 crore in the 2026-27 Union Budget signals a continued commitment to humanitarian and developmental support for the landlocked country. The allocation, announced as part of the Ministry of External Affairs' funding, represents a Rs 50 crore increase over the previous year's figure. It comes against the backdrop of gradually improving engagement between India and the Islamic Emirate of Afghanistan since the Taliban returned to power in 2021. Also read | What Budget 2026 means for your salary: Is there a change in income tax slabs? All you need to know Suhail Shaheen, Ambassador of the Islamic Emirate of Afghanistan to Qatar, welcomed the move. "I think the increase of budget allocation by India for Afghanistan indicates that both countries want to boost up their current level of relations and increase cooperation," he told WION. Shaheen highlighted the deep historical bonds between the two nations. "Afghanistan and India have remained traditional friends throughout history, in terms of both government-to-government and people-to-people relations," he added. He also pointed to economic potential as Afghanistan rebuilds. "As we build Afghanistan almost from scratch, I think, there are a lot of opportunities in Afghanistan for Indian investment and trade in the country and in India which need to be explored and benefited from," Shaheen said. The increased funding is seen as paving the way for more Indian-backed projects in Afghanistan. India has maintained a focus on humanitarian assistance, including food aid, medicines, and infrastructure support for Afghanistan. Also read | Budget 2026: 24.82 crore Indians escaped multidimensional poverty under Modi govt, Sitharaman tells Parliament Ties have shown signs of thaw in recent months. Last year, India upgraded its technical mission in Kabul to full embassy status. In January, the Islamic Emirate appointed a diplomat in New Delhi, further normalising engagements. For Afghanistan, still recovering from decades of conflict and facing severe economic challenges, the assistance is expected to support reconstruction efforts in areas such as infrastructure, education, and health, sectors where India has historically been active.

Suhail Shaheen, Ambassador of the Islamic Emirate of Afghanistan to Qatar, welcomed the move. "I think the increase of budget allocation by India for Afghanistan indicates that both countries want to boost up their current level of relations and increase cooperation," he told WION.

Afghan Govt welcomes India's Budget Allocation for Kabul

Union Finance Minister Nirmala Sitharaman announced several major direct tax reforms in the Union Budget 2026–27, which was announced on Sunday (February 1, 2026). The budget also included the rollout of the new Income Tax Act, 2025, from April 1, 2026.&nbsp;The presented budget proposed changes aimed to simplify tax laws, improve compliance, and reduce disputes for both individuals and businesses. The new law aims to replace the decades-old Income Tax Act, 1961, with clearer provisions, streamlined rules and easier filing processes. While several measures offer relief to taxpayers, others increase costs for specific segments.&nbsp;Here’s a closer look at who stands to gain and who may lose under Budget 2026:<h3>Who Gains</h3><h3>Students and families funding education or medical treatment abroad</h3>Tax Collected at Source on overseas remittances under the Liberalised Remittance Scheme for education and medical treatment will be reduced from 5 per cent to 2 per cent from April 1, 2026, easing cash flow pressures.<h3>Taxpayers filing revised returns</h3>The deadline to file revised returns will be extended from nine months to 12 months after the end of the relevant assessment year. This gives taxpayers who filed belated returns more time to correct errors.<h3>Small taxpayers and salaried individuals</h3>A new automated system will allow eligible small taxpayers to obtain lower or nil TDS certificates without approaching tax officers. Depositories will also be allowed to accept Form 15G and 15H and forward them to companies, simplifying compliance for investors.<h3>Residents buying property from NRIs</h3>Resident buyers will no longer need to obtain a Tax Deduction and Collection Account Number (TAN) when purchasing property from NRIs. Tax can now be deducted using PAN, reducing delays and compliance hurdles.<h3>HNIs and long-term investors in buybacks</h3>The Budget restores capital gains taxation on share buybacks, allowing investors to pay tax only on net gains rather than the full payout, making buybacks more attractive than dividends.<h3>Who Loses</h3><h3>Equity derivatives traders</h3>Security Transaction Tax on equity futures will rise from 0.02 per cent to 0.05 per cent, while STT on options trades will increase from 0.1 per cent to 0.15 per cent, raising transaction costs for traders.<h3>Promoters using buybacks for tax arbitrage</h3>While investors benefit, promoters will face a higher effective capital gains tax on buybacks to curb misuse, with stricter tax treatment than other shareholders.<h3>Secondary market buyers of Sovereign Gold Bonds</h3>Capital gains tax exemption on SGB redemption will be limited to investors who purchase bonds at the original RBI issue price and hold them till maturity. Those buying SGBs in the secondary market may lose this benefit.<h3>Crypto exchanges and non-compliant taxpayers</h3>Strict penalties have been proposed for crypto exchanges that fail to report transactions. Non-reporting could attract a penalty of Rs 200 per day, while incorrect reporting may lead to fines of up to Rs 50,000.<h3>Mixed Impact Measures</h3><h3>Foreign asset disclosure scheme</h3>A one-time six-month foreign asset disclosure window aims to encourage voluntary compliance. Small and partially compliant taxpayers benefit from reduced penalties, while fully non-compliant taxpayers will still face tax and penalty substitutes.<h3>ITR deadlines clarified</h3>The July 31 deadline for ITR-1 and ITR-2 remains unchanged, while non-audit taxpayers can file till August 31. Revised returns will be allowed until March 31 with a nominal fee.&nbsp;ALSO READ: <a href="https://www.wionews.com/photos/union-budget-2026-what-gets-cheaper-and-what-becomes-costlier-1769919522225/1769919522226">Union Budget 2026: What gets cheaper and what becomes costlier</a>

The new law aims to replace the decades-old Income Tax Act, 1961, with clearer provisions, streamlined rules and easier filing processes. While several measures offer relief to taxpayers, others increase costs for specific segments.

Union Finance Minister Nirmala Sitharaman announced several major direct tax reforms in the Union Budget 2026–27, which was announced on Sunday (February 1, 2026). The budget also included the rollout of the new Income Tax Act, 2025, from April 1, 2026. The presented budget proposed changes aimed to simplify tax laws, improve compliance, and reduce disputes for both individuals and businesses. The new law aims to replace the decades-old Income Tax Act, 1961, with clearer provisions, streamlined rules and easier filing processes. While several measures offer relief to taxpayers, others increase costs for specific segments. Here’s a closer look at who stands to gain and who may lose under Budget 2026: Who Gains Students and families funding education or medical treatment abroad Tax Collected at Source on overseas remittances under the Liberalised Remittance Scheme for education and medical treatment will be reduced from 5 per cent to 2 per cent from April 1, 2026, easing cash flow pressures. Taxpayers filing revised returns The deadline to file revised returns will be extended from nine months to 12 months after the end of the relevant assessment year. This gives taxpayers who filed belated returns more time to correct errors. Small taxpayers and salaried individuals A new automated system will allow eligible small taxpayers to obtain lower or nil TDS certificates without approaching tax officers. Depositories will also be allowed to accept Form 15G and 15H and forward them to companies, simplifying compliance for investors. Residents buying property from NRIs Resident buyers will no longer need to obtain a Tax Deduction and Collection Account Number (TAN) when purchasing property from NRIs. Tax can now be deducted using PAN, reducing delays and compliance hurdles. HNIs and long-term investors in buybacks The Budget restores capital gains taxation on share buybacks, allowing investors to pay tax only on net gains rather than the full payout, making buybacks more attractive than dividends. Who Loses Equity derivatives traders Security Transaction Tax on equity futures will rise from 0.02 per cent to 0.05 per cent, while STT on options trades will increase from 0.1 per cent to 0.15 per cent, raising transaction costs for traders. Promoters using buybacks for tax arbitrage While investors benefit, promoters will face a higher effective capital gains tax on buybacks to curb misuse, with stricter tax treatment than other shareholders. Secondary market buyers of Sovereign Gold Bonds Capital gains tax exemption on SGB redemption will be limited to investors who purchase bonds at the original RBI issue price and hold them till maturity. Those buying SGBs in the secondary market may lose this benefit. Crypto exchanges and non-compliant taxpayers Strict penalties have been proposed for crypto exchanges that fail to report transactions. Non-reporting could attract a penalty of Rs 200 per day, while incorrect reporting may lead to fines of up to Rs 50,000. Mixed Impact Measures Foreign asset disclosure scheme A one-time six-month foreign asset disclosure window aims to encourage voluntary compliance. Small and partially compliant taxpayers benefit from reduced penalties, while fully non-compliant taxpayers will still face tax and penalty substitutes. ITR deadlines clarified The July 31 deadline for ITR-1 and ITR-2 remains unchanged, while non-audit taxpayers can file till August 31. Revised returns will be allowed until March 31 with a nominal fee. ALSO READ: Union Budget 2026: What gets cheaper and what becomes costlier

The new law aims to replace the decades-old Income Tax Act, 1961, with clearer provisions, streamlined rules and easier filing processes. While several measures offer relief to taxpayers, others increase costs for specific segments.

Union Budget 2026: Major income tax changes announced — Who gains, who loses

Finance Minister Nirmala Sitharaman relieved taxpayers on Sunday after announcing in the Budget that foreign travel and remitting money for education abroad would be made cheaper. However, she increased the tax amount on futures and option trading in order to provide a reasonable course correction.&nbsp;Meanwhile, the Finance Minister left the income tax slabs untouched, with no extra tax to be charged. It will follow the announced 2025 tax slab. Likewise, the Budget did not announce any changes to long-term capital gains (LTCG) tax or the standard deduction under the new tax regime, despite expectations from several quarters ahead of the presentation.&nbsp;LTCG refers to gains earned from the sale of a capital asset held over a long period, including immovable property such as land and buildings, as well as financial instruments like equity shares and equity mutual funds.<h3>Foreign travel is getting cheaper</h3>Finance Minister Nirmala Sitharaman lowered the Tax Collected at Source (TCS) on overseas tour packages to 2 per cent, removing earlier thresholds. At present, a 5 per cent TCS applies to spending up to Rs 10 lakh in a financial year, while amounts exceeding Rs 10 lakh attract a 20 per cent levy.&nbsp;&nbsp;She also revised TCS rates on education and medical remittances under the Liberalised Remittance Scheme (LRS), cutting them from 5 per cent to 2 per cent. This move is expected to benefit families, including parents transferring funds for children studying overseas.<h3>F&amp;O trading is now expensive</h3>Meanwhile, Sitharaman emphasised the need for a reasonable course correction while announcing a hike in the Securities Transaction Tax (STT) on futures and options trading. She said that the STT on Futures would be increased to 0.05 per cent from the existing 0.02 per cent to provide reasonable course correction in the F&amp;O segment in the capital market and generate extra revenues for the government.&nbsp;At the same time, STT on options has been revised, with the levy on premium and exercise of options, which is proposed to be raised to 0.15 per cent from the present rate of 0.1 per cent and 0.125 per cent, respectively.&nbsp;The government has also proposed a one-time six-month scheme allowing small taxpayers to voluntarily disclose foreign assets. Under the proposal, small taxpayers—defined as students, young professionals and NRIs- will be able to declare overseas assets below specified limits of Rs 1 crore or Rs 5 crore and receive immunity from prosecution. &nbsp;

Finance Minister Nirmala Sitharaman lowered the TCS on overseas tour packages to 2 per cent, removing earlier thresholds. At present, a 5 per cent TCS applies to spending up to Rs 10 lakh in a financial year, while amounts exceeding Rs 10 lakh attract a 20 per cent levy. 

