Union Budget 2026 LIVE: Govt Proposes Skill to Upskill 10,000 Guides

Equity support- FM proposes 10,000 cr SME growth fund to create future champions incentivising enterprises based on select criteria. The self reliant India fund setup in 2021 has also been topped up with 2000 crores, continuing support to MSMEs

Liquidity support- Treads worth more than 7 lakh crore has been made available for MSMEs. To leverage its full potential FM proposes 4 measures.

Professional Support- Government will facilitate professional institutions like ICAI, ICSI, ICMAI to design short term modular courses to develop a cadre of ‘corporate mitras’ especially in tier 2 and tier 3 cities

"India’s animation, visual effects, gaming and comics (AVGC) sector is a growing sector projected to require 2mn professionals by 2030. I propose to support the Indian Institute of Creative Technologies, Mumbai to construct AVGC content creator labs in 15000 secondary schools and 500 colleges," said FM Sitharaman.

With a focus on tourism, the goverment has proposed to upskill 10,000 guides in key tourist places all across India.

FM Nirmala Sitharaman highlighted that the government is all set to create five university townships.

"The government has taken several steps to support new technology through AI mission, national quantum mission, anusandhan national research fund, and research and development and innovation fund," stated FM Sitharaman.

With the aim to strengthen private developers risk management, Finance Minister Nirmala Sitharaman proposed setting up of an infrastructure risk fund.

The finance minister in her budget speech said that to encourage municipal bonds, the FM said, " To encourage the issuance of municipal bonds of higher value by larger cities, I propose an incentive of 100 crore rupees for a single bond issuance."

With a focus on Viksit Bharat, the government has prposed the setting up of a high level committee. The purpose of the committe is to "align it with India's next face of growth, while safeguarding financial stability, inclusion and consumer protection."

To develop India as a global bio pharma manufacturing hub FM Siitharaman in her Budget speech proposed an outlay of 10,000 crores over 5 years. She stated that it will build the ecosystem for domestic production of biologics and bio simulars. The strategy will include building of 3 new pharmaceutical institutes, properly known as NIPERS.

The government has increased capex for fiscal year 2026-27 to Rs 12.2 lakh crore

"The electronics components manufacturing scheme launched in April 2025 with an outlay of Rs 22,919 crore already has investment commitments and doubled the targets. We propose to increase the outlay to Rs 40,000 crore," says FM Nirmala Sitharaman.

"I propose the biopharma Shakti with an outlay of 10,000 crores over the next five years," said FM Nirmala Sitharaman

While saying that this is the first Budget prepared in Kartavya Bhawan, the FM talked about three kartavyas

1. Accelerate and sustain economic growth

2. Fulfill aspirations of people and build capacity

3. To ensure that every family have access to resources for meaningful participation

The government led by Prime Minister Narendra Modi is led by growth, not populism, said FM Niramala Sitharaman at the opening of her Budget speech.

Finance Minister Nirmala Sitharaman has started her budget speech for the fiscal year 2-26-27. This will be her ninth consecutive budget.

After the Union Cabinet approved the budget, Parliamentary Affairs Minister Kiren Rijiju told ANI that it would be a historic budget. He added, "The PM's 'Reform Express' will move forward speedily towards Viksit Bharat".

The Union Cabinet headed by Prime Minister Narendra Modi has apporved the Union Budget for fiscal year 2026-27. Finance Minister Nirmala Sitharaman is expected to start the Budget speech at 11 am.

Congress MP Priyanka Gandhi Vadra told reporters, "We Have No Expectations" as she reaches Parliament for Union Budget 2026 presentation, ANI reported.

Defence Minister Rajnath Singh has arrived at the parliament for the Budget presnatation by FM Nirmala Sitharaman for fiscal year 2027.

Union minister Shivraj Singh Chouhan calls the upcoming budget, "Viksit aur Atmanirbhar ka Budget," ANI reported. The minister planted a sapling at his residence before leaving for the parliament.

Prime Minister Narendra Modi arrives at the parliament for the Union Budget presentation, PTI reported.

