With Finance Minister Nirmala Sitharaman presenting her ninth consecutive Union Budget, several changes will directly impact household expenses and consumer choices. Follow the live updates of Union Budget 2026 with real-time coverage of major announcements, tax reforms, economic priorities and policy decisions Union Budget 2026: What gets cheaper Overseas tour packages as TCS has been reduced from 5–20 per cent to 2 per cent Foreign education costs with lower TDS under the Liberalised Remittance Scheme (LRS) Alcoholic liquor scrap and select minerals following a duty cut from 5 per cent to 2 per cent Shoe upper exports with duty-free imports permitted Energy transition equipment with exemption from basic customs duty (BCD) Solar glass manufacturing inputs with BCD exemption Capital goods used for critical mineral production with BCD exemption Components and parts for civilian aircraft manufacturing exempted from BCD Microwave ovens with full BCD exemption Personal-use imports as BCD is reduced from 20 per cent to 10 per cent Drugs used for rare diseases and cancer with BCD exemption Fish caught by Indian fishermen in Indian waters exempt from BCD Goods imported for nuclear power projects exempt from BCD Cancer drugs Leather goods Camera TV equipment Imports of goods for nuclear power till 2023 video games manufacturing parts Footwear Union Budget 2026: What gets costlier Income tax misreporting, now attracting a penalty equal to 100 per cent of the tax amount Non-disclosure of movable assets, which will now invite penalties Stock options and futures trading, with Securities Transaction Tax increased from 0.02 per cent to 0.05 per cent “Sin” goods such as cigarettes and luxury imports Coffee and vending machines Coal Union Budget 2026: Income tax law comes into force from April 1, says Nirmala Sitharaman The FM on Sunday announced that the Income Tax Act, 2025, will come into force from April 1, marking a major overhaul of India’s direct tax framework. She said the accompanying rules and redesigned income tax return (ITR) forms will be notified shortly to give taxpayers adequate time to familiarise themselves with the new system. Simplified rules and ITR forms to be notified soon Speaking in the Lok Sabha during her Union Budget 2026 address, Sitharaman said the new law will replace the six-decade-old Income Tax Act of 1961, with all changes announced in the current Budget being incorporated into the fresh legislation. “This direct tax code was completed in record time, and the Income Tax Act, 2025 will take effect from April 1, 2026. The simplified rules and forms will be notified soon,” she said. Revamped ITRs designed for easier taxpayer compliance The Finance Minister emphasised that the revamped ITR forms have been redesigned with the ordinary taxpayer in mind, enabling easier compliance without procedural complexity. According to her, the reform is focused on clarity and simplicity rather than altering tax rates. Revenue-neutral law cuts sections by nearly 50 per cent She clarified that the new Income Tax Act is revenue-neutral, with no change in existing tax slabs or rates. Instead, it aims to simplify the law, remove ambiguities and significantly reduce litigation by making provisions easier to understand. Notably, the legislation cuts down the overall text and number of sections by nearly 50 per cent compared to the 1961 Act. Single ‘tax year’ concept, late filers allowed TDS refunds One of the key structural changes introduced under the new law is the simplification of the tax timeline. The long-standing distinction between the “previous year” and the “assessment year” has been removed and replaced with a single “tax year” concept, making compliance more straightforward for taxpayers. In another taxpayer-friendly move, Sitharaman said the new framework will allow individuals to claim refunds of tax deducted at source (TDS) even if income tax returns are filed after the due date, without attracting any penal charges. The Finance Minister said these reforms are intended to make India’s direct tax system more transparent, predictable and citizen-centric, while also improving ease of compliance and reducing disputes between taxpayers and the tax administration.
