Union Budget 2026 Analysis: Explore new income tax slabs, standard deduction hikes, fiscal deficit targets, and top stocks to watch. How FM Nirmala Sitharaman’s 2026 Budget impacts you.
Budget 2026: The Roadmap to Viksit Bharat
On February 1, 2026, Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget, a historic milestone. The vision is bold: steering India toward a $7 trillion economy while balancing fiscal prudence with aggressive infrastructure expansion.
The theme is clear: “Build India, Empower Bharat.”
- GDP Growth Outlook: 6.8–7.2% (Economic Survey 2025-26)
- Fiscal Deficit Target: 4.3% of GDP (down from 4.4%)
- Capex Push: ₹12.4 trillion allocated for long-term asset creation
Personal Income Tax: What Changed?
Budget 2026 fine-tunes the New Tax Regime, offering incremental relief for the middle class.
Key Tax Highlights:
- Standard Deduction Hike: From ₹75,000 → ₹1,00,000
- Zero Tax Threshold: With rebates + deduction, income up to ₹13 lakh is tax-free
- New Tax Regime Slabs (FY 2026-27):
| Income Bracket | Tax Rate |
|---|---|
| Up to ₹4 Lakh | Nil |
| ₹4 Lakh – ₹8 Lakh | 5% |
| ₹8 Lakh – ₹12 Lakh | 10% |
| ₹12 Lakh – ₹16 Lakh | 15% |
| ₹16 Lakh – ₹20 Lakh | 20% |
| Above ₹24 Lakh | 30% |
👉 Pro Insight: With 75%+ taxpayers now in the New Regime, the Old Regime may gradually be phased out.
Sectoral Winners: Where is the Money Flowing?
Railways & Infrastructure
- Allocation: ₹2.65 Lakh Crore (+10%)
- Focus: 1,000+ new Vande Bharat trains, Kavach 4.0 safety systems, Amrit Bharat station redevelopment
- Stocks to Watch: RVNL, IRCON, Titagarh Rail Systems, L&T
Defence & Manufacturing
- Capex Growth: +15%
- Focus: Atmanirbhar exports, indigenous defense tech
- Stocks to Watch: BEL, HAL, Mazagon Dock
Green Energy & EVs
- Highlights: New PLI schemes for rare-earth magnets & solid-state batteries
- Stocks to Watch: Tata Power, Suzlon, JSW Energy
Stock Market Reaction: Nifty & Sensex
- Market Mood: Volatile but stable post-budget speech
- Bullish Case: No LTCG hike (remains at 12.5%) → relief for investors
- Bearish Case: Rupee at record low (₹91.98/USD) → FIIs cautious
- Support Levels: Nifty at 25,200 seen as strong buy zone for infra & defense stocks
People Also Ask (FAQs)
Q1. What is the income tax limit for 2026-27? Income up to ₹4 lakh is exempt. With rebates + ₹1 lakh deduction, effective zero tax up to ₹13 lakh.
Q2. Did Budget 2026 change LTCG or STCG? No. LTCG remains at 12.5%, STCG at 20%.
Q3. Is the Old Tax Regime still available? Yes, but no new benefits were added.
Q4. What is Kavach 4.0? An indigenous Automatic Train Protection (ATP) system preventing collisions, now expanding across 738+ kms.
Q5. What is the fiscal deficit target for FY27? 4.3% of GDP.
Final Thoughts: An Analyst’s Perspective
Budget 2026 is a “No-Nonsense” budget—avoiding populist freebies, focusing instead on long-term asset creation.
- For Salaried Individuals: Extra ₹25,000 deduction = modest inflation hedge.
- For Investors: Capex-driven sectors (infra, defense, green energy) are the clear winners.
- For India: A disciplined yet ambitious roadmap toward Viksit Bharat.
⚠️ Disclaimer: This blog is for educational purposes only. Not financial advice. Please consult a SEBI-registered advisor before investing.
