India 2026 Budget Targets Manufacturing and Market Taxes as Fiscal Consolidation Slows
Finance Minister Nirmala Sitharaman presented the 2026 budget with a focus on manufacturing and higher derivative taxes, sparking a decline in equity markets.
Insights:
Finance Minister Nirmala Sitharaman nirmala sitharamanpresented India 
IN's annual budget on 1 February 2026. This fiscal plan prioritises scaling up manufacturing across seven sectors, including pharmaceuticals, semiconductors, rare-earth magnets, chemicals, capital goods, textiles, and sports goods. To support these goals, the government will review 200 legacy industrial clusters and has established a high-level committee to review financial sector rules. Prime Minister Narendra Modi narendra modi aims to grow manufacturing from its current level of under 20% of GDP.
IN's annual budget on 1 February 2026. This fiscal plan prioritises scaling up manufacturing across seven sectors, including pharmaceuticals, semiconductors, rare-earth magnets, chemicals, capital goods, textiles, and sports goods. To support these goals, the government will review 200 legacy industrial clusters and has established a high-level committee to review financial sector rules. Prime Minister Narendra Modi narendra modi aims to grow manufacturing from its current level of under 20% of GDP.