02 February,2026 08:58 AM IST | New DelhiFinance Minister Nirmala Sitharaman outlined the government’s expenditure and taxation plans in the Union Budget 2026 on Sunday, highlighting measures that will directly affect the daily lives of citizens and businesses across India. Although the headline focuses on unchanged income tax slabs, several Finance Ministry announcements are set to directly affect the daily lives of students, employees, businesses, and citizens in general. Check LIVE Budget Updates here While income tax slabs remain unchanged up to Rs 12 lakh per annum, several indirect taxes on everyday goods and services are set to change from April 1, 2026. Smartphones to get cheaper in India Sitharaman, while presenting her ninth consecutive budget, stated the government will offer support for electronics manufacturing, with increased funding of around Rs 40,000 crore. She also said that they plan to rationalise taxes on phone components to build India as a tech hub. This is likely to bring down the costs of smartphones, tablets, and mobile accessories in the long run. Cigarettes and alcohol to get expensive While the Union Budget 2026 mostly focused on healthcare, energy, electronics, and technology, tobacco and alcohol are set to get more expensive from April 1, 2026. The government has imposed new excise duties and higher taxes on cigarettes and other tobacco products, effective April 1, 2026. Cigarettes will attract higher excise duties in addition to the goods and services tax (GST), ultimately making them expensive. While alcoholic beverages will continue to be taxed by state governments, the Central and state excise duty on liquor has been increased, which will make the effective selling price comparatively expensive from the upcoming financial year. Sports equipment to get cheaper With Sitharaman announcing the extension of the ‘Khelo India Mission’ for 10 more years to boost sports infrastructure, sports equipment may become cheaper in the upcoming financial year. Reduced customs duties could make imported sports goods available at slightly lower prices. Futures and options trading to be taxed heavily Sitharaman, while speaking about share market trading, announced an increase in Security Transaction Tax (STT) on Futures and Options (F&O) transactions. The Security Transaction Tax (STT) on futures will increase by 150 per cent, from 0.02 per cent to 0.05 per cent, while STT on options transactions will rise by 50 per cent, from 0.10 per cent to 0.15 per cent. Expert opinion Sahil Sonawat, (CFA, CA) who works as an analyst at a financial advisory firm Kroll emphasises, "The Union Budget 2026 presents a structural pivot, balancing an aggressive Rs 12.2 lakh crore capex (4.4 per cent of GDP) with a disciplined fiscal deficit glide path to 4.3 per cent." Expressing his views on taxation hike on F&O trades and India's Semiconductor Mission 2.0, he added, "By scaling the India Semiconductor Mission 2.0 and hiking STT on F&O trades, the Finance Bill strategically prioritises long-term industrial 'Trump-proofing' over speculative retail volatility. For investors, this creates a high-quality 'risk-off' environment, trading short-term derivative liquidity for a more stable, infrastructure-led equity growth story." Union Budget 2026: What gets cheaper, what gets costlier Cheaper Cancer drugs TV equipment Leather goods Cameras Footwear Liquor scrap (empty bottles, expired products) Foreign education Overseas tour packages Imports of goods for nuclear power projects till 2035 Video games’ manufacturing parts Energy transition equipment Microwave ovens Costlier Coffee and vending machines Income tax misreporting - Penalty equal to 100 per cent of the tax amount Non-disclosure of movable assets Stock options and futures trading Coal
02 February,2026 08:58 AM IST | Mumbai | Tarun VermaAs many as 17 cancer drugs, along with medicines and food for special medical needs for seven rare diseases are set to become cheaper with Finance Minister Nirmala Sitharaman announcing cuts in customs duty in the Union Budget 2026-27. In her speech, Sitharaman said, “To provide relief to patients, particularly those suffering from cancer, I propose to exempt basic customs duty on 17 drugs or medicines.” Moreover, the Budget has also proposed setting up 1000 clinical trial sites and strengthening the Central Drugs Standard Control Organisation. AI booster The Budget proposed a tax holiday till 2047 for foreign companies that provide cloud services to customers globally using data centres located in India, signalling the government’s push to make the country a major hub for AI and digital infrastructure. The big push on data centres comes at a time when India is gearing up to take the centrestage in global discourse on AI. It is expected to position India not just as a consumer of global cloud and AI services, but as a thriving base for the world’s digital backbone. With AI, cloud computing and digital payments growing, data centres are becoming as critical as roads and power plants, forming the backbone of India’s digital economy. India is eyeing a leading role in global AI conversations with New Delhi all set to host the India AI Impact Summit. Defence gets major boost India on Sunday set aside Rs 7,84,678 crore as defence outlay for 2026-27 over the current fiscal’s allocation of