Modi's 'New Economy' Budget: Strategic Shift, Continuity, and Key Takeaways

• The 2026 Budget continues PM Modi's economic reform push, focusing on a 'New Economy' with strategic sectors like semiconductors, biopharma, and capital goods.
• Finance Minister Nirmala Sitharaman's ninth Budget outlines a Rs 53 lakh crore spending plan, emphasizing fiscal consolidation with a reduced fiscal deficit of 4.3% and a debt-GDP ratio of 55.6%.
• A significant 8.9% increase in capital expenditure to Rs 12.22 lakh crore signals a continued infrastructure push, including Rs 10,000 crore for port/rail connectivity and seven high-speed rail corridors.
• Defence capital expenditure is up by 17%, boosting the military-industrial complex, especially in drones, with potential positive impacts on the wider economy.
• The Budget offers tax holidays for data centers until 2047, eases SEZ rules, and introduces a Rs 40,000 crore PLI for electronics, while reducing TCS for overseas education/medical expenses to 2%.

Why It Matters: The 2026 Budget prioritizes strategic sectors, fiscal stability, and infrastructure, aiming for a 'New Economy' amidst global challenges.