Budget 2026: Capex at ₹12.2 Lakh Cr to Be 4.4% of GDP, Says FM Sitharaman

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.

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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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 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.

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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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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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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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.

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.

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.

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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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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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.

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.

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.

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.

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 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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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 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

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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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.

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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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.

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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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.

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 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.

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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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.

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.

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.

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.

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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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.

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.

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

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

"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.

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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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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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.

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

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.

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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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.

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 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."

‘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 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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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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"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.

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

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.

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

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.

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

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

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.

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".

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

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.

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

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

"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.

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

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.

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."

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

"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.

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

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

"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.

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

To enhance farm productivity, the union budget has proposed the launch of Bharat Vistar, a multilingual AI tool.

Tourism sector has the potential to play a large role in employment generation, forex earning and expanding the local economy. I propose to setup the national institute of hospitality by upgrading the existing council for hotel management and catering technology. It will function as a bridge between academia, industry and govt," Says FM Sitharaman.

She also proposed a pilot scheme for upscaling 10,000 guides in 20 iconic tourist sites through a standardised high quality, 12 week training course with collaboration with Indian Institute of Management. A national destination digital knowledge grid will be established to digitally document all places of significance—cultural, spiritual and heritage to create ecosystem of jobs.

The government has proposed a scheme to enhance development of buddhist circuits in the north east

To diversify farm outputs, increase productivity, increase farmers’ incomes and create new employment opportunities the government will support high value crops like coconut, sandalwood, cacao and cashew in the coastal areas.

The government has accepted the finance commission's recommendation to retain the vertical share of devolution at 41%. As recommended by the commission, FM states she has provided ₹1.4 lakh crores to the states for the year 2026-2027 as finance commission grants.

FM Sitharaman announced that the Income Tax Act 2025 will come into effect from April 1, 2026. The simplified Income tax rules and forms will be notified shortly. Giving tax payers enough time to adjust to the regime, the forms has been redesigned in a way that can be complied easily.

FM Sitaraman said, “I fulfilled my commitment in 2021-2022 to reduce fiscal deficit below 4.5% of GDP by 2025-26. In RE 2025-26, the fiscal deficit has been estimated at par with BE of 2025-26 at 4.4% of GDP. In line with the new fiscal prudence path of debt consolidation, the fiscal deficit in BE 26-27 is estimated to be 4.3% of the GDP.”

The revised estimates of the non-debt estimates are ₹34 lakh crore of which center’s net tax receipts are 26.7 lakh crore. The revised estimate of the total expenditure is about 11 lakh crores. Non-debt receipts and total expenditure 2026-2027, are estimated as 36.5 lakh and 53.5 lakh crore respectively. The centre’s net tax receipts are estimated at 28.7 lakh crore rupees.

"I propose a scheme for small taxpayers, wherein a rule-based automated process will enable obtaining a lower or nil deduction certificate instead of filing an application with the assessing officer. For the ease of taxpayers holding securities in multiple companies. I propose to enable depositories to accept Form 15G or Form 15H from the investor and provided directly to various relevant companies," said the FM.

"Any interest awarded by the motor accident claims tribunal to a natural person will be exempt from income tax and any TDS on this account will be done away with," FM Sitaraman announced.

The government has proposed cuting the TCS on overseas tour packages to 2 per cent. Previously, it was 5% and 20%, with no minimum amount condition.

For ease of living, the FM proposes to reduce TCS rate on the sale of overseas tour programme packages from the current 5% and 20% to 2% without any amount stipulations. TCS rate for pursuing education and medical purposes under liberalised remittance scheme from 5% to 2%.

Supply of manpower services is proposed to be brought within the ambit of payment to contractors for the purpose of TDS to avoid ambiguity. Thus, the TDS on these services will be at the rate of 1% or 2%.

FM proposes a scheme for small tax payers, wherein a rule based automated process will enable obtaining a Nil Deduction Certificate instead of filing an application with the assessing officer.

For the ease of tax payer holding securities in multiple companies, the FM proposes to enable depositories to accept form 15 G or form 15 H from the investor and provided directly to various relevant companies.

