
MINISTRY OF FINANCE
Union Budget FY 2026-27 Initiatives for Strengthening the Capital Goods Sector
By TEAM CIRCULAR EXPRESS • 04 Feb 2026
👁 9 views
The Union Budget FY 2026-27 outlines strategic measures to bolster India's capital goods sector, a cornerstone of industrial policy. Key highlights include a public capital expenditure of ₹12.2 lakh crore and the introduction of a ₹10,000 crore Container Manufacturing Scheme. The government has also announced new initiatives like CIE and Hi-Tech Tool Rooms to enhance manufacturing capabilities. Additionally, the budget provides five-year tax exemptions for toll and electronics manufacturing, alongside customs duty exemptions for capital goods. These interventions aim to sustain economic growth, boost domestic capacity, and support long-term industrial development.
Public Capital Expenditure
u20b912.2 lakh crore
Capital Outlay Growth
4.2x increase from FY18 to FY26 (BE)
Key Schemes
Container Manufacturing Scheme, CIE & Hi-Tech Tool Room initiatives
Tax Incentives
Five-year tax exemptions for toll and electronics manufacturing; customs duty exemptions for capital goods
Sector Performance
Capital goods IIP grew 8.1% YoY in December 2025
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Regards, Circular Express
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MINISTRY OF FINANCE
Union Budget FY 2026-27 Initiatives for Strengthening the Capital Goods Sector
By TEAM CIRCULAR EXPRESS • 04 Feb 2026
👁 9 views
The Union Budget FY 2026-27 outlines strategic measures to bolster India's capital goods sector, a cornerstone of industrial policy. Key highlights include a public capital expenditure of ₹12.2 lakh crore and the introduction of a ₹10,000 crore Container Manufacturing Scheme. The government has also announced new initiatives like CIE and Hi-Tech Tool Rooms to enhance manufacturing capabilities. Additionally, the budget provides five-year tax exemptions for toll and electronics manufacturing, alongside customs duty exemptions for capital goods. These interventions aim to sustain economic growth, boost domestic capacity, and support long-term industrial development.
Public Capital Expenditure
u20b912.2 lakh crore
Capital Outlay Growth
4.2x increase from FY18 to FY26 (BE)
Key Schemes
Container Manufacturing Scheme, CIE & Hi-Tech Tool Room initiatives
Tax Incentives
Five-year tax exemptions for toll and electronics manufacturing; customs duty exemptions for capital goods
Sector Performance
Capital goods IIP grew 8.1% YoY in December 2025
🔒 Document — view only
Regards, Circular Express
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