Union Budget 2026 LIVE updates: Tax reforms, economy, sector-wise impact

Union Budget 2026 LIVE updates: Tax reforms, economy, sector-wise impact

India’s economic roadmap for the coming year takes shape today as Union Finance Minister Nirmala Sitharaman is all set to present her 9^th consecutive budget in the Parliament today. The budget will begin at 11 AM and this is the first time that budget is being presented on a Sunday. From income tax revisions and welfare allocations to capital expenditure and fiscal discipline, the Budget sets the tone for growth, governance, and public spending.

Feb 01, 2026 12:08 IST
FM Nirmala Sitharaman cuts TCS on Overseas Tour Packages to 2%
Finance Minister Nirmala Sitharaman announced a reduction in the Tax Collected at Source (TCS) rate on overseas tour packages from 5% and 20% to 2%, applicable without any threshold, aiming to ease travel-related taxation for individuals.



Feb 01, 2026 12:07 IST
FM Nirmala Sitharaman announces New Income Tax Act from April 1, 2026
Finance Minister Nirmala Sitharaman stated that a comprehensive review of the Income Tax Act, 1961, initiated in July 2024, has been completed in record time. She announced that the Income Tax Act, 2025 will come into effect from April 1, 2026, marking a significant reform in India’s taxation framework.



Feb 01, 2026 12:05 IST
Government proposes focused cultivation of Sandalwood
Finance Minister Nirmala Sitharaman highlighted that, given Sandalwood’s strong connection to India’s cultural heritage, the government will promote focused cultivation of Sandalwood to boost production and preserve its traditional significance.



Feb 01, 2026 12:04 IST
Targeted measures announced in Budget 2026 to Boost Farmer Income
Finance Minister Nirmala Sitharaman outlined multiple initiatives aimed at increasing farmer income and supporting rural livelihoods:
• Special attention to small farmers and vulnerable groups, including access to mental health and trauma care

• Development of 500 new reservoirs to improve irrigation

• Strengthening the fisheries value chain in coastal areas

• Support for animal husbandry through a credit-linked subsidy programme and promotion of livestock farmer producer organisations

• Encouragement for high-value crops such as coconut, sandalwood, cashew, and walnut cultivation in hilly regions

• Launch of dedicated programmes for Indian cashew and cocoa

• Measures to enhance competitiveness in coconut production



Feb 01, 2026 12:02 IST
Foreigners can now invest directly in Indian Stocks
Finance Minister Nirmala Sitharaman announced that individuals residing outside India will now be allowed to invest directly in Indian equities through the Portfolio Investment Scheme (PIS).
The individual investment limit is proposed to rise from 5% to 10%, while the combined cap for all foreign individual investors may increase from 10% to 24%. This move aims to enable meaningful stakes for serious foreign investors, enhance price discovery, deepen shareholding, and support long-term capital formation in Indian companies.



Feb 01, 2026 12:01 IST
High-level committee on banking for Viksit Bharat proposed
Union Finance Minister Nirmala Sitharaman proposed the formation of a high-level committee on banking to comprehensively review and strengthen the sector in line with India’s vision of Viksit Bharat.
She also laid a proposal to restructure Power Finance Corporation (PFC) and REC Limited (formerly Rural Electrification Corporation), two premier state-owned NBFCs under the Ministry of Power, to enhance efficiency and financial stability.



Feb 01, 2026 11:59 IST
FM Nirmala Sitharaman proposes coconut promotion scheme
Finance Minister Nirmala Sitharaman highlighted that India is the world’s largest producer of coconuts, with nearly 30 million people, including 10 million farmers, depending on it for their livelihood. She proposed a Coconut Promotion Scheme to enhance production and productivity, including replacing old and non-productive trees with new saplings in major coconut-growing states.



Feb 01, 2026 11:58 IST
FM Nirmala Sitharaman announces National Destination Digital Knowledge Grid
Finance Minister Nirmala Sitharaman announced the establishment of a National Destination Digital Knowledge Grid to digitally document India’s cultural, spiritual, and heritage sites. She added that the initiative will create new job opportunities for local researchers, historians, content creators, and technology partners, fostering both heritage preservation and employment.