Finance Minister Nirmala Sitharaman relieved taxpayers on Sunday after announcing in the Budget that foreign travel and remitting money for education abroad would be made cheaper. However, she increased the tax amount on futures and option trading in order to provide a reasonable course correction. Meanwhile, the Finance Minister left the income tax slabs untouched, with no extra tax to be charged. It will follow the announced 2025 tax slab. Likewise, the Budget did not announce any changes to long-term capital gains (LTCG) tax or the standard deduction under the new tax regime, despite expectations from several quarters ahead of the presentation. LTCG refers to gains earned from the sale of a capital asset held over a long period, including immovable property such as land and buildings, as well as financial instruments like equity shares and equity mutual funds. Foreign travel is getting cheaper Finance Minister Nirmala Sitharaman lowered the Tax Collected at Source (TCS) on overseas tour packages to 2 per cent, removing earlier thresholds. At present, a 5 per cent TCS applies to spending up to Rs 10 lakh in a financial year, while amounts exceeding Rs 10 lakh attract a 20 per cent levy. She also revised TCS rates on education and medical remittances under the Liberalised Remittance Scheme (LRS), cutting them from 5 per cent to 2 per cent. This move is expected to benefit families, including parents transferring funds for children studying overseas. F&O trading is now expensive Meanwhile, Sitharaman emphasised the need for a reasonable course correction while announcing a hike in the Securities Transaction Tax (STT) on futures and options trading. She said that the STT on Futures would be increased to 0.05 per cent from the existing 0.02 per cent to provide reasonable course correction in the F&O segment in the capital market and generate extra revenues for the government. At the same time, STT on options has been revised, with the levy on premium and exercise of options, which is proposed to be raised to 0.15 per cent from the present rate of 0.1 per cent and 0.125 per cent, respectively. The government has also proposed a one-time six-month scheme allowing small taxpayers to voluntarily disclose foreign assets. Under the proposal, small taxpayers—defined as students, young professionals and NRIs- will be able to declare overseas assets below specified limits of Rs 1 crore or Rs 5 crore and receive immunity from prosecution.

Finance Minister Nirmala Sitharaman lowered the TCS on overseas tour packages to 2 per cent, removing earlier thresholds. At present, a 5 per cent TCS applies to spending up to Rs 10 lakh in a financial year, while amounts exceeding Rs 10 lakh attract a 20 per cent levy.&nbsp;

From foreign travel to F&O trades: Union Budget brings BIG changes for taxpayers—Check details inside

The education ministry has been allocated Rs 1.39 lakh crore in the Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on Sunday (February 1). The move marked an 8.27 per cent increase over the previous financial year, showing education and skilling at the core of India's long-term growth strategy. The allocated amount accounts for nearly 2.6 per cent of the total estimated expenditure of Rs 53.5 lakh crore for 2026-27.&nbsp;Presenting the Budget in Parliament, Union Finance Minister announced a series of initiatives for the education and skilling sector. These include plans to develop five University Townships, set up veterinary and para-veterinary colleges, establish Animation, Visual Effects, Gaming and Comics (AVGC) Content Creator Labs, and create a National Institute of Hospitality.&nbsp;Of the total outlay, Rs 83,562.26 crore has been allocated for school education, while Rs 55,727 crore has been earmarked for higher education. The allocations for school and higher education have increased by 6.35 per cent and 11.28 per cent, respectively. The Ministry of Education received a total allocation of Rs 1.28 lakh crore in FY 2025–26.&nbsp;WATCH: https://www.wionews.com/videos/budget-2026-pm-modi-budget-2026-fuels-viksit-bharat-2047-vision-1769939464377/embedd<h3>Dharmendra Pradhan lauds Union Budget 2026-27</h3>Welcoming the increased funding, Union Education Minister Dharmendra Pradhan said the Budget reflects the vision of Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to realise the goal of a developed India.&nbsp;"To achieve the goal of a developed India, the budget this time is reflected in the excellent arrangements of the Prime Minister's vision and the Minister of Finance, Nirmala Sitharaman. I would like to congratulate them on some points from the Education Department. The budget this time is bigger than the budget last time," he said.&nbsp;"Last year's budget allocation was Rs 1 lakh 28 thousand 650 crore, which has now been increased to Rs 1 lakh 39 thousand 299 crore, 8.27% rise compared to the last budget... Women have contributed significantly to the field of science and technology, more so than in many other nations. To further promote this growth, we plan to establish girls' hostels in every state in collaboration with the respective state governments... We also plan to develop a university council for the overall advancement of educational infrastructure and to create a knowledge-based economy," he added.&nbsp;Also read: <a href="https://www.wionews.com/world/big-firepower-for-forces-in-budget-2026-capital-outlay-for-defence-surges-22-as-india-prepares-for-dual-front-challenges-1769943755460">Big firepower for forces in Budget 2026: Capital outlay for defence surges 22% as India prepares for dual-front challenges</a>

Union Finance Minister announced a series of initiatives for the education and skilling sector, including University Townships, setting up veterinary and para-veterinary colleges, establishing Animation, Visual Effects, Content Creator Labs, and a National Institute of Hospitality.

The education ministry has been allocated Rs 1.39 lakh crore in the Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on Sunday (February 1). The move marked an 8.27 per cent increase over the previous financial year, showing education and skilling at the core of India's long-term growth strategy. The allocated amount accounts for nearly 2.6 per cent of the total estimated expenditure of Rs 53.5 lakh crore for 2026-27. Presenting the Budget in Parliament, Union Finance Minister announced a series of initiatives for the education and skilling sector. These include plans to develop five University Townships, set up veterinary and para-veterinary colleges, establish Animation, Visual Effects, Gaming and Comics (AVGC) Content Creator Labs, and create a National Institute of Hospitality. Of the total outlay, Rs 83,562.26 crore has been allocated for school education, while Rs 55,727 crore has been earmarked for higher education. The allocations for school and higher education have increased by 6.35 per cent and 11.28 per cent, respectively. The Ministry of Education received a total allocation of Rs 1.28 lakh crore in FY 2025–26. WATCH: https://www.wionews.com/videos/budget-2026-pm-modi-budget-2026-fuels-viksit-bharat-2047-vision-1769939464377/embedd Dharmendra Pradhan lauds Union Budget 2026-27 Welcoming the increased funding, Union Education Minister Dharmendra Pradhan said the Budget reflects the vision of Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to realise the goal of a developed India. "To achieve the goal of a developed India, the budget this time is reflected in the excellent arrangements of the Prime Minister's vision and the Minister of Finance, Nirmala Sitharaman. I would like to congratulate them on some points from the Education Department. The budget this time is bigger than the budget last time," he said. "Last year's budget allocation was Rs 1 lakh 28 thousand 650 crore, which has now been increased to Rs 1 lakh 39 thousand 299 crore, 8.27% rise compared to the last budget... Women have contributed significantly to the field of science and technology, more so than in many other nations. To further promote this growth, we plan to establish girls' hostels in every state in collaboration with the respective state governments... We also plan to develop a university council for the overall advancement of educational infrastructure and to create a knowledge-based economy," he added. Also read: Big firepower for forces in Budget 2026: Capital outlay for defence surges 22% as India prepares for dual-front challenges

Union Finance Minister announced a series of initiatives for the education and skilling sector, including University Townships, setting up veterinary and para-veterinary colleges, establishing Animation, Visual Effects, Content Creator Labs, and a National Institute of Hospitality.

Union Budget 2026–27 allocates Rs 1.39 lakh crore to education ministry, increases by 8.27%

The Union Budget 2026–27 presented by Union Finance Minister Nirmala Sitharaman on Sunday earmarked Rs 95,692 crore for the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin (VB-G RAM G) scheme, and also allocated Rs 30,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which surprised some people. In the 2025-26 budget, the government had allocated Rs 86,000 crore for MGNREGA alone.&nbsp;The Union government has allocated a combined ₹1,25,692 crore in the Budget for the new and existing rural jobs guarantee schemes.&nbsp;&nbsp;Also Read: <a href="https://www.wionews.com/world/us-federal-judge-refuses-to-halt-trump-s-ice-surge-in-minnesota-1769884014449">US federal judge refuses to halt Trump’s ICE surge in Minnesota</a><h2>Dual allocations made with focus on transition</h2>&nbsp;As the VB-G RAM G scheme is set to be rolled out, the MGNREGA scheme will continue. Besides, the pending works are also to be completed, and hence dual allocations have been made for the two schemes during the transition year.&nbsp;The VB-G RAM G scheme, to be notified by the Centre, will give states six months to transition from the two-decade-old MGNREGA. Till then, both schemes will continue to operate as usual, necessitating separate budgetary allocations.&nbsp;Also Read: <a href="https://www.wionews.com/world/two-explosions-rock-southern-iran-tehran-denies-irgc-navy-commander-assassination-reports-1769871133660">Two explosions rock southern Iran; Tehran denies IRGC navy commander assassination reports</a><h2>New scheme VB-G RAM G has different funding pattern</h2>&nbsp;Under MGNREGA, the Union government bears 100% of the wage costs, which constitute the bulk of the expenditure, while states contribute 25% of the material costs. In contrast, under the VB-G Ram G scheme, the Centre will fund only 60% of the total cost in most states and 90% in northeastern and Himalayan states, with the state governments funding the balance.&nbsp;Since the new scheme has a different funding pattern from MGNREGA, distinct allocations had to be made to ensure uninterrupted wage payments and smooth execution of ongoing works, besides giving time to states for making necessary administrative and financial changes for the transition.&nbsp;A higher allocation for VB-G RAM G signals a strategic shift in rural employment policy from wage support to development and asset creation in consonance with the Viksit Bharat 2047 vision.

A higher allocation for Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin (VB-G RAM G) scheme signals a strategic shift in rural employment policy from wage support to development and asset creation in consonance with the Viksit Bharat 2047 vision.

