Date: February 1, 2026
Today, Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 in the Parliament — her ninth consecutive Budget — outlining the government’s fiscal plan, tax reforms, sectoral initiatives, and growth strategy for India’s economy. This Budget has been keenly watched by taxpayers, businesses, and investors alike for its changes in taxes, infrastructure growth plans, and policies affecting jobs and manufacturing. (The Economic Times)
🧾 1. Income Tax Reforms & Personal Finance
A major focus of Budget 2026 was on tax relief for individuals and easing compliance:
✔️ No income tax for annual income up to ₹12 lakh under the new tax regime;
✔️ For salaried taxpayers, effective non-taxable income rises to ₹12.75 lakh after standard deduction;
✔️ New Income Tax Bill introduced to simplify tax laws and compliance;
✔️ Revised tax slabs under the new regime:
| Income Slab | Tax Rate |
|---|---|
| ₹0 – ₹4 lakh | Nil |
| ₹4 – ₹8 lakh | 5% |
| ₹8 – ₹12 lakh | 10% |
| ₹12 – ₹16 lakh | 15% |
| ₹16 – ₹20 lakh | 20% |
| ₹20 – ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
| (Source: Official Budget announcements) (The Economic Times) |
These changes aim to boost disposable income for the middle class and simplify tax structure. (The Economic Times)
🚆 2. Railways & Infrastructure Boost
The Budget continues India’s focus on building world-class transportation and logistics:
✔️ Increased capital outlay for Railways with expansion of Vande Bharat sleeper trains, new corridor development, enhanced safety projects, and better connectivity;
✔️ Continued investment in urban development, rail freight corridors, and rapid transit projects;
✔️ Capital expenditure outlay projected at ~₹13.1 lakh crore, around 3.1% of GDP — highest ever — supporting roads, cities, and regional infrastructure. (Moneycontrol)
Railways and capex remains a strong driver for jobs and economic activity in coming years. (The Times of India)
🛡️ 3. Defence, Manufacturing & Strategic Sectors
The government reaffirmed its commitment to national security and global competitiveness:
✔️ Defence allocation increased with emphasis on domestic manufacturing, defence industrial corridors, and FDI ease in defence production;
✔️ Strategic focus on sectors such as semiconductor manufacturing, green energy, and high tech production;
✔️ Launch of India Semiconductor Mission 2.0 with ~₹40,000 crore funding to boost semiconductor ecosystem and investments. (The Times of India)
Budget emphasis on these sectors aims to make India a global manufacturing and technology hub. (The Times of India)
🧠 4. Skilling, Education & Healthcare Initiatives
Key developments in human capital and health included:
✔️ New IIT Creator Labs to encourage innovation and research;
✔️ A new design institute to boost creative and industry-aligned education;
✔️ Girls’ hostels in every district to support gender-inclusive learning;
✔️ Expanded vocational and skilling centres for job readiness. (The Times of India)
These initiatives are meant to prepare India’s youth for future job markets, especially in technology and innovation. (The Times of India)
📈 5. Strategic Growth Frameworks
The Budget introduced new overarching frameworks for sustainable growth:
✔️ Three-Kartavya Framework – aimed at enhancing inclusivity, resilience, and universal access to resources;
✔️ Investment boosts for local industrial capacities in rare earths & chemical parks;
✔️ Focus on specialized corridors that connect key industrial clusters. (The Times of India)
These pillars are designed to strengthen India’s long-term economic progress. (The Times of India)
📌 Conclusion
The Union Budget 2026 sets a roadmap for growth, fiscal discipline, and citizen-centric reforms. With big-ticket tax reliefs, enhanced capital spending, strong focus on infrastructure, technology missions, and human capital development, it aims to push India toward faster, inclusive, and resilient economic growth. (The Economic Times)
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