New Delhi: Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 outlining key measures to strengthen India’s economic growth. The budget focuses on boosting manufacturing, semiconductor development, infrastructure upgrades, and expansion of data centres through new allocations.
The capital expenditure has been proposed to increase by 9 percent to ₹12.2 lakh crore, marking one of the highest allocations in recent years and accounting for 4.4 percent of GDP.
The defence sector has been allocated ₹7.85 lakh crore, including ₹2.31 lakh crore for capital expenditure. This represents a 21.84 percent increase aimed at modernising equipment, enhancing air and naval capabilities, and promoting indigenous development under the “Atmanirbhar Bharat” initiative.
The allocation for the Electronics Component Manufacturing Scheme has been doubled to ₹40,000 crore. The Bio-Pharma Strength Programme will receive ₹10,000 crore over five years to position India as a global biopharmaceutical hub.
New initiatives include ₹20,000 crore for carbon capture, utilisation, and storage technologies and ₹10,000 crore for container manufacturing.
Railways will see a capital expenditure of ₹2.77 lakh crore, which includes plans for seven high-speed passenger corridors. The Home Ministry has been allocated ₹2.55 lakh crore to strengthen internal security and law enforcement.
State governments will receive ₹1.4 lakh crore through Finance Commission grants and continue to benefit from a 41 percent share in tax revenues. The Finance Ministry has the largest share of ₹19.72 lakh crore, which will be used for interest payments, subsidies, and transfers to states.
The budget also proposes a dedicated rear-earth corridor for mineral-rich states like Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. Additionally, a new ₹10,000 crore development fund for MSMEs and an extra ₹4,000 crore investment in the Atmanirbhar Bharat fund have been announced.
The total budget expenditure is ₹53.47 lakh crore, with the fiscal deficit set at 4.3 percent of GDP, an improvement over the revised estimate of 4.4 percent for 2025-26.
Prime Minister Narendra Modi’s vision of making India a developed nation by 2047 requires an annual growth rate of 7-8 percent. The latest economic survey estimates growth at 7.4 percent, while the IMF projects 7.3 percent in 2025 and 6.4 percent in 2026.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
Leave a Comment