India’s Union Budget 2026-27, to be presented by Finance Minister Nirmala Sitharaman on February 1, 2026, is anticipated to emphasise fiscal consolidation, growth stimulus, and inclusivity amid global uncertainties. The Economic Survey 2025-26 projects FY27 GDP growth at 6.8-7.2%, with FY26 real GDP at 7.4%, driven by resilient demand and infrastructure push.

Fiscal deficit is expected to narrow to 4.3-4.4% of GDP, the lowest since FY19, supporting long-term resilience. Capital expenditure (capex) may rise 10-15% YoY, focusing on infrastructure, railways, and urban development to boost logistics and multimodal mobility.

Tax expectations include higher standard deduction (₹75,000 to ₹1 lakh), LTCG threshold to ₹2 lakh, and tweaks for middle-class relief, though major slab changes are unlikely as the new regime starts April 1. Incentives for green energy, AI, MSMEs, manufacturing (extending concessional regime), and exports aim for ₹50,000 crore target.

Sectoral boosts: Defence (20% hike), health (doubling allocations to 2.5% GDP), housing affordability, and agriculture. Challenges include 10-20% risk of global crisis, US tariffs, and rupee pressures. Overall, the budget prioritises Viksit Bharat through sustainable, tech-driven growth.