The FM also proposes to extend time available to file revising returns from 31st December to up to 31st March with a payment of a nominal fee. She also proposes to stagger the timeline for filing of tax returns. Individuals with ITR 1 and ITR 2 returns will continue to file till 31st July and non-audit business cases and Trusts are proposed to be allowed time till August 31st.

FM eases safe harbour margin for IT sector; IT services clubbed under a common safe harbour margin of 15.5%, applicable for turnover ranging from Rs 300 crore to Rs 2,000 crore

Further, tax holiday till 2047 will be given to companies that provides data services to India through an Indian reseller entity. In her speech, the FM said, "Recognising the need to enable critical infrastructure and boost investment in data centres, I propose to provide tax holiday till 2047 to any foreign company that provides cloud services to customers globally by using data centre services from India. It will, however, need to provide services to Indian customers through an Indian reseller entity."

FM Sitharaman proposes to provide basic Custom Duty Exemptions “to the import of capital goods required for the processing of critical minerals in India.”

To support India’s businesses, artisans and start-ups to access global markets through e-commerce, the government announced complete removal of the current value cap of ₹10 lakh per consignment on courier exports. "In addition, handling of rejected and returned consignments will be improved with effective use of technology for identifying such consignments," said the Finance Minister.

Finance Minister Sitharaman announced that STT on Futures is being raised from 0.02% to 0.05%, while STT on options premium and exercise of options are being raised to 0.15%.

"I propose to raise the STT on Futures to 0.05% from present 0.02%. STT on options premium and exercise of options are both proposed to be raised to 0.15% from the present rate of 0.1% and 0.125% respectively," said the FM.

Stock markets fell over 1% after Finance Minister Nirmala Sitharaman announced a hike in securities transaction tax (STT) on futures and options. The BSE Sensex declined 1.28% to 81,230, while the Nifty 50 was down 1.41% at 25,301.

Most sectoral indices were in the red, with Bank Nifty down 1.45% and Nifty Financial Services slipping 1.83%.

In the Revised Estimates for 2025–26, total government expenditure is placed at ₹49.65 lakh crore, up from actual spending of ₹46.53 lakh crore in 2024–25, while capital expenditure is estimated at ₹10.96 lakh crore compared with ₹10.52 lakh crore a year earlier. For 2026–27, the Budget Estimates peg total expenditure at ₹53.47 lakh crore, with capital expenditure of ₹12.22 lakh crore and effective capital expenditure of ₹17.15 lakh crore. Total resources transferred to states, including devolution, grants, loans and centrally sponsored schemes, are estimated at ₹25.44 lakh crore, marking an increase of about ₹3.78 lakh crore over the actuals of 2024–25.

Several goods and services are set to become more affordable following measures announced in the Union Budget 2026. Taxes on overseas travel packages have been eased, with tax collected at source reduced to 2% from the earlier 5–20% range, while education-related remittances abroad will attract lower TDS under the Liberalised Remittance Scheme. Import duties have also been cut or removed on a wide range of items, including alcoholic liquor scrap and select minerals, inputs for shoe-upper exports, and equipment linked to the energy transition.

Exemptions from basic customs duty have been extended to solar glass materials, capital goods for critical minerals, aircraft components, microwave ovens, drugs for rare and cancer treatments, nuclear power project imports, and fish caught by Indian fishermen in Indian waters. Duties on personal-use imports have also been halved.

• Penalties for income tax misreporting have been sharply increased, with fines now equal to 100% of the tax amount involved.

• Non-disclosure of movable assets will also attract penalties under stricter compliance norms.

• In capital markets, trading in stock options and futures will cost more as the securities transaction tax (STT) has been raised to 0.05% from 0.02%.

The Budget 2026 simplifies TDS procedures through easier nil or lower deduction certificates and a one-time Form 15G/15H filing with depositories.

Additional steps include tax exemption on interest from MACT compensation, targeted support for rural entrepreneurship to lift farm incomes, and a renewed push for domestic manufacturing, skilling and job creation.

As part of a ₹12.2 lakh crore infrastructure outlay, the government has outlined several key initiatives. These include building a ship repair ecosystem to support inland waterways, launching a Coastal Cargo Promotion Scheme to raise the share of inland waterways and coastal shipping from 6% to 12% by 2047 and introducing a viability gap funding scheme for seaplanes to support indigenous manufacturing.

