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NEW DELHI, Feb 1 (Reuters) – India’s Finance Minister Nirmala Sitharaman presented the 2026/2027 budget to parliament on Sunday aiming to lift manufacturing and ​generate jobs in the world’s most populous country.

Here are the highlights:

* Finance Minister says ‌India faces disruptive external environment, must stay deeply integrated with global markets

* Says to sustain reform momentum, focus on ‌strong finance sector and new technology

*Economic survey report ahead of budget projects 6.8%-7.2% growth for 2026/27

DEBT TO GDP, FISCAL DEFICIT

* Federal government’s debt to GDP ratio target for 2026/27 set at 55.6%, down from estimated 56.1% of GDP in current fiscal year

*Fiscal deficit target for 2026/27 set at ⁠4.3% of GDP against 4.4% for ‌current fiscal year

*Gross federal government borrowing for 2026/27 seen at 17.2 trillion rupees ($187.63 billion)

*Net federal government borrowing for 2026/27 seen at 11.7 trillion rupees

INCREASE ‍IN SPENDING

*Proposes to increase capital spending to 12.2 trillion rupees ($133.08 billion) in 2026/27 from revised 11.0 trillion rupees in 2025/26

*To scale up manufacturing in seven sectors, push infrastructure

* To develop India as global pharma manufacturing ​hub

* To allocate 100 billion rupees for bio-pharma over 5 years

* Proposes to increase ‌400 billion rupees spending for semi-conductor manufacturing

* Proposes to develop seven high-speed rail corridors

* Proposes spending 200 billion rupees for carbon emission cutting programmes over 5 years

* Proposes to set up 100 billion rupees growth fund to support small businesses

ECONOMIC REFORMS

* To set up high level committee to suggest banking reforms

* Proposes allowing people outside India to invest in equity of listed companies

* ⁠To increase investment limit for individual PROIs (Persons resident outside ​India) to 10% from 5%

* Overall investment limit for ​all PROIs raised to 24% from 10%

* Proposes new framework with suitable access to funds and derivatives on corporate bond indices

($1 = 91.6710 Indian rupees)

CUT IN ‍IMPORT TARIFFS

* Proposes to ⁠raise limit for duty free imports for processing seafood exports to 3%

*Extend Basic customs duty (BCD) exemption to capital goods used to manufacture lithium ion batteries

*Provide BCD exemption to capital ⁠goods for processing critical minerals in India

FUNDS FOR STATES

* Federal government to share 41% of common tax pool ‌with states for 2026/31 period, as recommended by the finance commission

($1 = 91.6710 Indian ‌rupees)

(Reporting by Manoj Kumar; Editing by Sanjeev Miglani)