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Finance Minister Nirmala Sitharaman is now presenting her ninth consecutive Union Budget today in the Lok Sabha. The country's most important financial document comes at a time when the world's fastest-growing major economy has managed to withstand prohibitive US tariffs but uncertainty continues to swirl. The government is expected to continue its reform agenda after taxation and labour law changes last year.
India's GDP is expected to grow 7.4% for the year ending March 31 with the help of government spending on infrastructure, and income and consumption tax cuts that boosted consumer spending.
The finance minister is also expected to outline both short-term priorities and long-term goals in Part B of her Budget speech, highlighting the country's local strengths and global ambitions.
Crisil View: Capex to GDP at Rs 12.2 lakh crore is at 3.1% of Crisil’s GDP estimate for next fiscal. The budget estimate for this fiscal was also 3.1%. Grants in aid for capital creation typically should add another 1% points to this.
Finance Minister Nirmala Sitharaman proposes an outlay of Rs 20,000 crores over the next 5 years in Carbon Capture Utilization and Storage (CCUS) technologies to scale up and achieve higher readiness levels in end-use applications across.
The Budget 2026 has proposed to develop 7 high speed rail corridors between cities as growth connectors. These are Mumbai-Pune, Hyderabad-Pune, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi, and Varanasi-Silliguri.
Finance Minister Nirmala Sitharaman pegged the Union Budget 2026's capital expenditure at Rs 12.2 lakh crore for FY27.
The capex for FY26 was Rs 11 lakh crore,
The Union Budget 2026 proposed to launch a scheme to revive 200 legacy industry clusters. The government plans to introduce Rs 10,000-crore SME growth fund to incentivise SMEs based on select criteria.
A top up Self-Reliant India fund with Rs 2,000 crore to continue support to micro enterprises. Sitharaman proposed to link GeM with TReDS for information sharing.
The Budget proposes to launch Mahatma Gandhi Gram Samaj initiative to support Khadi, handicrafts. The government will also introduce dedicated initiative to promote globally competitive sports goods.
The government will launch India Semiconductor Mission 2.0 with focus on industry-led research and training centres for semiconductors, increase outlay to Rs 40,000 crore to capitalise on momentum of semiconductor mission.
The Union Budget proposes to develop India's global bio-pharma hub under 'Biopharma Shakti' with Rs 10,000 crore outlay over five years. It will create network of 1000 accredited trial sites to bolster bio-pharma industry.
Finance Minister Nirmala Sitharaman proposed interventions in key areas:
Read: Nirmala Sitharaman Announces Proposal To Build Rare Earth Mineral Corridors In India
"Government has undertaken comprehensive reforms for accelerating growth, boosting productivity. Over 350 reforms have been rolled out recently. Central government working with State governments on deregulations. The reform express is well on its way," said Finance Minister Nirmala Sitharaman.
Finance Minister Nirmala Sitharaman said the Budget 2026 is 'Yuva Shakti' driven.
"First is to accelerate and sustain economic growth by enhancing competitiveness, second is to fulfill aspirations of our people. Third kartavya is to ensure that every family, community, region has access to resources, opportunities. Threefold approach requires supportive ecosystem," she said.
"We have ensured that citizens benefit from every action of the government. Measures have delivered high growth rate of around 7%. Measures helped make substantial strides in poverty alleviation. India will continue to take confident steps towards Viksit Bharat," said Finance Minister Nirmala Sitharaman.
"India's economic trajectory marked by stability over 12 years. Stability has been displayed amidst ongoing uncertainty. Government has preferred reform over rhetoric and pursued far-reaching reforms," said Finance Minister Nirmala Sitharaman.
Sitharaman tables the 16th Finance Commission and Budget.
The Lok Sabha has convened for the Budget presentation. Speaker Om Birla is making opening remarks and will call on Finance Minister Nirmala Sitharaman to address the House.
The Modi Cabinet has approved the Union Budget 2026.
President Murmu extended her best wishes to the Union Finance Minister and her team for the presentation of Budget. Her office released photos from the meeting.