Rs 6.81 lakh crore with a major increase in capital expenditure as the military focuses on modernisation in the face of security challenges from China and Pakistan. The increase in the defence outlay against the backdrop of “historic success of Operation Sindoor” has further strengthened our resolve to make India’s defence system even more robust, Defence Minister Rajnath Singh said. The overall defence budget has seen a hike of 15 per cent over last year’s outlay. India-developed Pinaka missiles. REPRESENTATION PIC/ISTOCK Out of the total allocation, Rs 2,19,306 crore has been earmarked for capital expenditure to the armed forces that largely includes purchasing new weapons, aircraft, warships and other military hardware. The revenue expenditure has been put at Rs 5,53,668 crore that includes Rs 1,71,338 crore for pensions. The budgetary allocation to the Defence Research and Development Organisation (DRDO) has been increased to R29,100 crore from Rs 26,816.82 crore in 2025-26. Out of this allocation, Rs 17,250.25 crore is allocated for capital expenditure. Defence Minister Rajnath Singh said the “most important” aspect of the budget is the modernisation of the three services. “I express my heartfelt gratitude to our Prime Minister Modi ji for allocating R7.85 lakh crore for the defence sector,” he said. “Coming after the historic success of Operation Sindoor, this budget has further strengthened our resolve to make the country’s defence system even more robust,” he added.Singh said a provision of Rs 2.19 lakh crore has been made for the overall capital expenditure of the armed forces. Rs 10K cr for biopharma REPRESENTATION PIC/ISTOCK Sitharaman proposed Rs 10,000 crore investment over the next five years to develop India as a biopharma manufacturing hub, set up 1,000 clinical trial sites and strengthen the Central Drugs Standard Control Organisation. Biopharmaceuticals, or biologics, are complex medicines manufactured from living organisms, cells, or tissues rather than through chemical synthesis. India’s disease burden is observed to be shifting towards non-communicable diseases, like diabetes, cancer, and autoimmune disorders. Biologic medicines are key to longevity and quality of life at affordable costs, Sitharaman stated. ‘Champion’ MSMEs The FM on Sunday proposed a three-pronged strategy, including a Rs 10,000 dedicated fund, to help MSMEs grow as ‘Champions’. Sitharaman said the Modi government has undertaken comprehensive economic reforms towards creating employment, boosting productivity and accelerating growth. The “Reform Express” is well on its way and will maintain its momentum to help fulfil “our kartavya”, she said. Earlier, the Budget used to be prepared in the North Block. Recognising MSMEs as a vital engine of growth, Sitharaman outlined a three-pronged approach — Equity Support, Liquidity Support and Professional Support — to help MSME grow as ‘Champions’. She also proposed to top up the Self-Reliant India Fund set up in 2021, with Rs 2000 crore to continue support to micro enterprises and maintain their access to risk capital. The minister also said the government will set up an ‘Education to Employment and Enterprise’ Standing Committee to recommend measures focusing on the services sector. The cadre of “corporate mitras” will help MSMEs to meet their compliance requirements at affordable costs. Opposition reacts to the budget... ‘Lacklustre, disappointing’ Rahul Gandhi, LoP “Union Budget as totally lacklustre and blind to India’s real crises and did not offer any solution to the country’s economic, social and political challenges. This Budget offers no solutions, not even slogans to hide the absence of policy! Youth without jobs. Falling manufacturing. Investors pulling out capital. Household savings plummeting. Farmers in distress. Looming global shocks - all ignored. It is a Budget that refuses course correction.” ‘No solution Budget’Mallikarjun Kharge, Congress chief “The Modi Government has run out of ideas. Budget 2026 does not provide a single solution to India’s many economic, social, and political challenges. ‘Mission Mode is now Challenge Route’”. ‘Nothing to offer’Mamata Banerjee, Bengal CM “This Budget is directionless, visionless, actionless and anti-people. It is also anti-women, anti-farmer, anti-education and against the SC, ST and OBC... There is nothing on offer for Bengal in the Budget.” Budget 2026: What gets cheaper, what gets costlier CheaperCancer drugsTV equipment Leather goods CamerasFootwear Liquor scrap (empty bottles, expired products)Foreign educationOverseas tour packages Imports of goods for nuclear power projects till 2035 Video games’ manufacturing partsEnergy transition equipmentMicrowave ovens Costlier>> Coffee and vending machines>> Income tax misreporting - Penalty equal to 100 per cent of the tax amount>> Non-disclosure of movable assets>> Stock options and futures trading>> Coal This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever
