Union Budget 2026 Highlights: Sitharaman's 9th Budget Triggers 4th Biggest Market Crash; New Income Tax Bill To Take Effect From April 1

The Union Budget 2026 is being presented today, February 1. Finance Minister Nirmala Sitharaman is set to deliver the Budget at 11:00 AM IST from Sansad Bhavan (Parliament of India), New Delhi.

The presentation is set to be live-streamed on Sansad TV and Doordarshan.

Aman Sharma, Founder and Managing Director, Aarize Group said, "The NCR area remains the backbone of North India's real estate sector, majorly contributing to residential and commercial development. From the 2026 budget, we are expecting policy interventions to fix infrastructure bottlenecks, streamline approval processes, and expedite environmental clearances. Measures such as stamp duty reductions, easier access to home loans, and incentives for first-time buyers can reassure end-users and increase demand. Focus on infrastructure, connectivity and livability, and further allocations will further aid buyer confidence and support long-term growth. We anticipate the government will recognise NCR's potential and provide support for sustainable growth."

CA Naveen Wadhwa, Vice-President, Taxmann, points out that with the New Income Tax Act, 2025, now in its implementation phase, the government is likely to prioritise a smooth transition for taxpayers. Instead of introducing sweeping changes, the emphasis may be on providing certainty, reducing litigation, and streamlining compliance. “However, a key opportunity lies in rationalising the complex TDS and TCS framework by consolidating the multitude of existing rates into three or four broad categories. Since it is expected that 85–90 per cent of taxpayers have migrated to the New Tax Regime, particularly after over-generous tax-free limits, there is growing speculation that the old regime may now be phased out entirely,” he says.

Jeevan Kasara,Chairman, Steris Healthcare said, "The self-reliance of India in pharmaceuticals and medtech must be accelerated by Budget 2026 with a PLI infusion of Rs 10,000 crore for medical devices, which would cover oncology, imaging, and implants, thereby making a reduction of the 70 per cent import dependence possible and at the same time creating a domestic production amounting to Rs 1.2 lakh crore by 2030. The extension of Ayushman Bharat to 50 crore more citizens (including gig workers) and R&D credits (up to 200 per cent for the biotech sector) will provide affordable care and turn India into the world’s pharmacy with a market size of $130 billion at the end of the decade."

Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Pvt Ltd said, "With the arrival of Budget 2026, the primary demand from the perspective of personal taxes is very clear: align the tax structure with the realities of inflation and income of the present day. For almost ten years now, the limit for Section 80C has been stuck at Rs 1.5 lakh and the health insurance deductions allowed under Section 80D have also been very limited, which taxpayers have been coping with despite the fact that costs of premiums, EMIs, and education have gone up significantly. It is very much reasonable to ask for a hike in the 80C limit to around Rs 3 lakh, an increase in the health insurance limits, and a raise in the income threshold for the highest 30 per cent slab so that the relief becomes more apparent to the families earning between Rs 10–35 lakh."

Ridhima Kansal, Director, at Rosemoore Home Fragrance Ltd, said, "India's retail industry is on track to grow into a $2 Trillion economic space by 2032 and with the Union Budget approaching, we hope the government will take specific actions to support continued growth in this sector. Specifically, we want to see the government simplify GST slabs to make compliance easier for SMEs, provide greater access to credit through expanded versions of the ECLGS-type programs that currently exist, and encourage investments in digital infrastructure to support omnichannel retailing. We would also like to see a continued emphasis on the "Make in India" initiative through further PLI incentives on consumer products and also through enhanced green incentives for sustainable packaging and logistics. The government should support tourism-related retail growth through expanding e-visas and investing in urban redevelopment to provide additional job creation. All of these changes should enable retailers to manage through inflation, encourage increased levels of consumption and further drive GDP growth."

Industry experts suggest Union Budget 2026 could help boost demand for green residencies by providing tax incentives to the homebuyers. If the Budget provides such incentive, affordability for green homes could increase, and could be a vital turning point for the industry.

India has seen firm growth in the real estate sector in 2025 despite several external and geopolitical factors. Focus on sustainable and green homes could also significantly reduce energy costs.

