Union Budget 2026 Highlights: Finance Minister Announces High-Speed Rail Corridors, Ayurvedic AIIMS and Medical Tourism Push

New Delhi, February 1, 2026 (Live Updates):

Budget 2026 LIVE: Finance Minister Nirmala Sitharaman has presented her ninth consecutive Union Budget in Parliament. Among the key announcements, she unveiled Bio Pharma Shakti, with an allocation of ₹10,000 crore over the next five years. In the technology sector, the government will roll out Semiconductor Mission 2.0, with a focus on industry-led research.

The Finance Minister also announced a nearly 9% increase in capital expenditure, raising the Centre’s capex for FY 2026–27 to ₹12.2 lakh crore.

In the previous Budget for FY 2025–26, capital expenditure was set at ₹11.21 lakh crore. The Budget speech was delivered after the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Union Budget 2026 earlier today.

Sustained reforms driving economic growth
The Finance Minister said that continuous economic reforms and policy measures have enabled India to achieve a growth rate of around 7%.

Moving steadily towards ‘Viksit Bharat’
She added that India is progressing with confidence towards the goal of ‘Viksit Bharat’, and that this journey of development will continue.

Budget 2026 LIVE: Nitin Gadkari Hails Infrastructure-Focused Budget

01:16 PM: Union Minister Nitin Gadkari, in a post on X, stated that Union Budget 2026 lays an infrastructure-centric foundation to propel India towards 'Viksit Bharat 2047'. He emphasized that the budget places infrastructure at the heart of India's growth journey, focusing on connectivity, manufacturing depth, and regional balance.

Transformational Connectivity: The plan includes 20 new National Highways for logistics, 7 High-Speed Rail corridors for efficiency, and a Rare Earth Corridor in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.
Infrastructure for Manufacturing: Proposals include Biopharma SHAKTI, India Semiconductor Mission (ISM) 2.0, an Electronics Components Manufacturing Scheme, 3 Chemical Parks, and a plan to revive 200 old industrial clusters.
Urban Growth Engines: Focus continues on Tier-II and Tier-III cities, with priority infrastructure for cities with over 5 lakh population to create new growth and innovation hubs.

"A Roadmap for a Developed India" – BJP MP Kamaljeet Sahrawat Reacts

01:15 PM: Reacting to the Union Budget, BJP MP Kamaljeet Sahrawat stated, "Today's budget has been crafted with the vision of a Developed India (Viksit Bharat) and the preservation of our cultural heritage. It outlines plans to establish India as a bio-pharma and medical tourism hub and announces the creation of tourism corridors. This budget presents a clear roadmap towards a developed nation."

01:10 PM: In a series of structural announcements, Finance Minister Nirmala Sitharaman unveiled key measures aimed at education, logistics, MSMEs, and taxpayers:

Taxpayer Reforms: A rule-based automated system for small taxpayers is proposed, and Minimum Alternate Tax (MAT) will become the final tax, with its rate reduced from 15% to 14%.
Infrastructure & Tourism: The government will develop 5 tourism destinations in the Northeast and arrange for 4,000 e-buses.
Education & Innovation: Five University Townships will be established near major industrial hubs, and 15,000 secondary schools will be supported with 'Content Labs'.
MSME Support: A dedicated 'Corporate Friends' task force will be formed to aid MSMEs.

12:55 PM: In her 2026 Budget speech, FM Nirmala Sitharaman tabled the 16th Finance Commission report, unveiled ₹5,000 crore for Temple Cities and ₹40,000 crore for electronics manufacturing, proposed new tax laws, and announced major focus on waterways, healthcare, and green tech. However, markets reacted negatively, with the Sensex falling over 1900 points.

Budget 2026 LIVE: Markets React Negatively, Sensex Falls 1900 Points Post Budget

12:40 PM: Following the presentation of the Union Budget, the stock markets witnessed a sharp decline. The benchmark Sensex has fallen by over 1900 points, indicating a negative investor response to the announcements made by Finance Minister Nirmala Sitharaman.

Budget 2026 LIVE: Prices Slashed for 17 Cancer Drugs & Medicines for 7 Rare Diseases

12:35 PM: Finance Minister Nirmala Sitharaman announced a reduction in custom duties on medicines and medical devices, making 17 cancer-related drugs and medicines for 7 rare diseases more affordable.

Budget 2026 LIVE: CNG and Bio Gas Become Cheaper

12:24 PM: Finance Minister Nirmala Sitharaman announced a reduction in prices for CNG and Bio Gas, offering relief to owners of CNG-powered vehicles.

Budget 2026 LIVE: What Gets Cheaper, What Gets Costlier

12:22 PM: In a major announcement, Finance Minister Nirmala Sitharaman declared reductions in excise duties and levies, making several items cheaper:

Alcohol & Bidis
Footwear
Batteries
Export of textiles

12:23 PM: The Finance Minister also announced a significant decriminalisation in tax law. Mistakes in Income Tax Returns will no longer be treated as a criminal offence. Instead, a flat 30% tax penalty will be imposed on undisclosed income, replacing punitive legal action.

