Budget 2026 Expectations Highlights: PM Modi says Economic Survey offers guide for informed policymaking; all eyes now on FM Sitharaman’s speech

“The paradox of 2025 is that India’s strongest macroeconomic performance in decades has collided with a global system that no longer rewards macroeconomic success with currency stability, capital inflows, or strategic insulation,” says the Economic Survey.

The Economic Survey 2025-26 calls for a deeper system-level institutional capacity that factors in geopolitical implications of India's rise.

Emphasising the role of internal drivers, the Economic Survey states that domestic demand remains the main engine of growth. Consumption has been particularly strong in urban centres, supporting overall economic momentum. It also pointed out that tax rationalisation measures implemented in recent years have boosted urban consumption, adding further support to growth.

Looking ahead, the Survey reaffirmed that India’s medium-term growth outlook remains robust, supported by structural reforms and sustained macroeconomic stability. These elements have strengthened economic fundamentals and improved resilience to external disruptions.

While acknowledging that growth outcomes have exceeded earlier expectations, the Survey warned that downside risks remain elevated given the fragile global environment. It highlighted geopolitical tensions, global financial conditions and broader external uncertainties as potential challenges.
Even so, the overall assessment remained positive, with the Survey citing solid domestic fundamentals, stable external indicators and continued reform momentum as key factors sustaining growth.

Taken together, the Economic Survey offered a measured view of the economy, balancing India’s underlying strengths with the risks that lie ahead.

Realising potential of trade agreements requires India to produce competitively, says the Economic Survey on a string of FTA deals signed.

The Economic Survey 2025-2026 has shed light on why the rupee is falling. Rupee is a casualty of foreign capital flows drying up, it says, adding that the Indian currency underperformed in 2025.

The Economic Survey 2026 has projected that India’s economy will grow at a robust pace in FY 2026-27, with the GDP growth seen in the range of 6.8% to 7.2%.

Finance Minister Nirmala Sitharaman on Thursday tabled the Economic Survey of India for the 2025–26 financial year in Parliament, formally beginning the run-up to the Union Budget, which is scheduled to be unveiled on Sunday, February 1. This year, the Budget presentation coincides with a weekend.

Sitharaman is preparing to deliver her ninth successive Union Budget on February 1, a landmark achievement that underscores her long tenure in the finance portfolio and places her among the most prominent figures in India’s budgetary history.

Placing the Economic Survey before the Budget is part of a well-established practice that provides a snapshot of the economy’s current position ahead of the announcement of fiscal priorities and policy initiatives.

Often described as the government’s annual economic “report card,” the Economic Survey offers a detailed, data-supported assessment of how the economy has performed over the past year and outlines the broader policy direction for the period ahead. As the government’s principal yearly economic document, it tracks major developments across the economy over the preceding 12 months.

The Survey plays a pivotal role in shaping the context for the Union Budget. While the Budget sets out plans for expenditure, taxation and policy action, the Economic Survey explains the rationale behind those choices by examining economic trends and outcomes from the recent past.

Prepared by the Economic Division of the Department of Economic Affairs under the guidance of the Chief Economic Adviser, the Economic Survey is released in two distinct volumes, each addressing different dimensions of the economy.

The first volume presents a macro-level assessment and forward-looking perspective. It offers a thematic and analytical overview of the Indian economy, focusing on future prospects and helping to frame policy thinking for the year ahead. This section evaluates key indicators such as GDP growth, inflation measured through CPI and WPI, the fiscal deficit and the trade balance. It also discusses broader structural and conceptual challenges, proposes policy options, and includes projections for the next financial year along with suggested reforms to support economic expansion.

The second volume adopts a more granular, data-intensive approach, reviewing the performance of individual sectors during the previous financial year. It provides sector-wise assessments of agriculture, industry, services and infrastructure, while also examining social and developmental issues such as health, education, poverty and climate change. This part of the Survey is supported by extensive statistical material, including detailed tables, charts and annexures that capture the economy’s performance.

The presentation of the Economic Survey marks an important milestone in the Budget cycle, equipping legislators, policymakers and the wider public with a clearer picture of the state of the economy ahead of the Union Budget.

Chief Economic Adviser Anantha Nageswaran will address a press conference after the tabling of the Economic Survey 2025-26. This press conference will be held from 2:30 PM onwards

The Congress on Thursday launched a sharp attack on Prime Minister Narendra Modi over his comments ahead of the Budget session, accusing him of repeating what it described as a familiar pattern of delivering a “hypocrisy-laden message to the nation” before every session of Parliament. The party said the Prime Minister’s remarks on Thursday were no different from his earlier performances.

Congress general secretary in charge of communications Jairam Ramesh alleged that the Prime Minister does not convene or preside over all-party meetings to engage the opposition on key national matters. “He (PM) will not convene and chair all-party meetings to take the opposition into confidence on national issues,” Ramesh said.