Union Minister for Finance and Corporate Affairs Smt Nirmala Sitharaman along with Minister of State for Finance Shri Pankaj Chaudhary and senior officials of the Ministry of Finance called on President Droupadi Murmu at Rashtrapati Bhavan before presenting the Union Budget. The… pic.twitter.com/XhBbxwFeAS
— President of India (@rashtrapatibhvn) February 1, 2026
The Union Cabinet chaired by PM Narendra Modi is currently meeting in Parliament to consider and approve the Union Budget 2026.
Top Stocks To Watch For Budget
"It will be a historic budget. The PM's 'Reform Express' will move forward speedily towards Viksit Bharat."
Gold financiers are feeling the heat of gold prices
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Saurabh Mukherjea, Founder & Chief Investment Officer of Marcellus Investment Managers, explains why last year's income tax and GST cuts proved to be a game-changer for the economy.
Nirmala Sitharaman has reached Parliament complex in New Delhi. The Union Cabinet chaired by PM Modi will convene shortly to approve the Union Budget 2026.
Ahead of Nirmala Sitharaman's budget speech, GST data for January shows a pick up in collections. Gross GST revenue rose 6.2% YoY to Rs 1.93 lakh crore and net GST revenue jumped 7.6% to Rs 1.7 lakh crore.
Net Cess revenue down 55% to Rs 5,768 crore.
Turning attention to the commodity markets, silver prices fell again Sunday morning, plunging up to 10% on the MCX as the global sell-off in the metals market continues.
The Silver MCX is currently trading at around Rs 2.65 lakh. The prices are down 36% from record highs, a drawdown that is part of a larger correction in precious metals.
Read more: Silver Extends Fall Ahead Budget 2026; Declines 9% On MCX
Union Finance Minister Nirmala Sitharaman, along with her team, called on President Droupadi Murmu before presenting her ninth consecutive Union Budget.
Watch:
Nifty Defence top sectoral gain on the NSE.
Union Finance Minister Nirmala Sitharaman along with Minister of State For Finance Pankaj Chaudhary and other officials heads to Rashtrapati Bhawan ahead of presenting the Budget.
India's benchmark equity indices opened lower ahead of the Union Budget 2026.
The Nifty and Sensex are down.
Nirmala Sitharaman is wearing a handwoven Kancheevaram silk sari, honouring Tamil Nadu’s age old weaving legacy. It is a purple coloured Kattam Kancheevaram, with light golden brown checks, aka kattam, and a coffee brown border with thread work. This continues her quiet championing of the country’s various handloom weavers and their kala, from Mangalgiri and Ikat, to Bomkai, Kantha, Madhubani, and more.
Source: NDTV
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VIDEO | Union Finance Minister Nirmala Sitharaman shows the digital tablet, containing the Budget document, enclosed in a traditional red 'bahi-khata' style pouch. #Budget2026WithPTI #UnionBudgetWithPTI
— Press Trust of India (@PTI_News) February 1, 2026
(Full video available on PTI Videos - https://t.co/n147TvrpG7) pic.twitter.com/YfF1S9zpvz
Finance Minister Nirmala Sitharaman poses with the budget team at the Ministry of Finance office in Delhi's Kartavya Bhavan.
The shares of PSU Bank stocks like Bank of Maharashtra, Punjab National Bank, State Bank of India will be in focus as the government may propose the Banking Governance Bill today. The move aims to make PSU banks professional, competitive, and tech-driven, sources told NDTV Profit.
The bill will also likely ensure PSU banks can finance large projects and not just safeguard public savings. The Bill may look into better board composition, clearer accountability and could also address concerns over pay and talent gaps between public sector banks (PSBs) and private banks, as per sources.
#WATCH | #UnionBudget2026: Finance Minister Nirmala Sitharaman arrives at Kartavya Bhawan
— NDTV (@ndtv) February 1, 2026
Video credit: ANI/X#Budget2026 pic.twitter.com/VG83kIdUtE
NDTV Profit's Niraj Shah explains the math behind India's growth plan.
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Finance Minister Nirmala Sitharaman will unveil Modi 3.0 government's third straight budget on Feb. 1, 2026. India's middle-class and salaried employees are expecting more income tax cuts in India Budget 2026. D-Street investors are eyeing exemption on higher LTCG tax and STT.
India's stock markets will be open on Sunday for the Budget day. Both NSE and BSE will conduct equity trading under regular market hours.