The Union Budget 2026-27 will be presented today at 11 am by Finance Minister Nirmala Sitharaman, marking her ninth-consecutive budget. With just one hour left, stakeholders across industries are on edge — expecting major reforms in taxation, infrastructure spending, MSME support, and more.

Union Finance Minister Nirmala Sitharaman and Minister of State for Finance Pankaj Chaudhary, along with their team, reached the Parliament.

"We expect a decisive policy push toward GST rationalization on travel products made of man-made fibers & polymers and reforms that bolster domestic manufacturing. Strengthening MSME supply chains and incentivizing "Made in India" production will be critical to meeting domestic demand while unlocking our massive export potential. Furthermore, the industry seeks frameworks that encourage eco-friendly materials, circular economy practices, and sustainable packaging to align with global consumer shifts," said Tushar Kamath, Chief Financial Officer, uppercase.

Expectations are rising across sectors, particularly on the income-tax (IT) front. However, with the proposed Income-tax Act, 2025 already introduced, some industry experts expect limited substantive changes on the direct tax front in the upcoming Budget.

In the previous Budget, Union Minister of Finance Nirmala Sitharaman announced a slew of tax reforms, with taxpayers now closely watching for possible revisions to tax slabs and deductions this year.

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The Centre is likely to consider its biggest-ever push on railway safety amid mounting accidents and growing scrutiny over rail operations. According to reports, budgetary allocations for rail safety could cross ₹1.3 trillion in FY27, marking a nearly 12% increase over the current year.

The proposed outlay is expected to be directed towards maintenance of rolling stock and critical infrastructure, including track renewals, as well as the expansion of India’s homegrown automatic train protection system, Kavach.

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‘We expect the Union Budget to continue driving infrastructure-led growth through a meaningful increase in capital expenditure, with priority on Power Transmission & Distribution, Renewables, Water, Railways, Urban Infrastructure and Defence," said Vimal Kejriwal, MD, KEC International.

"The momentum has been meaningfully reinforced by last year’s Union Budget, which expanded credit availability by boosting guarantee coverage for MSMEs/startups and by formalising rural and informal borrowers through the introduction of credit scoring frameworks, thereby lowering lender risk and improving credit penetration," said Bhupinder Singh, Promoter & CEO, InCred Holdings.

"Looking ahead, one decisive reform could further strengthen the ecosystem: lowering the SARFAESI Act’s minimum loan threshold for NBFCs from ₹20 lakh to ₹1 lakh. This would restore parity with HFCs, materially shorten recovery cycles, and deliver a tangible uplift in asset quality."

Dinesh Gupta, President of CREDAI West UP, said that the real estate sector's biggest expectation from the upcoming Union Budget is related to affordable and mid-income housing.

He stated that there is a need to increase the tax exemption limit on home loan interest, provide relief under Sections 80C and 24(B) of the Income Tax Act, and create an easy and affordable funding mechanism for stalled projects.

He added that concrete steps towards recognising the sector as an organised industry and a clear policy on infrastructure status would improve the investment climate. Resolving the pending dues of development authorities could also give a significant boost to the real estate sector.

The benchmark stock indices traded mixed in early trade ahead of the Union Budget. At 9.30 am, BSE was trading 0.1% higher than its previous close at 82,295.25 points. NSE Nifty 50 traded flat at 25,309.25.

The Centre aims to further shrink the fiscal gap without slowing the economy’s momentum.

India’s fiscal deficit touched ₹8.25 lakh crore in April–October, or 52.6% of the annual target, a sharper drawdown than the 46.5% recorded a year ago. The Centre is aiming to cut the deficit to 4.4% of GDP this year from 4.8%.

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Indian stock markets opened largely flat on Sunday, with the Nifty 50 down 0.12% at 25,289.95, while the BSE Sensex was trading 0.04% lower as of 9:18 AM.

Union Finance Minister Nirmala Sitharaman headed to Rashtrapati Bhavan to call on President Droupadi Murmu ahead of the presentation of her ninth Union Budget.

Finance Minister Nirmala Sitharaman, accompanied by her team, was pictured outside the Ministry of Finance carrying the Budget tablet. She is set to present the Union Budget 2026 in the Lok Sabha today at around 11 AM.