The plan also includes ₹2 lakh crore in support to states under the SASCI scheme and the Purvodaya programme aimed at developing the Integrated East Coast Industrial Corridor.

The policy direction outlined in Budget 2026 is encouraging for the real estate sector, especially in emerging urban markets, said Shorab Upadhyay, Managing Director,TRG Group, adding that financing measures such as partial credit guarantees and REIT-based asset recycling will reduce risk and attract long-term institutional capital.

"The focus on City Economic Regions promotes planned urbanisation and the creation of new real estate demand centers. States will benefit from a substantial ₹1.5 lakh crore allocation in 50-year, interest-free loans to fund capital expenditure and implement reform-driven projects, boosting infrastructure readiness at the local level," he added.

In a major push to make doing business easier in India, Finance Minister Nirmala Sitharaman on Sunday announced plans to rationalise penalty and prosecution. She said that multiplicity of proceedings are a hindrance to the ease of doing business and proposed to integrate assessment and penalty proceedings by way of a common order for both.

The government has proposed several changes to reduce tax disputes and make the system easier for taxpayers. Under the new proposal, taxpayers will not have to pay any interest on penalty amounts while their appeal is pending before the first appellate authority, no matter how the appeal is decided later.

Also, the advance payment required to file an appeal has been cut to 10% from 20%, and this will be calculated only on the actual tax amount, not on penalties or interest.

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The Budget makes a meaningful contribution by simplifying and modernising the tax and compliance framework, said Sanjiv Bajaj, Joint Chairman & Managing Director, BajajCapital. He added that the rollout of the Income Tax Act, 2025, reduced TCS on overseas transactions, extended timelines for return revisions and clearer treatment of cross-border investments collectively ease compliance, improve transparency and strengthen trust between taxpayers and the system.

"These measures reduce friction for individuals, NRIs and businesses, while reinforcing the formal financial ecosystem," said Bajaj.

"Equally important is the focus on deepening capital markets. Initiatives to strengthen the corporate bond market, encourage large issuances and improve market-making mechanisms will help channel long-term capital into infrastructure, manufacturing and innovation. A stable and predictable tax and regulatory environment is essential for patient capital, and the Budget moves decisively in that direction. The continued emphasis on MSME liquidity, credit guarantees and risk-sharing frameworks recognises the sector’s central role in employment generation and economic resilience. For financial institutions, this creates opportunities to expand responsible credit, risk protection and advisory services within a more structured and transparent environment," said Bajaj Capital Joint Manager.

Ankit Aggarwal, Founder of Unstop hailed FM Sitharaman's proposal to create a high-powered Education to Employment and Enterprise committee is a timely acknowledgement that India’s growth story will be written in its services sector and by its talent.

He said, "As AI, automation, and digital services reshape how work is created and delivered, the real challenge is no longer access to education but the translation of learning into employable and enterprise-ready skills. The government’s emphasis on large-scale AI missions and emerging technology capacity building for 25 crore Indians signals a shift from intent to infrastructure. For India to claim a meaningful global share in services by 2047, skilling systems must move faster, become outcome-driven, and stay closely aligned with real industry demand. This Budget sets the foundation for a workforce that is not just qualified, but continuously adaptable in an AI-led economy.”

Budget 2026 reflects a clear and deliberate push to strengthen India’s manufacturing and research ecosystem, particularly in biopharma, Saurabh Arora, Managing Director, Auriga Research stated.

"The Biopharma Shakti initiative, with an outlay of ₹10,000 crore over five years, is a significant boost for a sector driven by high value, high skill and high technology products. The creation of 1,000 clinical trial sites and the move to strengthen CDSCO to global standards demonstrate a deep understanding of what it takes to build a globally competitive biopharmaceutical industry. Repeated emphasis on quality upgradation and R and D infrastructure, seen across initiatives from biopharma to textiles, will provide a strong lift to the testing, inspection and certification ecosystem," he added.

Prime Minister Narendra Modi hails the Union Budget 2026, calling it exemplary of trust based governance.

Noble Group's Managing director Jasraaj S Kalra praises FM's propasal of scheme to revive 200 legacy industrial clusters and the MSME growth fund in Union Budget 2026.

