The proposed Rs 10,000 crore MSME Growth Fund reflects the government's intent to participate as an equity partner in their growth

Budget 2026: Calibrated approach anchors atmanirbhar India vision

The Union Budget 2026: A Balance of Ambition and Pragmatism

The Union Budget presents a balance of ambition and pragmatism, reflecting the government's intent to navigate the country through a backdrop of persistent global trade uncertainty.

Fiscal Discipline: The budget has remained consistent on fiscal discipline, capex spending, import substitutions, and job creation.
Atmanirbhar Vision: The finance minister has reinforced the country's atmanirbhar (self-reliant) vision, seeking to insulate the economy from external disruptions while building domestic resilience.

Boost to MSMEs

The budget presents a renewed emphasis on micro, small, and medium enterprises (MSMEs), a sector that has endured significant stress.

MSME Growth Fund: The proposed Rs 10,000 crore MSME Growth Fund reflects the government's intent to participate as an equity partner in their growth.
Mega Textile Parks: The proposal for mega textile parks is equally timely, especially in light of the India-European Union free trade agreement, which could help Indian exporters regain lost market share.

Capital Markets

On capital markets, the increase in the securities transaction tax is likely to temper trading activity.

Securities Transaction Tax: The increase in the securities transaction tax is expected to moderate volumes rather than maximise revenue.
Foreign Institutional Investor Inflows: Allowing persons resident outside India, or PROIs, to double equity investment limits to 10 per cent is a supportive step at a time of subdued foreign institutional investor inflows.

Strategic Investments

Strategic investments announced in electronics, data centres, rare earth minerals, biopharma, Railways, inland waterways, etc. are critical to building long-term domestic capabilities, strengthening supply chains, and enhancing competitiveness.

Electronics: Strategic investments in electronics will help India become self-sufficient in electronics manufacturing.
Data Centres: The government's focus on data centres will help India become a major player in the global data storage industry.

Other Key Highlights

The incentives for domestic tourism, including medical, foreign travel and education, urban development and duty reduction on select drugs, too, will augur well for citizens.

Domestic Tourism: The incentives for domestic tourism will help boost the tourism industry and create employment opportunities.
Banking Committee: The proposal to constitute a banking committee for Viksit Bharat (developed India) signals a willingness to rethink India's banking architecture beyond incremental reforms.