The Union Budget 2026–27 presented by Union Finance Minister Nirmala Sitharaman on Sunday earmarked Rs 95,692 crore for the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin (VB-G RAM G) scheme, and also allocated Rs 30,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which surprised some people. In the 2025-26 budget, the government had allocated Rs 86,000 crore for MGNREGA alone. The Union government has allocated a combined ₹1,25,692 crore in the Budget for the new and existing rural jobs guarantee schemes. Also Read: US federal judge refuses to halt Trump’s ICE surge in Minnesota Dual allocations made with focus on transition As the VB-G RAM G scheme is set to be rolled out, the MGNREGA scheme will continue. Besides, the pending works are also to be completed, and hence dual allocations have been made for the two schemes during the transition year. The VB-G RAM G scheme, to be notified by the Centre, will give states six months to transition from the two-decade-old MGNREGA. Till then, both schemes will continue to operate as usual, necessitating separate budgetary allocations. Also Read: Two explosions rock southern Iran; Tehran denies IRGC navy commander assassination reports New scheme VB-G RAM G has different funding pattern Under MGNREGA, the Union government bears 100% of the wage costs, which constitute the bulk of the expenditure, while states contribute 25% of the material costs. In contrast, under the VB-G Ram G scheme, the Centre will fund only 60% of the total cost in most states and 90% in northeastern and Himalayan states, with the state governments funding the balance. Since the new scheme has a different funding pattern from MGNREGA, distinct allocations had to be made to ensure uninterrupted wage payments and smooth execution of ongoing works, besides giving time to states for making necessary administrative and financial changes for the transition. A higher allocation for VB-G RAM G signals a strategic shift in rural employment policy from wage support to development and asset creation in consonance with the Viksit Bharat 2047 vision.

A higher allocation for Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin (VB-G RAM G) scheme signals a strategic shift in rural employment policy from wage support to development and asset creation in consonance with the Viksit Bharat 2047 vision.

Union Budget 2026 allocates funds for both MGNREGA and VB-G RAM G schemes. What does this mean?

Finance Minister Nirmala Sitharaman presented the Union Budget 2026 on Sunday (February 1), and no sooner had her speech ended than social media was flooded with memes. Netizens responded with sharp wit and humour, using memes to capture everything from expectations of tax relief to the familiar anxieties of the middle class, turning the budget announcements into a viral talking point.<h2>Here are the best ones</h2>

<blockquote class="twitter-tweet" data-media-max-width="560">Nirmala Sitharaman to Stock traders and middle-class: 👇😜🔥<a href="https://twitter.com/hashtag/Budget?src=hash&amp;ref_src=twsrc%5Etfw">#Budget</a> <a href="https://twitter.com/hashtag/Budget2026?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2026</a> <a href="https://twitter.com/hashtag/STT?src=hash&amp;ref_src=twsrc%5Etfw">#STT</a><a href="https://twitter.com/hashtag/NirmalaSitharaman?src=hash&amp;ref_src=twsrc%5Etfw">#NirmalaSitharaman</a> <a href="https://twitter.com/hashtag/Memes?src=hash&amp;ref_src=twsrc%5Etfw">#Memes</a> <a href="https://t.co/AprptuPUfH">pic.twitter.com/AprptuPUfH</a>&mdash; Duck 🪿 🇮🇳 (@DuckKiBaat) <a href="https://twitter.com/DuckKiBaat/status/2017862232974225838?ref_src=twsrc%5Etfw">February 1, 2026</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<h2>Nirmala Sitharaman presents Budget 2026</h2>On the auspicious occasion of Magha Purnima and the birth anniversary of Guru Ravidas, the Finance Minister said that the first Union Budget prepared in Kartavya Bhawan is guided by three core kartavya (duties). The first kartavya focuses on accelerating and sustaining economic growth by improving productivity and competitiveness, while strengthening the economy’s resilience amid volatile global conditions. The second kartavya aims to fulfil the aspirations of the people by enhancing their capabilities and positioning them as active partners in India’s journey towards prosperity.&nbsp;Also Read: <a href="https://www.wionews.com/world/big-firepower-for-forces-in-budget-2026-capital-outlay-for-defence-surges-22-as-india-prepares-for-dual-front-challenges-1769943755460">Big firepower for forces in Budget 2026: Capital outlay for defence surges 22% as India prepares for dual-front challenges</a>&nbsp;The third kartavya, aligned with the vision of Sabka Saath, Sabka Vikas, seeks to ensure that every family, community, region, and sector has equitable access to resources, infrastructure, and opportunities for meaningful participation. Presenting a Yuva Shakti–driven Budget, the Finance Minister emphasized the Government’s Sankalp to prioritize the poor, underprivileged, and disadvantaged. She reaffirmed that India will continue to move confidently towards Viksit Bharat, balancing ambitious growth with inclusive development. As a rapidly expanding economy with rising trade and capital requirements, India must remain closely integrated with global markets, increase exports, and attract stable long-term investments.&nbsp;<a href="https://www.wionews.com/videos/video-of-frozen-niagara-falls-go-viral-1769944891070/embed">https://www.wionews.com/videos/video-of-frozen-niagara-falls-go-viral-1769944891070/embed</a>

Netizens flood social media with savage memes

<blockquote class="twitter-tweet">Budget Memes - A thread 🧵 Nirmala Sitharaman to Middle Class people <a href="https://t.co/XOl1QDWCOO">pic.twitter.com/XOl1QDWCOO</a>&mdash; Phunsuk Wangdu (@Phunsukwangduji) <a href="https://twitter.com/Phunsukwangduji/status/1885580602969383256?ref_src=twsrc%5Etfw">February 1, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

She also highlighted the challenging external environment, marked by threats to global trade and multilateralism, disruptions in supply chains, and constrained access to critical resources. At the same time, emerging technologies are reshaping production systems while significantly increasing demands for water, energy, and critical minerals.&nbsp;The Finance Minister noted that following the Prime Minister’s announcement on Independence Day in 2025, more than 350 reforms have been implemented. These include simplification of GST, notification of Labour Codes, and rationalisation of mandatory Quality Control Orders. High-Level Committees have been constituted, and alongside this, the Central Government is working closely with State Governments to advance deregulation and reduce compliance burdens.

Union Budget 2026: No tax relief, only meme relief — Netizens flood social media with savage memes

Finance Minister Nirmala Sitharaman presented the Union Budget 2026 on Sunday (February 1), and no sooner had her speech ended than social media was flooded with memes. Netizens responded with sharp wit and humour, using memes to capture everything from expectations of tax relief to the familiar anxieties of the middle class, turning the budget announcements into a viral talking point. Here are the best ones

After the Union Budget 2026 speech ended, social media erupted with memes as netizens used humour to voice tax hopes, middle-class angst and budget blues

Union Finance Minister on Sunday created history by presenting her 9th consecutive Union Budget in Parliament, asserting that the "reform express" of the Narendra Modi-led government is well on its way. Know all the proposals, allocation of money for different sectors, and other plans.

Union Finance Minister on Sunday created history by presenting her 9th consecutive Union Budget in Parliament, asserting that the "reform express" of the Narendra Modi-led government is well on its way. Know all the proposals, allocation of money for different sectors, and other plans.

Who got big bucks? From Biopharma to Defence: Breakdown of budget allocations in 2026 across key sectors

With at least 11 mentions of AI in the Union Budget 2026–27, Finance Minister Nirmala Sitharaman stressed how technology is a key driver of economic growth and announced significant allocations and initiatives targeted at the information technology and AI sectors. A key vision of the budget she presented on Sunday (Feb 1) was to “Make AI in India and Make AI work for India”, with several proposals aimed at creating a robust AI ecosystem while addressing challenges related to jobs, skills and infrastructure.<h2>Measures to boost semiconductor production and data centres</h2>Boosting the fledgling semiconductor sector in India, attracting investments in data centres, increasing research funding and promoting sector-specific AI applications are among the key proposals in the budget.&nbsp;A total R&amp;D fund of ₹1 trillion has been spread over six years, out of which ₹20,000 crore has already been deployed.Also read: <a href="https://www.wionews.com/india-news/budget-2026-24-82-crore-indians-escaped-multidimensional-poverty-under-modi-govt-sitharaman-tells-parliament-1769926760965">Union Budget 2026 | 'Ambitious and aspirational': PM Modi hails FM Sitharaman's 'futuristic' budget</a><h2>AI as the catalyst for India's growth</h2>This year's budget saw the highest number of mentions of AI to date, with focus across governance, agriculture, healthcare and education.The budget will continue supporting the IndiaAI Mission with an allocation of ₹2,000 crore, alongside the National Quantum Mission with ₹6,003 crore.These initiatives, along with the Anusandhan National Research Fund, aim to promote AI adoption, research and development, and commercialisation in priority areas such as quantum computing, biotechnology, the digital economy and deep technologies.In the agriculture sector, the budget envisions Bharat-VISTAAR (Virtually Integrated System to Access Agricultural Resources), a new multilingual AI tool integrating AgriStack portals and Indian Council of Agricultural Research (ICAR) packages. This system is intended to provide customised advisory support, enhance farm productivity and reduce risks for farmers.Also read: <a href="https://www.wionews.com/photos/union-budget-2026-what-gets-cheaper-and-what-becomes-costlier-1769919522225">Union Budget 2026: What gets cheaper and what becomes costlier</a><h2>A committee on AI impact on economy</h2>A High-Powered Standing Committee has been proposed to assess the impact of AI and emerging technologies on jobs, skills and the services sector. This includes embedding AI in education, teacher training, reskilling technology professionals and labour market analysis.The budget has also allocated ₹500 crore for AI Centres of Excellence and envisions the establishment of 80 IndiaAI Labs to foster innovation and skills development.<a href="https://www.wionews.com/videos/india-budget-2026-sitharaman-unveils-tax-overhaul-infra-mega-spend-1769937689215/embed">https://www.wionews.com/videos/india-budget-2026-sitharaman-unveils-tax-overhaul-infra-mega-spend-1769937689215/embed</a><h2>AI applications ranging from governance to logistics; Deep Tech Fund and Semiconductor Mission 2.0</h2>The budget views AI as a “force multiplier” for public service delivery in governance, healthcare, logistics and agriculture.It also highlights AI-driven solutions for energy transition, climate action and strategic sectors such as defence and space.A Deep Tech Fund has been proposed as part of efforts to position India as a global AI leader, dedicated to supporting AI and deep-tech start-ups.<h2>Proposals for information technology: tax incentives, infrastructure boosts and reforms</h2>The India Semiconductor Mission 2.0 was mentioned in the budget, with Phase II focusing on producing semiconductor equipment and materials, designing full-stack Indian intellectual property, strengthening supply chains, and establishing industry-led research and training centres for skilled workforce development.To support self-reliance in hardware, a budget allocation of ₹40,000 crore was made for the manufacture of electronic components, nearly doubling the outlay under previous schemes.<h2>Tax holiday for data centres and cloud services; safe harbour reforms for IT</h2>A tax holiday until 2047 for foreign companies providing cloud services through Indian data centres or resellers featured prominently in the budget.&nbsp;The proposals include a 15 per cent safe harbour margin for related entities to attract global investment and strengthen India’s digital infrastructure.For safe harbour computation, software development, IT-enabled services (ITES), knowledge process outsourcing (KPO) and contract R&amp;D will be consolidated under a single “Information Technology Services” category. The uniform safe harbour margin will be 15.5 per cent, while the eligibility threshold has been raised from ₹300 crore to ₹2,000 crore to benefit more firms and reduce tax disputes.<h2>Creative economy boost: The orange sector gets a mention</h2>The finance minister also acknowledged the creator economy, or orange economy, encompassing animation, visual effects, gaming and comics (AVGC).The budget proposals for this sector includesestablishing labs in 15,000 schools and 500 colleges to build talent capacity and address a projected demand for 2 million professionals by 2030.<h2>IT in the broader economy</h2>The integration of AI and IT in areas such as rare earths, biopharma and cybersecurity was also mentioned in the budget.Overall, the minister appears to have emphasised a push towards an “intelligence-first” economy, combining immediate incentives with long-term investments to position India as a global hub for IT and AI.

