— Ashishkumar Chauhan, Managing Director & CEO, NSE
New Delhi: The Union Budget 2026–27, presented from Kartavya Bhavan and marking the ninth consecutive budget of the Finance Minister, sends a clear and confident message that rapid economic growth and fiscal discipline can go hand in hand. The budget remains firmly committed to the path of fiscal consolidation, reinforcing macroeconomic stability and policy credibility.
Under the Budget, the fiscal deficit has been reduced from 4.4 percent of GDP to 4.3 percent, while the debt-to-GDP ratio has declined from 56.1 percent to 55.6 percent. These indicators place India on the right trajectory toward achieving the medium-term target of 50 percent (±1 percent) by FY 2031. Together, these measures reassure investors and financial markets about the stability of the Indian economy and the reliability of government policies.
Infrastructure development continues to be the cornerstone of the growth strategy. Public capital expenditure has been increased by nearly 12 percent to ₹12.2 lakh crore, aimed at crowding in private investment, enhancing productivity, and reducing logistics costs across sectors.
The budget also introduces balanced measures to deepen and strengthen financial markets. These include an increase in Securities Transaction Tax (STT) on derivatives to curb excessive speculation, monetisation of PSU assets through REITs, the introduction of bond index derivatives, and improved market-making mechanisms for corporate bonds. In a significant move to boost global competitiveness, the tax holiday period on income in GIFT City has been extended from 10 years to 20 years, making it more attractive for Foreign Portfolio Investors (FPIs).
To strengthen urban finance, renewed emphasis has been placed on municipal bonds. Regulatory reforms in the foreign exchange and capital markets are expected to ease business operations and further integrate India with the global economy. Additionally, allowing Non-Resident Indians (NRIs) to directly invest in Indian equity markets through portfolio investments seeks to channel long-term diaspora capital into India’s growth story.
Importantly, the Budget 2026–27 is clearly future-oriented. Strategic and emerging sectors such as semiconductors, artificial intelligence, advanced manufacturing, bio-pharma, rare earths, tourism, and textiles have been accorded priority. By focusing on these areas, the government aims to promote innovation, boost exports, and generate high-quality employment opportunities.
Overall, Budget 2026–27 reflects a well-balanced approach—combining fiscal prudence, infrastructure-led growth, deeper financial markets, and forward-looking reforms. It lays a strong foundation for India’s journey toward Viksit Bharat 2047, positioning the economy for sustainable and inclusive long-term growth.
