Sukumar Sah
NEW DELHI: Finance Minister Nirmala Sitharaman’s Union Budget 2026–27, presented on February 1 in Parliament, emphasised policy continuity, sustained public investment and fiscal discipline while seeking to balance growth imperatives amid ongoing global uncertainties.
The speech underscored infrastructure spending and structural priorities without dramatic new tax or welfare measures, drawing a wide array of reactions from industry bodies and political leaders across party lines.
Sitharaman described the Government’s economic trajectory over the past decade as rooted in “stability, fiscal prudence, sustained growth and moderate inflation,” saying that the Government had consistently chosen “action over ambivalence and reform over rhetoric” even in times of heightened global uncertainty.
She reiterated the Government’s commitment to public capital expenditure as a driver of growth and employment. Broader allocations in this year’s Budget include a record Rs12.2 lakh crore for capex in 2026–27, nearly a 9 per cent increase over the previous year’s allocation, reaffirming the Government’s ongoing infrastructure push.
Sitharaman also outlined support for high value manufacturing, critical mineral corridors and technological infrastructure, part of efforts to bolster competitiveness and long term economic resilience.
Fiscal consolidation remained a highlighted theme. The Budget projects a fiscal deficit target of around 4.3 per cent of GDP for FY27, signalling the Government’s intent to balance growth spending with macroeconomic discipline.
Among key sectoral priorities, she spoke of initiatives such as linking high speed rail corridors and expanding semiconductor and emerging technology missions, all aimed at creating a “future ready Bharat.”
Fiscal consolidation remained a highlighted theme. The Budget projects a fiscal deficit target of around 4.3 per cent of GDP for FY27, signalling the Government’s intent to balance growth spending with macroeconomic discipline.
On employment and skills development, Sitharaman said the Government would intensify the delivery of existing schemes rather than introduce wide ranging new labour reforms. She spoke of strengthening institutions and mechanisms that help bridge the gap between education and enterprise, though offering few new programmes beyond those already in place.
Ruling party leaders quickly welcomed the Budget as reflecting a long term vision of inclusive development and national progress.
Prime Minister Narendra Modi, whose economic vision underpins the Budget framework, also responded positively to the broader narrative. In comments around the Budget session, Modi described India’s economic approach as grounded in decisive governance, calling it “a reform express moving forward with confidence” and reflecting the Government’s commitment to both stability and structural change.
Allied parties echoed this optimism. Uttar Pradesh Deputy Chief Minister Brajesh Pathak said that the Budget would “reflect crafts of an inclusive framework” targeted at farmers, youth, women, industrialists and the poor, shortly before it was tabled.
However, the Opposition responded with strong criticism, arguing that the Budget failed to deliver direct benefits to ordinary citizens and did not adequately address unemployment or cost of living pressures.
Congress MP Shashi Tharoor told ANI that while the Economic Survey projects good growth, “whether that growth is going to be accompanied by jobs… is a big concern,” adding that people are anxious to see what the Government has planned to generate jobs for young Indians.
Samajwadi Party leader Akhilesh Yadav was more overtly critical, characterising the Budget as skewed and exclusionary.
Other Opposition voices echoed this sentiment. Reports indicated that some leaders labelled the speech as underwhelming, focusing their criticism on the absence of meaningful relief for common citizens and insufficient attention to unemployment and inflationary pressures.
Industry bodies offered measured responses, broadly welcoming the focus on infrastructure and growth momentum while urging deeper reforms on taxation, export competitiveness and ease of doing business.
The Confederation of Indian Industry (CII) noted that the Government’s emphasis on sustained public investment and infrastructure aligns with business expectations, particularly in transport, energy and logistics sectors.
The chamber emphasised the need for faster execution and structural reforms to truly “crowd in” private capital. The Federation of Indian Chambers of Commerce and Industry (Ficci), on its part, reiterated industry hopes for stronger support on job creation and export competitiveness in a challenging global trade environment.
Other industry voices from smaller manufacturers and MSME associations welcomed the broader growth focus but pointed to structural constraints such as taxation complexity and credit access limitations that were not fully addressed in the Budget.
Market responses reflected the mixed messaging of the Budget. Infrastructure and capex commitments were welcomed by some sectors, particularly capital goods and construction firms, but broader investor sentiment was cautious as markets parsed signals on growth, taxation and private investment prospects.
Analysts said that while the Government’s emphasis on continuity and incremental reform may help maintain macro stability, it might leave industry and political stakeholders asking for more substantive reforms.