India Budget 2026 had an unprecedented focus on AI and IT as growth drivers. Tax incentives, funding boost, semiconductor push, data centre reforms, and safe harbour reforms are among the proposals. 

With at least 11 mentions of AI in the Union Budget 2026–27, Finance Minister Nirmala Sitharaman stressed how technology is a key driver of economic growth and announced significant allocations and initiatives targeted at the information technology and AI sectors. A key vision of the budget she presented on Sunday (Feb 1) was to “Make AI in India and Make AI work for India”, with several proposals aimed at creating a robust AI ecosystem while addressing challenges related to jobs, skills and infrastructure. Measures to boost semiconductor production and data centres Boosting the fledgling semiconductor sector in India, attracting investments in data centres, increasing research funding and promoting sector-specific AI applications are among the key proposals in the budget. A total R&D fund of ₹1 trillion has been spread over six years, out of which ₹20,000 crore has already been deployed. Also read: Union Budget 2026 | 'Ambitious and aspirational': PM Modi hails FM Sitharaman's 'futuristic' budget AI as the catalyst for India's growth This year's budget saw the highest number of mentions of AI to date, with focus across governance, agriculture, healthcare and education. The budget will continue supporting the IndiaAI Mission with an allocation of ₹2,000 crore, alongside the National Quantum Mission with ₹6,003 crore. These initiatives, along with the Anusandhan National Research Fund, aim to promote AI adoption, research and development, and commercialisation in priority areas such as quantum computing, biotechnology, the digital economy and deep technologies. In the agriculture sector, the budget envisions Bharat-VISTAAR (Virtually Integrated System to Access Agricultural Resources), a new multilingual AI tool integrating AgriStack portals and Indian Council of Agricultural Research (ICAR) packages. This system is intended to provide customised advisory support, enhance farm productivity and reduce risks for farmers. Also read: Union Budget 2026: What gets cheaper and what becomes costlier A committee on AI impact on economy A High-Powered Standing Committee has been proposed to assess the impact of AI and emerging technologies on jobs, skills and the services sector. This includes embedding AI in education, teacher training, reskilling technology professionals and labour market analysis. The budget has also allocated ₹500 crore for AI Centres of Excellence and envisions the establishment of 80 IndiaAI Labs to foster innovation and skills development. https://www.wionews.com/videos/india-budget-2026-sitharaman-unveils-tax-overhaul-infra-mega-spend-1769937689215/embed AI applications ranging from governance to logistics; Deep Tech Fund and Semiconductor Mission 2.0 The budget views AI as a “force multiplier” for public service delivery in governance, healthcare, logistics and agriculture. It also highlights AI-driven solutions for energy transition, climate action and strategic sectors such as defence and space. A Deep Tech Fund has been proposed as part of efforts to position India as a global AI leader, dedicated to supporting AI and deep-tech start-ups. Proposals for information technology: tax incentives, infrastructure boosts and reforms The India Semiconductor Mission 2.0 was mentioned in the budget, with Phase II focusing on producing semiconductor equipment and materials, designing full-stack Indian intellectual property, strengthening supply chains, and establishing industry-led research and training centres for skilled workforce development. To support self-reliance in hardware, a budget allocation of ₹40,000 crore was made for the manufacture of electronic components, nearly doubling the outlay under previous schemes. Tax holiday for data centres and cloud services; safe harbour reforms for IT A tax holiday until 2047 for foreign companies providing cloud services through Indian data centres or resellers featured prominently in the budget. The proposals include a 15 per cent safe harbour margin for related entities to attract global investment and strengthen India’s digital infrastructure. For safe harbour computation, software development, IT-enabled services (ITES), knowledge process outsourcing (KPO) and contract R&D will be consolidated under a single “Information Technology Services” category. The uniform safe harbour margin will be 15.5 per cent, while the eligibility threshold has been raised from ₹300 crore to ₹2,000 crore to benefit more firms and reduce tax disputes. Creative economy boost: The orange sector gets a mention The finance minister also acknowledged the creator economy, or orange economy, encompassing animation, visual effects, gaming and comics (AVGC). The budget proposals for this sector includesestablishing labs in 15,000 schools and 500 colleges to build talent capacity and address a projected demand for 2 million professionals by 2030. IT in the broader economy The integration of AI and IT in areas such as rare earths, biopharma and cybersecurity was also mentioned in the budget. Overall, the minister appears to have emphasised a push towards an “intelligence-first” economy, combining immediate incentives with long-term investments to position India as a global hub for IT and AI.

India Budget 2026 had an unprecedented focus on AI and IT as growth drivers. Tax incentives, funding boost, semiconductor push, data centre reforms, and safe harbour reforms are among the proposals. Here is a roundup

India Budget 2026 had 11 mentions of Artificial Intelligence: What are the AI- and IT-linked proposals by Finance Minister Nirmala Sitharaman?

Union Budget 2026–27 unveiled new schemes spanning AI in agriculture, rare earth corridors, semiconductors, clean energy, textiles and skills, signalling a push for self-reliance, jobs and long-term growth.

Union Budget 2026–27 unveiled new schemes spanning AI in agriculture, rare earth corridors, semiconductors, clean energy, textiles and skills, signalling a push for self-reliance, jobs and long-term growth.

Union Budget 2026: Key new schemes announced by FM Sitharaman

Indian Finance Minister Nirmala Sitharaman announced an allocation of Rs 10,000 crore to small and medium enterprises (SMEs) during the Union Budget 2026-27 presentation in the Lok Sabha on Sunday (Feb 1). The move will help in creating future jobs and incentivising enterprises based on select criteria for the businesses.“I propose to introduce a dedicated 10,000 crores SME growth fund to create future champions, incentivising enterprises based on select criteria. I also propose to top up the self-reliant India fund set up in 2021 with 2,000 crores to continue support to micro-enterprises and maintain their access to risk capital,” she said.Currently, there are more than one crore registered MSMEs, employing 7.5 crore people, and generating 36 per cent of India’s manufacturing. These enterprises have positioned India as a global manufacturing hub. More than Rs 7 lakh crore has been made available to MSMEs through liquidity support.Sitharaman further added, “To leverage its full potential, I propose four measures. One: mandate TREDS as the transaction settlement platform for all purchases from MSMEs by CPSEs. Survey as a benchmark for other corporates. Two: introduce a credit guarantee support mechanism through CGT-MSC for invoice discounting on the TREDS platform. Three: link GEN with TREDS for sharing information with financiers about government purchases from SMEs, encouraging cheaper and quicker financing. Four: Introduce TREDS receivables as asset-backed securities, helping develop a secondary market, enhancing liquidity and settlement of transactions.”Sitharaman also noted that the government shall continue to focus on developing infrastructure in Tier II and Tier III cities that have a population of more than 5 lakh. These cities have expanded to become growth centres of the country.The public capital expenditure has increased manifold from Rs 2 lakh crore in 2014-15 to an allocation of Rs 11.2 lakh crore. In the financial year 2026-27, Sitharaman proposed to increase it to Rs 12.2 lakh crore to continue the momentum.

India Union Budget 2026: FM Sitharaman announces allocation of Rs 10,000 crore for SMEs

Indian Finance Minister Nirmala Sitharaman announced an allocation of Rs 10,000 crore to small and medium enterprises (SMEs) during the Union Budget 2026-27 presentation in the Lok Sabha on Sunday (Feb 1). The move will help in creating future jobs and incentivising enterprises based on select criteria for the businesses. “I propose to introduce a dedicated 10,000 crores SME growth fund to create future champions, incentivising enterprises based on select criteria. I also propose to top up the self-reliant India fund set up in 2021 with 2,000 crores to continue support to micro-enterprises and maintain their access to risk capital,” she said. Currently, there are more than one crore registered MSMEs, employing 7.5 crore people, and generating 36 per cent of India’s manufacturing. These enterprises have positioned India as a global manufacturing hub. More than Rs 7 lakh crore has been made available to MSMEs through liquidity support. Sitharaman further added, “To leverage its full potential, I propose four measures. One: mandate TREDS as the transaction settlement platform for all purchases from MSMEs by CPSEs. Survey as a benchmark for other corporates. Two: introduce a credit guarantee support mechanism through CGT-MSC for invoice discounting on the TREDS platform. Three: link GEN with TREDS for sharing information with financiers about government purchases from SMEs, encouraging cheaper and quicker financing. Four: Introduce TREDS receivables as asset-backed securities, helping develop a secondary market, enhancing liquidity and settlement of transactions.” Sitharaman also noted that the government shall continue to focus on developing infrastructure in Tier II and Tier III cities that have a population of more than 5 lakh. These cities have expanded to become growth centres of the country. The public capital expenditure has increased manifold from Rs 2 lakh crore in 2014-15 to an allocation of Rs 11.2 lakh crore. In the financial year 2026-27, Sitharaman proposed to increase it to Rs 12.2 lakh crore to continue the momentum.

FM Nirmala Sitharaman announced a Rs 10,000 crore SME growth fund and Rs 2,000 crore top-up for micro firms in Budget 2026–27, alongside TREDS reforms and higher public capex to boost jobs, credit and growth.

With the aim of attracting global businesses to India and boost investment in artificial intelligence, cloud services and other IT-related sectors, Finance Minister Nirmala Sitharaman on Sunday (1 February) proposed a range of direct tax reforms and other measures. Here is a look at the key proposals<h2>Tax holiday for data centre services</h2>Several companies are setting up data centres in India capable of handling artificial intelligence computing, and cloud services. Sitharaman proposed a tax holiday until 2047 for any foreign company providing global services by procuring data centre services in India.&nbsp;Similarly, direct tax exemptions will be granted to foreign companies supplying capital goods, equipment and tooling to manufacturers operating in bonded zones and engaged in the manufacture of electronic goods.Some critical minerals will be included in the list of minerals to incentivise their prospecting and exploration in India. These critical minerals are at the core of modern-day computing.Also read: <a href="https://www.wionews.com/india-news/no-funding-allocated-for-chabahar-port-in-indian-budget-2026-1769931704068">No funding allocated for Chabahar port in Indian Budget 2026</a><h2>IT services to get improved safe harbour margin</h2>India is a global leader in software development services, IT-enabled services, knowledge process outsourcing services and contract R&amp;D services related to software development. These business segments are closely interconnected.<a href="https://www.wionews.com/videos/budget-2026-trump-proofing-india-s-5t-growth-path-1769922341904/embed">https://www.wionews.com/videos/budget-2026-trump-proofing-india-s-5t-growth-path-1769922341904/embed</a>&nbsp;All these services are now proposed to be clubbed under a single category, Information Technology Services (ITS), with a common safe harbour margin of 15.5 per cent applicable across the board.Also read: <a href="https://www.wionews.com/india-news/budget-2026-what-changes-for-india-s-taxpayers-from-itr-deadlines-to-penalties-key-takeaways-1769927655268">Budget 2026: What changes for India's taxpayers, from ITR deadlines to penalties | Key takeaways</a>&nbsp;In addition, the threshold for availing the safe harbour for IT services is proposed to be enhanced substantially from ₹300 crore to ₹2,000 crore.The approvals for safe harbour for ITS will be granted through an automated, rule-based system, reducing compliance friction.The government is expected to fast-track Advance Pricing Agreement (APA) processes for the ITS sector to further enhance tax certainty and predictability.These reforms are likely to be appreciated and welcomed by the tech industry.

