Budget 2026 expectations Highlights: Days ahead of Budget, what are the demands from FM Nirmala Sitharaman?

The key sectors that will be in focus this year include railways, infrastructure, urban development, manufacturing, auto, defence, electronics, MSME, renewable energy and AI, among others.

“Union Budget 2026 is expected to strengthen its focus on infrastructure, defence and exports by increasing capital expenditure and providing greater policy and tax clarity. This approach will aim to attract private investment, deepen public–private partnerships, and modernise key sectors such as rail, air, sea and digital infrastructure & other technologies,” said Dr Kavita Kanabar, Associate Professor, General Management Department, Vivekanand Education Society's Institute of Management Studies & Research.

“From a Budget expectation standpoint, continued emphasis on digital payments, cybersecurity, and financial infrastructure would go a long way in strengthening trust across the ecosystem. These are foundational areas that directly impact how confidently consumers and businesses adopt digital credit,” said Ravindra Rai, Managing Director, and CEO of BOBCARD Limited.

“The Union Budget is a critical inflection point for India’s digital and national security strategy. With the National Quantum Mission committing over INR 6,000 crore to build quantum capabilities, the next step must be securing India’s digital infrastructure for the post quantum era," said Rahil Patel, Chief Growth Officer, QNu Labs.

28 January: The Budget Session will begin at Parliament with a joint address by President Droupadi Murmu to both Houses.

29 January: As per the provisional schedule released by the Lok Sabha Secretariat, the House is also scheduled to convene on this day.

29 January: At 11 am, CEA V Anantha Nageswaran is scheduled to present the Economic Survey for that day. The survey offers a detailed overview of the economy and is typically presented by the finance minister a day before the Budget.

1 February: The finance minister will present the Budget 2026 at 11 AM at the Lok office Sabha.

13 February: The first half of the Budget Session ends.

9 March: The second half of the Budget Session will begin on this day.

2 April: The final day of the Budget Session, after which Lok Sabha and Rajya Sabha will be adjourned sine die.

“As India prepares its Annual Fiscal Budget, it is important to remember that the future of our food systems rests largely in the hands of smallholder farmers, men and women who cultivate less than two hectares of land, yet carry a disproportionate share of climate, market, and economic risk. Their realities are well known: limited access to affordable credit, highly volatile farm incomes, increasing exposure to climate extremes, inadequate access to quality inputs and appropriate technologies, and persistent post-harvest losses due to weak rural infrastructure,” said Crispino Lobo, Co-founder & Managing Trustee, WOTR.

“A budget that truly serves smallholder farmers must therefore move beyond short-term relief and focus on long-term resilience. Investments in climate-adaptive agriculture, sustainable water security, precision farming technologies, farm-customised dynamic weather-based advisories, post-harvest loss-reducing technologies, and local value chains are no longer optional - they are essential. Equally important is strengthening institutional credit, risk-mitigation instruments such as effective crop insurance, and extension systems that place knowledge and technology in farmers’ hands,” Lobo added.

“India has the talent and ambition to build world-class AI, but startups need stronger budget and policy support to move faster. Today, much of our innovation still depends on global Big Tech platforms. This Budget presents an opportunity to prioritise strategic investment in indigenous AI, especially in computing infrastructure and foundation model development,” said Ritu Mehrotra, CEO and Co-Founder, Shunya Labs.

“Such support will give startups greater control, flexibility, and ownership. Reducing dependence on foreign platforms is not just about self-reliance, it is about building a trusted AI ecosystem that reflects India’s needs, values, and priorities,” Mehrotra added.

As Finance Minister Nirmala Sitharaman starts to give finishing touches to her record ninth Budget in a row, she is being assisted by an experienced team of bureaucrats at the Finance Ministry.

Sitharaman is scheduled to present the Budget in the Lok Sabha on February 1 in the backdrop of 7.4 per cent growth rate and uncertain geopolitical environment. This is going to be the third full Budget of Modi 3.0 government.

Vedanta's iron ore mining arm, Sesa Goa, has urged the government to provide incentives for low-grade iron ore beneficiation, emphasising that targeted policy support and infrastructure investment are critical to make the processing economically viable and to expand the sector.

