Union Budget 2026-27: Nirmala Sitharaman Scripts India’s Next Growth Chapter

TICE News | New Delhi, February 1, 2026 

Finance Minister Nirmala Sitharaman on Sunday presented her ninth consecutive Union Budget, a first in India’s parliamentary history, as the Lok Sabha convened for an unprecedented weekend session. The Budget for FY27 raises the government’s expenditure target to ₹53.5 lakh crore and pegs the fiscal deficit at 4.3% of GDP, reinforcing India’s commitment to credibility even as it pursues scale.

Framed around three core kartavyas—fiscal discipline, sustained growth, and reforms—the Budget seeks to keep the economy in a “Goldilocks zone” of robust growth with controlled inflation, while laying foundations for long-term competitiveness.

A Sunday of Historic Firsts

On a crisp February morning in New Delhi, Sitharaman walked into Parliament in a Kanjeevaram silk saree, carrying the now-familiar digital tablet. The symbolism was unmistakable—continuity anchored in tradition. This was India’s 80th Budget, delivered on a Sunday for the first time, underscoring the moment’s historic weight.

The Finance Minister projected 7.2% GDP growth in FY27, signalling confidence despite global headwinds. The message was clear: India will push ahead with reforms without losing fiscal balance.

Ambition Meets Fiscal Reality

Revenue & Spending

• Total expenditure:₹53.5 lakh crore (up from ₹49.6 lakh crore in FY26)
• Net market borrowing:₹11.7 lakh crore
• Gross borrowing:₹17.2 lakh crore
• Net tax receipts:₹28.7 lakh crore

Strategic Manufacturing & Industry

• Three chemical parks to be developed with state participation
• ₹10,000 crore over five years for container manufacturing
• Launch of a National Fibre Scheme to build self-sufficiency

Rural & Cultural Economy

• Mahatma Gandhi Gram Samaj initiative to support khadi, handicrafts, and rural artisans
• Revival of 15 archaeological sites, including Sarnath and Hastinapur, as cultural hubs
• A Digital Knowledge Grid to document heritage with local researchers and tech partners

Climate & Clean Energy

• ₹20,000 crore over five years for Carbon Capture, Utilisation and Storage (CCUS), positioning India as a leader in industrial decarbonisation

Education & Creator Economy

• Indian Institute of Creative Technologies, Mumbai, for animation, VFX, and gaming
• Five university townships integrating academics, skills, and housing
• A girls’ hostel in every district and a new National Institute of Design in East India

Taxation & Digital Economy

• Extended timeline to revise ITRs with a nominal fee; ITR-1/2 filing allowed till July 31
• Tax holiday till 2047 for foreign companies setting up data centres in India
• Safe harbour margin of 15.5% for IT services; threshold raised to ₹2,000 crore

Infrastructure & Waterways

• Infrastructure Risk Guarantee Fund to de-risk private investments
• Dedicated REITs for CPSE asset recycling
• 20 new national waterways over five years
• Ship-repair hubs in Varanasi and Patna, coastal cargo promotion, and support for sea-plane manufacturing

A Roadmap for Viksit Bharat 2047

The Budget concluded with a long-term vision of a self-reliant, globally competitive India. The 16th Finance Commission recommendation of 41% tax devolution to states-the highest ever- reaffirmed cooperative federalism. The Khelo India mission received a boost to strengthen grassroots sports and youth employment.

Markets responded cautiously, but the broader narrative was unmistakable: India is doubling down on infrastructure, innovation, and inclusion, carefully resolving the tension between growth ambition and fiscal discipline.

Future Perspective

Union Budget 2026-27 is more than a balance sheet-it is a statement of intent for the coming decade. From semiconductors to khadi, from carbon capture to creative technologies, the government is scripting a story of resilience and reinvention.

For citizens, it promises jobs, skills, and cultural pride. For investors, it signals credibility and policy continuity. For states, it delivers resources and autonomy. As India enters FY27, this Sunday Budget is likely to be remembered as a defining moment—when ambition met discipline, and the roadmap to Viksit Bharat 2047 came sharply into focus.