Finance minister Nirmala Sitharaman presented the Union Budget 2026 in Parliament today, marking her ninth consecutive budget speech, in addition to one interim budget.
While the budget is presented on this date every year, February 1 this time falls on a Sunday, making the occasion a rare one.
The budget aligns with the “Viksit Bharat” and “Atmanirbhar Bharat” (Self-reliant India) goals. Priorities include strategic defence, energy security, semiconductors, rare-earth minerals, and digital sovereignty, the officials said.
Sources said that, unlike previous years, where the speech largely focused on Part A - which outlines planned initiatives and sectoral strategies - this year’s presentation is expected to devote significant time and detail to Part B.
Key points in the Budget Speech
- The Union Budget for the next fiscal year will focus on structural reforms, building a robust financial sector and stepping up investments in cutting-edge technologies, including artificial intelligence.
- Intervention in 6 areas: Industrial sectors, champion MSMES, powerful push for infrastructure, stability and economy
- The budget proposes to set up ₹10,000 crore to create champion SMEs
- The budget points out scheme to revive 200 legacy industrial clusters
- Proposal of Mahatma Gandhi Gram Swaraj initiative to strengthen Khadi handloom.
- Proposal of Bio-pharma ‘Shakti’: 3 new pharmaceutical institutions. ₹10,000 crore investment in the biopharma sector over the next five years, a move which would give a boost to the country's pharmaceuticals industry.
- Support mineral-rich states of Odisha, Kerala, Tamil Nadu: Launch schemes to establish 3 dedicated plants
- Proposal of integrated textile programme with five sub-parts. Samarth 2.0 to upgrade textile-skilling programs, along with proposal for mega-textile parks
- National Handloom and handicraft program to ensure targeted support for artisans: Includes the Natural Fibre Scheme, Textile Expansion and Employment scheme, National Handloom and Handicraft programe.
- Proposal to top-up self-reliant India fund, with allocation of ₹2000 crore
- The budget proposes to upgrade WHO Global Traditional Medicine Centre at Jamnagar, Gujarat
- Govt will facilitate professional institutions to design short term modular courses, especially in tier-2 and tier-3 towns.
- Propose to set up Infrastructure Proof Guarantee Fund
- The FM said that the government will create a network of over 1,000 accredited Indian clinical trial sites.
- 20 new waterways to be established: Ship repair ecosystem will be set up in Varanasi and Patna. Launch a coastal cargo scheme to increase the share of inland shipping
- The budget will support Indian Institute of Creative Technologies Mumbai for setting up content labs in 15,000 secondary schools.
- The FM announced setting up of one girls' hostel in every district of the country
- The FM proposed rule-based automated process for small taxpayers in FY27 Budget
- The budget also outlined to remove exemptions on customs duties on items manufactured in India or have negligible import.
- The Centre has allocated ₹1.4 lakh crores for states for the Financial Year 2026-27 as Finance Commission grants.
- Proposal for exclusion of entire value of biogas while calculating excise duty payable on blended CNG.
- The FM proposed establishing three new All India Institutes of Ayurveda to strengthen research on traditional medicines.