Union Budget 2026 will be tabled in the Parliament on February 1 by Union Finance Minister Nirmala Sitharaman. The special parliamentary session to present the Budget will convene at 11 am, as per Lok Sabha list of business.

Union Finance Minister, Nirmala Sitharaman has reached Kartavya Bhavan, where the finance ministry moved last year. Sitharaman arrived with the Union Budget tablet, along with her team.

Union Finance Minister Nirmala Sitharaman reached Rashtrapti Bhawan and met President Droupadi Murmu before presenting her 9th consecutive Union Budget.

Ahead of Union Budget 2026, Bengal BJP leader Dilip Ghosh says, "We should have faith in the Modi government. Whatever happens will be good and will be for everyone."

Ahead of Union Budget, commercial LPG price has been hiked by Rs 49, domestic cylinder rates unchanged

In the past Union Budgets, there was a set pattern to how it was released in the Parliament. This pattern is set to break in the Union Budget 2026-27

Sensex trading at 82,328.15 points, NSE at 25,314.60, on the day of presentation on Union Budget 2026-27.

On Union Budget 2026-27, Akhilesh Yadav, Samajwadi Party Supremo said: "We have no expectations either from the Budget or the Modi govt - we don't have any expectations? In the last few budgets have been only 5% of the people. The govt should assess if it has fulfilled all the promises it had made."

Congress Leader Shashi Tharoor says he wants Budget 2026 to focus on job's push for youth and support for Kerala.

Union Minister of Tourism, Gajendra Singh Shekhawat, ahead of the Union Budget presentation, told ANI, "This Budget too will be another step towards making India a Viksit Bharat..."

Sin goods, which include cigarettes and pan masala have become costlier from February 1, as new excise duty kicked in ahead of the Union Budget 2026 presentation. As per the new rules, the excise duty will now range from Rs. 2,050-8,500 for every 1,000 non-standard or uniquely designed cigarettes.

Gold and silver extended their decline amid selloffs on MCX. Gold Futures declined 9 per cent on the MCX to Rs 1,38,634 per 10 grams level, leading to a 16% crash in gold ETF prices. On the other hand Silver futures fell 9 per cent to the Rs 2,65,652 per kilogram level.

Congress leader Sachin Pilot, told ANI before Budget presentation, "Despite being in power for years, I think the BJP Govt has focused on issues which are not very impactful on the ground. The Govt has formed a new law to almost scrap MGNREGA. They say that they are reforming it, but the reality is that on average, 35 days of MGNREGA are being used in this country. They are promising 125 days. The decisions that used to be taken in villages earlier, in Panchayat - wherein Sarpanch and public representatives used to demand for money and there used to be no shortage of Budget."

"Now, the Govt has decided the Budget and the work will be imposed by Delhi. So, this Govt is trying to snatch away the financial cover of the poor. They had drafted the three black laws with the same stubbornness...We would want that in the coming financial year, they provide relief to the poor, to farmers, to youth and the middle class...," he said.

The Union Cabinet, which is headed by Prime Minister Narendra Modi, has approved the Union Budget for financial year 2026-27.

This is the first Budget presentation on a Sunday. This is also the third Budget presentation of the BJP-led NDA government's third term in office.

Finance Minister Nirmala Sitharaman met President Droupadi Murmu at Rashtrapati Bhavan on Sunday morning before presenting the Union Budget 2026 in Parliament. As part of tradition, the President offered Sitharaman dahi-cheeni, a customary ritual observed before important events. This practice has become a regular part of the formal proceedings leading up to Budget Day.

Finance Minister Nirmala Sitharaman is presenting her 9th consecutive Union Budget in Parliament.

Union Budget from Kartavya Bhavan, FM Nirmala Sitharaman said it is guided by three principles: accelerating economic growth, fulfilling people’s aspirations, and “Sabka Saath, Sabka Vikas.”

Finance Minister Nirmala Sitharaman said, "Reform over rhetoric and people over populism. We have pursued far-reaching structural reforms, ensured fiscal prudence and monetary stability, while continuing to place strong trust in public investment."