Ramesh further claimed that the government frequently introduces legislation at the eleventh hour and forces it through Parliament without adequate debate or scrutiny. He also alleged that the Prime Minister avoids sitting in the House to address questions and concerns raised by opposition members, choosing instead to deliver speeches akin to election rallies within Parliament.

“Before the beginning of each session, he will give his usual hypocrisy-laden ‘desh ke naam sandesh’ with Parliament as his backdrop. Today’s performance is part of this series,” the senior Congress leader said.

Earlier in the day, Prime Minister Narendra Modi said the proposed free trade agreement with the European Union is aimed at a confident and aspirational India, and called on domestic manufacturers to take advantage of the new market opportunities that such a pact could create.

India's democracy and demography is a big hope to the world today. This is an opportunity to send across a message to the global community through this temple of democracy - of our capability, of our dedication to democracy, of honouring the decisions made through democratic processes. The world welcomes and accepts this. Today, the country is advancing. This is not the time for obstruction. This is the time for solution. Today, the priority is not obstruction, but solution...I urge all MPs to come and let us speed up and strengthen the era of important solutions for the country. We should go ahead towards last mile delivery,” PM Modi said at the start of the Budget session.

"The country is coming out of long-term pending problems and confidently walking the path of long-term solutions...In all our decisions, the progress of the country is our goal. But all our decisions are human-centric, our role and schemes are human-centric. We will contest against technology, we will adapt to technology, we will accept the capability of technology. But with this, we will not undermine human-centric system. Understanding the importance of sensitiveness, in partnership with technology, we will go ahead,” PM Modi said.

"It is natural for the attention of the country to be towards the Budget. But the identity of this Government has been reform, perform and transform. Now, we have swiftly taken off on 'Reform Express'. I express gratitude to all MPs for their positive contributions in speeding up this 'Reform Express'. As a result, 'Reform Express' is gaining speed," PM Modi said.

"I am very confident that in a way this is a major step in the direction of confident, competitive and productive India."

"This government has been identified with Reform, Perform, and Transform. And now we have boarded the Reform Express. I also express my gratitude to all my colleagues in Parliament, who are contributing their positive energy to accelerate this Reform Express. Because of their support, the Reform Express continues to gain momentum. The country is now moving beyond long-term pending problems and is firmly stepping onto the path of long-term solutions," PM Modi, ahead of Economic Survey.

PM Modi said, “This quarter has begun on a very positive note. A self-confident India has become a ray of hope for the world today. It has also become a centre of attraction. At the beginning of this quarter, India and the European Union signed a Free Trade Agreement. It is a reflection of how bright the upcoming directions are, of how bright the future of Indian youth is. This Free Trade for Ambitious India, Free Trade for Aspirational Youth, Free Trade for Aatmanirbhar India. I am confident that, especially the manufacturers of India, will use this opportunity to enhance their capabilities.”

Prime Minister Narendra Modi, addressing nation before the Economic Survey 2025 said that India is coming out of long term pending problems and proceeding towards long term solutions.

​PM Modi says "An India full of confidence has emerged as ray of hope for world." These comments come as he addressed the media ahead of the Economic Survey 2026.

PM Narendra Modi said, "1/4 of the 21st century has gone by. This is the beginning of the next quarter. To attain the goal of Viksit Bharat 2047, the important phase of these 25 years has begun. The first Budget of this second quarter of the century is about to be presented. Finance Minister Nirmala Sitharaman is the first FM of the country, the first woman FM of the country who is presenting the Budget in the Parliament for the 9th consecutive time. This is registered as a proud moment in the Parliamentary history of the country."

PM Modi told manufacturers, "A new market has opened up, offer quality products to 27 EU member nations."

PM Narendra Modi says, "The President's Address yesterday was the expression of the trust of 140 crore Indians, an account of their capability and of the sketch of their aspirations, especially of the youth. For all MPs, the President also said several things to guide them. At the beginning of the session and 2026, the expectations expressed by the President - I am confident that all MPs took this seriously..."

In 2017, the government advanced the Union Budget presentation to February 1. This shift was intended to ensure that the parliamentary approval process could be completed by the end of March, enabling the Budget measures to come into effect from the beginning of the financial year on April 1.
Earlier, when the Budget was presented on February 29, implementation was typically delayed until May or June, as the legislative approval process generally took two to three months to conclude.

Former finance minister P Chidambaram ranks second in terms of the number of Union Budgets presented, having delivered the Budget on nine separate occasions. His first Budget was tabled on March 19, 1996, during the United Front administration headed by Prime Minister H D Deve Gowda. He presented another Budget under the same government the following year.

Chidambaram returned to the finance ministry after the Congress-led UPA assumed office, during which he presented five Budgets between 2004 and 2008. Following a period serving as Union Home Minister, he once again took charge of the finance portfolio and went on to present the Budgets for 2013 and 2014.

Longest Budget Speech: Nirmala Sitharaman holds the distinction of delivering the longest Budget speech to date. Her address on February 1, 2020, extended for two hours and forty minutes, and she concluded the presentation with two pages still left unread.

