Budget 2026–27: Part B to Take Centre Stage With Major Reform Push

Finance Minister Nirmala Sitharaman's ninth Union Budget is expected to break from convention, with Part B set to carry the main reform thrust of Budget 2026-27, according to government sources. Instead of being limited largely to tax proposals, Part B is likely to present a detailed economic roadmap under an internal theme described as "Reform Express."

Traditionally, Part A of the Budget speech has reviewed the state of the economy and outlined broad policy intent, while Part B has remained shorter and focused on taxation. This year, however, officials said Part B will be significantly expanded, laying out both near-term policy actions and long-term structural goals for India's growth trajectory.

Sources indicated that the revamped Part B will articulate India's priorities for the coming decades, with strong emphasis on domestic manufacturing, trade competitiveness and export growth. The section is expected to assess India's current economic position while mapping out future reforms, a presentation likely to attract close attention from economists and global policy watchers.

The government believes Budget 2026-27 should focus on cross-sector reforms aimed at simplifying regulations, reducing business costs and strengthening domestic capacity. This approach gains urgency amid a slowing global economy and rising tariff pressures, particularly from the United States. Officials see the Budget as an opportunity to introduce structural safeguards that support sustainable growth and cushion India from external shocks.

A major component of Part B is expected to be trade and customs reform. Sources said the Centre is working on redesigning the customs duty framework, including rationalising basic customs duty slabs and simplifying procedures for importers and exporters. The objective is to reduce compliance burdens, limit classification-related disputes and improve predictability for firms integrated into global value chains.

Part B is also expected to propose a new framework for export and manufacturing zones, merging existing schemes such as Special Economic Zones, Export Oriented Units and the MOOWR regime into a Unified Export and Manufacturing Zone. Officials said this structure would offer a more consistent policy environment, promote higher value addition and strengthen India's export resilience.

As Sitharaman prepares to present Budget 2026-27, the expanded Part B is shaping up as a blueprint for reforms across customs, trade and industrial policy.