The Union Budget is likely to roll out a fresh incentive program for drone manufacturing under the Drone Shakti mission. The scheme will focus on boosting domestic production of unmanned aerial systems through a dual-layer subsidy model. 

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The Centre is mulling a ₹25,000 crore safety buffer for infrastructure projects. The proposed risk guarantee fund is expected to ease the financing crunch in the infrastructure sector and help revive stalled projects.

The move comes against the backdrop of rising project delays, cost overruns, and higher borrowing costs, which have limited investment flows into the infrastructure sector. 

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"Over the past 11 years, the Budgets presented under the leadership of the Prime Minister have reflected the aspirations of the people and have been aimed at taking the country forward. The Budget being presented today is aligned with the vision of 'Viksit Bharat' by 2047," Chaudhary said.

Union Minister of Finance and Corporate Affairs Nirmala Sitharaman has arivved at Kartavya Bhavan.

Union Minister of State for Finance Pankaj Chaudhary has arrived at Ministry of Finance.

The Global Capability Centre (GCC) industry is looking for the government to move from intent and announcements to concrete action.

A year after the Centre promised a national framework to promote GCCs beyond metro cities, the policy is yet to be implemented. Global companies continue to seek clarity on incentives, taxation and long-term stability.

Industry experts call for national GCC framework that standardises definitions, offers baseline regulatory and tax clarity, enables single-window approvals, and aligns talent and skilling initiatives at the national level. 

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Fast Moving Consumer Goods (FMCG) majors expect the government to continue with its measures to boost private consumption even after the government tried to stimulate demand with moves like GST rationalisation in September last year and a personal income tax rebate extended to ₹12 lakh in Union Budget 2025.

However, the key question is whether the government has more room to provide tax cuts or put more money in the hands of consumers via populist direct payment schemes. Economists and analysts think it’s unlikely.

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The Union Budget speech will commence at 11 am. Union Minister of Finance and Corporate Affairs Nirmala Sitharaman will present her ninth consecutive Budget, addressing key fiscal challenges and growth prospects. Following the presentation, Sitharaman is scheduled to interact with college students.

The Budget Session of Parliament began on January 28 and will continue until April 2. The session will span 30 sittings over 65 days and will be divided into two phases. The first phase will conclude on February 13, while the second phase is scheduled from March 9 to April 2.

CareEdge Ratings told Mint that tax revenues for the financial year 2025‑26 may fall short of targets by at least ₹3trn, due to last year’s income tax benefits and GST rate cuts.

In the Union Budget 2026, the focus will be on strategies by the Ministry of Finance to expand the tax base, improve compliance and increase collections, while balancing growth and fiscal stability in the Indian economy.

With the Union Budget 2026 scheduled for Sunday, February 1, investors are curious if the Indian stock market will operate despite it being a weekend.

Both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have confirmed that they will hold a special live trading session today, with regular trading hours from morning to mid‑afternoon to reflect real‑time budget reactions. The NSE said trading will run from 9:15 am to 3:30 pm. The BSE confirmed the same hours.

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Dr Sudarshan Ballal, Chairman of Manipal Hospitals, said that the industry is looking to the 2026 Union Budget to strengthen both preventive and advanced healthcare across India.

“In general a viable universal health insurance is needed, not necessarily health care alone. Incentivise semi-urban and rural healthcare workers, leverage AI and technology, invest in primary and preventive care, and expand awareness and facilities for communicable, non-communicable, and cancer-related illnesses,” he mentioned.

He added that increased training, district-level specialty centers, and technology-enabled care are essential to meet India’s growing healthcare needs.

Praveen Kakulte, CEO of POWERCON Group, said that the industry is looking at the 2026 Union Budget to address critical skill gaps in India’s renewable energy sector.

“As India advances towards its target of 500 GW of clean energy capacity by 2030, the primary constraint is no longer Intent or Capital, but the availability of Highly Skilled & Certified Professionals to Build, Operate, and Optimise Renewable Energy assets at scale,” stated Kakulte.

He added that outcome-driven skilling initiatives and Centres of Excellence are essential to turn ambitious renewable targets into reality and ensure every home in India has clean, affordable energy.