Shortest Budget Speech: The briefest Budget speech on record was delivered by Hirubhai Mulljibhai Patel in 1977. His interim Budget address comprised only about 800 words.

Former Prime Minister Morarji Desai remains the finance minister who presented the highest number of Union Budgets, delivering a total of ten during his time in the role. These budgets were presented while he served under Prime Minister Jawaharlal Nehru and later under Prime Minister Lal Bahadur Shastri.

Desai introduced his first Budget on February 28, 1959. He went on to present full Budgets over the next two years, followed by an interim Budget in 1962, after which he delivered two additional full Budgets. Following a gap of four years, he returned with another interim Budget in 1967, and subsequently tabled three full Budgets in 1967, 1968 and 1969, bringing his total count to ten.

“The Indian economy is on a steady growth path. The macroeconomic health checklist looks good. As the country aims to accelerate its economic growth rate in the coming years, it has the tailwind of strong balance sheets in the domestic corporate and financial sectors. But, globalisation is on the retreat. Hence, raising the growth average in the next two decades will require reaping the demographic dividend through a deregulation stimulus. As the Spartans apparently believed, “the more you sweat in peace, the less you bleed in war”.

For many years, the Union Budget was customarily presented at 5 pm on the final day of February. This schedule was rooted in colonial-era convention, allowing the announcement to take place simultaneously during working hours in both India and the United Kingdom. As India is four hours and thirty minutes ahead of British Summer Time, a 5 pm presentation in India ensured it was still daytime in Britain.

This long-standing practice was altered in 1999, when then Finance Minister Yashwant Sinha, serving in the Atal Bihari Vajpayee government, delivered the Budget at 11 am instead. Since that change, the Union Budget has consistently been presented at 11 am.

Finance Minister Nirmala Sitharaman is set to table her ninth successive Union Budget on February 1, a record-breaking streak, with the proposals expected to focus on reforms to support economic growth against the backdrop of an unsettled global geopolitical environment.

With this presentation, Sitharaman will move closer to the long-standing record set by former Prime Minister Morarji Desai, who delivered 10 budgets across separate stints in office. Desai presented six budgets while serving as finance minister between 1959 and 1964, followed by four more during the 1967–1969 period.

Among her predecessors, P Chidambaram and Pranab Mukherjee presented nine and eight budgets respectively, each serving under different prime ministers.

Even so, Sitharaman already holds a distinct record, having delivered the highest number of budgets consecutively, with nine in a row under the leadership of Prime Minister Narendra Modi.

She was appointed India’s first full-time woman finance minister in 2019 after Modi secured a second term. Following his return to power for a third term in 2024, Sitharaman continued to oversee the finance ministry.

To date, she has presented eight consecutive budgets, including the interim Budget in February 2024.

The Economic Survey is important because it typically reviews major economic developments in the country over the last year. This year, it is expected to highlight the economy’s ability to sustain growth amid global uncertainties, risks arising from Donald Trump’s tariff policies, the influence of artificial intelligence on employment, and the depreciation of the rupee against the US dollar.

The Economic Survey also puts forward new policy perspectives aimed at addressing structural challenges. First presented in 1950–51 as a component of the Budget documents, the Economic Survey has gradually taken shape as a standalone report released ahead of the Union Budget. The document also features comprehensive sector-wise assessments, supported by focused chapters that examine specific economic issues in detail.

The Economic Survey is a yearly assessment of the country’s economic landscape, compiled by the Economic Division within the Department of Economic Affairs under the Ministry of Finance. It is issued in the name of the Chief Economic Advisor, a post currently held by Dr. V. Anantha Nageswaran.

The report provides a detailed examination of major macroeconomic trends, alongside critical fiscal and financial metrics, and offers projections for the period ahead. It also functions as a key guide for policymakers and stakeholders, frequently indicating the overarching policy direction and focus areas expected to influence the Union Budget for 2026–27.

“India’s fastest-growing sectors — GCCs, fintech, manufacturing, healthcare and the digital economy — are all running ahead of the available skilled workforce. The next Budget must connect skilling to employability through formal benefits and compliance structures, not just training programmes. Jobs become sustainable only when they are formal, protected and digitally administered," says Subramanyam S, CEO, AscentHR Technologies

“As India prepares for Budget 2026, the infrastructure and clean-energy ecosystem is at an inflection point. For EPC players operating across telecom, renewable energy, and emerging storage solutions, the focus now must shift from capacity creation to execution certainty. We are looking for a budget that strengthens grid infrastructure, accelerates utility-scale renewable deployment, and provides clear policy support for battery energy storage systems, which are critical to balancing intermittent power and improving project bankability. On the telecom side, faster rollout of 5G densification and fiberisation will be key to supporting India’s digital economy. A stable policy framework, faster approvals, and improved access to long-term financing will enable EPC companies to scale efficiently, deliver projects on time, and support the country’s twin goals of energy transition and digital connectivity,” says CA Baratam Satyanarayana, CFO and Director, Bondada Group.