Union Budget 2026-27: Focus to be on key themes of deregulation, exports, MSMEs and implementation
The government aims to make the economy more resilient to external challenges, priority on investments and employment.
- Jan 8, 2026,
- Updated Jan 8, 2026 2:54 PM IST
Deregulation, decriminalisation, exports, small and medium enterprises and last-mile implementation. These are some key themes Union Budget 2026-27 is likely to focus on as the government moves forward with its next-generation reforms with aim of maintaining the growth momentum amidst the challenging economic conditions.
According to sources familiar with the development, most proposals in the Budget will in one way or the other take forward these five key themes that have been identified as necessary to improve the attractiveness of the economy to investors and also sustain growth. Apart from this, the focus on agriculture and capital expenditure will also continue.
The Budget, to be presented on February 1, comes at a time when the economy has received some breathing space with robust GDP growth estimated at 7.4% in FY26, despite the heavy US tariffs. Growth is expected to slow marginally next fiscal but is likely to remain near 7%.
“There are several uncertainties on the external front. The economy needs to be well prepared to handle these, and the Budget will continue on that theme by focussing on these issues,” said the source, underlining that the reform mandate of the government will continue.
The Jan Vishwas (Amendment of Provisions) Bill, 2025, as well as implementation of the Labour Codes were products of the Centre’s focus on deregulation and decriminalisation. Efforts will be made to ensure last-mile implementation of these measures to ensure that the benefits actually flow down to industry and consumers.
The focus on exports and MSMEs will also continue, as they are key job creators and the building blocks of the economy, sources said, adding that more measures for easier credit could be unveiled in the Budget. These two sectors have also been facing the brunt of the steep 50% tariff on Indian exports by the US and would continue to require government support until a trade deal is finalised with the US.
“The government has been working on all these issues for at least the past year, and it is felt that efforts on these fronts need to continue as there are several challenges still,” said the source. There has been a visible impact from the steps taken already on these fronts, they further underlined.
Deregulation, decriminalisation, exports, small and medium enterprises and last-mile implementation. These are some key themes Union Budget 2026-27 is likely to focus on as the government moves forward with its next-generation reforms with aim of maintaining the growth momentum amidst the challenging economic conditions.
According to sources familiar with the development, most proposals in the Budget will in one way or the other take forward these five key themes that have been identified as necessary to improve the attractiveness of the economy to investors and also sustain growth. Apart from this, the focus on agriculture and capital expenditure will also continue.
The Budget, to be presented on February 1, comes at a time when the economy has received some breathing space with robust GDP growth estimated at 7.4% in FY26, despite the heavy US tariffs. Growth is expected to slow marginally next fiscal but is likely to remain near 7%.
“There are several uncertainties on the external front. The economy needs to be well prepared to handle these, and the Budget will continue on that theme by focussing on these issues,” said the source, underlining that the reform mandate of the government will continue.
The Jan Vishwas (Amendment of Provisions) Bill, 2025, as well as implementation of the Labour Codes were products of the Centre’s focus on deregulation and decriminalisation. Efforts will be made to ensure last-mile implementation of these measures to ensure that the benefits actually flow down to industry and consumers.
The focus on exports and MSMEs will also continue, as they are key job creators and the building blocks of the economy, sources said, adding that more measures for easier credit could be unveiled in the Budget. These two sectors have also been facing the brunt of the steep 50% tariff on Indian exports by the US and would continue to require government support until a trade deal is finalised with the US.
“The government has been working on all these issues for at least the past year, and it is felt that efforts on these fronts need to continue as there are several challenges still,” said the source. There has been a visible impact from the steps taken already on these fronts, they further underlined.