Finance Minister Nirmala Sitharaman highlighted six key areas of focus in Budget 2026: scaling up manufacturing across seven strategic and frontier sectors, rejuvenating legacy industries, creating champion MSMEs, giving a strong push to infrastructure, ensuring long-term security and stability, and developing city economic regions.

Finance Minister Nirmala Sitharaman proposed a Rs 10,000 crore investment in the biopharma sector over the next five years, aiming to strengthen India’s pharmaceutical industry.

Finance Minister Nirmala Sitharaman proposed the development of seven high-speed rail corridors to enhance connectivity and strengthen infrastructure across India.

The target for capex will be raised to from Rs 11.2 crore to Rs 12.2 lakh crore for FY27 earmarked for the current fiscal year. Finance Minister Nirmala Sitharaman also announced a slew of measures to boost infrastructure in the country. She said the government will continue to develop infrastructure in Tier-2 and Tier-3 cities.

Finance Minister Nirmala Sitharaman proposed a Rs 10,000 crore fund to create champion SMEs and boost the economy. She also announced a container manufacturing scheme, mega textile parks focused on technical textiles, and the Mahatma Gandhi Gram Swaraj initiative to strengthen Khadi and handloom.

Finance Minister Nirmala Sitharaman proposed a Rs 40,000 crore investment to boost electronics component manufacturing in India, aiming to strengthen domestic production and reduce import dependence.

FM Nirmala Sitharaman proposed setting up three new All India Institutes of Ayurveda, upgrading Ayush pharmacies and drug testing labs to ensure more skilled personnel, and enhancing the WHO Global Traditional Medicine Centre in Jamnagar.

FM Nirmala Sitharaman announced that non-resident individuals will be allowed to invest in listed Indian companies through the Portfolio Investment Scheme. She also proposed raising the investment limit for FPI from 5 per cent to 10 per cent.

Tax collected at source rates for education and health reduced from 5% to 20% to 2%, Finance Minister Nirmala Sitharaman announced in her Budget speech. I also propose to reduce TCS rate on the sale of overseas tour programme package from the current 5% and 20% to 2% without any stipulation of amount, she said.

Finance Minister Nirmala Sitharaman announced updated ITR filing deadlines: individuals filing ITR‑1 and ITR‑2 can submit their returns till 31 July, while non‑audit business cases and trusts have time until 31 August.

Finance Minister Nirmala Sitharaman on Sunday proposed a six-month foreign asset disclosure scheme for small taxpayers like students, tech professionals and relocated NRIs as she presented the Union Budget 2026-27.

The 2026 Budget announced a tax holiday until 2047 for foreign companies providing cloud services from India. To avail this benefit, these companies must offer their services to Indian consumers through a local reseller.

Poorva Prakash, Partner, Deloitte India: Enhancement of time-line for filing of revised returns from December to March is a welcome move. It will enable taxpayers to claim double taxation relief in India in alignment with overseas tax returns filed for calendar year Countries.

Ridhima Kansal, Director, Rosemoore said, "FM Sitharaman's She-Mark and She MARTS initiative has created an extraordinary advancement which benefits women entrepreneurs throughout India. The establishment of community-owned retail stores enables us to solve the continuous problem which women entrepreneurs experience when they try to obtain credit while also creating market opportunities. The combination of She-Mark certification and new financial solutions enables women to grow their businesses because it removes the obstacles which traditional banking systems impose. The She MARTS centers serve as incubation spaces which help organizations build peer networks to achieve better negotiation outcomes. The ecosystem approach enables the recognition of women's economic value while it simultaneously tackles inherent systemic discrimination. The initiative provides base-level women with entrepreneurial opportunities which enable them to become successful business leaders who will help develop their local economies."

The 2026 Budget mandates TReDS as the transaction settlement platform for all purchases by CPSEs from MSMEs, introduces a CGTMSE-backed credit guarantee for invoice discounting on TReDS, and links GeM with TReDS to enable faster and cheaper financing for MSMEs.

