Budget 2026-27: Purposeful Continuity for India's Growth Amidst Global Volatility

• Budget 2026-27 emphasizes purposeful continuity, strengthening a framework of public investment, domestic capacity building, and fiscal credibility.
• Nominal GDP growth of 10% is deemed realistic, with fiscal deficit targets of 4.4% (FY26 RE) and 4.3% (FY27 BE), signaling commitment to fiscal consolidation.
• Capital expenditure is significantly increased to ₹12.2 lakh crore for FY26-27, reflecting a strategic choice to invest throughout the economic cycle and attract private capital.
• Key allocations include increases for railways and defense, support for the rural economy via MGNREGA, and initiatives in biopharma, electronic manufacturing, and carbon capture technologies.
• The budget reinforces confidence in the banking system and prioritizes policy stability for long-term investors, focusing on sustainable growth over short-term market reactions.