He said, "For many MSMEs in our ecosystem, equity support and day-to-day liquidity are serious bottlenecks. If this fund translates into easier access to growth capital, especially for cluster-level suppliers, tool rooms and component makers, it will lift the entire value chain and give manufacturers a lot more confidence to invest in capacity and localisation.”

Anil Agarwal, Chairman, Vedanta calls the Union Budget 2026 a growth-oriented Budget, with a clear focus on increasing public capital expenditure and boosting manufacturing. He dubs it as a Budget which creates opportunities, for youth to improve their livelihoods, women to become financially independent and for employment-intensive sectors like medical tourism to take off.

"I welcome the Government's keen attention to critical minerals and rare earths. The Rare Earths Corridors for mining, processing, R&D and manufacturing in Odisha, TamilNadu, Andhra and Kerala will boost growth, employment and mineral security. Import duty exemption on capital goods for critical minerals processing is very timely in the current global scenario...... I congratulate the PM and FM for continuing to steer the Indian economy with a very steady hand in uncertain times," he said.

Leader of Opposition Rahul Gandhi declined to comment on the presented Budget. He said he will put his points across in the parliament Tomorrow. "I will speak tomorrow, using the platform provided by Parliament," Rahul Gandhi told reporters.

What I take away from this Budget is how clearly it feeds into India’s 2030 ambition of being a resilient, skills-led and climate-aligned economy, Amit Patjoshi, CEO, Palladium India stated.

"The record capital expenditure push, focus on clean-tech value chains and critical minerals, and investments in manufacturing and skilling are all foundational for long-term competitiveness. But to fully realise this vision, we now need the ecosystem to step up — stronger state-level execution, deeper private sector participation, patient capital for climate and MSME innovation, and closer linkages between skills, jobs and enterprise creation. If policy intent and on-ground delivery move together, this Budget can meaningfully accelerate inclusive growth by 2030," he said.

Budget 2026–27 strikes balance between ambition, growth and discipline, Vineet Mittal, Chairman, Avaada Group stated.

"With sustained public capex of ₹12.2 lakh crore, a clear fiscal consolidation path, and reforms like the Infrastructure Risk Guarantee Fund, it focuses on building long-term productive capacity rather than short-term stimulus. The emphasis on infrastructure, MSME scaling, transport, digital and logistics readiness sends a strong signal that India is investing for durable growth, competitiveness, and investor confidence,” he said.

Former BhartPe founder Ashneer Grover took jibe the the Union Budget 2026 calling it a 'waste of time.' The Shark Tank fame said the "budget reminded of my rebuke on Shark Tank to one of the pitchers- A time waste of yours and ours as well."

Budget is a mixed bag. It delivers on the push towards boosting manufacturing, attracting data centre investments, maintaining the pace of public capex and reforms on customs duty, but allocation on defense is lower than expected, and the hike in derivative tax is a negative surprise for equity markets, Sonal Varma, MD and Chief Economist (India and Asia ex‑Japan), Nomura stated.

"Gross market borrowings are closer to Nomura views, but higher than market expectations, and will mean continued market concerns around large centre and state bond supply next year.

From a macro perspective, we were also focused on the fiscal targets, and both the fiscal deficit target and the central government debt target are higher than expected, and suggest a slower pace of fiscal consolidation. We await the revised GDP series in end-February to assess whether that changes these ratios," she said.

"For sustained economic growth, we are building structural reforms that will go on, for it to continue for improving productivity and generating employment," Says FM Nirmala Sitharaman.

“We will ensure that technology is brought in to benefit the common man, in the sense of ease of living, for businesses to prosper, better logistics. And above all, with all these, inclusive development, ‘Sabka sath sabka vikas’ is prioritised. Brining in schemes with good allocations, creating a cadre of people who can work as healthcare workers, dignified opportunities for divyang jan, mental health. These are prioritized to ensure the welfare of everyone,” FM Sitharaman stated.

M Nagaraju, Secretary, Department of Financial Services said that analysing aspects by expert committee, government will take a view of laying strong foundation of Viksit Bharat 2047.

