Union Finance Minister Nirmala Sitharaman met President Droupadi Murmu at the Rashtrapati Bhawan with the Budget tablet ahead of her 9th Union Budget speech on Sunday, 1 February 2026.
Before going to the Rashtrapati Bhavan, Sitharaman posed with her Budget team in front of her office at Kartavya Bhavan. Wearing a magenta silk saree, she was holding a tablet in a red pouch with the national emblem, along with the Minister of State and all six Secretaries in her ministry.
Sitharaman continues with the tradition she set in 2019, carrying the budget speech in a 'bahi-khata', which she used after dropping the briefcase tradition.
Following are highlights of the Economic Survey 2025-26 tabled by Finance Minister Nirmala Sitharaman in Parliament on Thursday:
* GDP growth for next fiscal pegged at 6.8-7.2 pc
* FY27 growth projection is lower than 7.4 pc growth estimated for the current fiscal
* Projects medium-term growth potential at 7 pc, economy on a path of steady expansion amid global uncertainties
* Reduce dependence on online teaching tools, which expanded during COVID-19, in favour of offline engagement
* Introduce age-based access limits for using social media platforms, as younger users are more vulnerable to compulsive use and harmful content
*Social media platforms should be made responsible for enforcing age verification and age-appropriate defaults
* Calls for promoting simpler devices for children, such as basic phones or education-only tabs, with content filters
* Bats for marketing ban on ultra-processed foods (UPFs) from 6 am to 11 pm, and restrictions on the marketing of infant and toddler milk and beverages
* Introduce 'Nutrient-Based Tax on UPFs'; the highest GST rate and surcharge on UPFs exceeding thresholds for sugar, salt, or fat
* FY27 to be a year of adjustment as the economy adapts to changes in GST, other reforms
* Survey cautions against broader financial contagion if the AI boom fails to deliver the anticipated productivity gains, which may lead to a correction in overly optimistic asset valuations
* Rupee valuation does not accurately reflect India’s stellar economic fundamentals
* External environment remains uncertain, India needs to be cautious, but there is no reason for pessimism
* Govt remains well on track on envisaged fiscal consolidation path, aims to attain fiscal deficit target of 4.4 pc of GDP in FY26
* FY27 inflation is likely be higher than the current fiscal, but unlikely to be a concern
* Survey pitches for policy to reshape terms of work for gig workers
* FTA with Europe will strengthen India's manufacturing competitiveness, export resilience and strategic capacity
* Pitches for implementing 'Swadeshi' as a disciplined strategy, says not all import substitution is either feasible or desirable
* Swadeshi is inevitable and necessary in the wake of export control and technology denials by developed nations
* Survey calls for a 'National Input Cost Reduction' strategy
* Pitches for progressing from ‘Swadeshi’ to 'strategic indispensability' so that the world moves from "thinking about buying Indian" to "buying Indian without thinking".
* Prices of precious metals, both gold and silver, are likely to continue increasing due to their sustained demand as safe-haven investments amid global uncertainties.
* Revamp the RTI Act 2005, to exempt confidential reports; align legislation with global best practices.
Leader of Opposition in Lok Sabha Rahul Gandhi on Sunday said the Union Budget for 2026-27 is "blind to India's real crises", and highlighted how the youth are without jobs, manufacturing is falling and farmers are in distress.
"Youth without jobs. Falling manufacturing. Investors pulling out capital. Household savings plummeting. Farmers in distress. Looming global shocks - all ignored," the Congress leader said.
"A Budget that refuses course correction, blind to India’s real crises," Gandhi said in a post on X.
Union Home Minister Amit Shah said the Budget announced on Sunday "turbocharges the momentum" to bolster India's position on the global stage as the most attractive investment destination for a wide range of sectors, from traditional to the new-age ones.
"From manufacturing to infrastructure, from health to tourism, from rural areas to AI, from sports to pilgrimage sites, #ViksitBharatBudget is a budget that empowers the dreams of the youth, women, and farmers of every village, every town, and every city, enabling them to realize those dreams," Shah said in a series of messages on 'X'.
Prime Minister Narendra Modi on Sunday described the Union Budget 2026-27 as "historic", saying it reflected the aspirations of 140 crore Indians and strengthened the reform journey and charts a clear roadmap for Viksit Bharat. "Today's budget is historic. It reflects the aspirations of 140 crore Indians. It strengthens the reform journey and charts a clear roadmap for Viksit Bharat," he said.
This budget has proposed a capital expenditure of Rs 12.10 lac crore which is more than the net market borrowing of Rs 11.70 lac crore. I pray that a path is laid where one day capital expenditure will be more than the total borrowing including small savings.
