Sitharaman Unveils Yuva Shakti-Driven Blueprint for Viksit Bharat
PM Modi hails reform-driven blueprint for developed India
HM Shah calls it a boost for investment and jobs
New Delhi, Srinagar: Union Finance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026–27 in Parliament, marking a historic moment as she delivered her ninth consecutive Budget and the first-ever Union Budget to be presented on a Sunday. Framed in the newly inaugurated Kartavya Bhawan, the Budget reflects the Narendra Modi-led government’s long-term vision of transforming India into a developed nation while maintaining fiscal discipline amid global economic uncertainties.
Describing the Budget as “Yuva Shakti driven,” Sitharaman said the government’s reform agenda — termed the “reform express” — remains firmly on track and will continue with sustained momentum. The Budget is structured around three broad “kartavyas” or duties: accelerating economic growth and productivity, fulfilling aspirations through capacity building, and ensuring inclusive development under the guiding principle of Sabka Saath, Sabka Vikas. Together, these pillars are intended to steer India towards the goal of a Viksit Bharat.
Fiscal Strategy and Macroeconomic Outlook: The total outlay for the Union Budget 2026–27 has been pegged at ₹53.5 lakh crore, underlining the government’s commitment to high public investment as a growth catalyst. Non-debt receipts are estimated at ₹36.5 lakh crore, while the Centre’s net tax receipts are projected at ₹28.7 lakh crore. The fiscal deficit has been targeted at 4.3 per cent of GDP, marking a marginal improvement over the current financial year and reinforcing the government’s roadmap for fiscal consolidation. The debt-to-GDP ratio is expected to ease to 55.6 per cent, reflecting prudent management of public finances. Gross market borrowings are estimated at ₹17.2 lakh crore, with net borrowings at ₹11.7 lakh crore. The Budget follows the presentation of the Economic Survey 2025–26 in Parliament on January 29, which projected India’s economic growth at 6.8 to 7.2 per cent in FY27. The Survey highlighted India’s resilience amid global headwinds such as geopolitical tensions, supply chain disruptions, and slowing growth in major economies.
Capex Push to Drive Growth, Jobs: A defining feature of the Budget is the sustained emphasis on public capital expenditure as a driver of economic expansion and employment generation. Public capex has been raised to ₹12.2 lakh crore for 2026–27, nearly 9 per cent higher than the previous year’s allocation. The government believes that higher investment in physical and social infrastructure will crowd in private investment and strengthen long-term growth prospects. Infrastructure development continues to anchor the government’s growth strategy. The Finance Minister announced seven high-speed rail corridors connecting major city pairs, including Mumbai–Pune, Delhi–Jaipur, Chennai–Bengaluru, and Varanasi–Siliguri. These corridors are expected to significantly reduce travel time, enhance regional connectivity, and boost economic activity along their routes. Inland waterways also received renewed attention, with plans to operationalise 20 new National Waterways over the next five years, beginning with National Waterway-5 in Odisha. Dedicated freight corridors and multimodal logistics hubs are proposed to improve cargo movement efficiency and reduce logistics costs.
Manufacturing, Strategic Sectors, Self-Reliance: Under the first kartavya of accelerating and sustaining growth, the Budget places strong emphasis on manufacturing, strategic autonomy, and reducing import dependence in critical sectors. A major announcement was the launch of Biopharma SHAKTI, a ₹10,000 crore initiative spread over five years to build a robust ecosystem for domestic production of biologics and biosimilars. The scheme aims to upgrade research infrastructure, expand clinical trial networks, and position India as a global biopharma hub. The government also unveiled India Semiconductor Mission 2.0, aimed at developing semiconductor equipment and materials domestically. This is complemented by an additional outlay of ₹40,000 crore for electronics components manufacturing, reinforcing India’s ambitions to become a key player in global electronics supply chains.
Energy Security, Climate Commitments: In line with India’s energy transition goals, the Budget earmarked ₹20,000 crore for carbon capture technologies and energy security initiatives. Customs duty exemptions were extended to renewable energy components, lithium-ion battery equipment, solar glass manufacturing inputs, and nuclear power project imports till 2035, underscoring the government’s commitment to clean energy and strategic sectors.
Aspirations, Skills & Human Capital: The second kartavya focuses on fulfilling aspirations and building human capacity, with targeted investments in education, skills, tourism, healthcare, and sports. The Finance Minister announced the establishment of girls’ hostels in every district to promote access to education and workforce participation. A National Institute of Hospitality will be set up, alongside upskilling programmes for 10,000 tourist guides to support the expanding tourism sector.
Agriculture, Rural Development: For farmers and rural communities, the Budget announced initiatives to enhance productivity and incomes. The launch of Bharat VISTAAR, a multilingual AI-based platform, aims to integrate agricultural data services and deliver region-specific advisories to farmers across languages. The government also plans to create 500 reservoirs and Amrit Sarovars, promote high-value crops, and improve irrigation and water management. These measures are expected to support climate resilience and sustainable agriculture.
Taxation| Stability with Simplification: On the taxation front, the government chose continuity over disruption by retaining existing income tax slabs and rates. However, Sitharaman announced the rollout of a New Income Tax Act, 2025, effective April 1, 2026, aimed at simplifying compliance through redesigned rules and return forms.
