On February 1, 2026, Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27, outlining India’s fiscal and policy direction amid global economic challenges and domestic priorities. The Budget focused on strengthening infrastructure, expanding manufacturing and technology capabilities, supporting key sectors, and promoting inclusive growth.
🏗 Infrastructure and Capital Expenditure
The government continued its emphasis on infrastructure spending, keeping capital expenditure elevated to fuel economic growth and create jobs. Higher capex remains a key lever in boosting demand across states and sectors.
📈 Broadened Economic Framework
Finance Minister Sitharaman framed the Budget around strategic pillars aimed at accelerating growth, building capabilities, and ensuring that development benefits all segments of society. A new three-Kartavya framework was announced to guide policy priorities over the medium term.
💻 Technology, Semiconductors and Manufacturing
A major feature of the Budget was the launch of India Semiconductor Mission 2.0, with an increased outlay of ₹40,000 crore to build local ecosystem strength across equipment, materials, and design — taking India closer to global semiconductor competitiveness.
🏥 Health and Innovation
While the detailed portfolio of health reforms included specific measures elsewhere, the overall speech confirmed continued support for healthcare infrastructure, research and manufacturing initiatives — including schemes that build on earlier announcements like Biopharma Shakti.
🌍 Exports and Strategic Sectors
The Budget reaffirmed support for export-oriented sectors, rare-earth minerals, and value-added industries. Measures to enhance global competitiveness and reduce import dependence across strategic categories were highlighted.
💼 Market and Investor Context
Markets and analysts have closely watched the Budget’s impact on sectors like technology, manufacturing, defence, and exports. The broad fiscal thrust was designed to balance growth imperatives with fiscal prudence, even as near-term sentiments reflect cautious investor reactions.
In summary:
The Union Budget 2026–27 set the tone for India’s economic strategy in the coming year, combining higher infrastructure outlays, targeted technology and manufacturing investments, and a long-term policy framework aimed at inclusive growth and global competitiveness.
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