Edul Patel, CEO of Mudrex, said that the industry is looking to the 2026 Union Budget to create a more balanced and transparent framework for virtual digital assets in India.

“As the 2026 Union Budget approaches, we have an opportunity to align regulations with the evolving maturity of Indian crypto investors. While the 2022 Union Budget gave the sector formal recognition, measures such as the 1% TDS on transactions pushed trading activity offshore,” Patel shared.

He added that thoughtful policy reforms could encourage domestic participation, boost transparency, and support long-term growth in India’s crypto ecosystem.

India’s space tech start-ups are looking to the upcoming Budget for measures that accelerate commercialisation and reduce operational bottlenecks, said Shravan Bhati, Co-founder and CEO of SatLeo Labs.

He said early government purchase orders could help young companies move from validation to scale, while faster approvals for importing critical payload and satellite components would prevent launch delays.

Before diving into the Union Budget 2026, it helps to understand how India’s fiscal planning has evolved over time. From the first budget in 1860 under British rule to modern presentations that shape tax, spending and investment priorities, the fiscal journey reflects changing economic goals and challenges. This historical perspective sheds light on how today’s budget process and policy choices came to be.

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The central government introduced a new tax regime in Budget 2020, allowing citizens to pay lower tax rates by foregoing deductions and exemptions under the old system. In her Union budget 2025 speech, Finance Minister Nirmala Sitharaman enhanced the regime, making incomes up to ₹12 lakh eligible for zero tax after rebates.

Experts told Mint that the government is likely to phase out the old tax regime in the coming years to encourage wider adoption of the new framework.

Radhika Choudhary, Co-Founder & Director of Freyr Energy, said that the industry is looking at the Union Budget to accelerate decentralised clean energy adoption.

“We hope to see continued policy support for rooftop solar through stable incentives, simplified GST structures, and enhanced financing mechanisms that make solar more accessible for households and MSMEs,” she stated.

She believes that targeted budgetary measures, including faster subsidy disbursements and low-interest green financing, could boost adoption, create green jobs and reinforce India’s leadership in clean energy.

The electric mobility sector is expecting the Union Budget to address the GST mismatch between electric vehicles and charging services, said Karthikeyan S, MD & CEO of Relux Electric.

He said while EVs attract 5% GST, charging services are taxed at 18%, raising operating costs and impacting affordability for users.

“Rationalising GST on EV charging services to 5% would support wider EV adoption and strengthen the financial sustainability of public charging infrastructure," he added.

Understanding the difference between direct taxes — paid straight by individuals and companies on income and profits — and indirect taxes, levied on goods and services and often passed on to consumers, is key ahead of the Union Budget 2026.

These taxes remain the government’s main source of revenue and shape everything from how much you keep in your salary to the prices you pay at the store.

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Anurag Choudhary, CMD and CEO of Himadri Speciality Chemical Ltd, said that the industry is looking at Budget 2026 to provide clear alignment of fund disbursements with measurable outcomes for the EV sector.

“For Budget 2026, the EV sector is likely to see a more pronounced alignment towards fund disbursements with targeted outcomes,” he asserted.

He mentioned that increased R&D investment, industry-academia collaborations, and dedicated innovation budgets can accelerate adoption of EVs, especially in public and commercial mobility.

The Union Budget 2026-27 is shaped around two components — the Revenue Budget and the Capital Budget — which together explain how the government earns and spends money.

While the Revenue Budget covers routine income and expenditure such as taxes, salaries and subsidies, the Capital Budget reflects long-term investments, asset creation and borrowing plans. Understanding this split offers insight into fiscal priorities and development strategy.

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Tanmay Kumar, Chief Financial Officer, Shiprocket, said that the industry is looking to the Union Budget for stronger support to India’s MSME and new-age commerce ecosystem.

“As India prepares for the upcoming Union Budget, the focus must remain on strengthening the digital and physical backbone that powers the country’s MSMEs and new-age commerce businesses,” he stated.

He further added that sustained investments in logistics, digital public platforms and tech-enabled supply chains are vital to cut costs, reduce friction and help millions of sellers across Bharat scale sustainably.