02 February,2026 07:51 AM IST | New Delhi | AgenciesUnion Finance Minister Nirmala Sitharaman on Sunday presented her ninth consecutive Union Budget, in which she announced no changes in the income tax regime for the year 2026-27, while the FM announced changes to Income Tax Return (ITR) filing timelines and introduced a rule-based, automated compliance framework aimed at easing the burden on small taxpayers, among other proposals. University townships to girls’ hostels Five university townships in the vicinity of major industrial and logistic corridors, girls’ hostel in every district, setting up of content creator labs in 15,000 schools and 500 colleges and reduction of the tax collection at source (TCS) rate to 2 per cent for education are among the proposals announced in the Union Budget for the education sector. Union Finance Minister Nirmala Sitharaman carries the digital tablet for Budget 2026 at the Parliament premises. PIC/PTI The sector has got an allocation of over Rs 1.39 lakh crore, including Rs 55,727 crore for higher education. Sitharaman announced that the government will support states in creating five university townships in the vicinity of major industrial and logistic corridors. “These planned academic zones will host multiple universities, colleges and research institutions, skill centers and residential complexes,” she said in her budget speech. Health sector gets 10 per cent hike The Union Health Ministry has been allocated Rs 1,06,530.42 crore in the Budget 2026-27, a 10 per cent hike over 2025-26, with the government proposing a scheme to support states in establishing five regional medical hubs in partnership with the private sector to promote India as a prime medical tourism destination.These hubs will serve as integrated healthcare complexes that combine medical, educational and research facilities, Sitharaman said. The FM said that existing institutions for Allied Healthcare Professionals (AHPs) will be upgraded and new AHP institutions established in private and government sectors. For the first time, the Union Health Ministry has allocated R1000 crore for the Scheme for AHPs. The allocation for Ayushman Bharat has been hiked from Rs 8995 crore to Rs 9500 crore. SHE-Marts for women To strengthen the higher education ecosystem and promote women-led entrepreneurship, the finance minister on Sunday announced a series of proposals, including the construction of a girls’ hostel in every district of the country and the setting up of community-owned ‘She MARTS’. The Union Finance Minister also said that the government has proposed several measures to establish new institutes, university townships, girls’ hostels, and telescope infrastructure as part of increased investment in the higher education sector. “Self Help Entrepreneur — SHE Marts’ will be set up as community-owned retail outlets within cluster-level federations through enhanced and innovative finance instruments,” said Sitharasaid. A Lakhpati Didi is a woman member of an SHG whose annual household income reaches at least R1 lakh. ‘Ambitious, futuristic’ Prime Minister Narendra Modi on Sunday described the Budget 2026-27 as “ambitious” and “futuristic”, stressing that it will further strengthen India’s global role as its 140 crore citizens are not satisfied with being the fastest growing economy and the nation is determined to soon become the world’s third largest economy.Modi said this was a unique budget, which focused on reducing fiscal deficit and controlling inflation while simultaneously ensuring high capital expenditure and high growth. “This Budget strengthens India’s global role anew. India’s 140 crore citizens are not satisfied with being the fastest growing economy, and the nation is determined to soon become the world’s third largest economy,” he said. Sensex, Nifty crash nearly 2% Benchmark stock indices Sensex and Nifty dived sharply by nearly 2 per cent on Sunday after Finance Minister Nirmala Sitharaman proposed a hike in the Securities Transaction Tax (STT) on derivatives. Reversing the early gains, the 30-share BSE Sensex plunged sharply by 2,370.36 points or 2.88 per cent to slide below the 80,000-mark at 79,899.42 in afternoon trade as the finance minister announced a hike in STT on futures contracts to 0.05 per cent from the current 0.02 per cent. The barometer settled at 80,722.94, down 1,546.84 points or 1.88 per cent. The 50-share NSE Nifty tanked 495.20 points or 1.96 per cent to settle at 24,825.45. During the day, it tumbled 748.9 points or 2.95 per cent to 24,571.75. Income tax regime Under the new income tax regime for FY 2026–27, income up to Rs 4 lakh is fully exempt (due to basic exemption). A key feature of the new tax regime is the rebate under Section 87A, which effectively reduces tax liability to zero for individuals with income up to Rs 12 lakh. Salaried taxpayers also benefit from a standard deduction of Rs 75,000. Rebate & zero tax: Increased rebate under Section 87A ensures no tax for income up to Rs 12 lakh.Deductions: Limited deductions, primarily standard deduction, are available compared to the old regime. New tax slabs (FY 2026–27) Up to Rs 4 lakh : NilRs 4 lakh to Rs 8 lakh: 5%Rs 8 lakh to Rs 12 lakh: 10%Rs 12 lakh to Rs 16 lakh: 15%Rs 16 to Rs 20 lakh: 20%Rs 20 lakh to Rs 24 lakh: 25%Above Rs 24 lakh: 30% This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever
