Union Budget 2026 Focuses on Enhancing National Capabilities: Economists

 

New Delhi.

 

The Union Budget 2026-27 has garnered positive reactions from leading economists, who describe it as a strategic roadmap focused on enhancing India’s national capabilities. Experts suggest that the targets set for revenue, expenditure, and the debt-to-GDP ratio are realistic and achievable.

A Balanced Approach Amid Global Volatility
Dr. Sachchidanand Shukla, Chief Economist at Larsen & Toubro, told IANS that the government has presented a well-balanced budget. “The measures taken consider global developments and are designed to strengthen the Indian economy over the medium term,” he stated.

Key pillars of this growth strategy include:

Infrastructure & Manufacturing: Continued aggressive push for physical growth.

Technology Frontier: Significant emphasis on Data Centers and Semiconductors.

Fiscal Credibility: Realistic fiscal targets that instill confidence in domestic and international investors.

Empowering MSMEs and International Trade
R.K. Mishra, Additional Director General of Foreign Trade (Mumbai), highlighted the government’s efforts to streamline trade processes. By simplifying customs procedures, the budget aims to create a “Ease of Doing Business” environment for traders to contribute to rapid economic expansion.

Major highlights for the industrial sector include:

MSME Fund: The announcement of a ₹10,000 crore MSME fund to boost domestic manufacturing.

Textile Sector: Specific incentives aimed at large-scale job creation.

Global Perspectives: Stability and Defense
Global brokerage firm Jefferies India characterized the Budget 2026-27 as “balanced and pragmatic.” According to their report, the budget will stabilize growth rates in the medium term.

The report particularly praised:

Defense Capital Expenditure: A renewed focus on self-reliance and modernizing defense infrastructure.

Tech Ecosystem: Commitment to the Electronics Component Manufacturing Scheme and Data Center development, which will fortify the domestic technological framework.

Keywords: Union Budget 2026 analysis, India debt-to-GDP ratio 2026, MSME fund 10000 crore, semiconductor manufacturing India, Data Center budget 2026, Dr. Sachchidanand Shukla economist, Jefferies India budget report, India infrastructure growth 2026, manufacturing sector incentives, India defense budget 2026.

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