"India sits on massive low-grade iron ore inventory – estimated at over 300 million tonnes at mine heads – that remains underutilised due to high upfront costs for beneficiation plants and supporting infrastructure," said Sesa Goa CEO Navin Jaju.

Finance Minister Nirmala Sitharaman will present her ninth consecutive Budget on February 1 in the Lok Sabha amid expectations of overhaul of Customs duty regime, much on the lines of GST structure rationalisation, and more reform measures to boost economy in the wake of hightened geo-political uncertainty.

Budget is also likely to outline the path of targeting of debt-to-GDP ratio as India's fiscal management focus shifts from managing deficit to lowering of debt.

For individuals, who last year got a big relief in terms of Income Tax exemption limit hike to ₹12 lakh and later GST rate cuts, are still hoping for some relief in standard deduction.

Ahead of the Union Budget, India's nascent private space industry wants the government to classify space assets as critical infrastructure and allocate funds to procure products and services offered by domestic companies.

“Being a big anchor customer, I think government support has to be around,” Awais Ahmed, founder and CEO at Pixxel Space, told PTI.

Himanshu Garg, Director of RG Group, said that the recent reduction in the repo rate has created a positive sentiment in the market and given a new impetus to the sector. The upcoming Union Budget is expected to strengthen the momentum further. If the budget focuses on promoting affordable housing, increasing the interest rate deduction limit on home loans, and investing in infrastructure, it will boost buyer demand.

Dinesh Gupta, President of CREDAI West UP, said that the real estate sector's biggest expectation from the upcoming Union Budget is related to affordable and mid-income housing. He stated that there is a need to increase the tax exemption limit on home loan interest, provide relief under Sections 80C and 24(B) of the Income Tax Act, and create an easy and affordable funding mechanism for stalled projects.

“We expect the honourable FM to focus on making tree farming (agroforestry) predictable and financially rewarding by investing in high-quality planting material, regulating nurseries, and strengthening extension services. This will go a long way not only to restrict imports of wood (and wood-based products), in the production of which the country has an inherent natural advantage,” said Manoj Dabas, Country Head, CIFOR-ICRAF.

The key sectors that will be in focus this year include railways, infrastructure, urban development, manufacturing, auto, defence, electronics, MSME, renewable energy and AI, among others.

Micro, small and medium enterprises (MSMEs) in India are looking forward to Centre bringing measures in Union Budget 2026, that can reinforce measures from GST reforms in order to ensure operational ease and continuity for the sector, an industry study showed.

The industry feels the Union Budget “must reinforce its commitment to sustainable manufacturing, MSME enablement, and technology-led supply chains”. Check story here

The healthcare industry believes that Budget 2026 will indicate how the sector is positioned within India’s growth priorities. Thus, the healthcare sector is looking forward to policies that support need for infrastructure expansion across rural India, increased capex allocation, tax deductions for patients, insurance regulation and other key areas of need. Read more here

• In 1950, the Budget was leaked during the printing process. After that, the printing process was shifted from Rashtrapati Bhawan to Minto Road. In 1980, it was shifted to the North Block basement.
• Until 1955, the Budget document was exclusively in English, but after 1955-56, it started getting presented in both English and Hindi.

• India's first budget was presented by RK Shanmukham Chetty in 1947, after independence. Challenge was to battle the economic headwinds.
• Finance Minister Nirmala Sitharaman holds the title for the longest budget speech in 2020, at 2.42 hour.
• As part of Halwa ceremony, halwa is prepared and served to officials and staff members of the finance ministry who are involved in preparing the Budget.

Focus on edtech and education sectors is important for the Indian government's Viksit Bharat 2047 goal, feel industry voices.

Stronger support for personal finance in the education and skilling sector, tax benefits on professional courses, reduced GST on edtech services, simplifying access to education loans, increased public spending on digital learning infrastructure is important for India to build a skilled workforce, they say. Read full here

Budget 1986, presented on 28 February that year by VP Singh under the Congress government was the first step towards abolishing License Raj in India. The Budget, which provided both incentives and punishments, was dubbed the “Carrot and Stick” Budget as it came down heavily on tax evaders black marketers, and smugglers. This Budget also implemented the MODVAT (Modified Value Added Tax) credit to bring down the cascading tax impact on consumers.