02 February,2026 07:37 AM IST | New Delhi | AgenciesAs soon as the Union Finance Minister Nirmala Sitharaman began presenting the Union Budget 2026, Nifty and Sensex, in the early hours of trade, appeared volatile. Once FM Sitharaman announced the increase in Securities Transaction Tax (STT) on Futures and Options (F&O) transactions, the market indices tumbled altogether. Sitharaman said STT on futures will increase by 150 per cent, from 0.02 per cent to 0.05 per cent, while STT on options transactions will rise by 50 per cent, from 0.10 per cent to 0.15 per cent. The announcement of a hike on STT by the FM created panic within the stock market. With many investors beginning to square off their positions, the market experienced a sudden dip around 12.30 pm. Amid a sharp sell-off, the Nifty closed at 24,825.45 on Sunday, down 1.96 per cent. The Sensex also ended significantly lower, settling at 80,722.95, a decline of 1.88 per cent. Marking one of the worst Budget-day declines in years, investors reacted to key policy announcements and broader economic concerns. Considering that the Budget did offer a major boost to some of the sectors, such as health, technology, defence and solar energy, it was a setback for value investors and traders. What experts say? CA Praveen Tejwani, a value investor and an auditor at a global financial institution while decoding the sudden fall in the indices on Sunday asserted, "The increase in Securities Transaction Tax (STT) on F&O trades signals a clear policy intent to rein in excessive speculation particularly among retail investors while safeguarding the integrity of India’s capital markets." "Although the immediate market reaction reflects discomfort with higher transaction costs, the move should be viewed in a broader structural context. By making high-frequency and short-term derivative trading more expensive, the Budget encourages more prudent risk-taking and longer-term capital allocation, thereby offering greater protection to retail investors," Tejwani added. CA Amber Joshi, who works as a finance associate in Mumbai highlighted, "The market was already trading at stretched valuations and was due for a healthy correction. Expectations were high from the Union Budget for select PSU and railway-linked stocks such as RVNL, IRFC and IRCON International, but the lack of specific announcements for these sectors dampened investor's sentiment." "This triggered panic selling, especially among retail investors. Apart from the hike in Securities Transaction Tax (STT), heavy selling by foreign institutional investors (FIIs) further added pressure, accelerating the market’s downward move throughout the budget day," added Joshi. Large-cap stocks tumble Another major reason for indices experiencing a massive increase on the Budget Day was lower amplification of large-cap stocks, including Reliance Industries and State Bank of India. RIL on Sunday closed at Rs 1,347.00, experiencing a decline of 3.47 per cent, while SBI closed at a lower circuit of Rs 1,018.20, signifying a dip of 5.47 per cent. Why did the government increase STT? While the exact reason behind the sudden hike in STT is not clear, experts suggest it could be aimed at curbing speculative activity. New taxation scheme on futures and options Under the new budget proposals presented by the Union Finance Minister Nirmala Sitharaman, STT on futures will surge from 0.02 per cent to 0.05 per cent, while the STT on options will rise from 0.10 per cent to 0.15 per cent.
01 February,2026 08:39 PM IST | Mumbai | Tarun VermaThe Central Industrial Security Force (CISF) on Sunday said that it deployed a multi-layered security for Wings India 2026 as Asia’s largest aviation event drew global delegations and huge crowds. An official statement said that the CISF successfully provided comprehensive security for Wings India 2026, held at Begumpet Airport in Hyderabad from January 28 to 31, 2026. The four-day international event saw record participation from foreign delegations, global aviation CEOs, policymakers and senior government officials. Wings India 2026 was organised by the Ministry of Civil Aviation (MoCA) in collaboration with the Airports Authority of India (AAI) and FICCI. The theme of the event was: “Indian Aviation: Paving the Future - From Design to Deployment, Manufacturing to Maintenance, Inclusivity to Innovation, and Safety to Sustainability.” The event was inaugurated with a virtual address by the Prime Minister of India, Narendra Modi, who highlighted India’s rapid growth as one of the world’s fastest-expanding aviation markets. The event also saw the in-person participation of the Union Minister for Civil Aviation, Kinjarapu Ram Mohan Naidu, along with senior ministry officials, state ministers from Telangana and Andhra Pradesh, and heads of regulatory and industry bodies. Global participation and industry presence Senior leadership and stakeholders from DGCA, BCAS, HAL, AAI and major aerospace manufacturers such as Airbus, Boeing and Embraer attended the event. Delegations from over 20 countries made Wings India-2026 a key platform for international collaboration, policy dialogue and investment discussions. Massive footfall and business engagement Over the four days, the event recorded participation from more than 150 exhibitors, facilitated over 500 structured B2B and B2G meetings, hosted more than 7,500 business visitors, and attracted over 100,000 general visitors, including students and aviation enthusiasts. Static aircraft displays, technology showcases and aerial performances further enhanced public engagement. Robust security by CISF Given the high footfall, international presence and