Page 24 - NIS English 16-28 Feb, 2026

COVER STORY BUDGET
UNION

2026-27

Economic Reforms

‘Reform Express’

fosters India’s

economic race

India is rapidly advancing on the ‘Reform
Express’ towards becoming one of the largest
economies of world, driven by economic,
trade, and ease of doing business reforms.
Over the past 12 years, the government
has prioritised action, reform, and public
welfare. Now, the budget for the financial
year 2026-27 has given further momentum to
the Reform Express...

The government’s 1 The pace of structural reforms must be The central government has
‘resolve’ is sustained, consistent, and progressive. implemented numerous economic
essential for a reforms aimed at creating jobs,
three-pronged 2 A strong and resilient financial sector is increasing productivity, and
approach focusing fundamental to mobilizing savings, efficiently accelerating growth. Following
on the poor, allocating capital, and managing risks. Prime Minister Narendra Modi’s
underprivileged 3 Cutting-edge technologies, including reform announcements on
and the artificial intelligence applications, can Independence Day in 2025, over
disadvantaged: 350 reforms have been rolled out.
facilitate good governance.

Share Buyback to be
Banking will be prepared Treated as Capital Gain
for a developed India The amount received from a share buyback will now be
Today, India’s banking sector is stronger than ever treated as capital gain, not a dividend. Additionally, the
before. It demonstrates improved financial health, tax rates for promoters on buybacks will vary. Promoters
record profits, better asset quality, and banking of domestic companies will be taxed at 22%, while those
services reaching over 98% of villages. To further of other companies will be taxed at 30%. To discourage
boost the progress of this sector and to conduct a those entering the stock market's futures and options
comprehensive review aligned with India’s future trading solely for quick profits, the government has pro-
development needs, a “High-Level Committee on posed increasing the existing Securities Transaction Tax
Banking for a Viksit Bharat” will be constituted. (STT) on futures trading from 0.02% to 0.05%. Similarly,
the STT on option premiums and options trading, cur-
rently at 0.1% and 0.125% respectively, is proposed to be
increased to 0.15%.