In the 2026 Budget, the government proposed an increase in the Securities Transaction Tax (STT) for derivatives. The STT on futures is set to rise from 0.02 per cent to 0.05 per cent, while the STT on options premium and the exercise of options will be increased to 0.15 per cent from the earlier rates of 0.1 per cent and 0.125 per cent, respectively.

Vinod Babu Bollikonda, Chief Executive Officer, Blue Cloud Softech Solution Ltd said, “The launch of India Semiconductor Mission (ISM) 2.0 and the Rs 40,000 crore allocation under ECMS mark a decisive inflection point in India’s journey from a semiconductor consumer to a global technology producer. These initiatives signal the government’s clear intent to build deep, strategic capabilities across the semiconductor value chain. This Budget provides the right policy momentum and economic tailwinds to accelerate our domestic fabrication and advanced packaging roadmap, and to help build a globally competitive semiconductor ecosystem anchored in India.”

Anuj Mundhra, Founder, Chairman & Managing Director, Nandani Creation Limited said, "FM Sitharaman's textile blueprint brings revolutionary changes to the textile industry. The outdated clusters need modernization through the Textile Expansion Scheme which will create competitive hubs for Indian textile operations because the country operates machinery that exceeds 25 years of age. The implementation of Samarth 2.0 will solve our 15 million skilled worker shortage problem. The mega textile parks will generate investments exceeding ₹50,000 crore while they will achieve a 25-30% reduction in logistics expenses. The Mahatma Gandhi Gram Swaraj Initiative offers support to 8 million khadi and handicraft artisans because their work plays a vital role in driving our economic development. India holds only 5% of global textile trade despite being the world's largest cotton producer. The implementation of these strategies will enable us to achieve a 10% market share increase which will create 10 million new employment opportunities within the next five years. This unified strategy enables India to emerge as a legitimate competitor in the international marketplace."

Poorva Prakash, Partner, Deloitte India, said, "Significant tax rate relief under New tax regime was given in 2025 Budget, hence further changes in the tax slabs in 2026 Budget was not expected."

Shrivallabh Goyal, CEO & Whole-Time Director, Model Economic Township Ltd. (Reliance MET City): The Union Budget 2026–27 reinforces the government’s commitment to infrastructure-led growth as a key driver of economic expansion, employment, and connectivity. The enhanced capital expenditure of Rs 12.2 lakh crore underscores a strong focus on transport corridors, logistics, urban infrastructure, and industrial ecosystems, especially across emerging Tier-2 and Tier-3 cities. The Budget’s emphasis on urban development further supports this momentum by strengthening housing, mobility, and city-level services. Integrated townships such as Reliance MET City reflect this vision, where industrial infrastructure and planned urban ecosystems come together to attract investment, support workforce needs, and advance India’s journey towards Viksit Bharat 2047.

First Kartavya: Accelerate and sustain economic growth by enhancing productivity and competitiveness, and building resilience to volatile global dynamics.

Second Kartavya: Fulfil aspirations of the people by building people’s capacity and making them strong partners in India's path to prosperity.

Third Kartavya: Vision of Sabka Sath, Sabka Vikas by ensure that every family, community, region and sector has access to resources, amenities and opportunities for meaningful participation.

Pawan Garg, Founder and JMD at Fujiyama Power Systems Ltd, said: The Union Budget 2026 strategic customs duty changes represent a masterstroke that will advance India toward its clean energy goals. The government provides capital goods exemptions to Battery Energy Storage Systems and sodium antimonate raw materials used in solar glass production which will lead to decreased manufacturing expenses for domestic producers. The duty exemption which lasts indefinitely for nuclear power projects demonstrates a strong dedication to producing coal-free foundational power sources.

Government has undertaken comprehensive economic reforms towards creating employment, boosting productivity and accelerating growth. Over 350 reforms have been rolled out, including GST simplification, notification of Labour Codes, and rationalisation of mandatory Quality Control Orders. High Level Committees have been formed. Central Government is working with the State Governments on deregulation and reducing compliance requirements

Robin Mangla, President, M3M India, said: The Union Budget 2026 reinforces the importance of infrastructure-led growth as a key driver for real estate. The increase in capital expenditure to Rs 12.2 lakh crore provides long-term visibility for urban expansion, connectivity, and project execution, underpinning demand across both residential and commercial segments. These measures will strengthen the overall real estate ecosystem, improve execution confidence, and support sustained growth across key markets.