Feb 01, 2026 11:57 IST
FM Nirmala Sitharaman strengthens Khelo India Mission
Finance Minister Nirmala Sitharaman announced measures to enhance the Khelo India Mission through a comprehensive talent development pathway supported by training centres. The plan includes:
• Systematic development of coaches and support staff

• Integration of training programs with competitive leagues to promote a robust sports culture

• Development of sports infrastructure for training and competitions



Feb 01, 2026 11:55 IST
FM Nirmala Sitharaman announces major push for infrastructure
Finance Minister Nirmala Sitharaman outlined a strong infrastructure roadmap, focusing on Tier 2 and Tier 3 cities with populations over 5 lakh. She announced:
• Increase in Public Capital Expenditure to ₹12.2 lakh crore

• Establishment of an Infrastructure Risk Guarantee Fund to provide partial credit guarantees to lenders

• Development of a dedicated freight corridor connecting Dankuni in the East to Surat in the West

• Operationalisation of 20 new waterways over the next five years, starting with Odisha

• Creation of a ship-repair ecosystem in Varanasi and Patna



Feb 01, 2026 11:52 IST
Sustainable trekking circuits to be developed
Finance Minister Nirmala Sitharaman highlighted India’s potential for world-class trekking and hiking experiences. She announced that ecologically sustainable mountain trails will be developed in Himachal Pradesh, Jammu & Kashmir, the Aravalli range, the Eastern Ghats, and the Western Ghats to promote sustainable tourism.



Feb 01, 2026 11:47 IST
FM Nirmala Sitharaman proposes ₹100 crore incentive for large municipal bonds
Finance Minister Nirmala Sitharaman announced a ₹100 crore incentive for a single municipal bond issuance exceeding ₹1,000 crore under the AMRUT scheme, aimed at promoting urban infrastructure financing and sustainable city development.



Feb 01, 2026 11:46 IST
FM Nirmala Sitharaman announces initiatives to boost Ayurveda
Finance Minister Nirmala Sitharaman announced multiple initiatives to strengthen Ayurveda and traditional medicine in India. These include:
• Establishing three new All India Institutes of Ayurveda

• Upgrading AYUSH pharmacies and drug testing labs to enhance certification standards

• Expanding the skilled professional ecosystem in traditional medicine

• Upgrading the WHO Global Centre for Traditional Medicine in Jamnagar



Feb 01, 2026 11:44 IST
India to host its First Big Cat Summit
India will host its first Big Cat Summit, bringing together heads of government and delegates from 95 range countries to deliberate on strategies for the conservation of big cats and wildlife protection.



Feb 01, 2026 11:42 IST
FM Nirmala Sitharaman announces 1 lakh Allied Health Professionals in next 5 uears
Finance Minister Nirmala Sitharaman announced that 1 lakh Allied Health Professionals (AHPs) will be added over the next five years, aiming to strengthen India’s healthcare workforce and improve service delivery.



Feb 01, 2026 11:39 IST
FM Nirmala Sitharaman announces integrated program for labour-intensive textile sector
Finance Minister Nirmala Sitharaman proposed an integrated program to strengthen India’s labour-intensive textile sector. Key initiatives include:
• National Fiber Scheme to promote self-reliance in natural, manmade, and new-age fibers

• Textile Expansion and Employment Scheme 

• National Handloom and Handicraft Scheme 

• Tex-Eco Initiative

• Samarth 2.0 
Budget also announced plans to set up mega-textile parks in challenge mode. 



Feb 01, 2026 11:37 IST
FM Nirmala Sitharaman proposes initiatives to boost India’s Orange Economy
Finance Minister Nirmala Sitharaman highlighted the growth of India’s orange economy, noting that the AVGC (Animation, Visual Effects, Gaming, Comics) sector employed around 2 million professionals in 2020.
She proposed supporting the Indian Institute of Creative Technologies in Mumbai by setting up content creator labs across 15,000 schools and 500 colleges across India.



