As of January 17, 2026, the Union Budget 2026-27 is the most anticipated economic event in India, scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1, 2026.
The budget is expected to focus on consolidating the gains of the "Viksit Bharat" (Developed India) vision, with heavy emphasis on infrastructure, food security, and emerging technologies like AI.
📅 Key Dates and Context
Presentation Date: February 1, 2026 (Sunday) at 11:00 AM.
Fiscal Context: The government aims to bring the fiscal deficit down to 4.4% of GDP for FY26, following an estimated 4.8% in FY25.
Theme: "Stability, Growth Continuity, and Deepening Execution."
🏦 Top Sectoral Expectations
1. Agriculture & Food Security
Budget 2026 is expected to be a "Farmer's Budget" with structural reforms to ensure food security for 1.4 billion people.
Agri-Finance: Measures to ease access to credit for small and marginal farmers.
Oilseeds & Pulses: Specific missions to achieve Aatmanirbharta (self-reliance) in edible oils and pulses to reduce import dependency.
Climate Resilience: Funding for climate-resilient seeds and post-harvest infrastructure like cold chains.
2. Infrastructure & Manufacturing
Infrastructure remains the "multiplier" for the Indian economy.
CapEx Momentum: Continued high allocation for Railways, Roads, and Ports to reduce logistics costs.
PLI 2.0: Extension of Production Linked Incentive (PLI) schemes to new sectors like Artificial Intelligence (AI), Space Technology, and Robotics.
MSME Support: Enhanced credit guarantee covers and simplified compliance to help small businesses integrate into global supply chains.
3. Energy & Sustainability
Green Transition: Incentives for Battery Energy Storage Systems (BESS) and green hydrogen.
Nuclear Startups: Potential tax holidays for private sector participation in the nuclear energy space.
💸 Direct Tax & Personal Finance
Following the significant changes in the 2025 Budget (where the ₹12 lakh rebate was introduced), experts anticipate stability rather than major new overhauls.
AreaExpectation for 2026New Tax RegimeLikely to remain the primary focus; minor tweaks to slabs to boost middle-class consumption.Old Tax RegimeMay continue to coexist, though the government is clearly nudging taxpayers toward the New Regime.TDS RationalizationA major push to reduce the 37+ different TDS rates into 3–4 standardized categories to reduce litigation.Standard DeductionPotential increase beyond the current ₹75,000 to account for inflation.Section 24(b)Increase in the interest deduction limit for home loans (currently ₹2 lakh) to revive the housing sector.
🛠️ Administrative & Regulatory Reforms
New Income Tax Bill: The government may provide updates on the new bill intended to replace the Income Tax Act of 1961 with simpler language and fewer complexities.
Tax Litigation: A "One-time Settlement Scheme" for Customs and Income Tax disputes (similar to Sabka Vishwas) is a high priority for industry bodies like FICCI to clear the massive backlog of cases.
Jan Vishwas 2.0: Further decriminalization of minor business offenses to improve the "Ease of Doing Business."