strategic importance of the event, CISF deployed a multi-layered security framework. This included access control, perimeter security, anti-sabotage checks, crowd management, airside coordination and emergency response preparedness. Security operations were conducted in close coordination with airport authorities, civil administration and other stakeholders, ensuring the event concluded smoothly and without incident. Minister praises security agencies At the inaugural session, Naidu emphasised India’s commitment to aviation growth, manufacturing expansion and global partnerships. He also acknowledged the vital role played by security agencies in ensuring a seamless event experience. About Wings India Wings India is a biennial civil aviation event established in 2008 and held at Begumpet Airport, Hyderabad. Organised by the Ministry of Civil Aviation, it serves as Asia’s largest platform for policymakers, industry leaders, aerospace manufacturers, airline executives and aviation stakeholders to converge, collaborate and shape the future of the global aviation sector.
01 February,2026 07:19 PM IST | Hyderabad | mid-day online correspondentFifteen Bangladeshi immigrants have been pushed back from Assam, Chief Minister Himanta Biswa Sarma said. He, however, did not mention the district where the development took place. "I do what I say, ALWAYS! So when I say, we will go all out against illegal infiltrators, we back it up with firm actions," Sarma said in a post on X on Saturday. "15 illegal Bangladeshis have been PUSHED BACK right to where they belong. Our mission continues... ," Sarma added. The Assam government has been cracking the whip on illegal migrants from Bangladesh, pushing back infiltrators through its borders with the neighbouring nation. This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.
01 February,2026 06:36 PM IST | Guwahati | PTIIndia has finalised eight free trade agreements (FTAs), covering 37 developed countries in the last few years, Commerce and Industry Minister Piyush Goyal has said.He also said that India is in active dialogue for similar pacts with several countries, including Chile, Peru and Canada. Trade negotiations with Chile, he said, are almost at conclusion, where India has interests in critical minerals. "We've done eight free trade agreements covering 37 developed countries in the last few years under the Modi-government," the minister told PTI. Since 2014, India has finalised eight trade pacts -- Mauritius (April 2021 implemented), Australia (December 2022 implemented), UAE (May 2022 implemented), Oman (signed in December 2025), UK (signed in July 2025), EFTA (implemented in October 2025 - Switzerland, Iceland, Liechtenstein, Norway), New Zealand (talks concluded in December 2025), and the European Union (27-nation bloc). Goyal added that talks for a trade pact have started with the Mercosur group of countries to expand the existing PTA (preferential trade agreement).The Mercosur trade bloc members are Argentina, Brazil, Paraguay and Uruguay. The GCC (Gulf Cooperation Council), a group of six nations from the Middle Eastern region, too, has expressed a desire to start and launch negotiations for an FTA with India, theminister said. "We have finalized terms of reference with them," he said, adding that Canada and India are actively talking for a pact."We're going to quickly start negotiations with Canada," Goyal said. India and SACU, the South African-led union, are also considering whether the two sides can look for a trade deal, he added. "So a lot of potential trade deals on the anvil. We'll certainly be hearing many more good news stories and making India an international player, a global player of significance in the years to come," he said. Under trade pacts, two or more nations either eliminate or reduce import duties on the maximum number of goods traded between them. They also ease norms to promote trade in services and attract investments. This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.
01 February,2026 06:20 PM IST | New Delhi | PTIFinance Minister Nirmala Sitharaman, while presenting the Union Budget 2026 on Saturday, proposed the setting up of a girls’ hostel in every district to improve access to education for female students, particularly those from rural and underserved areas. Follow the live updates of Union Budget 2026 with real-time coverage of major announcements, tax reforms, economic priorities and policy decisions To strengthen industry–academia collaboration, she also proposed establishing five university townships or academic zones next to major industrial hubs. The Finance Minister further announced the setting up of 50,000 Atal Tinkering Labs in government schools over the next five years to promote innovation, scientific temper and hands-on learning among students. Previously, Sitaraman had proposed the ‘Bhartiya Bhasha Pustak’ scheme, under which digitised textbooks in Indian languages were made available for primary and secondary school students to improve learning outcomes and access to quality educational material. The minister also noted the Centre's 2025 boost to medical education, where 10,000 new undergraduate and postgraduate seats in government medical colleges and hospitals were announced. This is part of a broader plan to add 75,000 medical seats over the next five years.
