The Union Budget 2026–27 reaffirms the government’s resolve toward fiscal consolidation while sustaining long-term, infrastructure-led growth trajectory in a world of torrid geopolitics, multilateralism & bilateral arrangements. Presented amid moderating global growth, stable inflation, and geopolitical uncertainty, the 2026–27 Budget adopts a measured, incremental approach rather than “big-bang” reforms. It aligns with long-term national priorities, including the Viksit Bharat 2047 vision and the newly concluded India–EU Free Trade Agreement, which seeks to deepen economic relations, rationalize cost structures, and enhance India’s global competitiveness. Execution, however, remains key to realizing these ambitions.

With nominal GDP growth moderating to 8% in FY26 from historical double-digit levels, the Budget targets a fiscal deficit of 4.3% of GDP while raising capital expenditure by 11.5% to INR 12.2 lakh crore, balancing fiscal prudence with sustained public investment mom…