Finance Minister Nirmala Sitharaman’s ninth consecutive Union Budget is expected to break from convention, with Part B of her Budget speech likely to take centre stage in outlining the government’s economic vision and reform push, government sources said.
Traditionally, the bulk of the Budget speech has focused on Part A, which reviews the state of the economy and sets out the broad policy direction. Part B, usually confined to tax proposals and technical measures, has tended to be relatively brief. This time, however, Sitharaman is expected to devote significantly more time to Part B, using it to spell out both near-term policy steps and longer-term economic priorities.
Officials said the expanded focus would reflect India’s strategic priorities as the economy positions itself for the coming decades. The speech is expected to highlight India’s current strengths and future potential in areas such as manufacturing, trade and exports, a shift that is likely to draw close scrutiny from economists and policy watchers, both in India and overseas.
‘Reform Express’ theme
The change in emphasis is also in line with the broader reform orientation of Budget 2026–27, which officials have internally dubbed “Reform Express”.
According to sources, the Budget is likely to be anchored around cross-sector reforms aimed at simplifying regulations, boosting competitiveness and strengthening domestic manufacturing capacity. The push comes at a time of slowing global growth and renewed tariff pressures from the United States.
Officials said the government views the upcoming Budget as a key opportunity to push structural reforms that can support growth while cushioning the economy against external shocks.
Customs and trade reset
Trade and customs reforms are expected to figure prominently in Part B.
Sources indicated that the Centre is working on a fresh revamp of India’s customs duty structure, including steps to rationalise basic customs duty slabs and simplify procedures.
“The idea is to cut compliance costs, reduce disputes—particularly classification-related litigation—and bring greater predictability for companies operating in global value chains,” a senior official said.
The move assumes added importance as India expands its free trade agreement network and continues negotiations with developed economies, where its complex tariff regime has often been flagged as a concern.
A more streamlined customs framework is expected to strengthen India’s negotiating position in trade talks while improving ease of doing business domestically.
Unified export and manufacturing zones
Part B is also likely to spell out changes to export and manufacturing frameworks, including a proposal to bring existing schemes such as Special Economic Zones, Export Oriented Units and the MOOWR regime under a unified export and manufacturing zone.
Officials said the idea is to create a more integrated and efficient ecosystem for exporters and manufacturers. The proposed framework would focus on boosting domestic production, strengthening export resilience and encouraging higher value addition, in line with the government’s broader industrial and trade strategy.