01 February,2026 06:16 PM IST | Mumbai | Aditi AlurkarUnion Finance Minister Nirmala Sitharaman called on President Droupadi Murmu at Rashtrapati Bhavan on Sunday, shortly before presenting the Union Budget 2026. Sitharaman continues ‘digital bahi-khata’ tradition Ahead of the crucial address, Sitharaman was seen carrying her now-familiar ‘digital bahi-khata’—a tablet wrapped in a red cloth embossed with the national emblem—continuing a tradition she has followed since moving away from the colonial-era briefcase. #WATCH | Delhi | Union Finance Minister Nirmala Sitharaman, along with her team, calls on President Droupadi Murmu before presenting her ninth consecutive Union Budget pic.twitter.com/96H5JV5obv — ANI (@ANI) February 1, 2026 Ninth consecutive Budget places Sitharaman among longest-serving FMs The upcoming Budget will be Sitharaman’s ninth in a row, placing her on par with former Finance Minister P Chidambaram and ahead of Pranab Mukherjee in terms of consecutive Budget presentations. Former Prime Minister Morarji Desai continues to hold the all-time record. Union Budget 2026 to be tabled in Lok Sabha at 11 am As per the Lok Sabha’s agenda, proceedings will begin at 11 am. Sitharaman will table estimates of the Union government’s receipts and expenditure for the 2026–27 financial year. She will also place before the House two mandatory statements under the Fiscal Responsibility and Budget Management Act, 2003—covering the medium-term fiscal and policy strategy, along with the macroeconomic framework. In addition, the Finance Minister will seek permission to introduce the Finance Bill, 2026, and formally present it in the Lok Sabha. The Bill is essential to give statutory backing to the government’s taxation and spending proposals outlined in the Budget. Economic Survey sets context for Budget amid global uncertainties Earlier this week, Sitharaman had presented the Economic Survey of India for 2025–26 in Parliament, in keeping with the convention of reviewing the economy’s performance ahead of the Budget. The Survey, prepared by the Economic Division of the Department of Economic Affairs under the Chief Economic Adviser, offers a detailed assessment of economic trends and policy challenges, and is released in two volumes. Commenting on the Survey, Union Minister Piyush Goyal said the First Advance Estimates project real GDP growth of 7.4 per cent in 2025–26, underscoring India’s status as the world’s fastest-growing major economy for the fourth straight year. He also pointed to easing inflation—estimated at 1.7 per cent during April–December 2025—and highlighted the government’s push to strengthen domestic manufacturing and economic resilience. The Budget Session of Parliament will run for 30 sittings spread over 65 days, concluding on April 2. Both Houses will adjourn on February 13 and resume on March 9, allowing parliamentary committees to scrutinise the Demands for Grants of various ministries. The Finance Minister will present her ninth straight Budget, which is expected to unveil measures to sustain growth momentum, maintain fiscal discipline, and announce reforms that could buffer the economy from global trade frictions, including US tariffs. The Union Budget 2026 comes against a complex backdrop. While domestic demand has held up and inflation has moderated from recent highs, global uncertainties, including geopolitical tensions, volatile commodity prices and uneven monetary easing by major central banks, continue to cloud the outlook. At home, the government faces pressure to boost consumption, accelerate job creation and step up capital spending, while keeping the fiscal deficit on a downward path.