As the country awaits for the Union Budget 2026, it’s important to understand the difference between an interim budget — a short-term plan often used in election years — and the full Union Budget that outlines detailed fiscal policy, taxes and development priorities for the entire year. This explainer breaks down the roles, timing and relevance of each in the budget cycle.

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The Union Budget must prioritise zero-rating GST on plastic waste, scrap and recycling equipment, along with a meaningful reduction in GST on recycled plastic granules, to incentivise their use in long-life and durable products. Without correcting these cost distortions, the transition from virgin to recycled plastics will remain limited, said Sushil Kumar Aggarwal, Chairman and Whole-Time Director of AVRO India Limited

India stopped presenting a separate Railway Budget as part of its Union Budget to simplify financial planning and improve policy coordination — a change first made in 2017 following expert committee advice.

Since then, railway allocations and spending have been folded into the broader budget, aligning transport priorities with national economic goals. Tracing the history could help one understand what this means for future budgets.

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The Union Budget preparation begins several months before it is presented. The Finance Ministry issues guidelines to ministries, state governments, and autonomous bodies, requesting them to submit their revenue projections and expenditure plans. These inputs form the foundation of the government’s annual financial strategy.

Typically, work on the Budget starts around August or September, about six months prior to its presentation in Parliament. This timeline allows for thorough planning, analysis, and inter-ministerial consultations.

The Budget sets out the government’s expected income and spending for the year and highlights key economic priorities. Understanding basic budget terms is helpful for citizens, businesses, and students ahead of its release.

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The Labour Codes are a progressive step, and the inclusion of gig workers is a welcome beginning, said Nitin Nahata, CHRO, Gameskraft, adding that the real test lies in execution.

"Without timely and effective implementation, intent will not translate into real protection for workers. India has the world’s largest gig workforce and one of the deepest digital public infrastructures anywhere in the world. Together, they have made convenience a permanent part of how our economy works. In that reality, social security cannot continue to be optional," Nahata added.

"The gig economy is no longer experimental. It is now a structural part of India’s growth story. This Budget must therefore treat gig worker protection as economic infrastructure, not welfare. If we are serious about building a truly inclusive and equitable Viksit Bharat, the framework needs to be finalised and rolled out within the next three months, so protection reaches people on the ground, not just the statute book," he further said.

The Union Budget must prioritise zero-rating GST on plastic waste, scrap, and recycling equipment, along with a meaningful reduction in GST on recycled plastic granules, to incentivise their use in long-life and durable products, said Sushil Kumar Aggarwal, Chairman and Whole-Time Director of AVRO India Limited.

"Without correcting these cost distortions, the transition from virgin to recycled plastics will remain limited," he added.

According to Lok Sabha's 'list of business', Finance Minister Nirmala Sitharaman will present a statement of the estimated receipts and expenditure of the Government of India for the financial year 2026–27. She will also table key documents under Section 3(1) of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, including the Medium-term Fiscal Policy-cum-Fiscal Policy Strategy Statement and the Macro-economic Framework Statement. Additionally, the finance minister will seek leave to introduce the Finance Bill, 2026, and formally present the Bill in the Lok Sabha. These documents are considered key parts of Union Budget.

Finance Minister Nirmala Sitharaman is set to present her ninth Union Budget, marking the second full Budget of the Modi government’s third term. India’s Budget legacy dates back to R K Shanmukham Chetty, the country’s first finance minister, who laid the foundations of independent India’s fiscal administration.

Since 2019, Budget documents have been carried to Parliament in a traditional red “bahi khata” instead of the colonial-era briefcase, symbolising India’s cultural identity in fiscal practices.

Embossed with the national emblem, the folder reflects indigenous accounting traditions and, since 2021, has held a digital tablet as part of the move towards a paperless Budget.

Ahead of the Union Budget for the financial year 2026-27 (FY27), industry bodies FICCI and the PHD Chamber of Commerce and Industry (PHDCCI) have called for stronger financial and policy support for India’s defence and homeland security sectors. The demand comes amid rising security challenges and a push to scale up domestic defence manufacturing.