Feb 01, 2026 11:35 IST
Budget Proposes seaplane incentives to boost connectivity and tourism
Finance Minister Nirmala Sitharaman proposed incentives to promote the indigenization of seaplane manufacturing, aiming to enhance last-mile and remote connectivity while boosting tourism. She also announced that a seaplane Viability Gap Funding (VGF) scheme will be introduced to support operations.



Feb 01, 2026 11:33 IST
Capital Expenditure raised to ₹12.2 lakh crore
Finance Minister Nirmala Sitharaman announced that capital expenditure for FY 2027 has been increased to ₹12.2 lakh crore. 



Feb 01, 2026 11:32 IST
FM Nirmala Sitharaman announces new dedicated freight corridor
Finance Minister Nirmala Sitharaman announced the development of a new dedicated freight corridor connecting Dankuni in the East to Surat in the West, aimed at boosting logistics efficiency and supporting industrial growth across the country.



Feb 01, 2026 11:30 IST
FM Nirmala Sitharaman proposes ₹10,000 crore SME growth fund
Finance Minister Nirmala Sitharaman proposed the creation of a ₹10,000 crore SME Growth Fund to support small and medium enterprises and develop future industry champions. She also outlined plans to revive 200 legacy industrial clusters through infrastructure and technology upgrades and to top up the Self-Reliant India Fund by ₹2,000 crore to continue supporting micro-enterprises.



Feb 01, 2026 11:28 IST
FM Nirmala Sitharaman launches ₹10,000 crore ‘Biopharma Shakti’
Finance Minister Nirmala Sitharaman announced the Biopharma Shakti initiative with an outlay of ₹10,000 crore over five years to position India as a global biopharma manufacturing hub.



Feb 01, 2026 11:27 IST
FM Nirmala Sitharaman announces 7 high-speed rail corridors Across India
Finance Minister Nirmala Sitharaman proposed the development of seven high-speed rail corridors connecting major cities:
• Mumbai - Pune

• Pune - Hyderabad

• Hyderabad - Bengaluru

• Hyderabad - Chennai

• Chennai - Bengaluru

• Delhi - Varanasi

• Varanasi - Siliguri



Feb 01, 2026 11:26 IST
FM Nirmala Sitharaman launches Mahatma Gandhi Gram Swarajya initiative
Finance Minister Nirmala Sitharaman announced the Mahatma Gandhi Gram Swarajya Initiative, aimed at strengthening khadi, handloom, and handicrafts in a new and innovative way, promoting rural entrepreneurship and traditional industries.



Feb 01, 2026 11:24 IST
FM Nirmala Sitharaman outlines 6-step growth strategy for India
Finance Minister Nirmala Sitharaman projected a six-step roadmap to accelerate and sustain India’s economic growth:
1. Scaling up manufacturing in seven strategic sectors.

2. Rejuvenating legacy industrial sectors.

3. Creating champion MSMEs.

4. Delivering a push for infrastructure.

5. Ensuring long-term security and stability.

6. Developing city economic regions to drive urban-led growth.



Feb 01, 2026 11:21 IST
FM Nirmala Sitharaman proposes initiative to boost sports goods manufacturing
Finance Minister Nirmala Sitharaman said India is a global leader in sports goods and proposed a dedicated initiative to strengthen manufacturing, research, and innovation in equipment design and material science.



Feb 01, 2026 11:20 IST
FM Nirmala Sitharaman pledges to make India a semiconductor hub
Finance Minister Nirmala Sitharaman stated that the government is working to establish India as a semiconductor hub. An allocation of ₹40,000 crore has been earmarked to support the development of the semiconductor industry.



Feb 01, 2026 11:16 IST
FM anounces rare earth minerals corridor for Tamil Nadu, Odisha, Andhra Pradesh, and Kerala
Finance Minister Nirmala Sitharaman proposed the development of a rare earth minerals corridor spanning Tamil Nadu, Odisha, Andhra Pradesh, and Kerala, aiming to boost mineral-based industries and regional economic growth.



Feb 01, 2026 11:14 IST
“Keeping Atmanirbharta as North Star Has Driven Growth,” says FM Sitharaman
Finance Minister Nirmala Sitharaman said the government has kept Atmanirbharta (self-reliance) as its guiding principle, which has contributed to a high growth rate of 7%.
She highlighted that the current global environment requires trade and multilateral cooperation, with disrupted access to resources and supply chains. “India must remain deeply integrated with global markets, exporting more and attracting stable long-term investments,” she added.



