The Budget is expected to spell out the government’s priorities for the coming financial year, focusing on sustaining economic momentum, encouraging private investment and job creation, while maintaining fiscal discipline.Market participants will look for clarity on long-term capital gains taxation and whether the government avoids increasing transaction-related levies. Sector-wise allocations—especially for infrastructure, manufacturing and exports—will be under close scrutiny.India’s economy has shown resilience amid global challenges such as trade disruptions and higher US tariffs. Growth has been supported by strong public infrastructure spending and earlier tax measures that helped revive consumption.
Ahead of the Budget, Prime Minister Narendra Modi reiterated the government’s focus on “reform, perform and transform”, stressing the need for long-term, sustainable solutions.This live blog will bring real-time updates, key announcements and reactions as the Budget is presented.Despite Budget Day falling on a Sunday, equity markets will remain open, with both NSE and BSE operating during normal trading hours. Investor expectations remain measured, with the emphasis on policy clarity rather than major fiscal giveaways. Key focus areas include FY27 capital expenditure, income tax policy, export competitiveness and the government’s strategy for foreign trade diversification.
PAST UPDATES
February 03, 2026 10:00 PM IST
India’s Education Budget: ₹1.28 Lakh Crore Allocation, 42.6% Employability—Budget 2026 Must Stop Credentialism and Empower Vocational Engineering Skills . Union Budget 2025-26 allocated ₹1.28 lakh crore to education—a 6.5% increase, including ₹20,000 crore for private R&D and ₹500 crore for AI Centres of Excellence. Commendable on paper. But the outcomes expose systemic failure: India produces 1.5 million engineering graduates yearly,…India’s Education Budget: ₹1.28 Lakh Crore Allocation, 42.6% Employability—Budget 2026 Must Stop Credentialism and Empower Vocational Engineering Skills . Union Budget 2025-26 allocated ₹1.28 lakh crore to education—a 6.5% increase, including ₹20,000 crore for private R&D and ₹500 crore for AI Centres of Excellence. Commendable on paper. But the outcomes expose systemic failure: India produces 1.5 million engineering graduates yearly, yet only 42.6% are employable per Mercer-Mettl’s 2025 Graduate Skill Index—a drop from 44.3% in 2024. We rank 38th on Global Innovation Index 2025, with R&D at 0.7% of GDP versus China’s 2.68% and Israel’s 5.71%.
The elite 1% (IITs/NITs) get headlines. The other 99% get unemployment. Top-tier institutions produce 5-7% of graduates but capture 40% of premium jobs. The remaining 1.4 million from state colleges and private universities—India’s real workforce backbone—face 57.4% unemployability due to outdated curricula lacking hands-on BIM, VDC, and advanced manufacturing skills. Construction (50 million workers, 8% of GDP) loses ₹1.5 lakh crore annually to digital skills gaps. Private R&D contributes just 36.4% versus 70%+ in innovation leaders.
Budget 2026 must prioritize vocational engineering skills—the true job enablers for non-elite graduates:
1. GST Reduction on Vocational Engineering Courses (₹10,000 crore impact)
* Cut GST from 18% to 5% on skill-based programs (BIM, VDC, MEP coordination, advanced manufacturing)
* Exempt certification fees for industry-aligned vocational courses
* Enable 2 million Tier-2/3 college students to access affordable, job-ready training
2. Tax Incentives for Private-Industry Skill Platforms (₹15,000 crore corpus)
* 200% deduction on spend for live-project-based training infrastructure (digital twins, BIM labs)
* Matching grants (₹50 crore per center) for vocational skill hubs in Tier-2 cities (Pune, Ahmedabad, Hyderabad)
* Fast-track IP for industry-academia vocational R&D (90-day patents)
3. National Construction Tech Skilling Mission (₹7,000 crore fund)
* Mandate 20% vocational engineering curricula as live BIM/VDC projects with industry co-delivery
* ₹25,000 tax credit per apprentice from non-elite colleges placed in construction/manufacturing
* 100 Centres of Excellence for digital construction (openBIM, ISO 19650, 4D/5D planning)
Evidence and Impact
Only 46% of engineering graduates are AI/ML-ready despite ₹500 crore AI allocation. Industry-led BIM training—achieves 95% placement for non-elite graduates. Scaling vocational skills unlocks India’s 1.4 million “forgotten” engineering graduates.
Budget 2026 cannot fund more IITs for the 1%. It must empower the 99% through GST relief and tax incentives for vocational engineering—the real engine of employability and growth.
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— Mr. Roy Aniruddha, Founder & Chairman, TechnoStruct Academy
February 03, 2026 09:49 PM IST
Last year’s Budget clearly recognised agriculture as India’s first growth engine, with strong investments in productivity, seed innovation, and sustainable farming. That foundation is critical. But India’s next leap must go beyond yield and move toward nutrition as an outcome. Today, we don’t suffer from a lack of food. We suffer from a lack of nutrients in our food. As…Last year’s Budget clearly recognised agriculture as India’s first growth engine, with strong investments in productivity, seed innovation, and sustainable farming. That foundation is critical. But India’s next leap must go beyond yield and move toward nutrition as an outcome.
Today, we don’t suffer from a lack of food. We suffer from a lack of nutrients in our food. As the government continues to invest in seed systems and farm innovation, the real opportunity in this Budget is to mainstream biofortified seeds and nutrition-focused agriculture as part of national policy. This would allow India to address iron, zinc and micronutrient deficiencies at the source, through everyday staples rather than costly downstream interventions.
Supporting startups and farmer networks that grow, test and process nutrient-rich crops will not only improve public health but also create a higher-value market for farmers through better price realisation and assured demand. A nutrition-led agricultural strategy can become one of India’s most powerful tools for long-term food security, healthcare savings and rural prosperity.
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— Mr. Prateek Rastogi, CEO & Co-Founder, Better Nutrition
