Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 in the Lok Sabha at 11 a.m. on February 1, 2026, marking her record ninth consecutive Union Budget since taking charge of the finance ministry in 2019. This achievement is a first in Indian history and underscores her long‑standing role in shaping India’s economic policy.
Historic Ninth Straight Budget
Sitharaman’s address lasted approximately 1 hour and 25 minutes, striking a balance between detailed policy announcements and a concise delivery for lawmakers and stakeholders. Her consistent presence as budget presenter reflects continuity in leadership through global and domestic economic challenges.
Prime Minister Narendra Modi praised the Budget as a blueprint to strengthen India’s global economic standing, reiterating the government’s commitment to long‑term growth and stability.
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Focus on Growth, Infrastructure, and Strategic Sectors
Infrastructure and Capex Push
Sitharaman announced a significant capital expenditure (capex) allocation of ₹12.2 lakh crore for 2026–27, designed to sustain momentum in infrastructure creation including roads, railways, ports, and urban transport systems. This represents a nearly 9% increase from the previous fiscal allocation and is central to the government’s growth strategy.
Boost to Manufacturing and Technology
The Budget introduced several key initiatives to strengthen manufacturing and technological competitiveness:
- India Semiconductor Mission 2.0 to expand domestic semiconductor and electronics production.
- Rare‑earth mineral corridors across multiple states for critical material supply chain resilience.
- A ₹10,000 crore Biopharma SHAKTI scheme to position India as a global biopharmaceutical manufacturing hub.
These measures aim to reduce import dependence and spur innovation across high value sectors.
Tax Measures and Reliefs
The Finance Minister kept the income tax slabs unchanged but introduced several targeted tax adjustments:
- Reduced TCS rate of 2% on foreign education and medical remittances under the Liberalised Remittance Scheme, benefiting students and families.
- Revisions to customs duties, including simplification and exemptions on some capital goods to support exports and domestic industries.
These changes provide selective relief and aim to improve ease of compliance while bolstering competitiveness.
Social and Sectoral Schemes
Sitharaman outlined investments in health, tourism, education, and women‑led enterprises under the broader vision of building a Viksit Bharat (Developed India) by 2047. She also placed statutory fiscal policy statements before Parliament as required under the Fiscal Responsibility and Budget Management Act.
Market Reaction and Economic Context
Despite the Budget’s growth‑oriented measures, Indian stock markets reacted negatively on Budget Day, with benchmarks such as the Sensex and Nifty witnessing sharp declines, reflecting investor concerns around tax changes and slower‑than‑expected relief measures for certain sectors.
Credit rating agencies noted that while the government’s focus on capex is positive for growth, global economic volatility and fiscal tightening pressures remain key challenges for India’s macroeconomic outlook.
Reactions from Industry and Regions
Industry bodies such as the Andhra Pradesh Chambers of Commerce welcomed the Budget’s emphasis on infrastructure and MSME support but noted the absence of adequate funding for some regional projects. Other local associations praised allocations for technology and textiles while criticizing perceived neglect of agricultural allocations in certain areas.
Analysts in the technology sector highlighted the tax holiday until 2047 for foreign companies operating cloud services using Indian data centres, viewing this as a strategic move to attract long‑term capital.
Conclusion: Balanced But Complex
Finance Minister Nirmala Sitharaman’s ninth consecutive Union Budget set out a balanced yet complex roadmap for India’s economic trajectory. Through increased infrastructure spending, strategic sector initiatives, and targeted tax reforms, the Budget aimed to sustain growth, foster innovation, and strengthen resilience against global headwinds.
However, market volatility and mixed reactions from industry and regional stakeholders illustrate that translating these policy measures into broad‑based economic confidence will require decisive follow‑through and implementation. Looking ahead, the success of the Budget will largely depend on execution, investor sentiment, and how effectively the government addresses emerging challenges in agriculture, employment, and inclusive development.
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