Welcome to Down To Earth’s live coverage of the Union Budget 2026. Stay tuned as we bring to you the Budget’s most important aspects from an environmental lens.
Union Finance Minister Nirmala Sitharaman will table the Budget on Parliament today.
The minister has left for Kartavya Bhavan, as per media reports.
The Economic Survey, tabled on January 29, has revised India’s potential growth rate to 7.0 per cent, up from 6.5 per cent three years ago.
According to the Survey, agriculture will be central to achieving Viksit Bharat, driving inclusive growth and improving the livelihoods of millions.
The agricultural sector grew at 4.6% in FY 2025-26, however, continuing the trend, this growth was driven majorly by livestock and fisheries, rather than crops.
The renewable energy sector is also growing. The Survey calls for addressing challenges such as high capital costs, land acquisition delays, and grid availability through appropriate instruments including innovative financing mechanisms and optimised project execution.
The Survey made special mention of climate change, noting that India must place adaptation centre stage in India’s climate action story to ensure that development gains are not lost.
India’s adaptation and resilience-related domestic spending surged from 3.7% of the GDP in FY16 to 5.6% of the GDP in FY22.
Climate action is no longer an environmental addon but a core component of India’s development strategy, the Survey said.
The character of the Union Budget has changed over the years to reflect the long-term intent.
This budget may outline a pathway for farmers to increase their income.
Nirmala Sitharaman: New technologies are transforming production systems, by sharply increasing demands of water, energy, and critical minerals.
First budget prepared in Kartavya Bhawan with three kartavayas: Sitharaman.
Sitharaman: Our first ‘Kartavaya’ is to accelerate and sustain economic growth. We propose interventions in six areas. One, scaling up manufacturing in seven strategic and frontier sectors. Two, rejuvenating, legacy, industrial sectors.
FM proposes to strengthen the Central Drug Standard Control Organisation to meet global standards.
FM announces Biopharma Shakti with outlay of Rs 10,000 crore to develop India's global biopharma manufacturing.
FM announces scheme for rare earth permanent magnets launched in November 2025. Proposes to support states including Kerala and Tamil Nadu to develop rare earth corridors.
Mahatma Gandhi Gram Swaraj initiative to strengthen khadi handloom and handicrafts announced.
Rejuvenation of legacy industrial clusters: Proposal to revive 200 legacy industrial clusters.
Public infrastructure: Government will continue to focus on developing infra in Tier 2, 3 cities.
FM announces dedicated freight corridors connecting Dankuni in the east to Surat in the west.
FM: Focus on Tier 2,3 cities and temple towns which need modern infra, basic amenities. Mapping of urban economic regions with allocation of Rs 5,000 per region.
Sitharaman announces development of seven hi-speed rail corridors covering Mumbai, Delhi, Varanasi, Bengaluru, Chennai and Siliguri.
FM: We propose to restructure our finance corporation and rural electrification properties.
FM: Individual persons resident outside India (PROI) will be permitted to invest in equity instruments of listed Indian companies through the portfolio investment scheme. It is also proposed to increase the investment image for an individual PROI under the scheme from 5% to 10%, with an overall investment limit and for all individual PROIs, to 24%, from the current 10%.
FM: In the coming year, 1.5 lakh caregivers will be trained.
FM: Services sector to be the core driver of Viksit Bharat.
Sitharaman: High Powered Education to Employment and Enterprises Standing Committee to prioritise areas to optimise growth and propose measures for new technologies, including AI.
FM: To promote India as a hub for medical tourism, states to be encouraged to develop five medical hubs in partnerships with private players.
FM: 3 new all India institutes of Ayurveda to be set up.
Sitharaman: Five telescope infrastructure facilities will be set up or upgraded. The National Large Solar Telescope, the National Large Optical Infrared Telescope, the Humanity Chandra Telescope, and the Cosmos 2 planetarium.
FM: New ecosystem of jobs for local historians, content creators.
FM announces ecologically sustainable trails in the mountain terrains of Himachal, Uttarakhand, Jammu and Kashmir.
Sitharaman announces turtle trails in coastal areas of Odisha and Kerala.
Sitharaman: India will host the first-ever global big cat summit this year.
Sitharaman: Government to develop 15 archaeological sites into vibrant cultural destinations.
FM: Khelo India Mission to transform sports sector over the next decade.
FM: Centre plans 500 reservoirs and Amrut Sarovars for Indian fisheries.
FM announces credit-linked subsidy programme for scaling up and modernisation of Indian livestock sector and enhancing the creation of dairy, poultry and livestock integrated value chains.
FM proposes coconut promotion scheme.
Sitharaman: 30 mln ppl depend on coconuts for their livelihood; the coconut promotion scheme will increase production and enhance productivity.
FM proposes dedicated programme for cashew and cocoa to enhance export competitiveness.
FM: For sandalwood, Centre will partner with states to promote focused cultivation and post-harvest focus to rejuvenate old, low-yielding orchards.
Government to develop Bharat Vistar, a multi-lingual AI tool to integrate agri stack and ICAR portal.
FM: Self-help entrepreneur marts (SHE marts) will be set up as community-owned retail outlets.
FM: Government to upgrade national mental health institutes; set up NIMHANS-2.
FM: Government will give Rs 1.4 lakh crore to states as Financial Commission grants, including for disaster management.
FM: Tax holiday till 2047 to any foreign company providing cloud services using Indian data centres.
FM: Each identified City Economic Region will receive Rs 5,000 crore spread over five years to support infrastructure creation. This will be done through a reform-cum-result based financial mechanism.
FM: Basic customs duty exemption on imports of goods required for nuclear power projects.
FM: Centre to provide basic customs duty exemption on the import of capital goods required for the processing of critical minerals in India.
Exemption of basic customs duty on 17 drugs and medicines, to ease financial burden of patients, especially those suffering from cancer, proposed.
