Nirmala Sitharaman, the Finance Minister, unveiled the Union Budget for 2026–27 on February 1, 2026. This marked her ninth consecutive budget presentation and also broke new ground as the first budget delivered on a weekend.
Prime Minister Narendra Modi praised the budget, calling it a strong base for the vision of Viksit Bharat 2047, which he likened to a “highway of opportunities” for the 140 crore citizens of India.
Noteworthy highlights include a fiscal deficit target of 4.3%, the introduction of a new Income Tax Act from April 1, 2026, and a hefty ₹12.2 lakh crore allocated for capital expenditure.
While the government is putting energy into sectors like semiconductors and the orange economy, critics from the opposition argue that the budget lacks immediate benefits for rural communities.
This budget, historic in timing, comes on the heels of an Economic Survey predicting a growth rate between 7% and 7.5%, positioning India on the path to becoming the third-largest economy globally.
Crafted at the newly named Kartavya Bhavan, this budget not only aims to modernize the outdated 1961 tax framework but also embodies the concept of “trust-based governance” in today’s fluctuating global economy.
Prime Minister Modi emphasized the document’s forward-thinking nature, highlighting its potential to empower the youth and celebrate women’s contributions. He noted that this budget marks the presence of “Nari Shakti,” or women’s strength, showcasing the significance of having a female Finance Minister for the ninth time.
Among the strategic duties outlined by Finance Minister Sitharaman are stimulating economic growth, meeting citizen aspirations, and promising inclusive development. Key allocations include ₹10,000 crore for the Biopharma SHAKTI scheme and an increase to ₹40,000 crore for the India Semiconductor Mission (ISM) 2.0.
In a post-budget address, Modi congratulated the younger generation and emphasized initiatives like establishing girls’ hostels in every district, showing a commitment to gender equality and employment opportunities.
The government also plans to enhance domestic manufacturing with the announcement of seven high-speed rail corridors and three dedicated chemical parks.
However, opinions vary on the budget’s ramifications. The Logical Indian points out the need for both high-tech growth and mindful consideration of rural areas. They stress the importance of ensuring that advancements in technology do not deepen economic divides. While support for mental healthcare and MSMEs is welcomed, there’s a call for empathy and social equity to remain at the forefront of India’s growth narrative.
As India looks towards a brighter future, the hope is that the focus on technology and modernization will be matched by attention to the backbone of the nation—its villages and small towns.
For a comprehensive analysis of how this budget impacts you, check out this detailed report.
