Union Budget 2026-27: Big Win for Odisha Mining and Tech Sectors
Budget prioritizes fiscal health alongside massive technology investments
Bhubaneswar: Finance Minister Nirmala Sitharaman presented a forward-looking Union Budget 2026-27 on February 1, balancing immediate economic needs with a futuristic vision. The budget marks a significant shift toward the "new economy," prioritizing artificial intelligence (AI), high-tech manufacturing, and data centers. For the state of Odisha, the headline announcement is the establishment of a dedicated Rare Earth Corridor, recognizing the state's vital role in India's mineral supply chain.
Odisha at the Center of Mineral Strategy
In a move that promises to boost local industry, the Centre announced support for mineral-rich states, specifically naming Odisha alongside Kerala, Andhra Pradesh, and Tamil Nadu. The government plans to establish Rare Earth Corridors to promote mining, processing, and research. This initiative aims to reduce import dependence for critical minerals used in electronics and clean energy, positioning Odisha as a key hub in the global supply chain.
New Rural Welfare Framework
A major structural change in this year's financial roadmap is the replacement of the two-decade-old MGNREGA scheme. The Finance Minister introduced the 'VB GRAM G' programme, allocating Rs 95,600 crore to anchor rural welfare. This is a substantial increase compared to the Rs 88,000 crore allocated to the previous scheme in 2025-26, signaling a fresh approach to rural employment and development.
Fiscal Prudence and Market Impact
Sitharaman, now the longest continuously serving Finance Minister, maintained a strict stance on fiscal consolidation. The government aims to bring the fiscal deficit down to 4.3 percent of GDP for 2026-27. To fund development while managing debt, the budget proposes raising the Securities Transaction Tax (STT). Futures trading will see an STT hike to 0.05 percent, while options premium taxes will rise to 0.15 percent. However, long-term capital gains tax (LTCG) remains unchanged, offering some relief to long-term investors.
Push for Tech and Infrastructure
The government continues its aggressive infrastructure push, increasing capital expenditure by 11.5 percent to Rs 12.2 lakh crore. This spending is expected to create jobs and stimulate demand in core industries like steel and cement.
On the technology front, the budget focuses heavily on mainstreaming AI and digital infrastructure. A tax holiday until 2047 was announced for foreign companies establishing cloud services in India. Additionally, the launch of the Indian Semiconductor Mission 2.0 and the Biopharma SHAKTI initiative underscores the ambition to make India a global leader in high-tech manufacturing and innovation.
With Agency Inputs
