Budget 2026: FM Sitharaman’s 9th Budget speech set to break tradition, spotlight Part B as reform roadmap 

Union Finance Minister Nirmala Sitharaman’s ninth consecutive Union Budget 2026 is set to mark a significant departure from long-standing convention, with Part B of the Budget speech emerging as the primary platform for articulating India’s economic vision and reform priorities, according to government sources.

Traditionally, Budget speeches have devoted most narrative and strategic detail to Part A, which reviews the state of the economy and outlines broad policy direction, while Part B, largely confined to tax proposals and technical announcements has remained relatively brief. This year, however, Sitharaman is expected to speak in unusual depth in Part B, placing strong emphasis on both short-term policy actions and long-term economic goals.

Officials said the expanded Part B will reflect India’s priorities as it enters the second quarter of the 21st century, offering a clearer roadmap for leveraging domestic strengths and positioning the economy on the global stage. The section is expected to highlight India’s current capabilities alongside its future potential across manufacturing, trade and exports, drawing close attention from economists and policy experts in India and abroad.

The shift in emphasis is also expected to mirror the broader reform orientation of Budget 2026-27, internally described as “Reform Express.” The Budget is likely to be anchored in cross-sector reforms aimed at simplifying regulations, improving competitiveness and strengthening domestic manufacturing, particularly against the backdrop of a global economic slowdown and renewed tariff pressures from the US.

Within this framework, trade and customs reforms are expected to feature prominently in Part B, officials indicated. The Centre is preparing a fresh overhaul of India’s customs duty architecture, including proposals to rationalise basic customs duty slabs and simplify procedures. The objective is to reduce compliance burdens, minimise disputes especially classification-related litigation and improve predictability for firms operating in global value chains.

The Customs rationalisation exercise assumes importance as India expands its network of free trade agreements and continues negotiations with developed markets, where its complex tariff structure has often been cited as a constraint. A streamlined regime would improve flexibility in trade talks while supporting ease of doing business at home.

Part B is also expected to outline changes to export and manufacturing frameworks, including proposals to merge existing schemes such as SEZs, EOUs and the MOOWR regime into a Unified Export and Manufacturing Zone, alongside measures to promote domestic manufacturing, boost export resilience and support higher value addition.