US EditionIndia’s budget boosts infrastructure spending while vowing fiscal discipline
The budget raises capital expenditure by 9% to Rs 12.2 lakh crore, focusing on infrastructure, technology, healthcare, and regional development to boost growth and jobs, officials 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.
129 Articles
129 Articles
India sets record budget for infrastructure, defense
India is set to spend a record amount on infrastructure and defense, Finance Minister Nirmala Sitharaman told parliament on Sunday. New Delhi plans to invest $133 billion (€112 billion) in infrastructure and $85 billion on defence — an increase of around 9% and 15%, respectively, compared to last year's budget. The finance minister also announced that the government will scale up manufacturing across seven strategic sectors. They include pharmac…
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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