Budget 2026: India juggles fisc with global risk to sustain goldilocks economy

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The Union Budget 2026-27 is “very responsible and fiscally prudent”, former NITI Aayog CEO Amitabh Kant said after Finance Minister Nirmala Sitharaman delivered a budget speech that promised India's growth with fiscal discipline.

“We are in very complex geopolitics. There is a breakdown of global supply chains and disruption worldwide. Amid this, the Union Budget is fiscally prudent and very responsible,” he said.

Kant downplayed short-term worries for the stock market, attributing the sustained foreign outflows to a strengthening US dollar versus the Indian rupee.

“India's focus should remain on achieving 8-9% GDP growth over the next three decades, rather than being overly concerned with stock market…,” Kant said. “Our vision should be growth and development, not merely the stock market.”

India's stock market recorded its worst budget day in six years after the Union Budget 2026 proposed a higher tax to curb F&O trading and new way to tax share buybacks.

The 30-share S&P BSE Sensex fell 1.88%, or 1,546.84 points, to 80,722.94 even as the broader NSE Nifty 50 fell 1.96%, or 495.20 points, to 24,825.45. Fifteen of 16 major sectors ended in the red. The small-caps and mid-caps slid 2.7% and 2.2%, respectively.

The government has increased the outlay for the telecom ministry by nearly 40%, mainly due to BSNL and BharatNet.

"We've seen a very healthy increase in allocation from revised estimate of last year, ₹53,000 crore on telecom. We have grown to ₹73,000 crore. That's almost 40%," Telecom Minister Jyotiraditya Scindia said after Finance Minister Nirmala Sitharaman's budget speech in Parliament.

“Our ARPU (average revenue per user) grew by almost 9% from ₹90 to almost ₹99. We would like to touch three digits soon,” he said. “We've grown revenue across the board across all our three verticals, and now we need this injection of capex along with our internal cash flows so that we can take BSNL on its path of resurgence.”

Union Budget 2026 LIVE: The hike in securities transaction tax (STT) is only for F&O trading and not for other segments of the equity market, a government official clarified in a post-budget speech presser.

ALSO READ | Budget 2026: STT hike on F&O trading – What that means for your ₹10 lakh

Union Budget 2026 LIVE: The government has proposed a tax holiday until 2047 for any foreign company that sets up data centres in India for the world. A safe harbour of 15% on cost for companies provided data services from India is a related entity.

• All IT services will be clubbed under a single category with a common safe harbour margin of 15.5%.

• Threshold for availing safe harbour for IT services to be enhanced to ₹2,000 crore from ₹300 crore.

• A Safe harbour for IT services to be approved by an automatic rule-driven model.

Union Budget 2026 LIVE: The government has extend the timeline to revise ITR with payment of nominal fee.

• Individuals with ITR1 and ITR2 to continue to file till 31 July.

• TDS on sale of immovable property by NRIs to be deducted by resident buyer vs earlier requirement of TAN.

• Taxpayers allowed to update income tax returns even after reassessment but with 10% tax.

Union Budget 2026 LIVE: The government has proposed an Indian Institute of Creative Technologies In Mumbai for India's animation, visual effects, gaming sector is growing industry, Finance Minister Nirmala Sitharaman says in budget speech.

• Proposes to create five university townships

• Plans academic zones to host multiple colleges, skill centres, residential areas

• Proposal to set up one girls hostel in every district

• A new National Institute of Design will come up in East India.

The budget has an outlay of ₹20,000 crores over the next 5 years in Carbon Capture Utilization and Storage.

Union Budget 2026 LIVE: India has revised higher its expenditure goal to ₹53.5 lakh crore versus ₹49.6 lakh crore in FY26.

•⁠ Net market borrowing estimated at ₹11.7 lakh crore

•⁠ Gross market borrowing seen at ₹17.2 lakh crore

•⁠ Net tax receipts estimated at ₹28.7 lakh crore in FY27

Union Budget 2027 LIVE: India has set itself a fiscal deficit target of 4.3% of GDP in FY27, Finance Minister Nirmala Sitharaman says in budget speech. India's Debt-to-GDP ratio estimated at 55.6% in FY27 vs 56.1% in FY26.

“I have fulfilled my commitment made in FY22 to reduce India's fiscal deficit below 4.5% of GDP,” Sitharaman says.