01 February,2026 06:07 PM IST | New Delhi | mid-day online correspondentIn her first Budget in 2019, Sitharaman replaced the decades-old leather briefcase with a traditional red ‘bahi-khata’, symbolising a shift in presentation style. Continuing the practice of recent years, the Union Budget 2026–27 will be paperless, marking the fifth consecutive digital Budget. Union Budget 2026: Assessing India’s current financial health ahead of FY27 India heads into Union Budget 2026 at a moment of relative strength—but with limited room for error. The macroeconomic backdrop remains supportive, though increasingly fragile amid global uncertainties. Economic growth is holding firm. The Economic Survey projects real GDP growth of 6.8–7.2 per cent in FY 2026–27, a moderation from the 7.4 per cent estimated for the current year, yet still among the fastest growth rates globally. The government’s fiscal stance remains calibrated. The fiscal deficit stood at 4.8 per cent of GDP in FY25 and is targeted at 4.4 per cent in FY26, even as public investment continues to play a central role in sustaining growth. Capital expenditure remains a key anchor. Budgeted capex for FY26 stands at Rs 11.21 lakh crore, while effective capex—including grants for asset creation—reaches Rs 15.48 lakh crore, reinforcing the government’s infrastructure-led growth strategy. Inflation has eased significantly, averaging 1.7 per cent between April and December 2025, providing policymakers with some headroom. However, external pressures persist, with exports facing global trade frictions, keeping the focus firmly on domestic demand and public investment. While domestic demand remains resilient, global headwinds are intensifying. Rising US tariffs and sluggish global growth have weighed on exports, while private investment continues to remain cautious. As a result, economists expect the government to continue leaning on public spending, particularly in sectors such as roads, ports, energy and defence, even as it remains committed to fiscal consolidation. Capital expenditure is likely to rise further, alongside a gradual lowering of the fiscal deficit target. Here are the key numbers and themes to watch in the Union Budget for FY 2027 Fiscal deficit The budgeted fiscal deficit for the current financial year (FY26: April 2025–March 2026) is estimated at 4.4 per cent of GDP. Having achieved a fiscal consolidation target below 4.5 per cent, markets will look for clarity on the debt-to-GDP reduction roadmap and whether the government provides a specific fiscal deficit target for FY27. Expectations are that the deficit could be pegged at around 4 per cent of GDP. What is capital expenditure and why is it crucial for economic growth? The government’s planned capital expenditure for FY26 stands at Rs 11.2 lakh crore. The upcoming Budget is expected to maintain a strong capex push, with a 10–15 per cent increase likely, even as private sector investment remains cautious. With major pay revisions due only in FY28, the government may have room to raise capex beyond Rs 12 lakh crore. Why do markets closely track the government’s debt-to-GDP roadmap? In the 2024–25 Budget, Sitharaman stated that from FY27 onwards, fiscal policy would aim to place central government debt on a declining path as a percentage of GDP. Markets will closely watch the debt consolidation roadmap and timelines for bringing general government debt-to-GDP down to the 60 per cent target. Currently, the ratio is estimated at over 85 per cent, including around 55 per cent central government debt. What is gross market borrowing and why does the government rely on it? Gross market borrowing for FY26 was budgeted at Rs 14.80 lakh crore. The FY27 borrowing number will be closely tracked as it signals the government’s fiscal position, revenue mobilisation, and overall borrowing needs. Tax revenue The FY26 Budget pegged gross tax revenues at Rs 42.70 lakh crore, an 11 per cent increase over FY25. This includes: Rs 25.20 lakh crore from direct taxes (personal income tax and corporate tax) Rs 17.50 lakh crore from indirect taxes (customs, excise duty and GST) GST Goods and Services Tax (GST) collections in FY26 are estimated to rise 11 per cent to Rs 11.78 lakh crore. FY27 GST projections will be keenly watched, especially as revenue growth is expected to gain momentum following rate rationalisation measures introduced since September 2025. What is the difference between nominal GDP growth and real GDP growth? India’s nominal GDP growth for FY26 was initially estimated at 10.1 per cent, while real GDP growth stood at 7.4 per cent, as per NSO data. However, nominal growth was revised down to around 8 per cent due to lower-than-expected inflation. FY27 nominal GDP projections—expected between 10.5 and 11 per cent—will offer cues on the government’s inflation outlook. How does a higher-than-expected RBI dividend affect fiscal deficit calculations? The government has budgeted Rs 1.50 lakh crore in dividend income, including Rs 1.02 lakh crore from the RBI and financial institutions, and Rs 48,000 crore from CPSEs. With the RBI already paying a higher-than-expected dividend of Rs 2.69 lakh crore in FY26, Budget estimates are likely to be revised upward. Dividend assumptions will be closely scrutinised, given recent tax relief measures. What is the total subsidy allocation? Total subsidy allocation for FY26 stands at Rs 3.83 lakh crore, with food subsidy capped at Rs 2.03 lakh crore. What are the key schemes and sectors? The spotlight will also be on allocations for flagship schemes such as VBG RAM G, along with spending on health, education, and other priority sectors.
01 February,2026 04:54 PM IST |ADVERTISEMENT
