The budget assumed a nominal GDP growth (real GDP plus inflation) of 10 per cent for the next fiscal. India is likely to grow by 8 per cent in the 2025-26 financial year, aided by a real GDP growth of 7.4 per cent. Also Read Budget 2026-27 shifts India to high value global manufacturing and GVC leadershipSitharaman has also unveiled a ₹10,000-crore SME Growth Fund to support small and medium industries. The government is projecting ₹4.54 lakh crore worth of subsidies, including those on food, fertilisers and LPG — down from the ₹4.69 lakh crore it is estimated to spend (RE) this fiscal. The government’s net tax revenue is projected at ₹28.66 lakh crore, up from the ₹26.74 lakh crore in the RE for this fiscal.

Source: The Telegraph February 02, 2026 01:27 UTC