New Delhi, February 2 – State Bank of India (SBI) Chairman Challa Srinivasulu Setty has said that the Budget for 2026-27 is a significant step towards making India a global centre for innovation and advanced manufacturing. The primary aim of this budget is to strengthen India’s competitiveness on the world stage.
According to the SBI Chairman, the budget maintains policy continuity and provides clarity on the tax system. It strives to balance development between rural and urban areas, as well as between traditional and emerging sectors.
In SBI’s ‘Union Budget 2026-27 Analysis Report,’ Setty stated that this year’s budget is both realistic and future-focused. The budget framework remains consistent with previous years, emphasising employment generation and emerging sectors. Infrastructure continues to be a strong foundation, with plans to increase investment.
Setty noted that the budget presents numerous opportunities for the banking sector. Modernising the banking system and stabilising financial markets are crucial to steer India’s next phase of growth in the right direction.
Key futuristic sectors highlighted in the budget include semiconductors, data centres, carbon capture, utilisation and storage (CCUS), and critical minerals.
The budget’s estimates are based on a nominal GDP growth projection of 10 percent, which seems appropriate considering current inflation levels. The fiscal deficit is expected to remain at 4.3 percent of GDP.
Significant changes have been made in the rural and agricultural sectors as well. The focus will shift towards high-value products like sandalwood, cashew, and fisheries. Plans include integrated development of 500 reservoirs, boosting coconut production, rejuvenating old and low-yield orchards, and expanding cultivation of walnuts, almonds, and pine nuts.
The budget also emphasises increasing the use of artificial intelligence in agriculture, with proposals to link Agri Stack portals for better integration.
In the service sector, special attention has been given to tourism, the orange economy, and education. These initiatives will support future growth through infrastructure expansion, improved connectivity, and digital investments. A high-powered committee named ‘Education to Employment and Enterprise’ will be formed to make the service sector a key pillar of a developed India.
Considering the scale of ongoing construction, the budget proposes manufacturing modern and expensive infrastructure and construction equipment domestically to strengthen India’s supply chain.
To boost private developers’ confidence, an Infrastructure Risk Guarantee Fund is proposed, which will provide partial guarantees to banks and other lenders.
In response to rapid urbanisation, the budget plans to leverage the strength of city clusters by designating City Economic Regions (CERs). Each CER will receive Rs 5,000 crore over five years.
Setty highlighted that the budget proposes to enhance the existing Indian Semiconductor Mission with the launch of India Semiconductor Mission (ISM) 2.0 to develop equipment, materials, and indigenous technology. Given the shortage of critical minerals, there is also a plan to establish a Rare Earth Corridor and offer basic customs duty exemptions on capital goods imports.
The SBI Chairman emphasised that the budget has been designed with people at its core. Measures related to ease of doing business and ease of living address the country’s current challenges effectively.
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