India Budget 2026-27: Key takeaways
The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, emphasizes fiscal consolidation, infrastructure acceleration, job creation, and the Viksit Bharat vision. Capital expenditure has been raised to ₹12.2 lakh crore, up from ₹11.2 lakh crore in FY26, sustaining the massive push since 2014.
Fiscal deficit for FY26 stands at 4.4% of GDP, with FY27 expectations hovering around 4.0–4.2%, alongside a clear roadmap to reduce debt-to-GDP ratio toward 49–51% by 2031. Key announcements include new dedicated freight corridors (Dankuni–Surat), seven high-speed rail projects, operationalization of 20 new waterways (starting with one in Odisha), and the Infrastructure Risk Guarantee Fund to de-risk private investment.
Manufacturing receives strong support through enhanced electronics component schemes (₹40,000 crore), rare-earth corridors in four states, a ₹10,000 crore MSME fund, and ₹10,000 crore for biopharma under 'Biopharma Shakti'. Other highlights feature ISM 2.0, a National Institute of Hospitality, content labs in 15,000 schools via Mumbai’s Indian Institute of Creative Technologies, and transition to the new Income Tax Act 2025 (effective April 2026).
The budget prioritizes AI, EVs, agriculture, green transitions, export competitiveness, and inclusive growth, aiming to sustain 6.8–7.2% GDP expansion while reviving private investment confidence.
