Union Budget 2026 focuses on infrastructure with Rs 12.2 lakh crore capex, defence allocation Rs 7.85 lakh crore (15% hike), AI incentives like tax holidays for data centres and safe harbour regime. Tax changes include TCS reduction to 2% on overseas remittances, interest exemption from motor accident tribunals, and new Income Tax Act from April 2026. Other highlights: freight corridors, national waterways, city economic regions, SME growth fund Rs 10,000 crore, mandatory TReDS for CPSE procurement. Fiscal deficit at 4.3% GDP, states get Rs 1.4 lakh crore grants. No specific cancer drugs mention but general healthcare AI applications.

The India-EU free trade agreement reduces duties on European luxury cars from over 100% to 10-40%, wines and spirits from 150% to 20% over 5-10 years, and eliminates tariffs on medicines for critical illnesses, medical equipment, electronic spare parts, steel, and chemicals. Quota-based concessions protect India's auto industry. The pact opens European markets for Indian garments, leather, jewellery, and medicines, boosting exports while making imports more affordable for consumers. Negotiations concluded after 18 years, called the "mother of all trade deals" by Ursula von der Leyen.