Union Budget 2026: Finance Minister Nirmala Sitharaman on Saturday unveiled a series of major infrastructure and industrial initiatives in the Union Budget 2026–27, with a clear focus on poll-bound states like West Bengal, Kerala, and Tamil Nadu. Announcements were made in strategic sectors such as rare earth minerals, logistics, chemicals, and capital goods manufacturing.
Union Budget 2026: Focus On Poll Bound West Bengal
As part of its push to strengthen logistics and promote sustainable transport, the government announced plans to establish new dedicated freight corridors connecting Dangkuni in eastern India to Surat in the west.
In addition, Sitharaman said the Centre will operationalise 20 new national waterways over the next five years, a move aimed at encouraging environmentally sustainable cargo movement and reducing logistics costs.
Rare Earth Corridor Announced for Mineral-Rich States Including Poll-Bound Kerala And Tamil Nadu
A key highlight of the Budget was the announcement of a dedicated rare earth corridor, with special emphasis on poll-bound states such as Kerala and Tamil Nadu.
“A scheme for rare earth permanent magnets was launched in November 2025. We now propose to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated rare earth corridors,” Sitharaman announced.
The government outlined plans to expand the rare earth initiative to promote mining, processing, research and manufacturing, while also supporting the establishment of critical mineral facilities in the identified states.
“To enhance domestic chemical production and reduction in import dependency, we will launch a scheme to support states in establishing three dedicated chemical parks through challenge route on a cluster-based plug-and-play model,” Sitharaman said.
Union Budget 2026: Capital Expenditure Raised to Rs 12.2 Lakh Crore
Reaffirming the government’s reliance on public spending to drive growth, Sitharaman proposed increasing capital expenditure to Rs 12.2 lakh crore in FY2026–27.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Budget proposals.
Despite headwinds from steep tariffs imposed by former US President Donald Trump, India’s economy has remained resilient. Economic growth is projected at 7.4% for the year ending March 31, supported by sustained infrastructure spending and tax cuts on income and consumption that have boosted consumer demand.
Also Read: Union Budget 2026: Finance Minister Nirmala Sitharaman Announces Rs 10,000 Crore SME Growth Fund
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