The most reassuring aspect of the budget is that fiscal consolidation remains firmly on track, with the fiscal deficit continuing on a credible glide path while still supporting growth. This balance between fiscal discipline and growth orientation sends a strong signal of macro stability, Sandeep Chordia, COO, Kotak Securities stated.

"From a taxation and investment perspective, taxing share buybacks as capital gains instead of dividends is a positive move for shareholders, as it lowers the overall tax incidence. Allowing persons resident outside India to invest directly in listed Indian equities will expand the investor base and is clearly positive for the stock markets, particularly in terms of long-term and stable capital flows," he said.

"Finance Minister Nirmala Sitharaman has largely built on the previous Budget, maintaining a strong focus on continuing reforms. Instead of major announcements, the Budget aims to unlock economic potential while reinforcing inclusive growth. It takes a broad-based approach to the production sector across primary, secondary and tertiary segments to drive the next phase of growth," said Indranil Pan, Chief Economist at Yes Bank.

"Capital expenditure has been increased by ₹1 trillion over last year, with funds directed towards infrastructure such as waterways, coastal shipping and high-speed rail corridors. A key theme is reducing dependence on external inputs amid rising global supply chain risks. Higher allocations for electronics manufacturing, rare earth corridors, hi-tech tool rooms and infrastructure equipment reflect the push for self-reliance, while MSMEs receive equity and liquidity support," he added.

"Overall, the Budget strikes a pragmatic balance between near-term challenges and long-term growth. While fiscal consolidation continues, high gross borrowings of ₹17.2 trillion remain a concern, though RBI’s open market operations should help contain yields. The yield curve is expected to stay steep in FY27, with the 10-year yield around 6.65–6.80%," Pan further said.

"The Union Budget presents a visionary, long-term roadmap for India’s textile industry. By focusing on Mega Textile Parks and the National Fibre Scheme, the government is building the infrastructure needed to turn India into a global fashion leader," said, Sidhant Keshwani, Founder and CEO of Libas.

"These steps will provide a massive boost to the sector, helping it transition from traditional roots to a modern, high-speed manufacturing powerhouse. The new Text-ECON initiative and modernization schemes directly address the industry's need for better technology and global competitiveness," he added.

"Furthermore, programs like SAMARTH 2.0 and the Mahatma Gandhi Gram Swaraj Initiative will empower our artisans, linking traditional crafts with global markets," Keshwani further said.

"This Budget sends a strong signal that India is evolving from a delivery hub into a long-term strategic base for technology-led operations. By bringing software, IT-enabled services, KPO and contract R&D under a single ‘Information Technology Services’ category and raising the safe harbour threshold to ₹2,000 crore, the government has improved tax certainty and ease of doing business for large global capability centres," said, Srinivasan Sarvabhouman, CFO of ANSR.

"Automated approvals and faster APA timelines will further ease transfer-pricing concerns.The tax holiday for global cloud providers using India-based data centres until 2047 also strengthens the digital infrastructure that GCCs rely on for AI, data and platform engineering. Together, these measures boost India’s competitiveness for higher-value work, encourage multinationals to expand advanced roles, and reinforce India’s position as a global innovation hub," he added.

Apollo Hospitals Founder and Chairman, Prathap C Reddy, said that the Budget sends a reassuring message that India’s growth will be anchored in healthier citizens and stronger health systems. The continued focus on expanding public health capacity, strengthening prevention, and improving access across tier-2 and tier-3 India is consistent with the vision of Viksit Bharat.

"We welcome the emphasis to deepen India’s life sciences and innovation ecosystem through Biopharma SHAKTI, including new and upgraded education and research institutions and a nationwide network of 1000 accredited clinical trial sites," he added.

"Supporting states to create five hubs for medical tourism will elevate quality standards across regions. We appreciate the reaffirmed commitment to mental health and trauma care through the proposal to establish NIMHANS-2, upgrade apex mental health institutions in Ranchi and Tezpur, and expand emergency and trauma care capacity by 50% in district hospitals through dedicated centres. Measures to improve affordability, including duty-free access to 36 life-saving drugs, can ease the financial burden for patients," Reddy further said.

Bandhan Group Chairman, Shekhar Ghosh, said that Budget 2026 reinforces the government’s reform Sankalp with action, not rhetoric.

