New Delhi: Finance Minister Nirmala Sitharaman is set to present the Union Budget 2026 on Sunday, February 1, making it her ninth straight Budget. This year’s Budget comes at a time when the world is facing high inflation, weak trade, and geopolitical tensions. India, however, is seen as a stable and growing economy.
Economic Survey Sets the Tone
The Economic Survey 2026, released ahead of the Budget, estimates India’s economy will grow between 6.8 percent and 7.2 percent in FY27. It describes India as an “oasis of macro stability,” pointing to strong demand at home, lower inflation, and good financial reserves.
What to Expect This Year?
Expectations are not very high this year. People and businesses are mainly hoping for:
- Income tax relief, especially on long-term capital gains
- No increase in transaction-related taxes
- Clear plans to support exports and foreign trade
Investors will also watch for how much money the government will set aside for different sectors like infrastructure, health, and education in the next financial year (FY27).
What the PM Said?
Prime Minister Narendra Modi said the Budget should aim to "reform, perform and transform". He added that the government wants to move from long-term problems to long-term solutions. This suggests a focus on fixing deep issues rather than giving short-term benefits.
Markets Open on Budget Day
For the first time in many years, the stock markets- NSE and BSE- will be open on Budget Day, allowing investors to react in real-time to key announcements.