Navdeep Sardana, Founder, Whiteland Corporation says, “The Finance Minister’s decision to scale up public capital expenditure to Rs 12.2 lakh crore and introduce the Infrastructure Risk Guarantee Fund is a major confidence booster for the real estate and infrastructure sectors. By de-risking the construction phase and improving credit availability, the move will accelerate project execution and crowd in private investment. Faster asset monetisation through REITs and enhanced freight connectivity will further unlock liquidity across the ecosystem. For the Delhi-NCR market, these measures will strengthen infrastructure-led growth, improve regional connectivity, and drive sustained demand across residential, commercial and logistics real estate.”

Sustaining Economic Growth

Strengthening the Foundations of Growth

People-Centric Development

Trust-based Governance

Ease of Doing Business and Ease of Living

Fiscal matters

Finance Minister Nirmala Sitharaman announced a one-time six-month foreign asset disclosure scheme for small taxpayers, including students, young professionals, tech employees, and relocated NRIs.

The Union Budget 2026-27 has delivered significant relief to cancer patients and families coping with high treatment costs, with Finance Minister Nirmala Sitharaman announcing the removal of basic customs duty on 17 cancer related drugs and medicines.

Nischal Shetty, Founder, WazirX for VDAs, said, "The Union Budget 2026 maintains the existing tax treatment for Virtual Digital Assets. The continuation of the 1% TDS and the restriction on loss set-off remain key friction points for users and the ecosystem. These measures continue to impact liquidity, participation, and India’s competitiveness in the global digital asset landscape. We remain hopeful that future policy discussions will address these concerns in a manner that balances innovation, compliance, growth and ease of doing business."

Prime Minister Narendra Modi called the Union Budget 2026 historic, highlighting Finance Minister Nirmala Sitharaman’s record of presenting it for the ninth consecutive time. He described the Budget as a highway of opportunities that turns aspirations into reality and strengthens India’s future.

Prime Minister Narendra Modi said the Union Budget reflects the aspirations of 140 crore Indians, strengthens the reform journey, and charts a clear roadmap for Viksit Bharat.

Prime Minister Narendra Modi said that the 140 crore citizens of India are not satisfied with being the fastest-growing economy and aspire to make India the world’s third-largest economy as soon as possible. (PTI)

In Budget 2026‑27, the fiscal deficit is projected at 4.3% of GDP, slightly lower than the 4.4% estimated for 2025‑26. The government aims to maintain fiscal prudence and continue its debt consolidation path.

Dhurv Sarin, Co-founder, PBPartners, said, "The Union Budget 2026–27 clearly positions Yuva Shakti at the centre of India’s growth story, with a strong sankalp to bring the poor, underprivileged and disadvantaged into the formal economy. As more young Indians in semi-urban and rural regions enter the workforce, there is a parallel opportunity to create sustainable livelihoods through assisted digital entrepreneurship. By combining skilling, employment generation and rural empowerment, the Budget sets the stage for young Indians to actively participate in India’s prosperity. It also strengthens access to formal systems, economic opportunity and long-term financial security across families, sectors and regions."

Anurag Goel, Director, Goel Ganga Developments, said: "We support the government's infrastructure risk mitigation efforts because of its specific focus on targeted solutions. The Guarantee Fund directly addresses lender apprehensions that have constrained private investment in emerging cities. CPSE REITs will create benchmark assets, improving market confidence. The comprehensive framework establishes a foundation for Indian real estate development through its combination of public capital expenditure and private sector involvement."

Mahavir Lunawat, Chairman & Managing Director, Pantomath Capital said, “This budget provides a massive boost to the capital market by creating new, efficient pathways for raising capital. The Rs 100 crore incentive for municipal bonds and the push for CPSEs to launch dedicated REITs show a clear strategy to unlock value from public assets. By simplifying the Foreign Exchange Management (FEMA) rules and expanding the Portfolio Investment Scheme, the government is opening the doors wide for global capital to flow into Indian companies."

