Budget 2026: Govt bets Rs 20,000 crore on carbon capture drive

Finance Minister Nirmala Sitharaman on Sunday proposed an outlay of ₹20,000 crore for a carbon capture and utilisation scheme spanning multiple sectors, including steel and cement, as part of the Union Budget for 2026–27.

Presenting the Budget in Parliament, Sitharaman also announced incentives for manufacturing seaplanes in India to support tourism and improve regional connectivity.

As part of measures to boost economic growth, the Finance Minister said the government will set up a high-level committee on “Banking for Viksit Bharat” to assess reforms needed to sustain the sector’s growth momentum.


Among other proposals, Sitharaman announced plans to develop seven high-speed rail corridors between cities as growth connectors, and to establish a ship repair ecosystem for inland waterways in Varanasi and Patna.

Highlighting the strength of the banking system, the Finance Minister said India’s banking sector is marked by strong balance sheets, record profitability, improved asset quality and higher coverage ratios.

She said the sector is now well placed to take a forward-looking view on reforms required to continue on a path of reform-led growth, with the proposed high-level committee expected to guide future policy measures.