Strategic Move To Push For Self-Reliance, Inclusive Growth Towards Viksit Bharat

Bhopal (Madhya Pradesh): The Union Budget for 2026-27, presented by Finance Minister Nirmala Sitharaman on Sunday, marks her ninth consecutive fiscal blueprint under the Modi government, emphasising sustained growth amid global uncertainties like US tariffs and geopolitical tensions.

With India’s economy projected to expand robustly, the budget adopts a three-pronged “kartavya” framework; accelerating economic competitiveness, fulfilling citizen aspirations, and ensuring equitable access to opportunities.

This approach shifts from post-pandemic recovery to resilient, long-term development, balancing fiscal prudence with ambitious investments.
Fiscally, the government maintains discipline, targeting a deficit of 4.3 percent of GDP for 2026-27, down from 4.4 percent in the revised estimates for 2025-26.

Total expenditure rises to 54.1 lakh crore rupees, a 7.9 percent increase, underscoring a focus on infrastructure-led stimulus. Capital expenditure surges to 12.2 lakh crore rupees, up 9 percent from the previous year, reinforcing asset creation in roads, railways, and urban development.
This hike, from just 2 lakh crore in 2014-15, highlights the administration’s strategy to crowd in private investment and sustain momentum above 7 percent GDP growth.

On taxation, there are no slab changes, but the new regime offers zero tax up to 12 lakh rupees via enhanced rebates, benefiting middle-class earners. Measures include rationalising TDS rates, doubling senior citizens’ exemptions to 1 lakh rupees, and extending updated return filings to four years.

In a humanitarian step, interest on motor accident claims is fully exempt from income tax and TDS (tax deducted at source), ensuring victims receive undiminished compensation.

Buyback proceeds shift to capital gains taxation, while responses to external pressures include slashing tariffs on personal imports from 20 to 10 per-cent to counter potential US duties. The goods and service tax (GST) collection projections at 11.78 lakh crore rupees for 2025-26 signal robust compliance and consumption recovery.

Sectorally, defence receives a massive boost with 7.85 lakh crore rupees allocated, including 2.19 lakh crore for modernisation—a 21.84 percent rise—and 1.71 lakh crore for pensions.

This enhances self-reliance amid border tensions. Manufacturing and strategic industries shine: the India Semiconductor Mission 2.0 gets 40,000 crore rupees, expanding electronics outlays to the same amount.

Rare earth corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu aim to reduce import dependency, particularly from China, fostering mining, processing, and research. Seven sustainable passenger rail corridors and an east-west freight line promise greener transport.

AI (artificial intelligence) initiatives promote adoption in agriculture, healthcare, and logistics, with investments in R&D and start-ups.
Tax holidays until 2047 for foreign cloud service providers using Indian data centers incentivise digital infrastructure.

Socially, six goals target zero poverty, quality education, affordable healthcare, skilling for employment, women’s workforce participation, and agricultural strength.

Health allocations bolster medical education and rural facilities, while 15 archaeological sites transform into cultural hubs. These align with Viksit Bharat 2047, prioritising job creation, inclusive manufacturing, and digital transformation.

Analytically, this budget navigates global headwinds by fortifying domestic capabilities, though markets dipped over 1 percent during presentation, reflecting investor caution on unchanged tax slabs and higher securities transaction taxes.

It advances self-reliance in critical minerals and tech, potentially creating jobs and curbing imports, but success hinges on execution amid inflation risks. Debt-to-GDP at 55.6 percent signals stability, yet rural distress and consumption lags warrant monitoring.

Overall, Finance minister Ms Sitharaman’s vision fosters competitive, aspirational India, blending reforms with compassion for equitable progress.

[Story by Shashikant Tiwari, a senior journalist in Bhopal]