He added that these reforms make it significantly easier and cheaper for both the government and private enterprises to fund their next phase of growth, ensuring that the pipeline for new listings and infrastructure projects remains robust and attractive to investors.

In a post-Budget conference, Finance Minister Nirmala Sitharaman said that the government is laying the path and giving a push to the economy to maintain growth momentum. Structural reforms will continue to build the ecosystem, improve productivity, and generate employment. Technology will be brought in to benefit the common man, with Rs 1,000 crore per year per city being allocated, focusing largely on Tier-2 and Tier-3 cities.

Finance Minister Nirmala Sitharaman said at a post-Budget conference that the budgeted capital expenditure for FY27 is Rs 12.2 lakh crore, or 4.4% of GDP, marking the highest-ever allocation.

At a post-Budget media briefing, Finance Minister Nirmala Sitharaman said that Union Budget 2026 focuses on funding health facilities, ensuring inclusive growth under the principle of ‘sabka saath, sabka vikas’.

Finance Minister Nirmala Sitharaman said, “The electronic components manufacturing scheme for Rs 40,000 crore is a major encouragement for electronics to become self-sufficient.” She also highlighted the establishment of rare earth corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to reduce import dependency and boost domestic economic growth. (ANI)

Finance Minister Nirmala Sitharaman said post-Budget, “we are setting up a committee to review the entire banking sector.”

Revenue Secretary Arvind Shrivastava said in a conference that the increase in Securities Transaction Tax (STT) on futures and options is intended to discourage speculative trading and manage systemic risk in the derivatives market.

Lok Sabha Leader of the Opposition Rahul Gandhi tweeted, "Youth without jobs. Falling manufacturing. Investors pulling out capital. Household savings plummeting. Farmers in distress. Looming global shocks - all ignored. A Budget that refuses course correction, blind to India’s real crises."

Prabina Rajib, Director, Birla Institute of Management Technology (BIMTECH) , shared, “Budget 2026 puts real money behind real change, guided by a clear kartavya to ensure every family, community, and sector has access to opportunity. A Rs 10,000 crore SME Growth Fund and a ₹2,000 crore boost to the Self-Reliant India Fund strengthen MSMEs and entrepreneurs, including student-led startups, helping them scale and access export markets through tax support for courier shipments and SEZs. SHE Marts and the caregiver ecosystem bring women-led and social enterprises in retail and healthcare into the mainstream. The focus on industry-led research and training centres aligns skills with real jobs, while steady improvement in the Gender equality, especially among rural women, shows inclusion moving from policy to practice.”

Himanshu Parekh, Partner, Tax, KPMG in India says, "With a view to provide a major boost to the IT/ ITeS sector, the safe harbour norms have been significantly relaxed by providing for a lower margin of 15.5% over cost for companies whose turnover does not exceed Rs 2000 crores. Also the classification into low end and high end activity profile has apparently been done away with. Also, APAs for this sector will now be fast tracked, thereby providing certainty in respect of their tax liability in India."

Manu Awasthy, Founder & CEO, Centricity WealthTech on the Union Budget 2026: "The Budget continues to signal a clear intent to position India as a long-term hub for global capital, services, and manufacturing rather than pursuing short-term stimulus. The extended tax holiday till 2047 for foreign cloud service providers using Indian data centres, coupled with safe harbour margins for related-party data centre services and bonded warehousing, underscores a deliberate push toward anchoring global digital and supply-chain infrastructure in India. These measures are structurally positive and aligned with India’s ambition to move up the global value chain."

Parvinder Singh, CEO, Trident Realty said, "The budget’s focus on strengthening Tier 2 and Tier 3 cities is a timely and practical step for the real estate sector. A dedicated Rs 5,000 crore allocation for urban infrastructure sends a clear signal that these cities are being positioned as credible growth hubs, not secondary markets. With improving civic amenities and transport networks, demand from homebuyers and professionals is naturally accelerating. For developers, these locations offer far greater flexibility than mature Tier 1 cities. The Infrastructure Risk Guarantee Fund further strengthens the ecosystem by offering calibrated credit support, reducing execution risk and enabling more responsible private participation."

