With Finance Minister Nirmala Sitharaman gearing up to table the Union Budget 2026–27, the nation awaits a decisive fiscal blueprint aimed at consolidating India’s economic momentum and future-proofing growth. Bharat, now the world’s fourth-largest economy by GDP after overtaking Japan is poised for a fiscal plan that embraces technological leadership, broad-based growth and smart governance while deepening its economic resilience and social inclusiveness.
The Union Budget is expected to strongly emphasise the AI-Yukt Bharat thrust with enhanced allocations for AI infrastructure, data ecosystems, governance automation and skilling platforms that empower citizens and industry to harness AI in public delivery and private innovation; at the same time, industry bodies are calling for tax clarity and simplification of compliance to reduce litigation and boost investment sentiment, building on recent GST rationalisation efforts that reduced slabs to more efficient bands to spur consumption and productivity. Moreover, there is credible speculation around concessions in cess structures and excise duties such as limiting multiple layers of surcharge and cess, rationalising compensation cess and social welfare levies to lower the cost burden on consumers and businesses while still maintaining buoyant revenue.
On the macro front, the government is likely to anchor the Budget around fiscal discipline and growth acceleration with continued emphasis on a manageable fiscal deficit, drawing from estimates that nominal GDP growth remained robust in recent years and continues to set a strong base for expansion. Crucially, the Budget will push forward inclusive measures with special packages for vanchit communities and persons with disabilities, delivering targeted support for financial access, training and dignified livelihoods; expand incentives for the fisheries and blue-economy sectors to deepen rural and coastal employment linkages; scale up allocations for cyber safety and national digital security architecture to protect citizens, enterprises and critical systems in an increasingly hostile cyberspace and reinforce India’s geopolitical stance with a meaningful increase in the defence budget, underlining self-reliance in defence manufacturing and strategic capabilities.
The upcoming Union Budget is also expected to unveil a new generation of high-impact schemes aimed at accelerating growth, resolving legacy bottlenecks and widening inclusion, including a Customs Amnesty and Fast-track Dispute Resolution Scheme to unlock stuck capital by waiving interest and penalties on eligible cases; a dedicated Infrastructure and Stalled Projects Revival Fund to restart delayed assets and crowd-in private investment; an expanded Semiconductor and Electronics Mission to strengthen India’s position in global supply chains; operationalisation and scaling of the Urban Challenge Fund to transform cities into growth hubs through blended finance; rollout of AI and Skill Centres of Excellence to build future-ready human capital; enhancement of Credit Guarantee and Export Support Schemes for MSMEs to improve access to finance and global markets; a Gig Worker Identity and Welfare Platform integrating social security, health coverage and portability of benefits; strengthened rural livelihood initiatives under a Viksit Bharat–aligned employment and skilling framework; enhanced renewable energy and green transition support schemes including viability-gap funding for clean infrastructure and refined export and quality-linked manufacturing incentive programs to drive scale, competitiveness and job creation, together signalling a decisive policy push towards simplified compliance, tech-enabled governance, resilient infrastructure, inclusive welfare and export-led growth.
In essence, this Budget is expected to be forward-looking and reformative, threading together technology adoption, simplified taxation, inclusive growth and security in a way that strengthens India’s competitive edge on the global stage. This Budget must convert vision into value where AI accelerates governance, simplification nurtures enterprise, security safeguards citizens and inclusion becomes irreversible.
About the author
The author is Akshat Khetan, Founder - AU Corporate Advisory & Legal Services.
Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the publication. |
