Union Finance Minister Nirmala Sitharaman on Sunday said the Indian economy will gain from the wide ripple effects of the schemes and measures announced in the Union Budget 2026-27 (FY27).
Speaking to the reporters at a post-Budget press conference, she noted the Budget is designed to create long-term benefits by linking technology, infrastructure and social welfare with growth.
A key focus of the Budget is infrastructure spending. The government has set capital expenditure at ₹12.2 trillion in FY27, which is about 4.4 per cent of gross domestic product (GDP). Sitharaman said projects such as dedicated freight corridors, seven high-speed rail corridors and planned national waterways passing through areas rich in critical minerals will improve connectivity and also help industry and jobs.
To push regional growth, the government will develop special economic regions, with an allocation of ₹5,000 crore per city over five years. Sitharaman said that the focus will be on tier-2 and tier-3 cities so that growth is not limited to big metros. These regions are expected to boost local businesses and attract investment.
2026 Budget offers strong push to manufacturing
The Budget also gives a strong push to manufacturing and infrastructure. Support for electronics manufacturing has been doubled to ₹40,000 crore. The government also plans to set up rare earth corridors in states, including Odisha, Kerala, Andhra Pradesh and Tamil Nadu, to reduce dependence on imports.
Support for chemical parks, container manufacturing and making construction equipment used in metros and tunnels will also be provided.
In the biopharma sector, Sitharaman said the aim is to support institutions and companies capable of serious research, sending a clear message that India is ready for its next leap in pharmaceuticals. She added that this is backed by real funding and policy support.
MSMEs ‘core driver’ of growth
Sitharaman described Micro, Small, and Medium Enterprises (MSMEs) as a core driver of a “Viksit Bharat”. The finance minister said small businesses will not face any shortage of equity support. The government plans to help MSMEs with filing returns, maintaining accounts and easier compliance, so they can focus on growth.
On the social side, Sitharaman said she was “personally moved” by the proposal to exempt 17 cancer medicines from customs duty. In addition, seven more rare diseases have been added for duty-free imports, bringing relief to patients and their families.
