India's 2026 Union Budget LIVE: Key Highlights and Updates

Finance Minister Nirmala Sitharaman presents the Union Budget 2026 on February 1, marking her ninth consecutive presentation—a record in itself. This year’s Budget is crucial amidst global uncertainties, including escalating US tariffs and the ongoing trade war. The government's focus is expected to address economic growth, job creation, and reforms to maintain India’s position as the fastest-growing major economy.

The Finance Minister arrived at Rashtrapati Bhavan with her signature red ‘bahi-khata’ tablet, a symbol of modern budgeting, ahead of the crucial speech at 11 am in Parliament. Her address will include the statement of receipts and expenditures for FY 2026-27, alongside the introduction of the Finance Bill, 2026. The Budget comes at a critical juncture for India, looking to balance growth while navigating global trade disruptions. 

11:32 AM IST: Capital Expenditure Hiked

Finance Minister Nirmala Sitharaman announced a significant increase in capital expenditure for Fiscal Year 2027, raising the allocation to Rs 12.2 lakh crore. This move is aimed at accelerating infrastructure development and stimulating economic growth across key sectors, including manufacturing, logistics, and infrastructure.

11:31 AM IST: Rs 10,000 Crore Fund to Support SME Expansion

Finance Minister Nirmala Sitharaman announces a Rs 10,000 crore SME growth fund aimed at incentivizing small and medium enterprises based on specific criteria.

11:29 AM IST: Bio-Pharma Scheme Announced - Bio Pharma Shakti

Finance Minister Nirmala Sitharaman announced the launch of the Bio Pharma Shakti scheme with an outlay of Rs 10,000 crores over the next five years. The initiative aims to build a comprehensive ecosystem for the domestic production of biologics and biosimilars, positioning India as a global leader in the biopharma sector and enhancing the accessibility and affordability of critical biologic drugs.

11:27 AM IST: Focus on Textile Sector

• A new scheme to modernize textile clusters and boost expansion and employment
• Launching Samarth 2.0 to promote skill development in the textile industry
• Proposal to set up mega textile parks under a challenge mode
• Introducing the Mahatma Gandhi Gram Samaj initiative to support Khadi and handicrafts

11:25 AM IST: Launch of Semiconductor Mission 2.0

In her Budget speech, Finance Minister Nirmala Sitharaman announced the launch of Semiconductor Mission 2.0. The mission will focus on strengthening India's position in the semiconductor industry by fostering industry-led research and establishing training centers to develop both cutting-edge technology and a skilled workforce. This initiative is aimed at enhancing India’s capability in semiconductor manufacturing and positioning it as a key player in the global supply chain. Outlay increased to Rs. 40,000.

11:21 AM IST: 6-Step Process for India’s Growth

Finance Minister Nirmala Sitharaman outlined a six-step process aimed at accelerating and sustaining India’s economic growth. She proposed key interventions in the following areas:

• Scaling up manufacturing in 7 strategic sectors to boost industrial output and global competitiveness.
• Rejuvenating legacy industrial sectors to ensure the modernization and efficiency of traditional industries.
• Creating champion MSMEs, empowering small and medium-sized enterprises to become key players in the economy.
• Delivering a push for infrastructure, focusing on improving connectivity, logistics, and overall industrial support systems.
• Ensuring long-term security and stability in the economic landscape to foster a predictable and reliable environment for investments.
• Developing city economic regions to encourage localized growth, urbanization, and regional industrial hubs.

11:14 AM IST: Nirmala Sitharaman’s Budget Speech: Bonus for Tamil Nadu and 3 Other States

In her Budget speech, Finance Minister Nirmala Sitharaman announced a bonus for Tamil Nadu, along with Odisha, Andhra Pradesh, and Kerala.

She also highlighted the government’s plan to establish a rare earth minerals corridor to support the industrial growth in these states, boosting their contribution to India’s manufacturing and technology sectors.

11:12 AM IST: Key Steps to Achieve the Three 'Kartavya'

To achieve the threefold approach, a strong supporting ecosystem is essential. This includes:

• Continuing the momentum of structural reforms
• Building a robust and resilient financial sector
• Embracing cutting-edge technologies, such as AI

11:08 AM IST: Budget 2026 Live: FM presents 3 kartavyas

Nirmala Sitharaman presents three kartavyas that would help in the country's growth.

11:02 AM IST: Union Finance Minister Nirmala Sitharaman Begins Budget Speech for FY2026-27

Union Finance Minister Nirmala Sitharaman has begun presenting the Union Budget for the fiscal year 2026-27 in the Lok Sabha. This marks her ninth consecutive presentation of the Union Budget.

Lok Sabha proceedings officially commenced at 11:00 AM on February 01, 2026, with the Finance Minister set to outline the fiscal roadmap for the upcoming year.

10: 58 AM IST: Cabinet Approves 2026-27 Budget

The Union Cabinet has officially approved the 2026-27 Budget. Finance Minister Nirmala Sitharaman is now set to present the Budget in the Lok Sabha shortly.

10:46 AM IST: FY27 Budget — Key Numbers to Watch Out For

As the Union Budget for FY27 unfolds, here are some critical numbers to focus on:

• Fiscal Deficit: The fiscal deficit for FY26 (April 2025 to March 2026) is estimated at 4.4% of GDP, representing the difference between government expenditure and income.
• Capital Expenditure: The planned capital expenditure for the fiscal year is set at Rs. 11.2 lakh crore. The government is expected to continue prioritizing capital expenditure in the upcoming budget to boost infrastructure and industrial growth.
• Debt Roadmap: In her previous budget speech, Finance Minister Nirmala Sitharaman outlined a fiscal policy shift, aiming to reduce central government debt as a percentage of GDP starting from FY27.
• Tax Revenue: The 2025-26 Budget pegged gross tax revenues at Rs. 42.70 lakh crore, marking an 11% growth over FY25, highlighting robust tax collection performance.
• Nominal GDP: India’s nominal GDP growth for FY26 was estimated at 10.1%, while real GDP growth was projected at 7.4%, reflecting a healthy expansion despite global challenges.

These numbers will serve as a barometer for India's fiscal health and industrial policy focus in the year ahead.

10:30 AM IST: Finance Minister Sitharaman Set to Present in Parliament

The Union Cabinet has officially approved the 2026 Union Budget ahead of its presentation. With this clearance, Finance Minister Nirmala Sitharaman is now poised to present the Budget in the Lok Sabha, marking the first step in the parliamentary procedure. Following her address in the lower house, she will proceed to table the Budget in the Rajya Sabha for further deliberation.

10:17 AM IST: Finance Minister Sitharaman Meets President Murmu

Union Finance Minister Nirmala Sitharaman met with President Droupadi Murmu ahead of the 2026 Budget presentation. The meeting took place at the Rashtrapati Bhavan. The discussions were part of the formal process before presenting the Union Budget.