The Union Budget FY26–27 stands as a transformational document—one that goes beyond mere allocation of funds to chart a clear trajectory for India’s economic and strategic future. Notably, Union Finance Minister Nirmala Sitharaman has set a record by presenting the budget for the ninth time, a milestone many believe will be difficult to surpass. Against this backdrop, branding the budget as “blind,” as the Leader of the Opposition did, comes across as more than politically charged rhetoric; it reveals a deeper disconnect from both economic reality and national ambition. Coming from a political voice that once echoed the widely ridiculed claim that India was a “dead economy,” such criticism rings hollow when weighed against the scale, scope, and intent of what this budget seeks to achieve. A budget is not about handouts or hollow slogans. It is about priorities, structural reform, and preparing the nation for what lies ahead. On those counts, FY26–27 makes a decisive statement. For the first time in independent India’s fiscal history, defence has been placed squarely at the centre of both economic and strategic policymaking. The government has allocated approximately ₹7.84–7.85 lakh crore to defence, marking a 15 per cent increase over the previous year, with ₹2.19 lakh crore specifically earmarked for capital expenditure to modernise weapons systems and platforms. This is not routine spending, but strategic investment. Nearly 75 per cent of procurement under the capital budget is slated to be sourced indigenously, reinforcing the Make-in-India framework in defence and reducing reliance on external suppliers at a time when operational readiness and geopolitical uncertainty demand secure supply chains and technological self-reliance. What the Opposition may dismiss as excess is, in reality, a form of patriotic economic policy — one that links national security with industrial growth and long-term strategic capability. Beyond defence, the budget underlines its commitment to growth by announcing a record ₹12.2 lakh crore in public capital expenditure, the highest ever allocated in a single year. This signals a clear intent to turbocharge India’s infrastructure engine. The focus is not on headline-grabbing projects, but on connectivity and productivity — from new dedicated freight corridors and 20 national waterways to seven high-speed rail corridors that extend far beyond the original Ahmedabad–Mumbai stretch. These are investments designed to support sustained job creation, improved mobility, and stronger manufacturing competitiveness across regions.
A forward-looking economy also depends on its ability to move up the global value chain, and the budget’s emphasis on high-end manufacturing and digital strength reflects that understanding. Its push for semiconductors, electronics components, and biopharma underscores India’s ambition to position itself as a serious global manufacturing hub. The allocation of ₹40,000 crore for the enhanced India Semiconductor Mission 2.0 represents a deliberate bet on technological depth rather than low-value assembly. Strategic funding for electronics, container manufacturing, mega textile parks, and chemical hubs further signals a shift toward diversified exports and stronger domestic value addition. This is not a patchwork of incentives, but an emerging industrial strategy aimed at long-term competitiveness. Inclusion, too, finds a place in this fiscal architecture. The budget moves away from narrow, vote-driven arithmetic and instead focuses on broad-based economic participation. Simplification and reductions in tax incidence — such as cuts in TCS on overseas education, travel, and medical remittances — ease the burden on ordinary citizens without inflating government expenditure. Expanded MSME credit lines and SME growth funds aim to strengthen the backbone of employment, while sector-specific schemes for textiles, water transport, and high-value startups seek to push opportunity beyond urban and elite circles into the grassroots economy. Even in an environment of global uncertainty, the budget maintains a firm grip on fiscal discipline. A fiscal deficit target of 4.3 per cent of GDP, alongside a projected reduction in the debt-to-GDP ratio to 55.6 per cent, reflects a balancing act between investment and responsibility. Net borrowing remains modest as a share of GDP, countering claims of reckless spending and underscoring a commitment to sustainable growth. The Union Budget FY26–27 is therefore not just a financial statement, but a declaration of intent — to defend, to build, to innovate, and to include. It rejects the temptation of simplistic political narratives and instead places India on a path toward strategic strength, economic resilience, and technological ambition. If this budget is “blind,” then it is not the document that lacks vision. It is its critics. This is fiscal realism. This is strategic budgeting. And above all, this is a blueprint for India’s future.
