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. 

Catch the LIVE Updates Below:

12:45 PM

Electronics Outlay Increased to Rs 40,000 Crore: Key Initiatives Announced

In the 2026-27 Union Budget, the Electronics Components Manufacturing Scheme (ECMS) outlay has been significantly increased from Rs 22,999 crore to Rs 40,000 crore. Alongside this, several new initiatives have been proposed to strengthen India's semiconductor ecosystem, reduce import dependency, and enhance the competitiveness of domestic manufacturing:

• ISM 2.0 Launch: A new phase of the Indian Semiconductor Mission (ISM) will focus on the production of critical semiconductor equipment and materials, designing Indian intellectual property (IP), and strengthening supply chains within the semiconductor industry.

• Electronics Components Manufacturing Scheme: The outlay for this scheme has been raised to Rs 40,000 crore, following a surge in investment commitments that doubled the original Rs 22,999 crore target.

• Rare Earth Corridors: Dedicated corridors will be developed in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to support mining, processing, research, and manufacturing of rare earth elements, a crucial step towards reducing dependency on imports.

• Chemical Parks: A new scheme has been proposed to help states establish three dedicated chemical parks through a cluster-based plug-and-play model, fostering industrial growth and reducing import dependency on chemicals.

12:38 PM

Customs Duty Waived on Aircraft Parts for Defence Units

Union Finance Minister Nirmala Sitharaman announced the exemption of basic customs duty on raw materials imported for the manufacture of aircraft parts. These parts will be used for the maintenance, repair, and overhaul (MRO) needs of units within the defence sector.

This move aims to enhance the self-reliance of India's defence sector by reducing the cost of sourcing critical components and supporting the growth of the domestic aerospace and defence industry.

12:34 PM

Customs Duty Exemption on Nuclear Power Imports Extended Until 2035

Union Finance Minister Nirmala Sitharaman announced the extension of the basic customs duty exemption on imports for nuclear power projects until 2035, expanding it to cover all nuclear plants, regardless of their capacity.

12:32 PM

Proposal to Increase the Limit for Duty-Free Imports of Specified Inputs

Finance Minister Nirmala Sitharaman proposed an increase in the duty-free import limit for specified inputs used in the processing of seafood for export. The new proposal suggests raising the limit from the current 1% to 3% of the FOB (Free on Board) value of the previous year’s export turnover.

Additionally, she proposed extending the duty-free import scheme, which was previously available for the export of leather and synthetic footwear, to now include exports of shoe uppers as well. This measure aims to further support the export-oriented industries, reduce production costs, and enhance India's competitiveness in global markets.

12:30 PM

Major Push for Future-Ready Infrastructure Across India

Finance Minister Nirmala Sitharaman outlined ambitious infrastructure plans to build a future-ready Bharat, focusing on strengthening growth hubs, especially in Tier II and Tier III cities with populations over 5 lakh.

Public capital expenditure for FY 2026–27 has been increased to Rs 12.2 lakh crore. The government will establish dedicated REITs to speed up the recycling of key real estate assets from CPSEs. An Infrastructure Risk Guarantee Fund will also be set up to offer partial credit guarantees to lenders.

A Rs 5,000 crore allocation over five years has been earmarked for developing City Economic Regions. A new Coastal Cargo Promotion Scheme aims to boost inland waterways and coastal shipping from 6% to 12% by 2047.

Additional measures include a Seaplane VGF Scheme to support operations, dedicated freight corridors linking Dankuni in the east to Surat in the west, and the creation of 20 new National Waterways over the next five years. The Budget also proposes 7 high-speed rail corridors to connect key growth centers and the establishment of Regional Centres of Excellence to develop skilled manpower for the sector.

12:29 PM

Odisha, Kerala, Andhra, Tamil Nadu to Get Dedicated Rare Earth Corridors — What It Means

Finance Minister Nirmala Sitharaman proposed the establishment of dedicated rare earth corridors in Odisha, Andhra Pradesh, Tamil Nadu, and Kerala as part of the 2026-27 Union Budget. This strategic move aims to reduce India’s dependency on imports of critical minerals and strengthen domestic capabilities in the mining, processing, research, and manufacturing of rare earth elements and permanent magnets. These elements are vital for the development of sectors such as clean energy, electronics, defence, and electric mobility.

The proposal underscores the government's commitment to supporting mineral-rich states and enhancing India's position in the global supply chain for these essential materials. The development of these corridors will bolster India's self-reliance in critical technologies, enabling sustainable industrial growth and technological innovation.

12:22 PM

Rs. 20,000 Crore Push for Carbon Capture Technologies

Finance Minister Nirmala Sitharaman proposed an outlay of Rs 20,000 crore over the next five years to support Carbon Capture, Utilization, and Storage (CCUS) technologies. The funding is intended to scale up CCUS projects, enhance technological readiness, and facilitate broader applications across various sectors, contributing to India’s climate goals and promoting sustainable industrial practices.

12:00 AM  

Fiscal Deficit Estimated at 4.3% of GDP

Finance Minister Nirmala Sitharaman announced that the fiscal deficit for Fiscal Year 2026-2027 is estimated to be 4.3% of GDP. This marks a key fiscal target as the government aims to balance growth with fiscal prudence, ensuring sustainable economic development.

11:53 AM

Nimhans 2.0 to Be Established

To improve mental health care, particularly in North India, Finance Minister Nirmala Sitharaman announced the establishment of Nimhans 2.0 to address mental health challenges.

11:51 AM

Multilingual AI Tool for Farmers

Finance Minister Nirmala Sitharaman announced the development of a multilingual AI tool aimed at enhancing agricultural activities for farmers. This tool will provide crucial information, guidance, and resources in multiple languages, helping farmers across India improve productivity, access markets, and make informed decisions.

11:46 AM

High-Level Committee on Banking for Viksit Bharat

Union Finance Minister Nirmala Sitharaman has proposed the formation of a high-level committee to review the banking sector in the context of Viksit Bharat. The committee will conduct a comprehensive assessment of the sector.

Additionally, a proposal to restructure Power Finance Corporation (PFC) and REC Limited (formerly Rural Electrification Corporation), two leading state-owned NBFCs under the Ministry of Power, has been presented.

11:45 AM

Another Bonus for Poll-Bound Tamil Nadu - Bird Watching Trains Proposal

In a special announcement, Finance Minister Nirmala Sitharaman proposed the introduction of trains for bird watching along the Andhra Pradesh and Tamil Nadu border. This initiative aims to boost eco-tourism in the region and promote sustainable travel, offering unique opportunities for bird watchers and nature enthusiasts.

11:32 AM 

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

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

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

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

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

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

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

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

Budget 2026 Live: FM presents 3 kartavyas

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

11:02 AM

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

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

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

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

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.