"With public capex over ₹41 lakh crore, a steady 7% growth trajectory, and the fiscal deficit firmly placed at 4.3% of GDP, it is evident that the government has chosen to emphasize long-term economic resilience over short-term appearances," he said.

"The SME Growth Fund of ₹10,000 crore, mandatory TReDS adoption, and credit guarantee facilities for invoice discounting will all have a direct positive impact on liquidity access for MSMEs, particularly in Tier II, Tier III, and rural geographies," Ghosh added.

"The Union Budget 2026–27 outlines a strong roadmap for technology-led growth, with higher public capex and a clear focus on AI, data centres and advanced manufacturing. This digital acceleration will drive electricity demand, making resilient and future-ready energy infrastructure central to India’s growth," N Venu MD and CEO of Hitachi Energy India and South Asia.

"The increase in public capital expenditure to ₹12.2 lakh crore provides long-term visibility for the industry, enabling a shift from project-based to program-led execution. Recognising ‘compute’ as essential infrastructure, the Budget’s emphasis on a diversified power mix is crucial. The ₹20,000 crore Nuclear Energy Mission, including Small Modular Reactors, will support AI and industrial clusters with clean, reliable baseload power," he added.

Venu further stated that measures such as Semiconductor Mission 2.0 and Rare Earth Corridors will help de-risk supply chains, while investments in high-speed rail and digital infrastructure create a converged ecosystem. Overall, the Budget strengthens India’s digital and industrial ambitions by anchoring them in secure, high-quality energy infrastructure.

“Biopharma SHAKTI with an outlay of ₹10,000 crore is a well-timed and much-needed step, especially when seen alongside the earlier ₹1 lakh crore commitment announced in November 2025, to research, development and innovation. Together, these measures clearly signal the government’s intent to strengthen Bharat’s biopharmaceutical capabilities and catalyse innovation-led growth," said, Shreehas Tambe, CEO & MD of Biocon Biologics

"The acknowledgement that non-communicable diseases such as cancer, diabetes and autoimmune disorders are now the dominant healthcare challenge is important, as is the focus on complex therapies of biologics through affordable biosimilars as the new standards of care. Encouraging investment in advanced manufacturing, building global scale, and strengthening regulatory capacity through a dedicated scientific review cadre at CDSCO are all critical to meeting global benchmarks," he said.

"Equally transformative is the emphasis on academic research, skill development, training and clinical infrastructure through new and upgraded NIPERs and accredited trial sites. These steps reinforce Atmanirbhar Bharat while positioning India as a credible global biopharma hub delivering affordable, high-quality complex therapies at scale,” Tambe added.

"The Budget’s emphasis on large-scale capacity-building AI missions marks a structural shift in how India is preparing for an AI-driven economy. By prioritising talent development, research, compute infrastructure, data readiness, and mission-mode innovation together, the government is building the foundational layers for sustainable AI adoption rather than fragmented pilots," said, Mahesh Makhija, Leader and Partner, Technology Consulting, EY India.

"This integrated approach can accelerate productivity across industries, strengthen indigenous innovation, and make public services more responsive and efficient. Equally important, it signals that AI is being treated as a general-purpose technology that must permeate every sector of the economy," he added.

"Early applications in areas like agriculture illustrate how AI can improve decision-making at the grassroots while creating a scalable model for similar impact in healthcare, education, manufacturing, and skilling," Makhija further said.

Union Minister Hardeep Singh Puri said the Budget comes at a time of global uncertainty, with India standing out as a zone of stability. He highlighted the continuity of leadership behind the 13th consecutive Budget, noting India’s rise from the world’s 10th to 4th largest economy and the doubling of GDP to $4.3 trillion.

Calling the Budget "purposeful and forward-looking," he told ANI to long-term measures such as the 20-year tax holiday for cloud data centres, the energy–data linkage, and the strong focus on critical minerals essential for EVs and future growth, adding that it lays a mature roadmap towards a developed India by 2047.

"Budget 2026 takes a structured approach to strengthening MSMEs by addressing three persistent gaps - equity, liquidity, and capability," said, Gaurav Sachdeva, Joint Managing Director and CEO, JSW One Platforms Ltd.