12:21 PM: The new Income Tax Act will be implemented from 1st April 2026, featuring simplified forms and rules to be notified soon.

TCS on foreign travel reduced to 2%.
TCS on health & education reduced from 5% to 2%.
Tax return filing deadline extended to 31st March.
TDS now applicable on NRI property sale/purchase, with no TAN required for the transaction.

12:17 PM: A new automated TDS relief scheme for small taxpayers was announced. Under this, a rule‑based system will issue lower or nil deduction certificates without needing to apply to an Assessing Officer. Additionally, to ease compliance for multi‑company investors, depositories will be permitted to accept Forms 15G/15H directly and forward them to relevant companies.

12:16 PM: To encourage data localisation, the Budget proposes a tax holiday until 2047 for foreign cloud companies utilising data centres located in India.

12:15 PM: FM Nirmala Sitharaman announced tax relief for foreign nationals residing in India for up to five years, exempting them from tax on their non‑India earnings.

12:14 PM: To ease compliance for investors holding securities of multiple companies, depositories will now be allowed to directly accept Form 15G/15H from investors and forward them to the respective companies, streamlining the TDS exemption process.

12:13 PM: FM Nirmala Sitharaman announced a new scheme for small taxpayers, introducing a rule-based automated system to obtain lower or nil TDS deduction certificates without needing to apply to the Assessing Officer.

11:53 AM: The new Income Tax Act will come into effect from 1st April 2026.

FY27 Revenue Estimates:

Non-debt receipts: ₹36.5 lakh crore
Net tax receipts: ₹28.7 lakh crore

TCS Relief for Education & Health:

TCS rate reduced from 5% to 2% for education and health-related foreign remittances.

ITR Filing & Amendment Extensions:

ITR-1 and ITR-2 filing deadline extended to 31st July.
Non-audit business cases and Trusts can file by 31st August.
Time to file Revised Returns increased with minimal fee.

TDS Rule Change for NRIs Selling Property:

Resident buyer will now deduct TDS (previously required from NRI seller).
No TAN required for the buyer for such transactions.

11:52 AM: Budget 2026 LIVE: Fiscal Deficit Projected at 4.3% of GDP for FY 2026‑27

Finance Minister Nirmala Sitharaman announced that the Fiscal Deficit for the financial year 2026‑27 is estimated to be 4.3% of GDP, as per the Union Budget 2026 projections.

11:51 AM: Finance Minister Nirmala Sitharaman announced a new scheme to assist states in establishing 5 Regional Medical Hubs across the country, as part of the government's push to position India as a global hub for medical tourism.

11:50 AM: Finance Minister Nirmala Sitharaman announced the formation of a high-powered standing committee named ‘Education to Employment and Enterprise’. This committee will recommend measures to make the service sector the primary driver of 'Viksit Bharat' and aims to raise India's global share in services to 10% by 2047. It will prioritize high-growth, high-employment sectors, assess the impact of emerging technologies like AI on jobs and skills, and suggest necessary policy interventions.

11:49 AM: Finance Minister Nirmala Sitharaman announced measures to attract investment by deepening corporate and municipal bond markets. The government plans to strengthen the corporate bond market by introducing a market-making framework, including access to funds and derivatives based on corporate bond indices, aligning foreign investment with India's evolving economic priorities.

11:47 AM: To capitalize on the global demand post-COVID, the government will place special emphasis on the AYUSH sector. Three new All India Institutes will be established.

11:46 AM: In collaboration with the private sector, 5 Regional Medical Hubs will be established. These hubs will include AYUSH centers, medical tourism, and diagnostic sectors, and will generate employment for doctors, nurses, and medical staff.

11:45 AM: Finance Minister Nirmala Sitharaman announced major steps to boost employment in the service sector and strengthen the health ecosystem. A dedicated committee will be formed to create jobs in the sector, with a target of increasing India's global share in services to 10% by 2047.

11:45 AM: In a significant announcement, Finance Minister Nirmala Sitharaman has proposed an allocation of ₹20,000 crores over the next five years to boost Carbon Capture, Utilisation, and Storage (CCUS) technologies. The aim is to enhance capacity and achieve higher readiness levels for end-use applications across various industries.

11:40AM: Finance Minister Nirmala Sitharaman announced a major push for inland waterway infrastructure. In her budget speech, she stated that 20 new National Waterways will be developed over the next five years. A key National Waterway in Odisha will connect the mineral-rich Talcher and Angul regions and link Kalinganagar to Paradip Port. Additionally, a dedicated ship repair ecosystem will be established with specialized centers in Varanasi and Patna.

11:38 AM: The government will develop 7 new high‑speed rail corridors to connect key economic growth cities. The announced routes are:

Mumbai - Pune
Pune - Hyderabad
Hyderabad - Bengaluru
Hyderabad - Chennai
Chennai - Bengaluru
Delhi - Varanasi
Varanasi - Siliguri

11:37 AM: Finance Minister Nirmala Sitharaman announced a special development focus on Tier‑2 and Tier‑3 cities. Additionally, a dedicated ₹5,000 crore fund has been provisioned to boost infrastructure in cities with prominent temples.

