Sitharaman Makes History: India's First Woman Finance Minister's 9th Budget

Finance Minister Nirmala Sitharaman will present the Union Budget for fiscal year 2026-27 this Sunday, marking her historic ninth consecutive term. This milestone positions her as the first woman finance minister in India to achieve this consecutive feat.

The Budget arrives at a pivotal moment, serving as a bridge between last year's expansionary policies and the new Income Tax Act of 2025. Expectations for personal taxation are moderate, with a likely focus on improving tax compliance, processing refunds faster, and resolving administrative bottlenecks.

Businesses are anticipating measures to simplify GST-linked payments, rationalize TDS rates, and clarify anomalies in share buyback taxation. The macroeconomic outlook indicates steady growth, projected at 6.8-7.2% real GDP growth for FY26-27, with a fiscal deficit target of 4.4% for FY26.

Public investment remains a cornerstone for growth, with significant capital expenditure allocated to infrastructure. However, global trade frictions and external pressures persist, emphasizing the need for continued domestic demand support and prudent fiscal management.

Geopolitical shifts, including reciprocal tariffs, are influencing trade policy. India is considering higher customs duties and incentives for goods with high import dependence. Industry bodies are advocating for supply chain diversification and a simplified tariff structure to boost competitiveness.

Micro, Small, and Medium Enterprises (MSMEs) are seeking structural support beyond credit, including expanded technology upgradation funds and easier access to export markets. Large industries, such as those represented by the Confederation of Indian Industry (CII), are urging reforms in infrastructure, innovation, digital systems, and the financial sector.

Key industry proposals include establishing advanced research centers, creating an India Talent Agency, and launching a Digitisation Fund. There is a strong emphasis on leveraging technology, particularly artificial intelligence, as core digital infrastructure, demanding clearer data governance and affordable compute power.

Telecom operators are seeking relief on regulatory levies, while sectors like manufacturing, agriculture, and job creation are eyed for targeted support. The focus is on scaling up production, enhancing skills, and fostering competitiveness, especially in labor-intensive industries, to harness India's demographic dividend.