Union Budget 2026: Highlights On MSMEs, Manufacturing And ITR

Economic Growth: GDP will increase between 6.8 percent and 7.2 percent while fiscal deficit will decrease to 4.3 percent and capital expenditure will rise to ₹12.2 lakh crore.

Income Tax Relief: The ITR filing deadline now extends to March 31 from its previous deadline of December 31 while taxpayers must pay a reduced TCS rate of 2 percent instead of 5 percent for educational and medical expenses and the tax slabs will remain unchanged.

Infrastructure Boom: The new high-speed rail corridors include 7 routes which connect Mumbai to Pune and Delhi to Varanasi and 20 National Waterways and development activities focus on Tier II and III cities.

Semiconductor Push: The India Semiconductor Mission 2.0 program receives funding of ₹40,000 crore while cloud companies enjoy tax holiday benefits until 2047 and four states develop rare earth corridors.

Healthcare Revolution: The BioPharma Shakti initiative receives ₹10,000 crore of funding and 1,000 clinical trial sites develop Regional Medical Hubs for medical tourism.

Defence Upgrade: The budget now provides ₹7.85 lakh crore for modernization and national security purposes.

Agriculture & Rural: The 500 new fisheries reservoirs will provide farmers with the Bharat-VISTAAR AI tool and blue economy support will assist women cooperatives.

Education & Skills: The 50,000 Atal Tinkering Labs will establish their presence in schools while the AI Centre for education receives ₹500 crore and the Divyang Kaushal Yojana provides support for specially-abled individuals.

MSME & Manufacturing: The SME Growth Fund has a budget of ₹10,000 crore while the textile sector will develop mega parks and Corporate Mitras will help businesses with regulatory compliance. 

Social Inclusion: The establishment of girls’ hostels in every district will help expand the Lakhpati Didi program while NRIs receive permission to make direct investments in Indian equities.

India Budget 2026 Impact: Items That Got Cheaper, Costlier, or Remained Same

Let’s try to understand in simple terms what became cheaper, costlier, and what remained unchanged for consumers and businesses:

Things That Got Cheaper:

• The complete or partial customs duty exemption resulted in lower prices for several essential medications used to treat cancer and rare diseases. 
• The decreased import tariffs on essential medicine components will lead to lower medical expenses for diabetes and critical illness treatment. 
• The reduction of import duties on component parts will lead to lower prices for smartphones tablets and certain electronic appliances. 
• The cost of electric vehicle batteries and solar energy equipment decreased because customs duty relief made these products more affordable which helps to promote clean energy usage. 
• The TCS rate cut to 2% under the Liberalised Remittance Scheme resulted in lower expenses for international education and medical treatment. 
• The TCS rate reduction led to lower costs for foreign travel packages. 
• Aviation leather seafood and manufacturing inputs will experience price reductions because duty exemptions now apply to essential raw materials. 
• The reduced costs of biogas-blended CNG and green energy inputs promote the adoption of sustainable fuel alternatives.

Items That Got Costlier:

• The price of alcoholic drinks increased because TCS rates went up which resulted in higher retail prices. 
• The trading expenses for futures and options increased because of the higher Securities Transaction Tax. 
• The government increased customs duties on certain imported goods and chemicals to encourage domestic production. 
• The price increase of commercial LPG cylinders affected restaurants and hotels and small businesses. 
• The price of luxury and premium imported products which include certain watches and equipment will increase because of lower tax exemptions. 
• The cost of coffee vending machines and roasting machines and brewing machines increased after the government stopped providing tax advantages.

Things That Remained Same:

• Salaried workers and middle-class taxpayers received stable tax conditions because income tax brackets maintained their existing rates. 
• The budget did not implement any direct tax changes for petrol and diesel fuel prices. 
• Households maintained their ability to access domestic LPG services without any changes to the program. 
• The tax provisions for standard deductions and core personal tax elements remained unchanged at their existing levels. 
• Direct tax and duty changes did not impact the prices of basic consumer goods and daily essentials.

Note: For completed details on the newly announced budget 2026, you can look in-to this resource pdf for detailed information. (Source)

Conclusion

The budget in India for 2026 exceeds the Union Budget of 2024-2025 because it allocates funds to essential sectors including healthcare and clean energy and education and manufacturing. The program reduces essential medicine and service costs for consumers while it raises prices on particular luxury and commercial products. The 2026 budget intends to provide consumer relief while establishing economic growth and stability for the future.

While Budget 2026 creates new opportunities, the real benefit lies in timely compliance. Regible Corporate LLP helps startups, professionals, and MSMEs stay compliant and focus on growth.

FAQs: Union 2026 Budget

What are the key points on union budget 2026 for India?

This year the union budget is focused on overall economic growth, industry expansion, startup push, MSMEs benefits, and more spending on education and infrastructure.

How does the 2026 budget impact startups and small businesses?

Startups and small businesses get tax benefits, better funding access, compliance simplification, and ease of doing business.

What type of startup benefits are announced in the 2026 union budget?

Startups get tax benefits, including tax incentives, extended exemptions, investor and funding support and regulatory relief.

Are MSMEs and entrepreneurs affected by the new budget announcement?

Yes, 2026 MSME benefits support entrepreneurs through lower compliance burden, easier creditors, and business-friendly environment.

Are there any changes in income tax or corporate tax in the latest budget 2026?

Corporate tax and income tax update in the new budget 2026 aims to reduce tax burdens from people and encourages them to expand their businesses.

What GST changes were made in the 2026 budget for businesses?

GST change in budget 2026 made easy return filing, improves cash flow for businesses, and reduces disputes overall.

Does budget 2026 have any impact on the company registration in India?

Yes, but it got more convenient like faster approvals, digital process, and with simplified compliances.

Are there any new business rules introduced in Budget 2026?

New business rules including digital reporting, regulatory transparency, and more focuses on simplified compliances.

How does the new budget announcement affect mandatory licenses like PSARA, FSSAI, and more?

No, there are no significant changes on the mandatory licenses like PSARA, FSSAI, etc. They are updating their rules separately, not through budget.

What is the impact of budget 2026 on NGO’s, Society and trusts?

The union budget 2026 did not announce any major benefits for NGO’s, society, or trusts. 

What was introduced in the budget announcement for education and development?

The Budget 2026 extended support for education and skill development through funding of 500cr because overall social growth was modest and matters most.