India Budget 2026 proposed tax holidays for foreign-operated data centres and higher safe harbour limits for IT services. The aim is to attract global tech companies to India, and investment in sectors like AI  and cloud computing

With the aim of attracting global businesses to India and boost investment in artificial intelligence, cloud services and other IT-related sectors, Finance Minister Nirmala Sitharaman on Sunday (1 February) proposed a range of direct tax reforms and other measures. Here is a look at the key proposals Tax holiday for data centre services Several companies are setting up data centres in India capable of handling artificial intelligence computing, and cloud services. Sitharaman proposed a tax holiday until 2047 for any foreign company providing global services by procuring data centre services in India. Similarly, direct tax exemptions will be granted to foreign companies supplying capital goods, equipment and tooling to manufacturers operating in bonded zones and engaged in the manufacture of electronic goods. Some critical minerals will be included in the list of minerals to incentivise their prospecting and exploration in India. These critical minerals are at the core of modern-day computing. Also read: No funding allocated for Chabahar port in Indian Budget 2026 IT services to get improved safe harbour margin India is a global leader in software development services, IT-enabled services, knowledge process outsourcing services and contract R&D services related to software development. These business segments are closely interconnected. https://www.wionews.com/videos/budget-2026-trump-proofing-india-s-5t-growth-path-1769922341904/embed All these services are now proposed to be clubbed under a single category, Information Technology Services (ITS), with a common safe harbour margin of 15.5 per cent applicable across the board. Also read: Budget 2026: What changes for India's taxpayers, from ITR deadlines to penalties | Key takeaways In addition, the threshold for availing the safe harbour for IT services is proposed to be enhanced substantially from ₹300 crore to ₹2,000 crore. The approvals for safe harbour for ITS will be granted through an automated, rule-based system, reducing compliance friction. The government is expected to fast-track Advance Pricing Agreement (APA) processes for the ITS sector to further enhance tax certainty and predictability. These reforms are likely to be appreciated and welcomed by the tech industry.

India Budget 2026 proposed tax holidays for foreign-operated data centres and higher safe harbour limits for IT services. The aim is to attract global tech companies to India, and investment in sectors like AI &nbsp;and cloud computing

India Budget 2026: Tax holiday for foreign data centre operators; safe harbour margin for IT services to boost sector

Finance Minister Nirmala Sitharaman underlined the commitment of the government to sustaining structural reforms and simplifying the tax system. A series of direct tax changes were announced, with a new Income Tax Act set to reshape compliance and administration from the next financial year.

Finance Minister Nirmala Sitharaman underlined the commitment of the government to sustaining structural reforms and simplifying the tax system. A series of direct tax changes were announced, with a new Income Tax Act set to reshape compliance and administration from the next financial year.

New Income Tax Act from April 1: Buyback taxation, remittance rules & more—Here's what every taxpayers should know

In a significant push, Indian Finance Minister Nirmala Sitharaman announced ‘Bharat Vistar’, an AI intgrated system to access agriculture resources during the Union Budget 2026-27 presentation in the Lok Sabha on Sunday (Feb 1). The multilingual tool will integrate the Agristack portal and the ICAR package on agricultural practices with AI systems. The launch will help in enhancing productivity, enabling farmers to make better decisions, and reducing risk.“I propose to launch Bharat Vista, a multilingual AI tool that shall integrate the Agristack portal and ICAR package on agricultural practices with AI systems. This will enhance productivity, enable better decisions for farmers, and reduce risk by providing customised advisory support,” Sitharaman said.Sitharaman also announced a scheme focusing on major coconut-growing states and measures like replacing non-productive trees with new, high-yielding saplings.“To further enhance competitiveness in coconut production, I propose a coconut promotion scheme to increase production and enhance productivity through various interventions, including replacing non-productive trees with new saplings or plants of varieties in major coconut-growing states,” she said.The finance minister also announced programs dedicated to Indian cashew and cocoa aimed at making India self-reliant in their production and processing.“A dedicated program is proposed for Indian cashew and cocoa to make India self-reliant in raw cashew and coconut production and processing, enhance export competitiveness and transform Indian cashew and Indian cocoa into premium global brands by 2030,” she said.Sitharaman also said, “Sandalwood is closely linked to India’s social and cultural heritage. Our government will partner with state governments to promote focused cultivation and post-harvest processing to restore the glory of the Indian sandalwood ecosystem.”She added, “To rejuvenate old, low-yielding orchards and expand high-density cultivation of walnuts, almonds, and pine nuts, we will support a dedicated program to enhance farmer incomes and in bringing value addition by engaging youth.”

FM Nirmala Sitharaman announced ‘Bharat Vistar’, a multilingual AI tool integrating Agristack and ICAR data, in the Union Budget 2026–27 to boost farm productivity, improve decision-making, and reduce risks for farmers.

In a significant push, Indian Finance Minister Nirmala Sitharaman announced ‘Bharat Vistar’, an AI intgrated system to access agriculture resources during the Union Budget 2026-27 presentation in the Lok Sabha on Sunday (Feb 1). The multilingual tool will integrate the Agristack portal and the ICAR package on agricultural practices with AI systems. The launch will help in enhancing productivity, enabling farmers to make better decisions, and reducing risk. “I propose to launch Bharat Vista, a multilingual AI tool that shall integrate the Agristack portal and ICAR package on agricultural practices with AI systems. This will enhance productivity, enable better decisions for farmers, and reduce risk by providing customised advisory support,” Sitharaman said. Sitharaman also announced a scheme focusing on major coconut-growing states and measures like replacing non-productive trees with new, high-yielding saplings. “To further enhance competitiveness in coconut production, I propose a coconut promotion scheme to increase production and enhance productivity through various interventions, including replacing non-productive trees with new saplings or plants of varieties in major coconut-growing states,” she said. The finance minister also announced programs dedicated to Indian cashew and cocoa aimed at making India self-reliant in their production and processing. “A dedicated program is proposed for Indian cashew and cocoa to make India self-reliant in raw cashew and coconut production and processing, enhance export competitiveness and transform Indian cashew and Indian cocoa into premium global brands by 2030,” she said. Sitharaman also said, “Sandalwood is closely linked to India’s social and cultural heritage. Our government will partner with state governments to promote focused cultivation and post-harvest processing to restore the glory of the Indian sandalwood ecosystem.” She added, “To rejuvenate old, low-yielding orchards and expand high-density cultivation of walnuts, almonds, and pine nuts, we will support a dedicated program to enhance farmer incomes and in bringing value addition by engaging youth.”

FM Nirmala Sitharaman announced ‘Bharat Vistar’, a multilingual AI tool integrating Agristack and ICAR data, in the Union Budget 2026–27 to boost farm productivity, improve decision-making, and reduce risks for farmers.

What is Bharat Vistar? Indian FM Sitharaman proposes multilingual AI tool for agriculture sector

Presenting India’s Union Budget 2026–27 in Parliament on Sunday (Feb 1), Finance Minister Nirmala Sitharaman made proposals on ease of doing business and tax cuts that are clearly aimed at reducing the burden on cargo handlers and those involved in export–import processes. These proposals come amid global uncertainties affecting supply chain management.&nbsp;<h2>Single window clearance for cargo</h2>As per the budget proposals, a single-window system will be introduced to handle approvals required for cargo clearance from various government agencies. This interconnected digital window for seamless processing of requests will be established by the end of the financial year.But before that, by April this year, clearance of food, drugs, plant, animal and wildlife products will be operationalised on this system. These sectors account for around 70 per cent of interdicted cargo.The new Customs Integrated System (CIS) will be rolled out over the next two years as a single, integrated and scalable platform for all customs processes.Also read: <a href="https://www.wionews.com/india-news/budget-2026-24-82-crore-indians-escaped-multidimensional-poverty-under-modi-govt-sitharaman-tells-parliament-1769926760965">Budget 2026: 24.82 crore Indians escaped multidimensional poverty under Modi govt, Sitharaman tells Parliament</a><h2>Customs duty exemptions amid tariff war</h2>The budget proposed a basic customs duty exemption on components and parts required for the manufacture of civilian, training and other aircraft.It also proposed concessional duty rates to facilitate sales by eligible manufacturing units in Special Economic Zones (SEZs) to the Domestic Tariff Area (DTA).The limit will be increased for duty-free imports of some inputs used for processing seafood products for export. &nbsp;The duty will be reduced to 1–3 per cent of the FOB (free on board) value of the previous year’s export turnover.Duty-free imports of specified inputs for the export of shoe uppers is another proposal.Also read: <a href="https://www.wionews.com/india-news/budget-2026-24-82-crore-indians-escaped-multidimensional-poverty-under-modi-govt-sitharaman-tells-parliament-1769926760965">How does Union Budget 2026 make it easier for NRIs to invest in India?</a><h2>Ease of doing business</h2>As part of ease-of-doing-business measures, the current value cap of ₹1 million per consignment on courier exports will be removed completely.Fish catch by an Indian fishing vessel in the Exclusive Economic Zone (EEZ) or on the high seas will be made duty-free too.<a href="https://www.wionews.com/videos/budget-2026-fulfilling-people-s-dreams-via-stable-growth-1769928666346/embed">https://www.wionews.com/videos/budget-2026-fulfilling-people-s-dreams-via-stable-growth-1769928666346/embed</a><h2>Energy sector to see customs duty and central excise duty easing&nbsp;</h2>Customs duty exemption will be granted for capital goods used in the manufacture of lithium-ion cells for batteries and battery energy storage systems. Capital goods required for the processing of critical minerals in India will also receive duty relief. There will also be duty exemptions on imports of goods required for nuclear power projects until 2035.