"Measures such as the SME Growth Fund, stronger invoice-based financing through TReDS, and professional support via Corporate Mitras are aimed at improving cash-flow predictability and execution capacity, particularly beyond the metros," he added.

"This is less about short-term stimulus and more about building systems that allow manufacturing and construction MSMEs to scale with discipline," Sachdeva further said.

"The Budget sets a clear direction for India’s next phase of growth by balancing economic expansion with reform and accountability. It strengthens key growth drivers such as PLI, skill development, entrepreneurship, and research, while reinforcing a framework of responsible and transparent compliance," said, Nitin Nahata, CHRO of Gameskraft.

"The emphasis on education and innovation is particularly encouraging. The creation of university townships near industrial hubs will strengthen industry–academia collaboration, and the establishment of hostels for girls in every district to promote STEM education reflects a genuinely inclusive approach," he added.

"The push on digitisation moves compliance away from paperwork towards outcome-driven governance, making policy intent unambiguous. The clarification on GST for manpower services brings predictability for businesses and aligns with the direction of labour codes, while the recognition of gig workers acknowledges how the workforce is evolving in practice," Nahata further said.

"Budget 2026 signals a shift from scale-led growth to capability-led leadership, rooted in Viksit Bharat and the three kartavyas of competitiveness, participation, and inclusion. A strong Atmanirbharta push, with ₹40,000 crore allocated for electronics components, ISM 2.0, Rare Earth Corridors, and capital goods support, builds self-reliant digital and telecom foundations," said, Ankit Agarwal, Managing Director, STL.

"The Budget also pivots to a technology-led services economy, targeting global leadership by 2047 via enhanced IT safe harbour rules, an AI-jobs committee, and a 20-year tax holiday for India-based cloud data centres. By fortifying supply chains, easing trade barriers, and boosting exports, it positions India as a global hub for digital infrastructure design, manufacturing, and deployment," he added.

"A bold Budget that combines growth with inclusion. The strong emphasis on skilling, alongside sustained investments in science, innovation, and research are timely & will strengthen domestic capabilities, advancing import substitution in critical sectors," said, Sunil Bharti Mittal, Founder & Chairman, Bharti Enterprises.

"Bolstering infrastructure and logistics, with a focus on energy efficiency and impetus for the data centre ecosystem, will further reinforce confidence in our burgeoning digital economy," he added.

"The Budget 2026 reinforces India’s emergence as a trusted technology and innovation partner. The Government’s recognition of cutting‑edge technologies such as AI as force multipliers for good governance is particularly encouraging. It underscores the pivotal role of the Indian IT industry in delivering innovation, efficiency and scalable digital solutions for the nation," said, Tech Mahindra COO Atul Soneja.

"Initiatives such as the IndiaAI Mission, National Quantum Mission, National Research Fund and the enhanced R&D ecosystem reflect a bold, inclusive, and future‑ready vision. This alignment of policy, technology and talent will accelerate India’s journey toward becoming a global innovation powerhouse," he added.

"Additionally, the launch of India Semiconductor Mission 2.0 will significantly strengthen the country’s technology ecosystem by deepening the integration of hardware and software capabilities, positioning India as a leader in next‑generation digital infrastructure," Soneja said.

• Public capex increased to ₹12.2 lakh crore to drive infrastructure and growth.

• ₹40,000 crore boost to build domestic semiconductor manufacturing and supply chain capabilities.

• Seven high‑speed rail corridors connecting major cities to improve connectivity and sustainable transport.

• New freight link (Dankuni-Surat) and rare‑earth mineral corridors to strengthen raw material supply chains.

• A ₹10,000 crore SME Growth Fund and policy support to improve credit, liquidity, and compliance for small firms.

• Biopharma SHAKTI initiative: ₹10,000 crore programme to make India a global biopharma hub and support affordable complex therapies.

• Fiscal deficit targeted around 4.3 % of GDP with continued consolidation.

• Simplified income tax provisions, extended timelines, and rationalised TCS/TDS to ease compliance.

• 20 new national waterways, coastal cargo scheme, and Infrastructure Risk Guarantee Fund to promote freight movement and logistics efficiency.

• Enhanced support for electronics manufacturing, textiles, container production, and export‑oriented units to reduce import dependence.