CA, CMA, Anita Gandhi, Institution Head, Arihant Capital Markets said, "The Union Budget 2026–27 is positive from a longer-term economic growth perspective, especially with its continued focus on fiscal discipline and structural reforms. However, there has been a fair amount of disappointment when compared to market expectations."

She added, "The increase in STT rates on futures and options has particularly impacted short-term traders, who were hoping for some relief or stability on the taxation front. This has led to near-term nervousness and profit booking in the markets, which is reflected in the current negative sentiment. While the budget reinforces the government’s commitment to sustainable growth, the absence of immediate catalysts for the equity markets and the added cost burden on derivatives trading have dampened short-term enthusiasm."

Union Minister Gajendra Singh Shekhawat said the government has been working with clear objectives since 2014 to make India a developed nation by 2047, adding that each Budget is steadily advancing the country toward that long-term goal.

Mohit Jandu, MD, J Infratech said, "The Union Budget’s Rs 12.2 lakh crore allocation for FY27 reinforces a strategic commitment to infrastructure-led growth. This massive capital outlay provides long-term fiscal clarity, aimed at slashing logistics costs and boosting productivity."

He added, "​Strategic initiatives, such as the seven high-speed rail corridors and the North-East Buddha Circuit, exemplify a shift toward inclusive, multimodal connectivity. Furthermore, the Infrastructure Risk Guarantee Fund is a pivotal reform; by mitigating construction-phase risks, it bolsters lender confidence and ensures the timely execution of mega-projects. Together, these measures create a robust foundation for regional integration, tourism, and sustained economic expansion."

“Today’s budget is focused on development and stability. The government has prioritised infrastructure, employment, and domestic manufacturing. On the income tax front, relief has been provided to the middle class by further simplifying the new tax structure, which effectively offers zero tax benefit on income up to approximately Rs 12 lakh. The new income tax law will reduce tax complexities and make compliance easier. Overall, this budget is not populist but a practical step towards long-term economic strength and ‘Developed India," said CA Nishant Kumar, FCA, GST Expert.

Markets took a hit after Budget 2026, as Finance Minister Nirmala Sitharaman’s surprise hike in Securities Transaction Tax (STT) on derivatives shook investor confidence. Aimed at cooling down excessive speculation in the F&O segment, the move triggered a sharp sell-off across Dalal Street. On Budget day, February 1, 2026, both benchmarks closed deep in the red, with the Nifty falling nearly 2 per cent and the Sensex down almost 1.9 per cent, marking their worst Budget-day performance since 2020.

In Budget 2026, Finance Minister Nirmala Sitharaman announced measures to expand REITs and InvITs, highlighting their role in funding infrastructure growth. She said that over the past decade, large-scale infrastructure development has been supported through new financing tools like REITs and InvITs, along with institutions such as NIIF and NABFID . “We shall continue to focus on developing infrastructure in cities with over 5 lakh population (Tier II and Tier III), which have expanded to become growth centres,” she added.

The Union Minister of Finance, Nirmala Sitharaman, proposed capital gains exemption for sovereign gold bonds (SGBs). On the tax treatment of existing Sovereign Gold Bonds (SGBs), Sitharaman clarified in her Budget speech that the capital gains tax exemption will apply only if the bonds are originally subscribed to by an individual and held until maturity. The proposal seeks to apply this exemption uniformly across all SGBs issued by the RBI, making it clear that the benefit is available only to individual investors who do not sell before redemption.

The Union Budget 2026 makes some things costlier, including higher STT on derivatives, tighter taxation on buybacks, and withdrawal of certain customs exemptions. At the same time, it makes life cheaper for individuals with lower TCS under the LRS and cuts in customs duty on personal imports, while healthcare relief comes through full customs duty exemption on select cancer and rare-disease drugs, improving affordability and access.