India’s Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 on 1st February 2026 in Parliament. The Government of Prime Minister Narendra Modi estimated a nearly 9% rise in Capital Exenditure for the upcoming financial year, increasing the allocation to Indian Rupees 12.2 lakh crore or US Dollars 135 billion. This Sitaraman said the higher capital expenditure is dwell on infrastructure projectst and support overall economic growth. Capital spending has been raised from Indian Rupees 11.21 lakh crore, which was allocated in the previous Budget for 2025–26. The government had kept the same capex level for FY26, but has now decided to step it up for the coming year. Sitharaman also pointed to the sharp increase in public investment over the last decade. She said capital expenditure has grown significantly from about Rs 2 lakh crore in 2014–15 to Rs 11.2 lakh crore in 2025–26, and will now rise further to Rs 12.2 lakh crore in 2026–27 to maintain this growth momentum.
 

Highlights of Key Announcements in Sitharaman’s Speech
Sitharaman presented are:!the Union Budget for 2026-27 with a clear focus on India’s growth and people’s welfare. She outlined three main duties (Kartavyas) for the government:
 

Speed up and keep strong economic growth by making India more competitive and better able to handle changes in the world economy.

Help meet people’s dreams, build their skills, and turn them into active partners in the country’s journey to wealth and success.

Make sure everyone benefits (“sab ka saath, sab ka vikas”) — every family, community, and area gets fair access to resources, basic facilities, and real chances to join in and grow.
 

She suggested focused actions in six main areas: growing manufacturing in key future-focused sectors, reviving older industries, building strong small and medium businesses (MSMEs), giving a big boost to roads, railways, and other infrastructure, ensuring long-term safety and stability, and creating strong economic zones around cities.
 

Please see attached budget highlights and implications.

Highlights of Budget 2026-27
Budget at a Glance