According to FICCI, defence spending must remain a top priority in the upcoming Budget as India faces increasing geopolitical risks and rapid advances in military technology globally.

In the previous Budget, the government had allocated ₹6.81 lakh crore to the Ministry of Defence for FY26, marking a 9.5% increase over the year before. FICCI has now urged the government to maintain around 10% growth in defence allocations this year, while increasing the share of capital expenditure to 30% from the earlier 26% to support modernisation.

India’s gems and jewellery sector is operating under sustained pressure as geopolitical tensions rise and consumer demand softens across key overseas markets. Valued at $28.7bn in FY25, the industry is already feeling the impact of steep 50% tariffs imposed by the United States.

As the sector works to diversify exports and tap new markets, the Gem & Jewellery Export Promotion Council (GJEPC), the apex body representing the sector, has urged the government to consider targeted duty rationalisation and procedural reforms that will help Indian manufacturers stay cost-competitive.

"With high U.S. tariffs, evolving consumer preferences, and shifting global supply chains, it is imperative that India maintains its competitive edge. Our pre-Budget proposals are focused on making Indian exports more cost-efficient, strengthening SEZ operations, and improving policy frameworks that encourage investment and skill development," said Kirit Bhansali, Chairman, GJEPC.

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The Union Ministry of New and Renewable Energy (MNRE) is planning to revive a small hydropower scheme that is expected to attract allocation in the upcoming Union Budget 2026, according to earlier reports.

Introduced in India in November 2009, the exclusive small hydropower policy was again revised in July 2014, offering a specific Central Financial Assistance (CFA) for projects, to encourage private sector participation through incentives, but was discontinued in 2017.

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The market will be keenly watching for continuity in India’s long-term growth agenda rather than short-term stimulus, said Gurvinder Juneja, Principal Officer, Fortuna Asset Managers. Adding that from an investor’s perspective, a continued focus on capital expenditure, especially in infrastructure, manufacturing, and energy transition, remains essential

"These investments not only support near-term demand but also enhance productivity and competitiveness over the long run. Equally important will be a credible fiscal consolidation path, balancing growth priorities with macro stability, particularly in a global environment marked by uneven growth and financial volatility. We also expect clarity and stability in tax policy, especially for capital markets. Simplification, predictability, and avoidance of frequent structural changes help strengthen investor confidence and improve long-term participation in financial assets. Any measures that further encourage household financialisation - whether through retirement savings, long-term investment vehicles, or ease of compliance - would be structurally positive for markets," said Juneja.

Manufacturing faces acute tariff pressure across stressed sub-sectors, according to Balasubramanian A, Senior Vice President, TeamLease Services. He notes that textiles with 28-30% of exports directed to the US face tariffs up to 50% on most apparel and textile products, applied on top of the usual base US import duty, while Bangladesh and Vietnam face about 20%, eroding price competitiveness.

"Long-term contracts are now unprofitable; companies are absorbing costs and cutting hours/wages rather than laying off workers immediately, hoping for tariff relief. Auto components account for 27% of exports to the US but face 25% tariffs; manufacturers are caught between passing costs on to OEMs (risking relationships), absorbing costs (destroying margins), or redirecting exports (requiring costly respecification)," said TeamLease Services' Senior Vice President said.

He added that the sector is urging the government to take a multi-pronged approach, including aggressively negotiating preferential trade agreements with ASEAN, the Middle East, the EU and other regions to secure competitive access to new export markets, which it sees as critical for survival. It also wants the extension and enhancement of PLI schemes with higher incentives for labour-intensive exports and employment retention in stressed sectors. Further, the industry is calling for rationalisation of input duties on steel, chemicals and advanced materials to bring down landed costs, along with targeted support for textiles through subsidised credit for modernisation, stronger export credit guarantees and faster implementation of PM MITRA Parks.

Stock exchanges are holding a special trading sessions on February 1, 2026, Sunday for the Union Budget 2026 presentation. Both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) said trading will run at normal hours, letting investors react right away to the finance minister’s announcements.

Markets are normally closed on Sundays, making this a rare event. The move shows how important the budget is, as it can influence businesses, investors, market trends. Traders will be closely watching every update.

