Budget 2026: FM proposes 7 high-speed rail corridors, freight links, new waterways push

NEW DELHI: Asserting that the Union Budget 2026-27 is driven by “Yuvashakti” and based on “three kartavyas,” Union Finance Minister Nirmala Sitharaman on Sunday proposed seven high-speed rail corridors, new dedicated freight corridors, and the operationalisation of 20 national waterways over the next five years as part of the Union Budget.

The Union Budget has outlined a major push for environmentally sustainable passenger transport, proposing the development of seven high-speed rail corridors across key urban and economic centres. These corridors will act as growth connectors, cutting travel time, reducing emissions, and supporting regional development.

The proposed routes include Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi, and Varanasi-Siliguri. Together, they will link India’s financial hubs, technology centres, manufacturing clusters, and emerging cities through faster, cleaner mobility.

“In order to promote environmentally sustainable passenger systems, we will develop seven high-speed rail corridors between cities as growth connectors, namely Mumbai to Pune, Pune to Hyderabad, Hyderabad to Bengaluru, Hyderabad to Chennai, and Chennai to Bengaluru. Delhi to Varanasi, Varanasi to Siliguri,” the FM said.

Watch Live: Smt @nsitharaman presents Union Budget 2026–27 in Parliament #ViksitBharatBudget @sansad_tv @PIB_India https://t.co/DieMezvgTp

— Nirmala Sitharaman Office (@nsitharamanoffc) February 1, 2026

The Budget also highlighted eco-tourism and nature-based travel. The Finance Minister said, “India has the potential and opportunity to offer world-class trekking and hiking experience.” The government will develop sustainable mountain trails in Himachal Pradesh, Uttarakhand and Jammu and Kashmir, as well as in Araku Valley in the Eastern Ghats and Pudigai Malai in the Western Ghats.

In addition, special trails will be created for wildlife tourism. These include turtle trails along nesting sites in Odisha, Karnataka and Kerala, and bird-watching trails around Pulicat Lake.

Ahead of the legislative assembly election in West Bengal later this year, FM Sitharaman made big announcements and said that the government will establish new dedicated freight corridors connecting West Bengal’s Dangkuni in the east to Surat in the west.

“Establish new dedicated freight corridors connecting West Bengal’s Dangkuni in the east to Surat in the west. Operationalise 20 new national waterways over the next five years to promote environmentally sustainable cargo movement,” FM said.

This move aims to shift a greater share of freight to inland water transport, which is considered more energy-efficient and cost-effective than road and rail.

Three new All India Institutes for Ayurveda

Nirmala Sitharaman also announced three new All India Institute of Ayurveda in line with the objective of meeting global demand for Ayurvedic medicine. Presenting the Union Budget 2026-27 in Parliament, the Finance Minister said that Ayurveda has gained global acceptance post-Covid-19.

She said, “Ancient Indian Yoga, already respected in all parts of the world, was given a mass global recognition when Prime Minister Narendra Modi took it to the UN. Post COVID, Ayurveda gained a similar acceptance and recognition. Exporting quality Ayurveda products helps farmers to grow the herbs and those who process the products. To meet growing global demand, a few more steps are being taken. I propose three new All India Institutes for Ayurveda.”

All India Institute of Ayurveda in New Delhi was established as a Centre of Excellence for Ayurveda Tertiary Health Care. FM Sitharaman also proposed to upgrade AYUSH pharmacies and the WHO Global Traditional Medicine Centre (GTMC) in Jamnagar.

“To upgrade AYUSH pharmacies and drug testing labs for higher standards and make available more skilled personnel. Three, upgrade the Global Traditional Medicine Centre in Jamnagar,” she added.

The WHO Global Traditional Medicine Centre (GTMC) was formed as a Centre of global wellness; bolster evidence-based research, training and awareness for Traditional Medicine. It serves as a key knowledge hub for evidence-based traditional, Complementary and Integrative Medicine (TCIM) on a global scale. This is the first and only global outpost Centre (Office) for traditional medicine across the world, the AYUSH ministry said.

The Finance Minister also asserted that the government focuses on bringing reforms in the textile industry sector and announced the launch of the ‘Mahatma Gandhi Handloom Scheme’.

Sitharaman mentioned that the main purpose of the ‘Mahatma Gandhi Handloom Scheme’ is to strengthen the khadi, handloom, and handicraft sectors.

“I propose to set up mega textile parks in challenge mode. I propose to launch the Mahatma Gandhi Gram Swaraj initiative to strengthen Khadi and handloom,” Sitharaman said.

The initiative also aims to provide global market linkages and branding support, while streamlining training, skilling, and production quality. It is expected to benefit weavers, village industries, the One District One Product (ODOP) programme, and rural youth.