Nilesh Shah, Managing Director, Kotak Mahindra AMC
Bala Ramajayam, Founder and Managing Director, G Square Group
“We congratulate the government on presenting a forward-looking Union Budget that reinforces infrastructure as a foundation for sustainable real estate growth. The Budget provides a strong tailwind for the real estate sector in Tamil Nadu, especially in Chennai and emerging growth corridors across the state.
The continued focus on infrastructure development, city economic regions, Tier I and Tier II cities, and improved connectivity will accelerate planned urban expansion and enhance the attractiveness of well-developed residential locations.
Measures to unlock real estate assets through REITs, reduce construction-phase risks for infrastructure projects and simplify property transactions involving non-residents will further strengthen ease of doing business and market transparency.
Importantly, the emphasis on sustained public investment and economic stability will help improve affordability and boost homebuyer confidence.
For plotted development, this creates an enabling environment for first-time buyers and long-term investors seeking accessible, well-connected and value-driven housing options.”
Dr Prathap C Reddy, Founder and Chairman, Apollo Hospitals:
"The Union Budget 2026–27 sends a reassuring message that India’s growth will be anchored in healthier citizens and stronger health systems. The continued focus on expanding public health capacity, strengthening prevention, and improving access across tier-2 and tier-3 India is consistent with the vision of Viksit Bharat.
We welcome the emphasis to deepen India’s life sciences and innovation ecosystem through Biopharma SHAKTI, including new and upgraded education and research institutions and a nationwide network of 1000 accredited clinical trial sites. These steps will accelerate the development of advanced therapies and reinforce India’s position as a trusted global destination for healthcare and life sciences.
The focus on people is especially heartening. Adding 10,000 medical seats in the coming year, alongside training 1.5 lakh caregivers and scaling allied health disciplines, can strengthen the Prime Minister's vision of Heal in India, Heal by India. Supporting states to create five hubs for medical tourism will elevate quality standards across regions.
We appreciate the reaffirmed commitment to mental health and trauma care through the proposal to establish NIMHANS-2, upgrade apex mental health institutions in Ranchi and Tezpur, and expand emergency and trauma care capacity by 50% in district hospitals through dedicated centres.
Measures to improve affordability, including duty-free access to 36 life-saving drugs, can ease the financial burden for patients.
At Apollo Hospitals, we remain committed to working closely with the government and all stakeholders to translate these priorities into measurable health outcomes for every Indian."
“The Union Budget FY26–27 reinforces India’s commitment to manufacturing-led growth. The continued drive on capital expenditure, with infrastructure allocation exceeding ₹12 lakh crore, alongside fiscal consolidation at 4.3%, strikes a prudent balance between growth stimulus and macroeconomic stability.
Enhanced support to the Self-Reliant India Fund will further strengthen the manufacturing and MSME ecosystem. For the automotive and tyre sectors, sustained investments in infrastructure and logistics will improve cost efficiencies and support demand momentum.
The emphasis on tourism and extensive program of skilling the workforce will go a long way in generating employment. In the context of evolving global trade dynamics, continued focus on ease of doing business, technology adoption, and policy stability will be critical to attract investment and scale exports, strengthening long-term growth momentum.”
- Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries
Mallika Srinivasan, Chairman and Managing Director, TAFE
"I applaud the Union Budget 2026 presented by the Finance Minister, Nirmala Sitharaman, as a balanced and forward-looking roadmap that reinforces India’s commitment to sustainable and inclusive growth. The Budget demonstrates strong fiscal prudence, with clear commitment to consolidation and a fiscal deficit target of 4.37%, reaffirming the government’s focus on the macroeconomic stability while continuing to support growth priorities.
Public investment has been an anchor of India’s growth-story, and it is encouraging to see the sustained and enhanced emphasis on capital expenditure. The continued push towards dedicated freight corridors, high-speed rail corridors, and container manufacturing underscores the government’s resolve to build world-class infrastructure that boosts long-term productivity and growth.
The vision of Viksit Bharat is translated into concrete measures to strengthen manufacturing in critical sectors such as rare-earth minerals, electronics and pharmaceuticals. This focus will deepen domestic value chains, enhance export competitiveness in strategically important sectors.
The introduction of the SME Growth Fund is a critical enabler for accelerating growth in the MSME sector, by providing equity support and nurturing champion MSMEs. The recognition of tourism as a key growth engine is another positive highlight.
The range of schemes introduced to promote tourism will support employment generation, regional development, and the growth of allied sectors across the country. The Union Budget 2026 reflects the Finance Minister and the Government of India’s commitment to a strong, sustainable, growth-oriented, and self-reliant economic framework."