Union Budget 2026 LIVE: 16th Finance Commission has recommended 41% tax devolution to states — the highest yet, Finance Minister Nirmala Sitharaman says.

Budget 2026 LIVE: Finance Minister Nirmala Sitharaman proposes an archeological revival in her budget speech.

•⁠ ⁠15 sites like Sarnath, Hastinapur to become vibrant cultural hubs

•⁠ ⁠Digital Knowledge Grid to document key heritage places

•⁠ ⁠New roles for local researchers, historians, tech partners

•⁠ ⁠Development of tourism, knowledge economy around sites

The budget also provides for the Khelo India mission to sports at the grassroots level. That aligns with employment and youth development goals.

Union Budget 2026 LIVE: The government has proposed to launch the Mahatma Gandhi Gram Samaj initiative to support khadi, handicrafts, FM Nirmala Sitharaman says in budget speech.

Union Budget 2026 LIVE: Finance Minister Nirmala Sitharaman, in her budget speech, has laid special emphasis on inland waterways.

1. 20 new national waterways over next five years.

2. A ship-repair ecosystem to be developed in Varanasi, Patna

3. A coastal cargo scheme to increase share of coastal shipping.

4. Support to manufacturing of sea planes in India.

Union Budget 2026 LIVE: Apart from a higher capex outlay, the budget has proposed a new Infra Risk Guarantee Fund has been proposed, as well as dedicated REITs for recycling assets of CPSEs.

Union Budget 2026 LIVE: The government has proposed a ₹10,000-crore SME growth fund to incentivise small industries in India. A Self-Reliant India fund with ₹2,000 crore will support micro enterprises. Here are a few highlights:

1. A new scheme to support states in estabilishing three chemical parks.

2. ₹10,000 crore for container manufacturing in India over five years.

3. A new National Fibre Scheme proposed for self-sufficiency in fibres.

Union Budget 2026 LIVE: India has raised its capex outlay for FY27 to further the reforms push, Finance Minister Nirmala Sitharaman says in budget speech. The capex for FY26 was ₹11 lakh crore.

Union Budget 2026 LIVE: The government has proposed to launch India Semiconductor Mission 2.0 with focus on industry-led R&D and training centres for chips. The outlay has been increased to ₹40,000 crore.

Union Budget 2026 LIVE: Finance Minister Nirmala Sitharaman, in her budget speech, has proposed a ₹10,000-crore SME growth fund.

Union Budget 2026 LIVE: Union Finance Minister Nirmala Sitharaman has proposed interventions in key areas:

1. The Scale-up of manufacturing in strategic sectors

2. Creation of Champion MSMEs in India

3. Development of strategic economic regions

Union Budget 2026 LIVE: The government proposes to allocate ₹10,000 crore for the biopharma sector, Finance Minister Nirmala Sitharaman says in her budget speech.

India will become a global biopharma hub under ‘Biopharma Shakti’ with ₹10,000 crore outlay over five years. It will create network of 1,000 accredited trial sites to bolster biopharma industry.

“The government has undertaken comprehensive reforms for accelerating growth, boosting productivity,” she says. “More than 350 reforms have been rolled out recently. The reform express is well on its way.”

Union Budget 2026 LIVE: The budget is based on three kartavyas, or responsibilities, says Finance Minister Nirmala Sitharaman in her budget speech.

1. First is to accelerate and sustain economic growth by enhancing competitiveness

2. Second is to fulfil aspirations of our people

3. Third is to ensure that every family, community, region has access to resources, opportunities.

“Threefold approach requires supportive ecosystem. It is a unique, yuva shakti-driven budget,”she says.

The government has focused on delivering reforms over mere rhetoric, Finance Minister Nirmala Sitharaman says to begin her budget speech. That's helped us deliver GDP growth rate of 7.2%, amid geopolitical crises, she says.

“India's economic trajectory marked by stability over 12 years. The stability has been displayed amid ongoing uncertainty,” the finance minister says. “The government has preferred reform over rhetoric and pursued far-reaching reforms.”

Finance Minister Nirmala Sitharaman has started delivering her ninth consecutive budget speech in Parliament. She is expected to continue the reforms overdrive of the Narendra Modi government.

Union Budget 2026-27: The Union Cabinet has approved the Finance Bill 2026 ahead of Finance Minister Nirmala Sitharaman's budget speech at 11:00 am today.