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 India's Finance Minister Nirmala Sitharaman presented the 2026/2027 budget to parliament on Sunday aiming to lift manufacturing and generate jobs in the world's most populous country.

Here are the highlights:

* Finance Minister says India faces disruptive external environment, must stay deeply integrated with global markets

* Says to sustain reform momentum, focus on strong finance sector and new technology

GROWTH, DEBT TO GDP, FISCAL DEFICIT

* Nominal GDP growth for 2026/27 estimated at 10% vs 8% growth estimated in 2025/26

*Economic survey report ahead of budget projects 6.8%-7.2% growth for 2026/27 vs 7.4% for the current fiscal year

* Federal government's debt to GDP ratio target for 2026/27 set at 55.6%, down from estimated 56.1% of GDP in current fiscal year

*Fiscal deficit target for 2026/27 set at 4.3% of GDP against 4.4% for current fiscal year

*Gross federal government borrowing for 2026/27 seen at 17.2 trillion rupees ($187.63 billion)

*Net federal government borrowing for 2026/27 seen at 11.7 trillion rupees

INCREASE IN SPENDING

*Proposes to increase capital spending to 12.2 trillion rupees ($133.08 billion) in 2026/27 from downwardly revised 10.96 trillion rupees in 2025/26

*Total budget spending for 2026/27 raised to 53.47 trillion rupees, from downwardly revised 49.65 trillion rupees in 2025/26

*Defence budget for 2026/27 seen at 5.95 trillion rupees vs revised 5.68 trillion rupees for 2025/26

*Education budget for 2026/27 seen at 1.39 trillion rupees vs revised 1.22 trillion rupees for 2025/26

Health budget for 2026/27 seen at 1.05 trillion rupees vs revised 946 billion rupees for 2025/26

MANUFACTURING PUSH

*To scale up manufacturing in seven sectors, push infrastructure

* To develop India as global pharma manufacturing hub

* To allocate 100 billion rupees for bio-pharma over 5 years

* Proposes to increase 400 billion rupees spending for semi-conductor manufacturing

* Proposes to develop seven high-speed rail corridors

* Proposes spending 200 billion rupees for carbon emission cutting programmes over 5 years

* Proposes to set up 100 billion rupees growth fund to support small businesses

REVENUE RECEIPTS

* Net federal tax receipts seen at 28.67 trillion rupees in 2026/27 vs revised 26.75 trillion rupees in 2025/26

* Dividends from Reserve Bank of India, financial institutions seen at 3.16 trillion rupees in 2026/27 vs revised 3.05 trillion rupees in 2025/26

ECONOMIC REFORMS

* To set up high level committee to suggest banking reforms

* Proposes allowing people outside India to invest in equity of listed companies

* To increase investment limit for individual PROIs (Persons resident outside India) to 10% from 5%

* Overall investment limit for all PROIs raised to 24% from 10%

* Proposes new framework with suitable access to funds and derivatives on corporate bond indices

* Foreign firms using India-based data centres for global cloud services get tax holiday until 2047

*Non-residents supplying capital goods or equipment to toll manufacturers in specific zones to get 5-year income tax exemption

HIKE IN TAXES

*Proposes to raise the securities transaction tax (STT)on futures to 0.05% from 0.02% and to 0.15% from 0.1% on options

CUT IN IMPORT TARIFFS

* Proposes to raise limit for duty free imports for processing seafood exports to 3%

*Extend Basic customs duty (BCD) exemption to capital goods used to manufacture lithium ion batteries

*Provide BCD exemption to capital goods for processing critical minerals in India

*Tariffs on nuclear power inputs and renewable-energy critical minerals scrapped, from current rate of 7.5%

* Import tariffs on 17 cancer drugs scrapped

* Tariff on all dutiable goods imported for personal reduced to 10% from 20%

FUNDS FOR STATES

* Federal government to share 41% of common tax pool with states for 2026/31 period, as recommended by the finance commission

($1 = 91.6710 Indian rupees)