11:35 AM: The government is focusing on Tier-2 and Tier-3 cities, with a major boost also announced for cities with prominent temples, declares Finance Minister Nirmala Sitharaman.

11:30 AM: A comprehensive ship repair ecosystem will also be established. Specialized centers for this purpose will be set up in Varanasi and Patna.

11:30 AM: Presenting the budget, Finance Minister Nirmala Sitharaman announced that 20 new National Waterways will be developed over the next 5 years.

11:29 AM: Presenting the budget, Finance Minister Nirmala Sitharaman announced that 20 new National Waterways will be developed over the next 5 years.

11:29 AM: She specifically announced the creation of a National Waterway in Odisha. This project will connect the mineral-rich Talcher and Angul regions and link Kalinganagar to Paradip Port to boost industrial and logistical efficiency.

11:30 AM: A comprehensive ship repair ecosystem will also be established. Specialized centers for this purpose will be set up in Varanasi and Patna.

11:30 AM: The budget proposes the establishment of a ₹10,000 crore fund to develop and promote champion Small and Medium Enterprises (SMEs), as announced by FM Nirmala Sitharaman.

11:26 AM: FM Sitharaman has also proposed to make the TReDS (Trade Receivables Discounting System) platform mandatory for all purchase transactions with MSMEs by Central Public Sector Enterprises.

11:26 AM | Budget 2026 Live: FM Sitharaman has announced a major increase in the budgetary allocation for electronic manufacturing, raising the outlay to ₹40,000 crores.

11:24 AM | Budget 2026 Live: The Central Government will establish facilities for processing critical minerals in the states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.

11:22 AM | Budget 2026 Live: The Finance Minister has outlined focused interventions in six key sectors: manufacturing, strategic and frontier industries, healthcare, and advanced technology.

11:20 AM | Budget 2026 Live: To boost the domestic chemical industry and reduce reliance on imports, the Finance Minister has proposed the establishment of three dedicated chemical parks.

11:19 AM | Budget 2026 Live: In her Budget speech, FM Sitharaman announced the establishment of high-tech tool rooms at two locations to provide a significant push to capital goods manufacturing.

11:15 AM | Budget 2026 Live: Addressing the Lok Sabha, Finance Minister Nirmala Sitharaman asserted that the government's central responsibility is to accelerate and sustain the country's economic progress in order to meet the aspirations of its citizens.

11:10 AM | Budget 2026 Live: Finance Minister Nirmala Sitharaman, while presenting the budget in the Lok Sabha, has committed to ensuring that the benefits of economic growth reach every farmer, youth, and marginalized community, including Scheduled Castes and Scheduled Tribes.

11:08 AM: Live Budget 2026 Updates: FM Sitharaman Outlines 'Viksit Bharat' Vision in Her Ninth Consecutive Fiscal Address

11:05 AM: Finance Minister Nirmala Sitharaman has presented the report of the 16th Finance Commission, which will determine the share of central tax revenue allocated to India's states for the period of 2026-2031.

11:02 AM: Finance Minister Nirmala Sitharaman begins her Budget 2025-26 speech in Parliament.

11:00 AM: The House is assembled. Finance Minister Nirmala Sitharaman is at the podium to present the Union Budget.

11:00 am (IST): Finance Minister Nirmala Sitharaman rises to present the Union Budget 2026–27 in the Lok Sabha.

10:56 am (IST): Lawmakers and officials are in position as countdown begins for the Finance Minister’s address to the House.

10:55 am (IST): Parliament staff ensure all systems are ready for the live broadcast of the Budget speech, scheduled for 11:00 am.

10:50 am (IST): Budget documents, including tax proposals and expenditure plans, are placed near the Finance Minister’s podium ahead of her address.

10:45 am (IST): Lok Sabha is formally called to order; final formalities are completed before the Budget speech.

10:40 am (IST): Finance Minister is seen reviewing final notes in the Lok Sabha ahead of the start of the Budget address.

10:35 am (IST): Both government and opposition leaders take their seats as anticipation builds ahead of the speech.

10:30 am (IST): Lok Sabha Speaker assumes the Chair as the House prepares to call Budget proceedings to order.

10:25 am (IST): Prime Minister Narendra Modi arrives at Parliament ahead of the Budget proceedings.

10:20 am (IST): Officials from the Finance Ministry and allied departments are in the Parliament complex finalising documents for presentation.

10:15 am (IST): Lok Sabha members begin assembling in the House as last-minute preparations take place ahead of the 11:00 am Budget speech.

10:05 am (IST): Finance Minister Nirmala Sitharaman reaches Parliament to present her ninth consecutive Budget speech

10:03 am (IST): President Droupadi Murmu offers the customary dahi-cheeni to Finance Minister Nirmala Sitharaman ahead of the Budget presentation, continuing a symbolic tradition.

10:00 am (IST): Union Budget 2026–27 day begins in New Delhi as Parliament gears up for the presentation of the Budget speech by Finance Minister Nirmala Sitharaman.

🔴 LIVE UPDATES

Updates will appear here once the speech begins.