Feb 01, 2026 11:10 IST
Finance Minister Nirmala Sitharaman outlines three “Kartavyas” in Budget 2026
Finance Minister Nirmala Sitharaman highlighted three key objectives of the Union Budget 2026:
1. Accelerate and sustain economic growth by enhancing productivity and fostering higher growth across sectors.

2. Fulfill the aspirations of the people by building capacities and empowering citizens to become strong partners in India’s prosperity.

3. Ensure inclusive development in line with Sabka Saath, Sabka Vikas, providing every sector and citizen access to resources and opportunities.



Feb 01, 2026 11:09 IST
First Budget Presented in Kartavya Bhavan, Says Nirmala Sitharaman
Finance Minister Nirmala Sitharaman noted that today’s Union Budget is the first to be presented in the newly inaugurated Kartavya Bhavan, marking a historic moment in Parliament.



Feb 01, 2026 11:05 IST
“Karnataka Awaits GST Share and Central Grants,” says Dr. G. Parameshwar ahead of Union Budget 2026
Karnataka Home Minister Dr. G. Parameshwar said Karnataka is expecting several allocations from the Union Budget. “We are awaiting our share of GST revenue, central special grants, and funds for projects like the Upper Bhadra scheme. Pending central contributions under schemes like JJM and others have not yet been released, despite the usual 60:40 funding formula,” he noted.
He added, “These funds could support agriculture and industry, and it is important that the state receives support from the central government, regardless of which party is in power. Karnataka contributes the second-highest GST in the country, so we expect cooperation from the Union government. Let’s see what Finance Minister Nirmala Sitharaman announces in today’s Budget.”



Feb 01, 2026 11:02 IST
FM Nirmala Sitharaman presents her ninth Union Budget
Finance Minister Nirmala Sitharaman presents her record ninth Union Budget in Parliament today, outlining the government’s financial priorities, policies, and reforms for the coming year.



Feb 01, 2026 10:36 IST
GST collections for January 2026 total ₹1,93,384 crore
India’s GST collection for January 2026 stood at ₹1,93,384 crore, marking a 6.2% increase compared to January 2025. The Union Finance Department released these figures today, reflecting steady revenue growth ahead of the Union Budget.



Feb 01, 2026 10:29 IST
Union Cabinet clears budget ahead of presentation
The Union Cabinet has given its approval for the Union Budget during a pre-Budget meeting. Finance Minister Nirmala Sitharaman is now ready to present the Budget in the Lok Sabha, following which she will present it in the Rajya Sabha.



Feb 01, 2026 10:26 IST
Markets open lower ahead of today's budget
Even though today is Sunday, the stock market opened with losses ahead of the Union Budget. The Sensex dropped 287 points, while the Nifty fell 127 points, starting trade at 25,292. Investors appear cautious as they await the Finance Minister’s announcements.



Feb 01, 2026 10:14 IST
Union Budget 2026: Focus shifts to Part B for the first time in 75 years
The Union Budget speech is traditionally divided into Part A and Part B. While Part A generally covers the country’s economic performance, schemes, grants, and policy announcements, Part B is usually limited to tax proposals and a few specific declarations.
For the first time in 75 years, Finance Minister Nirmala Sitharaman is expected to place greater emphasis on Part B, signaling a shift in focus. This section will go beyond mere announcements, highlighting future policies, major plans, tax simplification, reforms in taxation, export incentives, and other strategic measures.
Part B will also spotlight India’s upcoming economic challenges, the 25-year economic vision, fiscal discipline, and maintaining economic balance, providing a broader perspective on the country’s long-term financial roadmap. Analysts suggest this could make Part B the most closely watched segment of the Budget this year.



Feb 01, 2026 10:09 IST
President Droupadi Murmu wishes FM Nirmala Sitharaman ahead of Budget
President Droupadi Murmu felicitated Finance Minister Nirmala Sitharaman ahead of the Union Budget presentation by feeding her dahi-chini (curd with sugar), a traditional gesture of good luck, and wished her success in Parliament.