India’s Budget 2026: Amid tariff tensions, trade wars and supply chain bottlenecks, Indian finance minister announced proposals focused on easing export–import procedures, faster cargo clearances, and customs duty relief. A digital system to tackle clearances  is also on the cards

Presenting India’s Union Budget 2026–27 in Parliament on Sunday (Feb 1), Finance Minister Nirmala Sitharaman made proposals on ease of doing business and tax cuts that are clearly aimed at reducing the burden on cargo handlers and those involved in export–import processes. These proposals come amid global uncertainties affecting supply chain management. Single window clearance for cargo As per the budget proposals, a single-window system will be introduced to handle approvals required for cargo clearance from various government agencies. This interconnected digital window for seamless processing of requests will be established by the end of the financial year. But before that, by April this year, clearance of food, drugs, plant, animal and wildlife products will be operationalised on this system. These sectors account for around 70 per cent of interdicted cargo. The new Customs Integrated System (CIS) will be rolled out over the next two years as a single, integrated and scalable platform for all customs processes. Also read: Budget 2026: 24.82 crore Indians escaped multidimensional poverty under Modi govt, Sitharaman tells Parliament Customs duty exemptions amid tariff war The budget proposed a basic customs duty exemption on components and parts required for the manufacture of civilian, training and other aircraft. It also proposed concessional duty rates to facilitate sales by eligible manufacturing units in Special Economic Zones (SEZs) to the Domestic Tariff Area (DTA). The limit will be increased for duty-free imports of some inputs used for processing seafood products for export. The duty will be reduced to 1–3 per cent of the FOB (free on board) value of the previous year’s export turnover. Duty-free imports of specified inputs for the export of shoe uppers is another proposal. Also read: How does Union Budget 2026 make it easier for NRIs to invest in India? Ease of doing business As part of ease-of-doing-business measures, the current value cap of ₹1 million per consignment on courier exports will be removed completely. Fish catch by an Indian fishing vessel in the Exclusive Economic Zone (EEZ) or on the high seas will be made duty-free too. https://www.wionews.com/videos/budget-2026-fulfilling-people-s-dreams-via-stable-growth-1769928666346/embed Energy sector to see customs duty and central excise duty easing Customs duty exemption will be granted for capital goods used in the manufacture of lithium-ion cells for batteries and battery energy storage systems. Capital goods required for the processing of critical minerals in India will also receive duty relief. There will also be duty exemptions on imports of goods required for nuclear power projects until 2035.

India’s Budget 2026: Amid tariff tensions, trade wars and supply chain bottlenecks, Indian finance minister announced proposals focused on easing export–import procedures, faster cargo clearances, and customs duty relief. A digital system to tackle clearances &nbsp;is also on the cards

India budget 2026: Single window customs clearance, export–import easing, cargo reforms to address supply chain issues amid global uncertainties

Finance Minister Nirmala Sitharaman on Sunday announced the elimination of the basic customs duty on 17 cancer-related drugs and medicines while presenting the Union Budget 2026–27, offering significant relief to patients. She also added that seven more rare diseases will be included under customs duty relief.&nbsp;The decision is intended to make life-saving treatments more affordable and expand access to essential therapies, especially for patients who depend on imported medicines for advanced and complex cancers.&nbsp;While presenting the Budget in Parliament, Sitharaman noted that the duty waiver would help lower the prices of crucial drugs used in various cancer treatments. Imported oncology medicines currently attract basic customs duty, which substantially raises their retail cost. Removing this levy is expected to result in price reductions, easing a major financial burden for cancer patients.&nbsp;Under the proposal, personal imports of drugs, medicines and foods for special medical purposes used to treat these rare diseases will be exempt from import duties. This measure is likely to particularly help patients who require personalised or specialised therapies that are not produced domestically and are often imported on a named patient basis.&nbsp;WATCH: https://www.wionews.com/videos/budget-2026-fulfilling-people-s-dreams-via-stable-growth-1769928666346/embedd<h3>Sitharaman announces 3 new All India Institute of Ayurveda</h3>Additionally, Finance Minister Sitharaman announced in the Union Budget 2026-27 to set up three new All India Institute of Ayurveda, National Institute of Pharmaceutical Education and Research. The Budget is also expected to reveal measures to sustain growth momentum, maintain fiscal discipline, and contain reforms that could protect the Indian economy from global trade frictions, which include US tariffs.&nbsp;Underlining the economic performance of the NDA government, the Finance Minister stated that the economic trajectory of India since 2014 has been marked by stability, fiscal discipline and sustained growth.&nbsp;"The reform express is well on its way and will maintain its momentum to help us fulfil our duties. Since we assumed office 12 years ago, the country's economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation. This is the result of conscious choices we have made even in times of uncertainty and disruptions," said Sitharaman.&nbsp;Also read: <a href="https://www.wionews.com/business-economy/budget-2026-27-finance-minister-sitharaman-announces-3-new-all-india-institute-of-ayurveda-pharmaceutical-education-and-research-1769928611206">Budget 2026–27: Finance Minister Sitharaman announces 3 new All India Institute of Ayurveda, Pharmaceutical Education and Research</a> &nbsp;

Under the proposal, personal imports of drugs, medicines and foods for special medical purposes used to treat these rare diseases will be exempt from import duties. The decision is intended to make life-saving treatments more affordable and expand access to essential therapies.

Finance Minister Nirmala Sitharaman on Sunday announced the elimination of the basic customs duty on 17 cancer-related drugs and medicines while presenting the Union Budget 2026–27, offering significant relief to patients. She also added that seven more rare diseases will be included under customs duty relief. The decision is intended to make life-saving treatments more affordable and expand access to essential therapies, especially for patients who depend on imported medicines for advanced and complex cancers. While presenting the Budget in Parliament, Sitharaman noted that the duty waiver would help lower the prices of crucial drugs used in various cancer treatments. Imported oncology medicines currently attract basic customs duty, which substantially raises their retail cost. Removing this levy is expected to result in price reductions, easing a major financial burden for cancer patients. Under the proposal, personal imports of drugs, medicines and foods for special medical purposes used to treat these rare diseases will be exempt from import duties. This measure is likely to particularly help patients who require personalised or specialised therapies that are not produced domestically and are often imported on a named patient basis. WATCH: https://www.wionews.com/videos/budget-2026-fulfilling-people-s-dreams-via-stable-growth-1769928666346/embedd Sitharaman announces 3 new All India Institute of Ayurveda Additionally, Finance Minister Sitharaman announced in the Union Budget 2026-27 to set up three new All India Institute of Ayurveda, National Institute of Pharmaceutical Education and Research. The Budget is also expected to reveal measures to sustain growth momentum, maintain fiscal discipline, and contain reforms that could protect the Indian economy from global trade frictions, which include US tariffs. Underlining the economic performance of the NDA government, the Finance Minister stated that the economic trajectory of India since 2014 has been marked by stability, fiscal discipline and sustained growth. "The reform express is well on its way and will maintain its momentum to help us fulfil our duties. Since we assumed office 12 years ago, the country's economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation. This is the result of conscious choices we have made even in times of uncertainty and disruptions," said Sitharaman. Also read: Budget 2026–27: Finance Minister Sitharaman announces 3 new All India Institute of Ayurveda, Pharmaceutical Education and Research

Under the proposal, personal imports of drugs, medicines and foods for special medical purposes used to treat these rare diseases will be exempt from import duties. The decision is intended to make life-saving treatments more affordable and expand access to essential therapies.

Budget 2026–27: Customs duty removed on 17 cancer drugs, expands rare disease relief

No funding has been allocated in the Indian Budget for Iran's Chabahar port, according to the Budget papers. This is a break from the past when India allocated funding for the port.The development comes amid US pressure on Iran and sanctions worry. It is reported that India is winding down from the project amid mounting US sanction concerns.India's Union Budget for 2025-26 had allocated Rs 100 crore (£9.3m) for the development of Iran's Chabahar Port, which was revised to Rs 400 cr.The port, located on Iran's southeastern coast in the Gulf of Oman, has been a key element of New Delhi's regional connectivity strategy, forming part of the International North-South Transport Corridor. India signed a 10-year agreement with Iran in 2024 to operate the Shahid Beheshti terminal, committing investments including $120m for equipment and a $250m credit line for surrounding infrastructure. India has transferred its full committed amount of USD 120 million to the Iranian side, the last tranche being in August 2025. Currently, India has no financial commitment left for the project.&nbsp;The Chabahar project has faced external pressures, including US sanctions on Iran. Washington reimposed restrictions in 2025 but granted India a conditional waiver allowing operations to continue until April 2026. India's involvement in Chabahar dates back more than a decade, with the project seen as vital for diversifying trade routes and strengthening ties with Iran and landlocked neighbours.

The port, located on Iran's southeastern coast in the Gulf of Oman, has been a key element of New Delhi's regional connectivity strategy, forming part of the International North-South Transport Corridor.

No funding has been allocated in the Indian Budget for Iran's Chabahar port, according to the Budget papers. This is a break from the past when India allocated funding for the port. The development comes amid US pressure on Iran and sanctions worry. It is reported that India is winding down from the project amid mounting US sanction concerns. India's Union Budget for 2025-26 had allocated Rs 100 crore (£9.3m) for the development of Iran's Chabahar Port, which was revised to Rs 400 cr. The port, located on Iran's southeastern coast in the Gulf of Oman, has been a key element of New Delhi's regional connectivity strategy, forming part of the International North-South Transport Corridor. India signed a 10-year agreement with Iran in 2024 to operate the Shahid Beheshti terminal, committing investments including $120m for equipment and a $250m credit line for surrounding infrastructure. India has transferred its full committed amount of USD 120 million to the Iranian side, the last tranche being in August 2025. Currently, India has no financial commitment left for the project. The Chabahar project has faced external pressures, including US sanctions on Iran. Washington reimposed restrictions in 2025 but granted India a conditional waiver allowing operations to continue until April 2026. India's involvement in Chabahar dates back more than a decade, with the project seen as vital for diversifying trade routes and strengthening ties with Iran and landlocked neighbours.

The port, located on Iran's southeastern coast in the Gulf of Oman, has been a key element of New Delhi's regional connectivity strategy, forming part of the International North-South Transport Corridor.

No funding allocated for Chabahar port in Indian Budget 2026

Indian Finance Minister Nirmala Sitharaman on Saturday (Feb 1), in the Union Budget 2025–26, announced no change in the income tax slabs for salaried individuals. This means that “nil tax” threshold to ₹12 lakh under the new tax regime stays in place.<h2>Income Tax and the Middle Class</h2>Calling the middle class one of the core drivers of India’s growth story, Sitharaman said in her Budget speech: "Democracy, Demography and Demand are the key support pillars in our journey towards Viksit Bharat. The middle class provides strength for India’s growth. This Government, under the leadership of Prime Minister Modi, has always believed in the admirable energy and ability of the middle class in nation-building."Also read | <a href="https://www.wionews.com/india-news/budget-2026-what-changes-for-india-s-taxpayers-from-itr-deadlines-to-penalties-key-takeaways-1769927655268">Budget 2026: What changes for India's taxpayers, from ITR deadlines to penalties</a>She added that the Narendra Modi government, in recognition of this, has sought to "periodically reduce their tax burden". She pointed out that the NDA government has steadily expanded tax relief for this group, and that the “nil tax” slab has increased over the years."Right after 2014, the ‘Nil tax’ slab was raised to 2.5 lakh, which was further raised to 5 lakh in 2019 and to 7 lakh in 2023. This is reflective of our Government’s trust on the middle-class taxpayers. I am now happy to announce that there will be no income tax payable upto income of 12 lakh (i.e. average income of 1 lakh per month, other than special rate income such as capital gains) under the new regime. This limit will be 12.75 lakh for salaried taxpayers, due to the standard deduction of 75,000."Also read | <a href="https://www.wionews.com/india-news/budget-2026-fm-sitharaman-confirms-india-s-new-income-tax-act-to-take-effect-from-this-date-1769928667367">Budget 2026: Sitharaman says new Income Tax law to take effect from THIS date</a><h2>New income tax slabs</h2>Sitharaman announced the following tax slabs, saying the changes would benefit all taxpayers. "Slabs and rates are being changed across the board to benefit all taxpayers. The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment."Revised tax rate structure as follows:<figure class="table"><table><tbody><tr><td>0-4 Lakh Rupees</td><td>Nil</td></tr><tr><td>4-8 Lakh Rupees</td><td>5 per cent</td></tr><tr><td>8-12 Lakh Rupees</td><td>10 per cent</td></tr><tr><td>12-16 Lakh Rupees</td><td>15 per cent</td></tr><tr><td>16-20 Lakh Rupees</td><td>20 per cent</td></tr><tr><td>20- 24 Lakh Rupees</td><td>25 per cent</td></tr><tr><td>Above 24 Lakh Rupees</td><td>30 per cent</td></tr></tbody></table></figure><a href="https://www.wionews.com/videos/union-budget-2026-focus-on-growth-people-s-aspirations-sabka-saath-sabka-vikas-1769926861323/embed">https://www.wionews.com/videos/union-budget-2026-focus-on-growth-people-s-aspirations-sabka-saath-sabka-vikas-1769926861323/embed</a>&nbsp;

Finance Minister Nirmala Sitharaman kept income tax slabs unchanged in Budget 2025–26, retaining the “nil tax” limit at ₹12 lakh under the new regime. Here's all you need to know.

