Finance Minister Nirmala Sitharaman on Sunday, February 1, presented the Union Budget 2026-27, her ninth consecutive Budget, outlining a series of measures aimed at accelerating and sustaining economic growth in line with the government’s vision of Sabka Saath, Sabka Vikas.
The Budget places strong emphasis on infrastructure-led growth, financial sector reforms, fiscal consolidation and market deepening, while signalling continuity in policy priorities amid global headwinds. Here are the most significant takeaways from Sitharaman’s Budget 2026 speech.
1. Capex allocation raised to Rs 12.2 lakh crore
Reaffirming the government’s focus on infrastructure as a growth multiplier, Sitharaman proposed increasing capital expenditure to Rs 12.2 lakh crore for FY27, up from Rs 11.2 lakh crore in FY26. The proposed outlay represents an 8.9 per cent increase year-on-year, according to Crisil, and is broadly in line with market expectations.
2. Seven high-speed rail corridors announced
In a major transport push, the Finance Minister announced seven new high-speed rail corridors connecting Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi and Varanasi-Siliguri. The corridors are aimed at promoting environmentally sustainable passenger mobility while improving inter-city connectivity.
3. Push to deepen corporate bond markets
To strengthen India’s bond market, Sitharaman proposed a market-making framework with access to funds and derivatives on corporate bond indices. The move is expected to improve liquidity, price discovery and long-term financing options for companies.
4. High-level banking committee for ‘Viksit Bharat’
The Budget announced the formation of a high-level committee on banking to support the goal of Viksit Bharat. The committee will review the entire banking system and recommend reforms to align it with India’s next phase of economic growth.
5. NRI investment limits liberalised
In a bid to attract more overseas capital, the government increased the individual NRI investment limit in Indian equities from 5 per cent to 10 per cent, while raising the overall cap from 10 per cent to 24 per cent.
6. Fiscal consolidation remains on track
The Finance Minister reaffirmed commitment to fiscal discipline, pegging the fiscal deficit for FY27 at 4.3 per cent of GDP, compared to a revised estimate of 4.4 per cent for FY26. The glide path signals continued efforts to balance growth with macroeconomic stability.
7. Securities transaction tax on options increased
As part of tax-related measures, Sitharaman proposed raising the Securities Transaction Tax (STT) on options trading from 0.1 per cent to 0.15 per cent. The move is likely to impact derivatives traders while contributing to revenue mobilisation.
8. Infrastructure and growth remain central theme
Beyond railways, the Budget continues to prioritise infrastructure development across sectors, reinforcing the government’s belief that public investment will crowd in private capital and support employment generation.
9. Focus on market efficiency and capital flows
Measures such as bond market reforms and higher NRI investment limits point to a broader attempt to make Indian financial markets deeper, more efficient and globally competitive.
10. Budget signals continuity amid global uncertainty
Overall, Budget 2026 reflects continuity in economic policy, with calibrated reforms rather than radical shifts. With moderate growth forecasts and persistent global challenges, the government has opted for steady capex-led expansion, fiscal consolidation and financial sector strengthening.
Taken together, Sitharaman’s ninth Budget seeks to balance ambition with caution, positioning infrastructure, markets and institutional reforms as key drivers of India’s medium-term growth story.
