IT: A Growth Engine; Electronics Outlay Up @ Rs400 Bn; ISM 2.0 Soon
A multilingual AI tool to integrate the AgriStack portals and the ICAR package on agricultural practices with AI systems
The Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman along with the Ministers of State for Finance, Shri Pankaj Chaudhary as well as her Budget Team/senior officials of the Ministry of Finance arrived for the presentation of the Union Budget-2026 at Parliament House, in New Delhi on February 01, 2026.
FinTech BizNews Service
Mumbai, 1 February 2026: Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman tabled the Union Budget 2026-27 in the parliament on Sunday 1st February 2026 . While presenting the Union Budget 2026-27 in Parliament today, she said that the Government is inspired by 3 kartavya, out of which the first kartavya is to accelerate and sustain economic growth, by enhancing productivity and competitiveness, and building resilience to volatile global dynamics.
The budget has proposed Supporting IT sector as India’s growth engine:
The Budget underscors the significance of the IT sector for India’s growth trajectory.
- Software development services, IT enabled services, knowledge process outsourcing services and contract R&D services relating to software development to be clubbed under a single category of Information Technology Services with a common safe harbour margin of 15.5 percent.
- The threshold for availing safe harbour for IT services to be enhanced from 300 crore rupees to 2,000 crore rupees.
- Safe harbour for IT services shall be approved by an automated rule-driven process, can be continued for a period of 5 years at a stretch.
- Unilateral Advanced Pricing Agreement (APA) process for IT services to be fast-tracked with the endeavour to conclude it within a period of 2 years, which can be extended by 6 months on taxpayer’s request.
- The facility of modified returns available to the entity entering APA to be extended to its associated entities.
The threshold for availing safe harbour for IT services to be enhanced from 300 crore rupees to 2,000 crore rupees.
- Any foreign company that provides cloud services to customers globally by using data centre services from India to be provided Tax holiday till 2047
- A safe harbour of 15 percent on cost to be provided if the company providing data centre services from India is a related entity.
India Semiconductor Mission (ISM) 2.0
India Semiconductor Mission (ISM) 2.0 is to be launched to produce equipment and materials, design full-stack Indian IP, and fortify supply chains with focus on industry led research and training centres to develop technology and skilled workforce.
Electronics Components Manufacturing Scheme
The Electronics Components Manufacturing Scheme outlay increased to Rs40,000 crore.
Bharat-VISTAAR (Virtually Integrated System to Access Agricultural Resources)
- Government to launch Bharat-VISTAAR, a multilingual AI tool to integrate the AgriStack portals and the ICAR package on agricultural practices with AI systems.
Empowering Divyangjan: Opportunities In IT, AVGC sectors
- Divyangjan Kaushal Yojana for Divyangjans to offer task-oriented and process-driven roles in IT, AVGC sectors, Hospitality and Food and Beverages sectors.
