Finance Minister Nirmala Sitharaman presented India’s Union Budget 2026–27 in Parliament on Sunday, outlining a broad roadmap to sustain growth, strengthen infrastructure, deepen economic reforms and create new opportunities for industry, youth and farmers. The Finance Minister underscored her government’s commitment to a “Viksit Bharat” (Developed India) vision, balancing fiscal prudence with strategic investment.
Key Economic Priorities
Record Public Investment:
- Capital expenditure for FY27 set at ₹12.2 lakh crore, up over previous year.
- A sustained infrastructure push aims to catalyse private investment and job creation. Strong Macro Growth & Stability:
- India’s GDP growth projected around 6.8–7.2%, continuing robust expansion.
- Fiscal discipline maintained with deficit estimated at 4.3% of GDP.
Job Creation & Skill Building:
- New Government proposals include skilling pathways for youth and allied health professionals.
- Training 10,000 tourist guides to strengthen the tourism ecosystem.
Strategic Sector Support
Manufacturing & Technology:
- Launch of India Semiconductor Mission 2.0 with enlarged outlay to build semiconductor design and production ecosystems.
- Dedicated rare earth corridors and chemical parks announced to boost industrial clusters. Biopharma & Healthcare:
- The Biopharma SHAKTI initiative with ₹10,000 crore outlay aims to enhance biotech and pharmaceutical manufacturing.
- Overhaul of regulatory body (CDSCO) to improve drug approvals and standards. Policy & Reforms Highlights Investment & Global Integration:
- Limits for foreign investment doubled for non-resident investors — individual limit to 10%, total to 24% — to deepen global capital flows.
Bond Market & Finance Sector:
- New corporate bond market-making frameworks and incentives for municipal bonds support financial market depth.
- High-level banking reforms committee proposed to strengthen the banking ecosystem.
Connectivity & Growth Corridors:
- Seven high-speed growth corridors announced to better connect cities and boost regional development.
Inclusive Growth & Social Agenda
- Women’s livelihoods enhanced via expanded support programmes.
- New girls’ hostels in every district to improve access to education.
- Support for MSMEs with growth funds and cluster revival schemes.
What This Budget Signals
The 2026 Budget reflects an economy poised for next-stage growth — with strong infrastructure focus, strategic tech and manufacturing backing, and inclusive measures for citizens. While maintaining fiscal prudence, the government has reinforced its commitment to jobs, competitiveness and global integration at a time of shifting global dynamics.
