Union Finance Minister Nirmala Sitharaman presents her ninth budget today under Prime Minister Narendra Modi’s administration. The Indian government presents its budget on a Sunday which marks the first instance of this practice in the country’s fiscal history.
The Economic Survey 2026 reports that India’s economy will grow 7.4% in FY26 and between 6.8% to 7.2% in FY27 because of regulatory reforms and a strong macroeconomic base and increased investment from private companies.
Key Announcements & Live Updates
- Seamless Cargo Clearance: Approvals for cargo will be processed digitally by the end of FY26.
- Customs Duty Exemptions: No customs duty on parts for microwave ovens, aviation manufacturing, nuclear power projects (till 2035), sodium antimonate for solar glass, and Battery Energy Storage System (BESS) manufacturing.
- Cheaper Imports & Exports: Leather and seafood processing inputs get duty-free access to promote exports.
- Corporate Tax Changes: Final tax rate reduced from 15% to 14%; buybacks to be taxed as capital gains for all types of shareholders, with effective rates of 22–30% for promoters.
- Foreign Investment Incentives: Tax holiday till 2047 for foreign companies setting up cloud data centres in India.
- IT Services Reforms: All IT services under a single category with a 15.5% safe harbour margin, threshold increased from ₹300 crore to ₹2,000 crore.
- Income Tax Filing: ITR1 and ITR2 to be filed till July 31; non-audit business cases and trusts till August 31.
- Fiscal & Market Outlook: FY27 net tax receipts estimated at ₹28.7 lakh crore; capex at ₹11 lakh crore; non-debt receipts at ₹36.5 lakh crore; market borrowing at ₹11.7 lakh crore (net), ₹17.2 lakh crore (gross).
- Fiscal Deficit & Debt Ratio: Fiscal deficit below 4.5% of GDP in FY26; target 4.3% for FY27. Debt-to-GDP ratio at 55.6% in Budget Estimates 2026-27.
Market Reaction
The Sensex index decreased by 800 points during Budget day market fluctuations because investors chose to sell their holdings.
The Budget 2026 plan aims to increase private investment while it provides export assistance and technology development and renewable energy promotion and fiscal discipline maintenance. The financial markets will experience volatility throughout the day because investors will focus on specific sector incentives and upcoming policy decisions.