The 1973 Budget presented by Yashwantrao Chavan came to be known as the ‘Black Budget’, and was presented at a time when India was undergoing an economic crisis. That year, the limit of government finances came into light with a large fiscal deficit of ₹550 crore, rising oil prices, and food shortages.

The Union Budget presented in 1957-58 by then Finance Minister TT Krishnamachari introduced the wealth tax for the first time in India's history. This was done with an aim to reduce inequality and broaden the tax base. With the 1858 Budget, the government expanded its fiscal toolkit. It remained part of India's tax law until it was abolished in 2015.

The first Budget of independent India was delivered by RK Shanmukham Chetty on 26 November, 1947, laying the foundation for India's fiscal policy. Over the years, finance ministers of India have delivered some of the most historic budgets that have reshaped the country's economic landscape. Here is a list of five such budgets that are considered key in strengthening India's financial situation.

Ahead of the Budget, all eyes are on the Economic Survey, which is scheduled to be tabled in Parliament a day prior to it.

Typically, the Economic Survey document is divided into two parts, A and B.

Part A: Showcases major macroeconomic developments over the course of the fiscal year, as well as a broader review of the Indian economy.

Part B: Covers specific socio-economic issues pertaining to the economy.

Prior to 1964 the Economic Survey was part of the Budget presentation and served as an official economic record to inform budgetary discussions in Parliament. Thus, it was separated from the Union Budget to provide lawmakers and the public with important economic context, including data-driven views at the condition of the economy.

The document, by identifying challenges and other issues, also gives crucial context for policy direction.

The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs under the Ministry of Finance. It is headed by the Chief Economic Adviser.

The document presents an annual report on the Indian economy. It mainly details the finance ministry's analysis of the state of the economy, and reviews performance over the fiscal year, looking at indicators from growth and inflation to jobs, trade, and fiscal health.

The first Economic Survey was presented along with the Budget in 1950-51 but was separated since 1964.

• The Parliament's budget session begins on 28 January with a joint address by President Droupadi Murmu to both Houses.
• The Economic Survey 2026 will be presented in Parliament by Chief Economic Advisor V Anantha Nageswaran on 31 January.
• The Union Budget 2026 will be presented in Parliament on 1 February by Finance Minister Nirmala Sitharaman.
• The budget session will conclude on 2 April 2026.

The Union Budget is an annual exercise under which India's finance minister presents the country's financial statement for the year. As per Article 112 of the Constitution, the Budget is announced before both Houses of Parliament.

The Union Budget includes estimated annual receipts and expenditure of the following financial year, besides key policy and reform proposals for future developments and projects.

Lok Sabha Speaker Om Birla on 19 January confirmed that Union Budget 2026 will be announced in Parliament on Sunday, 1 February.

Union Minister Kiren Rijiju had earlier this month said the decision would be taken by the Cabinet Committee on Parliamentary Affairs “at an appropriate time”.

It was also reported but not confirmed that Finance Minister Nirmala Sitharaman would present the Budget on Sunday. Sources had told PTI: “We have a fixed day for the presentation of the general budget. The concept of Sunday was brought by the British.”

Union Budget 2026 is Finance Minister Nirmala Sitharaman's ninth straight presentation of the country's annual financial statement in Parliament.

She will become the first finance minister to present nine back-to-back Budgets this year. In 2028, Sitharaman is set to tie with former Indian Prime Minister Morarji Desai's record of presenting 10 Budgets in Parliament.

Expectations are high, as Budget 2026 will be the Prime Minister Narendra Modi-led government's second full-fledged Budget, amid its third consecutive term in power.

In 2025, Finance Minister Nirmala Sitharaman presented the interim Budget in February ahead of Lok Sabha elections, followed by the Union Budget 2025 in July after the government was voted to power.

Good morning and welcome to Livemint's extensive coverage of Union Budget 2026. With less than 10 days left for Finance Minister Nirmala Sitharaman's speech on 1 February, we bring you the latest news and updates ahead of India's eagerly awaited finance event.