Initiative for high-quality sports manufacturing

Nirmala Sitharaman announced a dedicated initiative for high-quality sports goods manufacturing and research, while presenting the Union Budget 2026-27.

“I propose a dedicated initiative for high-quality sports goods manufacturing, research and innovation in equipment design as well as material sciences,” Sitharaman said. India, she said, has the potential to emerge as a global hub for high-quality, affordable sports goods.

Sitharaman proposed to introduce a scheme to revive 200 legacy industrial clusters “to improve their cost competitiveness and efficiency through infrastructure and technology upgradation.”

The Finance Minister said that the sports Sector provides multiple means of employment, skilling and job opportunities. “Taking forward the systematic nurturing of sports talent which is set in motion through the Khelo India programme, I propose to launch a Khelo India Mission to transform the Sports sector over the next decade,” she said.

Further, for the labour-intensive textile sector, Finance Minister Nirmala Sitharaman proposed an integrated programme with key components. The Minister emphasised that the first pillar of her plan, the National Fibre Scheme, aims to “achieve self-reliance in natural fibres like silk, wool, and jute, as well as man-made and new industrial-age fibres.”

The second is the Textile Expansion and Employment Scheme, which seeks to modernise traditional clusters by providing capital support for machinery, technology upgrades, and common testing and certification centres.

The third component is the National Handloom and Handicraft Programme (NHHP), designed to integrate and strengthen existing schemes while ensuring targeted support for weavers and artisans.

With the introduction of Samarth 2.0, the government aims to align the workforce with future demands. To promote globally competent and sustainable textiles and apparel, Sitharaman said, “Samarth 2.0 is to modernise and upgrade the textile skilling ecosystem through collaboration with industry and academic institutions,” ensuring that the next generation of workers is as tech-savvy as they are skilled.

Closing her remarks on the sector, the Finance Minister turned to large-scale infrastructure as the ultimate solution to improve efficiency. She envisioned a future in which production and value addition occur under one roof, reducing logistics costs and boosting exports.

To achieve this, she told the assembly, “I propose to set up a mega textile park,” further clarifying that “they can also focus on bringing value addition to technical textiles.” This strategic focus on technical textiles–used in everything from healthcare to automotive industries–suggests a shift toward high-value manufacturing that could redefine India’s role in the global market.

Govt to launch coconut promotion scheme, boost cashew and cocoa sectors

Nirmala Sitharaman proposed a Coconut Promotion Scheme aimed at increasing production and improving productivity to boost India’s competitiveness in coconut cultivation.

Speaking while presenting the Union Budget 2026-27, Sitharaman said the scheme will focus on major coconut-growing states and include measures such as replacing non-productive trees with new, high-yielding saplings.

“To further enhance competitiveness in coconut production, I propose a coconut promotion scheme to increase production and enhance productivity through various interventions, including replacing non-productive trees with new saplings or plants of varieties in major coconut-growing states,” Sitharaman said.

She also announced a dedicated programme for Indian cashew and cocoa with the objective of making India self-reliant in raw cashew and coconut production and processing, while enhancing export competitiveness.

“A dedicated program is proposed for Indian cashew and cocoa to make India self-reliant in raw cashew and coconut production and processing, enhance export competitiveness and transform Indian cashew and Indian cocoa into premium global brands by 2030,” Sitharaman said.

She asserted that sandalwood is closely linked to India’s social and cultural heritage. Our government will partner with state governments to promote focused cultivation and post-harvest processing to restore the glory of the Indian sandalwood ecosystem.

“Sandalwood is closely linked to India’s social and cultural heritage. Our government will partner with state governments to promote focused cultivation and post-harvest processing to restore the glory of the Indian sandalwood ecosystem,” Sitharaman said.

She said sandalwood is deeply connected to India’s social and cultural heritage and announced that the Centre will partner with state governments to promote targeted cultivation and post-harvest processing to revive the Indian sandalwood ecosystem.

“To rejuvenate old, low-yielding orchards and expand high-density cultivation of walnuts, almonds, and pine nuts, we will support a dedicated program to enhance farmer incomes and in bringing value addition by engaging youth,” she added.

She also announced a dedicated programme to rejuvenate old and low-yielding orchards and expand high-density cultivation of walnuts, almonds and pine nuts.

In the animal husbandry sector, Sitharaman said efforts will focus on generating quality employment in rural and peri-urban areas through a credit-linked subsidy programme. The government will also work on scaling up and modernising livestock enterprises, creating integrated livestock, dairy and poultry value chains, and encouraging the formation of livestock farmer producer organisations.

For high-value agriculture, she said support will be extended to crops such as coconut and sandalwood to diversify farm output, increase productivity, boost farm incomes and create new employment opportunities. (ANI)