It is to be noted that Sunday remains a settlement holiday. Although stock markets will remain open, shares traded on Friday cannot be squared off today because of the disruption to the normal settlement cycle.
Here are some important fiscal metrics to watch out for in Budget 2026.
GDP Growth
The government's approach to gross domestic product (GDP) growth rate will be watched out for by all in FM Sitharaman's Budget speech in view of the economic challenges posed by the US tariffs and geopolitical tensions. The Economic Survey, presented in Parliament on Jan. 29, has projected a real GDP growth rate of 6.8-7.2% for FY27, compared to 7.4% estimated for the current fiscal (FY26), reflecting a steady economic advancement.
Fiscal Deficit
The fiscal deficit was estimated at 4.4% of GDP for FY 2025-26. In this Budget, the government is likely to reduce the fiscal deficit target further.
Revenue Deficit
The gap between revenue expenditure and revenue receipts was expected to narrow to Rs 5.24 lakh crore in FY26, or 1.5% of GDP, compared to Rs 6.1 lakh crore (1.9% of GDP) in the revised estimates of 2024-25.
Capital Expenditure
The Budget 2025 underscored continued emphasis on capital spending, with capital expenditure on the books at Rs 11.21 lakh crore for FY 2025-26, slightly higher than the revised Rs 10.18 lakh crore for the previous financial year.
ALSO READ: Budget 2026: Key Fiscal Numbers To Track — From Deficit And Debt To Capex
Finance Minister Nirmala Sitharaman, along with the Budget team, will leave from Kartavya Bhawan for Rashtrapati Bhavan at 8:45 a.m., sources told NDTV Profit. It is customary for the FM to present a copy of the Union Budget to the president before heading to Parliament.
Defence-linked stocks are likely to remain in focus during the Union Budget 2026 on Feb. 1, as investors factor in a moderate increase in defence outlay and continued emphasis on indigenisation.
Hindustan Aeronautics is seen benefiting from its aircraft and engine manufacturing pipeline, while Bharat Electronics remains a key play on defence electronics, radar and communication systems.
Bharat Dynamics is also on investors' radar given its role in missile manufacturing, while shipbuilders such as Mazagon Dock Shipbuilders and Garden Reach Shipbuilders are being tracked amid ongoing naval modernisation.
Nirmala Sitharaman had, in her first Budget in 2019, replaced the leather briefcase, which had been in use for decades for carrying Budget documents, with a traditional 'bahi-khata' wrapped in red cloth. This year's budget will be in paperless form, as done in the last four years.
This year's Union Budget 2026 presentation is set to break a 75-year tradition, with the government preparing to overhaul the structure of the Finance Minister's speech, sources told NDTV. Historically, Part A of the Budget has carried most of the detailed policy announcements, while Part B served primarily as a shorter segment focused on tax proposals and select updates.
That convention is expected to change this year. According to people familiar with the matter, Finance Minister Nirmala Sitharaman is likely to devote unprecedented detail and emphasis to Part B, making it the most closely watched portion of the speech. The section is expected to serve not just as a tax policy outline but as a broader statement on India's economic direction.
The budgeted fiscal deficit, which is the difference between the government's expenditure and income, for fiscal 2026 is estimated at 4.4% of GDP. Having achieved a fiscal consolidation roadmap with a deficit below 4.5% of GDP in fiscal 2026, the markets will keenly watch for direction on debt-to-GDP reduction.
The Union Budget 2026 comes against a complex backdrop for India. Domestic demand has held up following direct and indirect tax cuts, inflation has sharply moderated, global uncertainties including geopolitical tensions, trade frictions, volatile commodity prices and uneven monetary easing by major central banks continue to cloud the outlook.
The Union Budget 2026 is likely to give top priority to rural development, and development of the agriculture sector. Nirmala Sitharaman is expected to announce more funds for programmes to raise employment opportunities in rural areas, according to sources.
The Rural Development Ministry has asked the Finance Ministry to increase the budget of the new employment guarantee scheme, 'Viksit Bharat - G Ram G' or VB-G Ram G, to Rs 1.51 lakh crore, or by 72%, as per NDTV. Last year, the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) got a budget of Rs 86,000 crore.
Comprehensive Budget 2026 coverage, LIVE TV analysis, Stock Market and Industry reactions, Income Tax changes and Latest News on NDTV Profit.