On Friday, the Nifty declining 0.4%, weighed down by sharp losses in metal and IT stocks. Broader markets were mixed, with the Nifty Midcap 100 down 0.2%, while the Nifty Smallcap 100 edged up 0.3%. Sectoral performance remained divergent. Nifty FMCG gained 1.4% and Consumer Durables rose 1.1%, providing some support to the market.

The taxation of ESOPs (employee stock option plans) has been a long-standing structural issue for start-ups. For the first time, the ESOPs taxation issue was partially addressed in Budget 2020, when the government announced measures to reduce the “dry tax” burden and introduced the tax deferral for employees.

However, this relief was limited only to “eligible” start-ups, not all. After this, start-ups and investors revived calls for a system that taxes employees only when real wealth is actually realised. In short, the start-up ecosystem says that taxation should reflect realised gains, not paper valuations. 

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Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2026 in Parliament on Thursday, outlining the state of the economy ahead of the Union Budget. The Survey projects real GDP growth of 6.8–7.2% in FY27, slightly lower than the 7.4% estimated for the current fiscal year. First advance estimates peg real GDP growth at 7.4% and gross value added (GVA) growth at 7.3% in FY26.

Financial inclusion expanded, with 55.02 crore Jan Dhan accounts opened by March 2025. India’s share in global merchandise exports rose to 1.8% in 2024, services exports hit a record $387.6 billion in FY25, and remittances touched $135.4 billion.

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Industry leaders emphasise the need to improve export infrastructure and quality systems, accelerate the adoption of agri-tech and digitisation, increase access to specialised rural credit and greatly increase public and private investment in R&D. They contend that when taken as a whole, these actions are essential for raising farm incomes, strengthening international integration and guaranteeing that the goals of policy are translated into quantifiable results at the local level.

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The Union Budget 2026 is expected to explain how the New Income Tax Act, 2025 will be rolled out when it takes effect from April 1, 2026. The government is likely to focus on helping taxpayers understand what changes on day one.

Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister had earlier said that keeping the fiscal deficit under control and managing public debt will remain central to the Budget, in line with the government’s Viksit Bharat plans.

The Budget is also expected to turn attention to demand and smaller businesses. Steps to ease loan access for micro, small and medium enterprises are likely to be part of the package.

Finance Minister Nirmala Sitharaman will table the Budget on February 1, 2026, Sunday, making it one of the more unusual Budget Days in recent memory.

According to reports, the Union Budget 2026 is set to break a 75-year convention, with the government planning a major overhaul of the Finance Minister’s Budget speech. Traditionally, policy announcements dominated Part A, while Part B focused largely on tax proposals. This year, however, Part B is expected to take centre stage. Finance Minister Nirmala Sitharaman is likely to use the section to outline not just tax measures but India’s broader economic vision. It may detail short-term priorities for stability, long-term growth goals, and a roadmap to project India’s competitive strengths globally, drawing close attention from markets and policy watchers.

The Union Budget speech will begin at 11 AM on February 1 in Parliament and will be broadcast live on multiple platforms.

Sansad TV will telecast the speech in various languages, while state-run Doordarshan channels will also air the proceedings live.

Viewers can also stream the speech online via the Union Budget website, the Finance Ministry’s social media handles, and the Press Information Bureau (PIB).

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As Finance Minister Nirmala Sitharaman presents the Union Budget for the financial year 2026–27 (FY27), key data on growth, fiscal spending and the deficit will be in focus. According to the First Advance Estimates released by the National Statistical Office (NSO) on January 7, India’s real GDP is projected to grow by 7.4% in FY26. In the Economic Survey, the Chief Economic Adviser pegged economic growth for FY27 in the range of 6.8–7.2%.

The FY26 fiscal deficit is set at 4.4% of GDP, with investors watching for guidance on a possible 4% target in FY27. Capital expenditure, budgeted at ₹11.2 lakh crore in Budget 2025, could also see a boost as public spending remains a key driver of growth. Changes in income tax and GST, the inflation outlook and allocations for infrastructure and social sectors will also be closely tracked in the finance ministry’s speech.