Government of India - Fiscal Year Budget Speech

Key Chapter Title List

1. Introduction
2. Part 1: Youth Power and the Three Responsibilities
3. Reform Express
4. First Responsibility: Accelerating and Sustaining Economic Growth
5. Second Responsibility: Fulfilling People's Aspirations and Building Capabilities
6. Third Responsibility: Participation of All for Shared Development
7. 16th Finance Commission
8. Fiscal Consolidation
9. Part 2: Direct Taxes
10. Part 2: Indirect Taxes
11. Annexure to Part 1
12. Annexure to Part 2: Amendments Related to Direct Taxes

Document Overview

This report presents the full text of the Government Budget speech for the fiscal year 2026-2027, delivered by Indian Finance Minister Nirmala Sitharaman on February 1, 2026. This budget is proposed against the backdrop of the ruling party's 12 consecutive years in power and a national economy demonstrating stable growth and fiscal discipline. Its core guiding philosophy stems from the driving force of youth power and the Three Responsibilities framework formulated at the Hall of Responsibility. The budget aims to address complex external challenges such as hindered international trade and multilateralism, supply chain disruptions, and increased resource demands due to new technological changes, while continuously advancing the vision of a Developed India (Viksit Bharat) and ensuring that the dividends of growth benefit all citizens.

The first part of the budget elaborates in detail on the government's three core responsibilities and their supporting policies. The First Responsibility focuses on accelerating and sustaining economic growth by enhancing productivity and competitiveness to build resilience against global fluctuations. To this end, the government has proposed specific intervention measures to expand manufacturing in seven strategic and frontier areas, including: launching the Bio-Pharmaceutical SHAKTI Strategy, with a planned investment of 1000 billion rupees over five years, aiming to establish India as a global bio-pharmaceutical manufacturing hub; introducing India Semiconductor Mission 2.0 to strengthen equipment and material production, full-stack Indian IP design, and supply chains; increasing the allocation for the Electronic Components Manufacturing Scheme to 4000 billion rupees; establishing a Rare Earths Corridor in mineral-rich states; supporting the establishment of three dedicated chemical parks through a challenge mode; and strengthening capital goods capabilities through measures such as establishing high-tech tool rooms, enhancing construction and infrastructure equipment manufacturing, and developing container manufacturing. Furthermore, for the labor-intensive textile sector, a comprehensive five-part plan including the National Fibre Plan and the Textile Expansion and Employment Scheme has been proposed, along with plans to set up large textile parks.

The Second Responsibility aims to fulfill people's aspirations and build their capabilities, making them strong partners on India's path to prosperity. The Third Responsibility aligns with the vision of participation of all for shared development, ensuring that every household, community, region, and sector has access to resources, amenities, and meaningful opportunities for participation. To achieve this triple objective, the budget emphasizes the need for a supportive ecosystem, including continuous structural reforms, a robust and resilient financial sector, and the application of cutting-edge technology as a force multiplier for governance.

The budget also outlines the progress of the Reform Express, which, since its announcement by the Prime Minister on Independence Day 2025, has seen the rollout of over 350 reforms in areas such as GST simplification, notification of labor codes, and rationalization of quality control orders. The second part of the budget and its annexures detail the relevant policy adjustments and amendments concerning direct and indirect taxes. Overall, this budget is a comprehensive fiscal policy document designed to propel India towards sustainable, high-quality growth and equitable development in a turbulent global environment through strategic industrial policies, structural reforms, and socially inclusive measures.