Union Budget sets Centre’s capital expenditure target at ₹12.2 lakh crore

2 FEBRUARY 2026

Union Budget 2026: Background

Presented by Finance Minister Nirmala Sitharaman amid global economic uncertainties such as slowing global growth, geopolitical tensions, and supply-chain disruptions
Marks her ninth consecutive Union Budget
Stresses that India must remain deeply integrated with global markets by expanding exports and attracting long-term, stable foreign investment

Growth and Investment Push

Emphasis on export-led growth and improving India’s competitiveness in global value chains
Customs duty reductions announced for marine products, leather goods, and textiles to make Indian exports cost-competitive
Capital expenditure (Capex) set at ₹12.2 lakh crore for 2026–27, higher than both the Budget Estimates and Revised Estimates of the previous year
Continued focus on infrastructure-led growth covering transport, logistics, ports, waterways, and industrial corridors
No major direct tax relaxations for individuals or corporates, indicating fiscal discipline and priority on public investment

Three ‘Kartavyas’ of the Budget

First Kartavya – Accelerating and Sustaining Economic Growth
– Enhancing productivity, competitiveness, and resilience to global volatility
– Scaling up manufacturing in seven strategic and frontier sectors
– Rejuvenation of legacy industries and creation of “champion MSMEs”
– Large push for infrastructure creation, energy security, and city-economic regions
Second Kartavya – Building Human Capacity and Aspirations
– Focus on education, training, and skilling of the workforce
– Targeted skilling in healthcare, medical tourism, animal husbandry, AVGC (animation, visual effects, gaming and comics), and design sectors
– Strengthening the services sector to support future employment and exports
Third Kartavya – Inclusive and Balanced Development
–– Measures to increase farmer incomes through productivity and entrepreneurship
– Empowerment of divyang and vulnerable populations through livelihoods, skill training, assistive devices, and mental health support

Regional Development and Infrastructure Expansion

Proposal to establish dedicated rare earth corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu
These corridors will promote mining, processing, research, and manufacturing of critical and rare earth minerals, reducing import dependence.
Development of the first new national waterway in Odisha, linking Talcher, Angul, and Kalinga Nagar with Paradip and Dhamra ports
Aimed at reducing logistics costs and improving movement of minerals and industrial goods
Announcement of an integrated East Coast Industrial Corridor, connecting industrial clusters and ports along the eastern coastline
Proposal for a new dedicated freight corridor from Dankuni (West Bengal) to Surat (Gujarat) to improve east-west freight movement and industrial connectivity.