Indian Finance Minister Nirmala Sitharaman on Saturday (Feb 1), in the Union Budget 2025–26, announced no change in the income tax slabs for salaried individuals. This means that “nil tax” threshold to ₹12 lakh under the new tax regime stays in place. Income Tax and the Middle Class Calling the middle class one of the core drivers of India’s growth story, Sitharaman said in her Budget speech: "Democracy, Demography and Demand are the key support pillars in our journey towards Viksit Bharat. The middle class provides strength for India’s growth. This Government, under the leadership of Prime Minister Modi, has always believed in the admirable energy and ability of the middle class in nation-building." Also read | Budget 2026: What changes for India's taxpayers, from ITR deadlines to penalties She added that the Narendra Modi government, in recognition of this, has sought to "periodically reduce their tax burden". She pointed out that the NDA government has steadily expanded tax relief for this group, and that the “nil tax” slab has increased over the years. "Right after 2014, the ‘Nil tax’ slab was raised to 2.5 lakh, which was further raised to 5 lakh in 2019 and to 7 lakh in 2023. This is reflective of our Government’s trust on the middle-class taxpayers. I am now happy to announce that there will be no income tax payable upto income of 12 lakh (i.e. average income of 1 lakh per month, other than special rate income such as capital gains) under the new regime. This limit will be 12.75 lakh for salaried taxpayers, due to the standard deduction of 75,000." Also read | Budget 2026: Sitharaman says new Income Tax law to take effect from THIS date New income tax slabs Sitharaman announced the following tax slabs, saying the changes would benefit all taxpayers. "Slabs and rates are being changed across the board to benefit all taxpayers. The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment." Revised tax rate structure as follows: 0-4 Lakh Rupees Nil 4-8 Lakh Rupees 5 per cent 8-12 Lakh Rupees 10 per cent 12-16 Lakh Rupees 15 per cent 16-20 Lakh Rupees 20 per cent 20- 24 Lakh Rupees 25 per cent Above 24 Lakh Rupees 30 per cent https://www.wionews.com/videos/union-budget-2026-focus-on-growth-people-s-aspirations-sabka-saath-sabka-vikas-1769926861323/embed

Finance Minister Nirmala Sitharaman kept income tax slabs unchanged in Budget 2025–26, retaining the “nil tax” limit at ₹12 lakh under the new regime. Here's all you need to know.

What Budget 2026 means for your salary: Is there a change in income tax slabs? All you need to know

Indian Finance Minister presented the Union Budget 2026-27 in the Lok Sabha on Sunday (Feb 1). During the presentation, Nirmala Sitharaman set the fiscal deficit target at 4.3 per cent of GDP for 2026–27, slightly lower than the 4.4 per cent target for 2025–26. She also said that she has fulfilled her commitment made in the year 2021-22 to reduce the fiscal deficit below 4.5% of GDP by 2025-26“I am happy to inform this August House that I have fulfilled my commitment made in 2021-22 to reduce fiscal deficit below 4.5% of GDP by 2025-26,” FM Sitharaman said.She further said, “Since we assumed office 12 years ago, India’s economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation.” She added that India will balance ambition with inclusion going ahead.<h2>What is fiscal deficit?</h2>Fiscal deficit is the difference between the total revenue and total expenditure of the government in a financial year. It indicates how much borrowing is needed by the government to meet its expenses and is expressed as a percentage of GDP to show the level of fiscal discipline in the economy.Fiscal deficit also reflects the government’s financial health and discipline. A manageable deficit helps the government in controlling inflation and keeping borrowing costs low. It also supports the stability of the currency and boosts the confidence of investors. In contrast, an excessive deficit can strain the country’s economy and slow long-term growth.During the Union Budget 2026-27 speech, the finance minister In her speech, Sitharaman also highlighted that the government has Atmanirbharta (self-reliance) as a north star, which has resulted in a high growth rate of 7 per cent.“Since we assumed office 12 years ago, India's economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation,” Sitharaman said in her ninth consecutive Union budget presentation in the Parliament.

FM Nirmala Sitharaman presented the Union Budget 2026–27, setting the fiscal deficit at 4.3% of GDP. She said the government met its 2021 pledge on fiscal deficit.

Indian Finance Minister presented the Union Budget 2026-27 in the Lok Sabha on Sunday (Feb 1). During the presentation, Nirmala Sitharaman set the fiscal deficit target at 4.3 per cent of GDP for 2026–27, slightly lower than the 4.4 per cent target for 2025–26. She also said that she has fulfilled her commitment made in the year 2021-22 to reduce the fiscal deficit below 4.5% of GDP by 2025-26 “I am happy to inform this August House that I have fulfilled my commitment made in 2021-22 to reduce fiscal deficit below 4.5% of GDP by 2025-26,” FM Sitharaman said. She further said, “Since we assumed office 12 years ago, India’s economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation.” She added that India will balance ambition with inclusion going ahead. What is fiscal deficit? Fiscal deficit is the difference between the total revenue and total expenditure of the government in a financial year. It indicates how much borrowing is needed by the government to meet its expenses and is expressed as a percentage of GDP to show the level of fiscal discipline in the economy. Fiscal deficit also reflects the government’s financial health and discipline. A manageable deficit helps the government in controlling inflation and keeping borrowing costs low. It also supports the stability of the currency and boosts the confidence of investors. In contrast, an excessive deficit can strain the country’s economy and slow long-term growth. During the Union Budget 2026-27 speech, the finance minister In her speech, Sitharaman also highlighted that the government has Atmanirbharta (self-reliance) as a north star, which has resulted in a high growth rate of 7 per cent. “Since we assumed office 12 years ago, India's economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation,” Sitharaman said in her ninth consecutive Union budget presentation in the Parliament.

FM Nirmala Sitharaman presented the Union Budget 2026–27, setting the fiscal deficit at 4.3% of GDP. She said the government met its 2021 pledge on fiscal deficit.

‘I have fulfilled my commitment...’: Indian FM pegs fiscal deficit at 4.3% of GDP for FY2026-27

Finance Minister Nirmala Sitharaman announced in the Union Budget 2026-27 in the Lok Sabha on Sunday (February 1) to set up three new All India Institute of Ayurveda, &nbsp;National Institute of Pharmaceutical Education and Research. The Budget is also expected to reveal measures to sustain growth momentum, maintain fiscal discipline, and contain reforms that could protect the Indian economy from global trade frictions, which include US tariffs.&nbsp;Underlining the economic performance of the NDA government, the Finance Minister stated that the economic trajectory of India since 2014 has been marked by stability, fiscal discipline and sustained growth.&nbsp;"The reform express is well on its way and will maintain its momentum to help us fulfil our duties. Since we assumed office 12 years ago, the country's economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation. This is the result of conscious choices we have made even in times of uncertainty and disruptions," said Sitharaman.&nbsp;She stated that by keeping Aatmanirbharta as a core guiding principle, the government has bolstered domestic manufacturing, ensuring energy security and reducing reliance on critical imports. She noted that these initiatives have helped achieve a growth rate of about 7 per cent while driving significant progress in poverty reduction and improving people’s quality of life.&nbsp;"Keeping Aatmanirbharta as a lodestar, we have built domestic manufacturing capacity, energy security and reduced critical import dependencies. Simultaneously, we have ensured that citizens benefit from every action of the Government, undertaking reforms to support employment generation, agricultural productivity, household purchasing power and universal services to people. These measures have delivered a high growth rate of around 7% and helped us make substantial strides in poverty reduction and improvement in the lives of our people," said Sitharaman.<h3>Nirmala Sitharaman's 9th budget</h3>This will be her ninth budget presentation in a row, with the Union Cabinet led by Prime Minister Narendra Modi expected to clear the FY 2026–27 Budget. The Union Budget is now presented on February 1 each year to allow for timely parliamentary approval and smooth rollout at the beginning of the financial year on April 1.&nbsp;Earlier, this was not the practice. Under British rule, the Union Budget was presented on the last working day of February, which often delayed approval of schemes and policies before the new financial year began. As a result, government departments and businesses had limited time to plan or adapt to the changes announced in the Budget.&nbsp;Also read: <a href="https://www.wionews.com/india-news/budget-2026-24-82-crore-indians-escaped-multidimensional-poverty-under-modi-govt-sitharaman-tells-parliament-1769926760965">Budget 2026: 24.82 crore Indians escaped multidimensional poverty under Modi govt, Sitharaman tells Parliament</a>

The Budget is also expected to reveal measures to sustain growth momentum, maintain fiscal discipline, and contain reforms that could protect the Indian economy from global trade frictions, which include US tariffs.

