Prime Minister Narendra Modi on Sunday framed the Union Budget 2026 as a people-focused roadmap designed to strengthen the country’s economic foundations while accelerating long-term reforms, signalling continuity in policy priorities amid a challenging global backdrop.Speaking hours after the Budget’s presentation in Parliament, Modi described the fiscal plan as “human-centric” and “path-breaking,” positioning it as a catalyst for faster growth and deeper structural change. The remarks underscored the government’s intent to balance fiscal discipline with targeted social spending, investment-led expansion and institutional reforms aimed at boosting productivity and employment.
The Budget, presented by Finance Minister Nirmala Sitharaman, seeks to reinforce growth drivers through sustained public capital expenditure, reforms in taxation and compliance, and expanded welfare delivery using digital platforms. Modi’s endorsement highlighted the political leadership’s focus on inclusivity, with emphasis on farmers, women, youth and small businesses, groups repeatedly referenced as central to the government’s economic narrative.
At the core of the Budget is a push to consolidate gains from infrastructure-led growth. Allocations for roads, railways, ports and urban development remain elevated, reflecting the view that public investment crowds in private capital and lifts medium-term potential output. Economists have broadly agreed that infrastructure spending has been a key stabiliser for growth, even as global trade and investment flows face uncertainty.
Modi’s description of the Budget as historic reflects the government’s framing of reforms as cumulative rather than episodic. Over the past decade, policy changes ranging from tax rationalisation to digital public infrastructure have reshaped state capacity and market integration. Budget 2026 builds on this trajectory by refining compliance mechanisms, simplifying procedures for businesses and deepening the use of technology in governance.
A significant element is the continued emphasis on human capital. Increased allocations for education, skilling and healthcare align with the Prime Minister’s assertion that growth must translate into improved quality of life. Programmes targeting vocational training and employment-linked incentives are intended to address labour market mismatches and absorb a growing workforce, particularly in manufacturing and services.
The Budget also reflects a calibrated approach to fiscal consolidation. While maintaining support for growth, the government has reiterated its commitment to reducing the fiscal deficit over the medium term. This balancing act has been closely watched by investors and rating agencies, given the need to manage public debt without stalling economic momentum. Officials have argued that higher growth itself will aid consolidation by expanding the revenue base.
Tax policy measures in the Budget aim to widen the base and enhance predictability rather than introduce sweeping rate changes. Incremental adjustments to personal taxation and compliance incentives are positioned as tools to boost consumption while encouraging formalisation. For businesses, stability in corporate tax policy and clarity on incentives are seen as critical for investment planning.
Modi’s comments also touched on the reform momentum in sectors such as manufacturing, energy and technology. Incentive schemes designed to strengthen domestic value chains remain a cornerstone, with the government seeking to position the economy as a competitive alternative in global supply networks. Clean energy investments and support for emerging technologies are framed as both growth engines and strategic necessities.
Reactions to the Budget have reflected a mix of optimism and caution. Industry groups have welcomed the focus on infrastructure, stability and reform continuity, while calling for faster execution and clearer timelines. Some economists have noted that sustaining high growth will require stronger private investment and consumption, which depend on income growth and job creation translating more evenly across regions.
Opposition parties have questioned whether the Budget does enough to address price pressures and income disparities, arguing that headline reforms must be matched by tangible relief for households. The government has countered that targeted welfare delivery and job creation through investment-led growth remain the most effective tools.