Ajay Kumar Srivastava, MD & CEO, Indian Overseas Bank:
"The Union Budget 2026-27 is a clear roadmap for all-round growth, balancing industrial scaling with job creation, and laying a robust foundation for a Viksit Bharat. Anchored in the three 'Kartavyas'—accelerating growth, building capacity, and ensuring inclusive participation, it reflects a vision that resonates strongly with the banking sector and institutions like Indian Overseas Bank.
With a ₹10,000 crore SME Growth Fund to create 'Champion MSMEs' and mandatory use of TReDS for CPSE purchases, the government is providing small businesses with the structural support to scale. This enhances our ability to extend targeted credit and support MSME growth across regions. Initiatives such as ISM 2.0, tax incentives for Data Centres and cloud services, and Bharat Vistaar, a multilingual AI platform for agriculture align perfectly with our focus on financing high-tech manufacturing, digital infrastructure, and rural productivity.
Credit-linked subsidy programmes for Animal Husbandry and Fisheries, along with Mega Textile Parks, Rare Earth Corridors, and doubled NRI investment limits, provide new avenues for inclusive financing and investment facilitation.
The High-Level Committee on Banking for Viksit Bharat further strengthens institutional efficiency, enabling banks to better support India’s next phase of growth. Overall, this budget is a forward-looking, data-driven plan that empowers us to drive sustainable growth and inclusive development across the country."
Binod Kumar, MD & CEO, Indian Bank
“The combination of equity, formalisation, and compliance enablement represents a significant shift in MSME financing away from balance sheet lending to a full-stack growth model as a result of the 2026 Budget. Therefore, lenders will have significantly reduced long-term credit risk and there will be increased governance through the ₹10,000 crore MSME Growth Fund, Corporate Mitra initiative, and top-up of the Self Reliant India Fund.
Lenders can now capitalise on these initiatives to build momentum for supply chain financing, co-lending alliances, and expanding credit availability, particularly to the manufacturing sector, textiles sector,agri-related MSMEs and export related activities. Formalising what has traditionally been an informal sector through the establishment of textile parks, Khadi and handicrafts will also help drive increased penetration of organised credit in these clusters.
Indian Bank is well-positioned to leverage the combined efforts of cluster-based lending, anchor-based supply chain financing and digital delivery of credit in order to support MSMEs as they transition from small business to national leader.”
“The Union Budget FY26–27 reinforces India’s commitment to manufacturing-led growth. The continued drive on capital expenditure, with infrastructure allocation exceeding ₹12 lakh crore, alongside fiscal consolidation at 4.3%, strikes a prudent balance between growth stimulus and macroeconomic stability. Enhanced support to the Self-Reliant India Fund will further strengthen the manufacturing and MSME ecosystem. For the automotive and tyre sectors, sustained investments in infrastructure and logistics will improve cost efficiencies and support demand momentum. The emphasis on tourism and extensive program of skilling the workforce will go a long way in generating employment. In the context of evolving global trade dynamics, continued focus on ease of doing business, technology adoption, and policy stability will be critical to attract investment and scale exports, strengthening long-term growth momentum.”
Nirmala Sitharaman’s ninth budget was, as the Americans would say, a nothing burger. The Finance Minister’s speech belied expectations that it would contain a robust response to the geopolitical churn the world is witnessing and rambled on into nothingness. Even the poetry she quoted, an evergreen aphorism by the Telugu dramatist Gurajada Apparao that the nation is not its soil but its people was a non-sequitur. Why does this delirium bother the nation on a Sunday?
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Tamil Nadu has come into sharp focus in India’s strategic minerals roadmap following the Union government’s decision to establish Rare Earth Corridors under the Union Budget 2026-27
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The Union Budget 2026 is designed to re-architect the Indian economy around economic growth, inclusivity, and productivity, not near-term stimulus. Currently, India is a $4.3–$4.5 trillion economy; policy choices now underway aim to make India a $12–14 trillion economy by 2036, writes V RAVICHANDRAN, Chairperson of eVidyaloka Trust
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The UnionBudget 2026–27 has triggered a political backlash in TN over the exclusion of the Keezhadi excavation site from the Centre’s cultural #tourism plan, despite Adichanallur's inclusion.
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The Union Budget for 2026–27 comes against a backdrop of a fragile global recovery, fiscal consolidation pressures, and persistent household stress stemming from inflation and employment uncertainty. Global growth remains muted, with international agencies projecting the world output at about 3.1% in 2026, even as India continues to outperform with growth expectations close to 7%. Yet this headline optimism masks structural challenges that remain unresolved: labour absorption, inflation resilience, and long-term fiscal sustainability.
Debdulal Thakur, Professor and Dean, Vinayaka Mission’s School of Economics and Public Policy, Chennai / Shrabani Mukherjee, a Chennai-based independent researcher in economics and public policy