Feb 01, 2026 10:08 IST
Final Cabinet clearance ahead of Union Budget presentation
Prime Minister Narendra Modi arrived at Parliament as the Union Cabinet convened for its final meeting ahead of the Union Budget. Finance Minister Nirmala Sitharaman is set to seek Cabinet approval for the Budget, following which she will present it in Parliament later today.



Feb 01, 2026 10:04 IST
President Droupadi Murmu gives assent to Union Budget
President Droupadi Murmu has accorded approval to the Union Budget. Following the meeting with the President, Finance Minister Nirmala Sitharaman has arrived at Parliament to present the Budget.



Feb 01, 2026 09:59 IST
Joint taxation for married couples? Key Budget expectations
There is strong expectation of further income tax relief in the upcoming Budget. The current tax-free income limit of ₹12.75 lakh may be increased to ₹13 lakh. A reduction in long-term capital gains tax is also being discussed to encourage sustained investments.
A major proposal under discussion is the introduction of a joint taxation system for married couples. If implemented, couples could file taxes together and enjoy tax exemption on a combined income of up to ₹24 lakh, offering significant relief to dual-income households.
Additionally, long-term mutual fund investments held for five to seven years may be considered for tax exemption, promoting long-term savings. Homebuyers are also hopeful that the home loan interest deduction limit could be increased to ₹2 lakh, easing the burden of rising EMIs.



Feb 01, 2026 09:55 IST
Union Budget 2026: Where Bengaluru is most likely to see funding support
• Metro and Suburban Rail Projects
  Enhanced funding for the Bengaluru Metro Phase 2 and Phase 3 and the Suburban Rail Project (BSRP) which is scheduled for 2020 opening is a key expectation, as both are central to improving daily mobility. With delays impacting commuters, the focus is likely to be on faster execution rather than new announcements.
• Traffic Congestion Management
  Bengaluru’s traffic woes have drawn global attention, with the TomTom Traffic Index ranking the city as the second most congested in the world. This has strengthened the case for central funding aimed at integrated urban mobility, traffic management systems, and public transport expansion.
• Support for Premier Central Institutions
  Renowned institutions such as IISc, IIT, and IIM in Bengaluru may receive additional funding, particularly for research, innovation, and capacity expansion aligned with national priorities.
• Boost for Startups and Innovation
  As Bengaluru continues to gain international recognition as India’s startup capital, targeted budgetary support for startups, deep-tech ventures, and innovation hubs is seen as a realistic expectation.
• Skill Development and Research Initiatives
  Increased allocation for skill development and advanced research programmes is expected, leveraging Bengaluru’s strong academic and technological ecosystem to support future-ready jobs.



Feb 01, 2026 09:49 IST
Karnataka’s expectations from the Union Budget
• Allocation of ₹5,400 crore for the Upper Bhadra Project, which was announced in the 2023 Union Budget, to ensure timely implementation.
• Increased funding for nine ongoing railway projects across Karnataka to accelerate connectivity and infrastructure development.
• Higher budgetary support for Bengaluru Metro expansion and the Suburban Rail Project, both seen as critical to easing urban congestion.
• Enhanced financial allocation for premier central institutions in Karnataka, including IIT, IIM, IISc, and IIIT, to strengthen education and research.
• Long-standing demand for the establishment of an AIIMS hospital in North Karnataka, aimed at improving advanced healthcare access in the region.



Feb 01, 2026 09:46 IST
What are people expecting from the Union Budget?
As the Union Budget is presented, public expectations span across several key sectors driving India’s growth story. Areas such as railways, infrastructure development, urban planning, manufacturing, defence, electronics, MSMEs, artificial intelligence, and renewable energy are widely seen as priority sectors requiring sustained policy and financial support.
At the same time, the common citizen’s primary focus remains on income tax relief. While multiple reforms have already been introduced in recent years, expectations are high for further rationalisation under the new tax regime. One of the key demands is an increase in the standard deduction, which currently stands at ₹75,000. Many taxpayers are hoping this limit will be raised to ₹1 lakh, offering additional relief and improving disposable income.