US EditionIndia’s budget boosts infrastructure spending while vowing fiscal discipline
The budget prioritizes infrastructure, manufacturing, and technology with a Rs 12.2 lakh crore capital expenditure, targeting a fiscal deficit of 4.3% of GDP, Finance Ministry said.
- On Sunday, Union Finance Minister Nirmala Sitharaman tabled the Union Budget for 2026-27, raising capital expenditure to Rs 12.2 lakh crore, her ninth consecutive Budget and the first presented on a Sunday.
- Against a backdrop of 6.8%–7.2% growth projections, the government's Economic Survey forecasts GDP growth while the Budget aims to sustain growth and manage global trade frictions including US tariffs.
- The Budget pairs hospitality measures with MSME credit support, including a pilot to upskill 10,000 tourist guides and a Digital Knowledge Grid.
- The government set a 4.3% fiscal deficit target for 2026-27, with economists expecting gross market borrowing of 16.5 trillion rupees .
- Looking ahead, the Budget aims to boost manufacturing in seven strategic sectors including biopharma, semiconductors, electronics components and rare earth magnets, with dedicated freight corridors for rare earths and three chemical parks to reduce import dependency.
145 Articles
145 Articles
India’s budget boosts infrastructure spending while vowing fiscal discipline
Prime Minister Narendra Modi’s government presented its annual budget to Parliament on Sunday, focusing on sustaining the country’s economic growth despite volatile financial markets and trade uncertainty.
Deutsche Welle
einnews.comIndia sets record budget for infrastructure, defense
India's defense boost was expected following the four-day conflict with Pakistan last May. The budget also highlights plans for seven high-speed rail corridors and rare earth corridors.
Focus on Long-term Growth: Industry Hails Capex Push and Fiscal Discipline in Budget 2026
Get latest articles and stories on Business at LatestLY. The industry has reacted with notable optimism, particularly regarding the scale of public spending. Amisha Vora, Chairperson & Managing Director of PL Capital - Prabhudas Lilladher, highlighted that the 24 Per cent rise in government capex is "huge" and noted the strategic importance of the 21 per cent hike in defence spending. She further observed that the new tax exemptions for foreign …
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