Finance Minister Nirmala Sitharaman is set to present the Union Budget 2026 in Parliament today, February 1, 2026, at 11:00 AM. This marks her ninth consecutive Union Budget, a historic first, and all eyes are on the announcements for the financial year 2026-27.

The Economic Survey 2025-26, released on January 29, 2026, anticipates the Indian economy to grow at 6.8-7.2% in real GDP terms for FY27, supported by strong macroeconomic fundamentals and policy reforms. The survey also indicated that while core and headline inflation rates may be higher, they are unlikely to be a major concern. India's total exports reached a record high of $825.3 billion in FY26, despite global uncertainties and trade concerns.

This year's budget is expected to focus on sustaining growth momentum, maintaining fiscal discipline, and implementing reforms to shield the economy from global trade frictions. Key sectors expected to receive attention include railways, infrastructure, urban development, manufacturing, MSMEs, defense, electronics, renewable energy, healthcare, agriculture, and artificial intelligence. Other areas like tourism and logistics may also receive allocations.

Sitharaman's biggest challenge will be to identify new growth drivers amidst global economic uncertainty, volatile financial markets, and rising commodity prices. The government is under pressure to boost consumption, accelerate job creation, and increase capital spending while keeping the fiscal deficit in check.

The stock markets will remain open today, February 1, with the pre-open market session starting at 9:00 AM and normal trading commencing at 9:15 AM.

The Finance Minister's previous budget included major tax relief measures, including income tax cuts for those earning up to ₹7 lakh. The current budget may see an increase in the standard deduction, potentially to ₹1 lakh, which would increase the take-home salary for taxpayers under the new tax regime.

Budget 2026 is seen as a crucial bridge, emphasizing smoother implementation of tax laws and addressing business friction points. It aims to boost self-reliance and protect the Indian economy from external shocks. The government's focus remains on Garib (poor), Youth, Annadata (farmers), and Nari (women). The budget will likely spur agricultural growth, build rural prosperity, promote inclusive growth, boost manufacturing, support MSMEs, enable employment-led development, secure energy supplies, promote exports, and nurture innovation.

The Economic Survey projects a slight decrease in real GDP growth for FY27 compared to the current year but still ranks India among the fastest-growing economies globally. The fiscal deficit for FY25 was 4.8% of GDP, with a target of 4.4% for FY26, while capital expenditure is budgeted at ₹11.21 lakh crore in FY26. Inflation has also eased, offering policy flexibility.

With limited headroom for large, consumption-led stimulus, consumption growth is expected to be uneven, with urban and premium segments outperforming mass and rural consumption. Rural demand is expected to stabilize but unlikely to see a sharp increase without improved farm incomes and non-farm employment.

Overall, Budget 2026 is expected to emphasize reforms and capital expenditure amid global headwinds, with a focus on key sectors and inclusive growth.