India is on a journey towards becoming a developed country by 2047. And the recent policy announcement by the Finance Minister under Viksit Bharat 2047 sets a clear roadmap for it.
In today’s blog post, we will give you details of the policy announcement under Viksit Bharat for FY 2026 and 2027.
What is Viksit Bharat 2047?
Viksit Bharat 2047 is a long-term Government of India project to make India a developed nation by the year 2047, on the occasion of 100 years of Indian independence. Viksit Bharat 2047 consists of three words, where Viksit refers to developed nations, Bharat refers to India, and 2047 refers to the 100 years of Independence. This will turn India into a 30 trillion dollar economy.
Pillars of the Budget
The government’s three pillars of the budget include the following:
1. Growth Acceleration: The objective is to increase the growth of the economy by increasing production, for which a huge amount of budget is allocated to develop infrastructure, railways, etc.
2. Capability Building: The government is focusing on developing the capabilities of people, industries, and MSMEs by establishing a new textile park and skill development courses.
3. Medical Access:The government has decided to make cancer medicines affordable and ensure that the cost-effective treatments are accessible for every region and segment of society.
| Category | Key Policy Announcements (Budget 2026–27) |
|---|---|
| Macroeconomic and Fiscal | Capital Expenditure increased to ₹12.2 lakh crore for FY27Fiscal deficit targeted at 4.3% of GDPContinued focus on fiscal discipline and public investment |
| Infrastructure and Connectivity | Seven High-Speed Rail Corridors announcedDedicated freight corridors and 20 new National Waterways operationalisedInfrastructure Risk Guarantee Fund |
| Manufacturing and Industry | India Semiconductor Mission (ISM 2.0) launchedBioPharma SHAKTI – ₹10,000 CrElectronics Components, Container Manufacturing and Chemical ParksRare Earth Corridors and high-tech inputs focusRevival of 200 legacy industrial clusters |
| MSMEs and Enterprise Support | ₹10,000 Cr SME Growth Fund₹2,000 Cr top-up to Self-Reliant India FundMandatory TReDS onboarding for CPSEsRemoved ₹10 lakh export value cap on courier exports |
| Tax and Compliance Reforms | New Income Tax Act, 2025 (from April 1, 2026)Extended ITR deadlines and tax filing reformsReduced TCS on overseas tours, education and medical remittances to 2%Tax holiday for cloud and IT services till 2047Increase in STT on derivatives |
| Agriculture and Rural Development | Launched Bharat-VISTAAR digital advisory platform for farmersSupport for high‐value crops and livestock value chains |
| Healthcare and Human Capital | Expanded healthcare hubs and training of 1.5 lakh caregiversNew regional hubs for medical value tourismThree new All India Institutes of Ayurveda |
| Education and Skills | AVGC Content Creator Labs in 15,000 schools & 500 collegesGirl’s hostels in every district and education infrastructure |
| Urban and Regional Development | City Economic Regions (CER) focus with dedicated funding |
| Digital and Services Economy | High-powered committee for services sector growthCloud and data centre incentives |
Budget 2026 – Key Policy Announcement
The policy announcement in the Budget 2026 under the Viksit Bharat framework is as follows:
1. Capex
The government has raised the capital expenditure budget of INR 12.2 Lakh crore in the following FY 2026-27. This has been shifted to concentrate on the development of infrastructure, which includes transport and logistics. The government is focusing on Tier-II and Tier-III city development and a city economic region was launched with a provision of 5000 Crore per region for the next 5 years.
2. Connectivity
The government has suggested seven high-speed railway networks, and another INR 10,000 crore of manufacturing shipping containers, which are to be developed domestically. Such efforts will improve transport and employment.
3. Manufacturing of Semiconductors and Electronics
An additional 40,000 crore INR has been allotted to increase the supply chain and manufacturing of semiconductors under Electronics Components Manufacturing Scheme (ECMS).
4. Rare Earth Metals
The government is setting up dedicated corridors to promote the mining, processing, and extraction of rare earth metals, to reduce dependency on imports for the components used in EV and the defence sector.
5. BioPharma
An initiative has been adopted by the government through a budget of 10,000 crore INR to promote India as a global hub for biologics and biosimilars. It includes the enhancement of research and manufacturing facilities.
6. Small and Medium Enterprises Growth
A 10,000 crore INR fund has been set up to promote self-reliant India Fund with an objective to boost the scale and export of smaller enterprises.
7. Healthcare Sector
This budget speech has announced relief for cancer patients, stating that 17 cancer medicines will be exempt from basic customs duty. This will directly reduce the price of medicines and make them affordable for cancer patients. The government will also expand the network of district hospitals and Trauma care centres.
8. Carbon Capture
A 20,000 crore INR fund has been allocated for carbon capture in order to accelerate India’s green transition.
9. Textile Sector
The Finance Minister has announced setting up mega textile plants in order to strengthen the textile sector. The Mahatma Gandhi Swaraj initiative was also announced to provide training and skill development for Khadi and handloom artists.
10. New Income Tax Act
From April 2026, a new Income Tax bill will be implemented, which will simplify tax structures, forms and make compliances easy for individuals and businesses.
Conclusion
On a concluding note, in the recent budget announcement, the Finance Minister of India has proposed some of the steps towards realising Viksit Bharat 2047. Her main priorities are the development of infrastructure, the empowerment of the digital realm, and the growth of the manufacturing industry. These not only increase productivity but also increase job creation. Thus, this policy framework is a sign that we are heading the right way in realising the India 2047 vision. To invest in the Indian growth story, you can start investing now by asking your investment advisor.
Frequently Asked Questions (FAQs)
What is Viksit Bharat 2047?
Viksit Bharat 2047 is a government of India program to make India a developed country by 2047, which will be the 100th year of independence.
What are the key areas of concern in the policy announcement in FY 2026-27?
The areas that the government aims to improve through the policy announcements are infrastructure, manufacturing, MSMEs, agriculture, etc.
Where can one find the official details of Viksit Bharat FY 2026-27 policy announcement?
The official document of Viksit Bharat 2047 can be found in the Union Budget document, released by the Ministry of Finance.
What is the capital expenditure for FY 2026-27?
The government of India has allocated a total capital expenditure of INR 12.2 Lakh crores.
How much has the government allocated to semi-conductor and electronic manufacturing sector?
The government has allocated a total of INR 40,000 crore to support the manufacturing of semiconductors and electronic goods.