Finance Minister Nirmala Sitharaman announced in the Union Budget 2026-27 in the Lok Sabha on Sunday (February 1) to set up three new All India Institute of Ayurveda, National Institute of Pharmaceutical Education and Research. The Budget is also expected to reveal measures to sustain growth momentum, maintain fiscal discipline, and contain reforms that could protect the Indian economy from global trade frictions, which include US tariffs. Underlining the economic performance of the NDA government, the Finance Minister stated that the economic trajectory of India since 2014 has been marked by stability, fiscal discipline and sustained growth. "The reform express is well on its way and will maintain its momentum to help us fulfil our duties. Since we assumed office 12 years ago, the country's economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation. This is the result of conscious choices we have made even in times of uncertainty and disruptions," said Sitharaman. She stated that by keeping Aatmanirbharta as a core guiding principle, the government has bolstered domestic manufacturing, ensuring energy security and reducing reliance on critical imports. She noted that these initiatives have helped achieve a growth rate of about 7 per cent while driving significant progress in poverty reduction and improving people’s quality of life. "Keeping Aatmanirbharta as a lodestar, we have built domestic manufacturing capacity, energy security and reduced critical import dependencies. Simultaneously, we have ensured that citizens benefit from every action of the Government, undertaking reforms to support employment generation, agricultural productivity, household purchasing power and universal services to people. These measures have delivered a high growth rate of around 7% and helped us make substantial strides in poverty reduction and improvement in the lives of our people," said Sitharaman. Nirmala Sitharaman's 9th budget This will be her ninth budget presentation in a row, with the Union Cabinet led by Prime Minister Narendra Modi expected to clear the FY 2026–27 Budget. The Union Budget is now presented on February 1 each year to allow for timely parliamentary approval and smooth rollout at the beginning of the financial year on April 1. Earlier, this was not the practice. Under British rule, the Union Budget was presented on the last working day of February, which often delayed approval of schemes and policies before the new financial year began. As a result, government departments and businesses had limited time to plan or adapt to the changes announced in the Budget. Also read: Budget 2026: 24.82 crore Indians escaped multidimensional poverty under Modi govt, Sitharaman tells Parliament

The Budget is also expected to reveal measures to sustain growth momentum, maintain fiscal discipline, and contain reforms that could protect the Indian economy from global trade frictions, which include US tariffs.

Budget 2026–27: Finance Minister Sitharaman announces 3 new All India Institute of Ayurveda,  Pharmaceutical Education and Research

Finance Minister Nirmala Sitharaman on Sunday (Feb 1) used the Union Budget 2026–27 to roll out a wide set of changes aimed at making India’s tax system simpler, more digital, and less intimidating for ordinary taxpayers. The most immediate change is for small taxpayers seeking lower or nil tax deduction certificates. Sitharaman announced that this will now be handled through a fully automated, rule-based system, removing the need to deal with tax officers altogether.For investors, there is more relief. Depositories will now be allowed to directly collect Form 15G and 15H and forward them to companies, easing compliance for people who hold securities across multiple firms.Also read | <a href="https://www.wionews.com/india-news/what-budget-2026-means-for-your-salary-is-there-a-change-in-income-tax-slabs-all-you-need-to-know-middle-class-union-budget-2026-1769931020866">What Budget 2026 means for your salary: Is there a change in income tax slabs?</a><h2>Longer window to fix mistakes</h2>Taxpayers will also get more breathing room to revise returns. The deadline for revising ITRs has been extended from December 31 to March 31, with a small fee.The filing calendar will now be staggered. Individuals filing ITR-1 and ITR-2 will still follow the July 31 deadline, while non-audit businesses and trusts will be allowed to file till August 31.<h2>Cutting down tax harassment</h2>A major theme of this Budget is reducing litigation. Sitharaman proposed merging assessment and penalty orders into a single decision to avoid multiple proceedings. She also cut the mandatory pre-payment during appeals from 20 per cent to 10 per cent.Also read | <a href="https://www.wionews.com/india-news/budget-2026-fm-sitharaman-confirms-india-s-new-income-tax-act-to-take-effect-from-this-date-1769928667367">Budget 2026: Sitharaman says new Income Tax law to take effect from THIS date</a>Taxpayers will no longer pay interest on penalty amounts while their appeal is pending. "There will be no interest liability on the taxpayer on the penalty amount for the period of appeal before the first appellate authority, irrespective of the outcome of the appeal process," said Sitharaman.In another big change, taxpayers can now update returns even after reassessment starts, by paying an extra 10 per cent tax. The updated return will become the final basis for proceedings. “As an additional measure for reducing litigation, I propose to allow taxpayers to update their returns even after reassessment proceedings have been initiated and an additional 10% tax rate over and above the rate applicable for the relevant year. The assessing officer will use only this updated return in his proceedings.”<a href="https://www.wionews.com/videos/union-budget-2026-focus-on-growth-people-s-aspirations-sabka-saath-sabka-vikas-1769926861323/embed">https://www.wionews.com/videos/union-budget-2026-focus-on-growth-people-s-aspirations-sabka-saath-sabka-vikas-1769926861323/embed</a>&nbsp;

Budget 2026 brings a quieter but important shift in how Indians deal with taxes. FM Nirmala Sitharaman is pushing for fewer human interfaces, longer timelines to fix mistakes, and less litigation. Scroll down to see what actually affects you.

Finance Minister Nirmala Sitharaman on Sunday (Feb 1) used the Union Budget 2026–27 to roll out a wide set of changes aimed at making India’s tax system simpler, more digital, and less intimidating for ordinary taxpayers. The most immediate change is for small taxpayers seeking lower or nil tax deduction certificates. Sitharaman announced that this will now be handled through a fully automated, rule-based system, removing the need to deal with tax officers altogether. For investors, there is more relief. Depositories will now be allowed to directly collect Form 15G and 15H and forward them to companies, easing compliance for people who hold securities across multiple firms. Also read | What Budget 2026 means for your salary: Is there a change in income tax slabs? Longer window to fix mistakes Taxpayers will also get more breathing room to revise returns. The deadline for revising ITRs has been extended from December 31 to March 31, with a small fee. The filing calendar will now be staggered. Individuals filing ITR-1 and ITR-2 will still follow the July 31 deadline, while non-audit businesses and trusts will be allowed to file till August 31. Cutting down tax harassment A major theme of this Budget is reducing litigation. Sitharaman proposed merging assessment and penalty orders into a single decision to avoid multiple proceedings. She also cut the mandatory pre-payment during appeals from 20 per cent to 10 per cent. Also read | Budget 2026: Sitharaman says new Income Tax law to take effect from THIS date Taxpayers will no longer pay interest on penalty amounts while their appeal is pending. "There will be no interest liability on the taxpayer on the penalty amount for the period of appeal before the first appellate authority, irrespective of the outcome of the appeal process," said Sitharaman. In another big change, taxpayers can now update returns even after reassessment starts, by paying an extra 10 per cent tax. The updated return will become the final basis for proceedings. “As an additional measure for reducing litigation, I propose to allow taxpayers to update their returns even after reassessment proceedings have been initiated and an additional 10% tax rate over and above the rate applicable for the relevant year. The assessing officer will use only this updated return in his proceedings.” https://www.wionews.com/videos/union-budget-2026-focus-on-growth-people-s-aspirations-sabka-saath-sabka-vikas-1769926861323/embed

Budget 2026 brings a quieter but important shift in how Indians deal with taxes. FM Nirmala Sitharaman is pushing for fewer human interfaces, longer timelines to fix mistakes, and less litigation. Scroll down to see what actually affects you.

Budget 2026: What changes for India's taxpayers, from ITR deadlines to penalties | Key takeaways

Union Finance Minister Nirmala Sitharaman will present her ninth consecutive budget today. Every year, income tax is hyped in the Union Budget, as it's one of the most important sources of the government's revenue. While taxpayers and the middle class eagerly look for relief, it will directly impact their disposable income and discretionary spending. Since 1962, the old tax regime has been in practice with little bit modification in tax rates, adjusting to growth and inflation. However, since 2020, the Union Government has introduced the optional new tax regime. Taxpayers will be keen on whether the government scraps the old tax regime altogether. Further, the new and simplified Income Tax Act is set to come into effect on April 1, 2026, for easier compliance.&nbsp;Also Read: <a href="https://www.wionews.com/world/gold-silver-flash-crash-explained-record-highs-1769771230629">Gold and silver prices fall after historic rally: What is causing flash crash?</a><h2>Old tax regime vs new tax regime- Which one is better?</h2>Both tax regimes have different slab rates, with modifications in exemptions. The slab rates in the old tax regime are higher, new tax regime has lower and more progressive slabs.Slab rates of the old tax regime&nbsp;

<figure class="table"><table><tbody><tr><td>Income tax slabs</td><td>Income tax rates</td></tr><tr><td>Up to Rs. 2.5 Lakhs</td><td>Nil</td></tr><tr><td>Rs 2.5 Lakhs to Rs 5 Lakhs</td><td>5%&nbsp;</td></tr><tr><td>Rs 5 Lakhs to Rs 10 Lakhs</td><td>20%</td></tr><tr><td>Above Rs 10 Lakhs</td><td>30%</td></tr></tbody></table></figure>

Slab rates of the new tax regime

<figure class="table"><table><tbody><tr><td>Income tax slabs</td><td>Income tax rates</td></tr><tr><td>Up to Rs 4 lakhs</td><td>NIL</td></tr><tr><td>Rs 4 lakhs - Rs 8 lakhs</td><td>5%</td></tr><tr><td>Rs 8 lakhs- Rs 12 lakhs</td><td>10%</td></tr><tr><td>Rs 12 lakhs - Rs 16 lakhs</td><td>15%</td></tr><tr><td>Rs 16 lakhs - Rs 20 lakhs</td><td>20%</td></tr><tr><td>Rs 20 lakhs - Rs 24 lakhs</td><td>25%</td></tr><tr><td>Above Rs. 24 lakhs</td><td>30%</td></tr></tbody></table></figure>

&nbsp;Standard deductionsA person with a salaried income can claim a standard deduction of Rs 50,000 under the old tax regime, compared to the &nbsp;Rs 75,000 standard deduction of the new tax regime.Other exemptions&nbsp;The new tax regime has done away with some of the exemptions and deductions, such as HRA, home loan interest under Section 80 EE, and Section 80EEA, investments under 80C, medical insurance under 80D, and education loan under 80E, etc., that were available under the old tax regime. Some controversial omissions are also there in the new regime, such as disability, charity, and donation to a political party.&nbsp;Which one is better?Each one has its own advantages. However, under the new tax regime, there is a tax-free rebate under section 87A up to Rs 12 lakh, which was Rs 5 lakh under the old tax regime. So, for a salaried employee with minimal deduction, the new tax regime is beneficial. But with a substantial tax-saving investment and claiming major deductions, the old tax regime is better.&nbsp;

Old tax regime or new tax regime? Here’s a detailed comparison of income tax slabs, deductions, exemptions, and which option works better for salaried taxpayers ahead of Budget 2026.

Union Finance Minister Nirmala Sitharaman will present her ninth consecutive budget today. Every year, income tax is hyped in the Union Budget, as it's one of the most important sources of the government's revenue. While taxpayers and the middle class eagerly look for relief, it will directly impact their disposable income and discretionary spending. Since 1962, the old tax regime has been in practice with little bit modification in tax rates, adjusting to growth and inflation. However, since 2020, the Union Government has introduced the optional new tax regime. Taxpayers will be keen on whether the government scraps the old tax regime altogether. Further, the new and simplified Income Tax Act is set to come into effect on April 1, 2026, for easier compliance. Also Read: Gold and silver prices fall after historic rally: What is causing flash crash? Old tax regime vs new tax regime- Which one is better? Both tax regimes have different slab rates, with modifications in exemptions. The slab rates in the old tax regime are higher, new tax regime has lower and more progressive slabs. Slab rates of the old tax regime

Old tax regime or new tax regime? Here’s a detailed comparison of income tax slabs, deductions, exemptions, and which option works better for salaried taxpayers ahead of Budget 2026.

Union Budget 2026: Old tax regime vs new tax regime, which is better for taxpayers?