Short Description:
India’s Union Budget 2026 targets Viksit Bharat by 2047, raises infrastructure spending sharply, and pivots consumer costs. PM Modi calls it a “historic” roadmap for growth.
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3 minutes 15 seconds
Main Article
PM Modi Hails ‘Historic’ Union Budget 2026–27 Focusing on Viksit Bharat by 2047
Prime Minister Narendra Modi has hailed the Union Budget 2026–27 as “historic,” stating it lays a definitive roadmap toward a Viksit Bharat by 2047 and injects fresh momentum into India’s reform agenda. The budget, presented for a record ninth time by Finance Minister Nirmala Sitharaman, elevates capital expenditure to a substantial ₹12.2 lakh crore (approximately $146 billion), signaling a deep, sustained commitment to infrastructure and manufacturing. This strategic push aims to solidify India’s ambition of becoming the world’s third-largest economy, supporting initiatives like Make in India and Atmanirbhar Bharat. The budget also references a landmark trade deal with the European Union, designed to benefit youth and MSMEs, underscoring India’s integration into global supply chains.
The Union Budget 2026–27 outlines significant fiscal measures, targeting a narrowed fiscal deficit of 4.3% of GDP while proposing a new Income Tax Act effective April 2026. Key focus areas include heavy investment in biopharma, semiconductors, rare earths, and clean energy technologies like carbon capture. Major infrastructure projects, including high-speed rail corridors and waterways, received prominent outlays. However, the budget has triggered sharp political reactions. Opposition leaders, including Congress’s Rahul Gandhi, criticized it as “disappointing” and “blind to India’s real crises” such as unemployment and farmer distress, arguing it lacked substantive new schemes and failed to address pressing state-specific needs.
A notable feature of Finance Minister Sitharaman’s budget is its direct impact on consumer and business costs through targeted tax simplification and duty adjustments. The budget offers relief by lowering duties on critical medicines, sports goods, and inputs for clean energy and EV batteries. Concurrently, it tightens taxation on trading activity, corporate payouts, and select imports, including video gaming equipment and coffee machines. This rebalancing aims to promote domestic manufacturing and specific sectors while managing revenue. Beyond the economy, the budget day saw India’s Ministry of External Affairs firmly rejecting Pakistan’s “baseless” allegations of involvement in Balochistan attacks, reflecting ongoing regional geopolitical tensions.
Short Summary
India’s Union Budget 2026–27, championed by Prime Minister Narendra Modi as “historic,” sharply increases capital expenditure to ₹12.2 lakh crore to drive infrastructure and manufacturing, targeting a Viksit Bharat by 2047. While introducing tax simplification and targeted duty cuts for key sectors, it faces opposition criticism for neglecting social crises. The budget strategically rebalances costs for consumers and businesses amid a backdrop of sustained economic ambition and regional geopolitical friction.
