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Union Budget 2026 Presented: Focus on Growth & Development

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  Published in Business and Finance on Saturday, January 31st 2026 at 19:33 GMT by Business Today
      Locales: N/A - National Budget, Delhi, INDIA

New Delhi, February 1st, 2026 - Finance Minister Nirmala Sitharaman today presented the Union Budget for 2026, outlining a comprehensive plan aimed at bolstering economic growth, fostering sustainable development, and improving the quality of life for all Indian citizens. The budget speech, delivered in Parliament this morning, signaled a continuation of the government's commitment to fiscal consolidation alongside ambitious investments in key sectors.

Taxpayer Relief and Income Tax Slabs:

One of the most anticipated aspects of the budget was the revision of income tax slabs. Responding to growing demands for increased disposable income, the Finance Minister announced a recalibration of the existing tax structure. The basic exemption limit has been raised from INR3 Lakh to INR4 Lakh, offering significant relief to individuals in the lower income brackets. Furthermore, the standard deduction has been increased by INR10,000. Crucially, the budget introduces a new tax regime option, simplifying the tax structure for those willing to forego certain deductions. Experts predict this will encourage greater tax compliance and broaden the tax base. This move is expected to inject more spending power into the economy, stimulating consumer demand.

Strengthening National Security: A Boost for Defence:

Recognizing the importance of national security in a volatile global landscape, the budget allocates a substantial increase of 12% to the defense sector, bringing the total defense spending to INR6.8 Lakh Crore. A significant portion of this increase is earmarked for modernization of the armed forces, including the procurement of advanced weaponry and technology. Emphasis is placed on indigenous defense production, with incentives for private sector participation and research & development. The budget explicitly supports the development of a robust domestic defense ecosystem, reducing reliance on imports and fostering self-reliance. Funds are also allocated for strengthening border infrastructure and enhancing cybersecurity capabilities.

Revitalizing Railway Infrastructure: Connecting India:

The government remains committed to transforming India's railway network. The budget proposes an investment of INR2.3 Lakh Crore in railway infrastructure, with a particular focus on high-speed rail projects. The Delhi-Mumbai and Delhi-Kolkata high-speed rail corridors are set to receive significant funding, expediting their completion. Beyond high-speed lines, the budget prioritizes the modernization of existing railway tracks, signaling systems, and stations. There's also a strong push for developing multimodal connectivity, integrating rail with road, sea, and air transport for seamless logistics. This investment aims to improve freight transportation efficiency, reduce logistics costs, and boost economic activity.

Investing in Human Capital: Education and Skill Development:

The budget acknowledges that a skilled workforce is crucial for sustained economic growth. Allocations for education have increased by 8%, with a focus on improving the quality of education at all levels. Key initiatives include the establishment of new skill development centers, promoting digital literacy, and strengthening vocational training programs. The National Education Policy (NEP) 2020 remains a central pillar, with funds allocated for its effective implementation. The budget also proposes a scheme to provide scholarships and financial assistance to students from disadvantaged backgrounds, ensuring equal access to education.

Building a Resilient Economy: Infrastructure Push:

The government is determined to continue its infrastructure-led growth strategy. The budget proposes massive investments in infrastructure projects, including roads, highways, ports, and airports. The 'PM Gati Shakti' National Master Plan will serve as the guiding framework, ensuring integrated infrastructure development. Special attention is given to enhancing rural connectivity and developing logistics infrastructure in remote areas. This ambitious infrastructure build-out is expected to create millions of jobs and drive economic growth.

Healthcare & Green Initiatives:

The budget reinforces the commitment to accessible and affordable healthcare. Increased funding is allocated for strengthening public health infrastructure, particularly in rural areas. Digital health initiatives, including telemedicine and electronic health records, are prioritized. The budget further underscores commitment to environmental sustainability, with significant allocations for renewable energy projects, electric vehicle adoption, and energy efficiency measures. Incentives are provided for green technologies and sustainable agriculture practices. A 'Green Hydrogen Mission' is launched, aiming to make India a global hub for green hydrogen production.

Digital India 2.0:

Building on the success of Digital India, the budget prioritizes expanding digital infrastructure, including broadband connectivity and cybersecurity. The government aims to ensure universal access to internet and promote digital literacy among all citizens. Funds are allocated for promoting research and development in emerging technologies like Artificial Intelligence and Machine Learning. This initiative intends to position India as a global leader in the digital economy.