The Union Budget 2026–27 prioritises predictability over big‑ticket announcements. Guided by Atmanirbharta (self-reliance), it focuses on long-term economic stability, domestic markets, and strengthening India’s position in global markets.

Describing this as a "Yuva shakti-driven Budget," the Finance Minister, Ms Nirmala Sitharaman, outlined three priorities: accelerating growth while building resilience to global volatility; strengthening people's capabilities so they can participate meaningfully in India's growth; and widening access to opportunities across sectors, families, and regions. 

In this report, we analyse the Budget through the lens of our six critical ecosystems — Climate, Automation, Regulatory, Private Capital, Global Value Chains and Inclusion — to understand how these measures shape India’s next phase of growth.

Ecosystem Insights

Climate

The Budget strengthens India’s climate and resource ecosystem by announcing rare-earth corridors, expanding freight networks to cut emissions and boosting local manufacturing of clean-energy components. These measures support the clean-energy transition, reduce import dependence and limit exposure to global supply shocks. Some areas, such as green hydrogen, smart grids and power systems for data centres, may still need clearer policy signals. 

Automation

The Budget gives a push to India’s automation journey by expanding Artificial Intelligence and emerging-tech programmes, incentivising cloud infrastructure, and updating digital research frameworks. Constraints such as limited compute capacity, weak backing for foundational deep tech and gaps in AI skills remain. The Budget lays the groundwork, but outcomes will depend on execution, data governance and focused skilling.

Regulatory

The government continues its reform agenda across Goods and Services Tax, labour codes and quality standards. Oversight of banks and NBFCs has improved, while MSME compliance is being eased through simpler processes, faster payments and more integrated digital platforms. While structural challenges such as complexity in Tax Deducted at Source, inverted duty structures and slow dispute resolution require attention, the Budget signals a move toward a stable, transparent and rules-based system.

Private capital

The Budget makes it clear that private capital will lead India’s next investment cycle, with the government focusing on derisking and improving liquidity rather than crowding out investors. Mid-market financing gets a boost. Micro Small and Medium Enterprises (MSMEs) benefit from faster payment cycles and invoice guarantees, and large projects become easier to finance through risk-mitigation structures. Greater tax and regulatory clarity also supports investor confidence. While next-generation Production Linked Incentive (PLI) reforms, power sector changes and Research & Development tax incentives remain to be addressed, the overall direction improves India’s investment readiness.

Global Value Chains

India’s position in global value chains is strengthened by deeper industrial capability in semiconductors, biopharma and chemicals, alongside better logistics through freight corridors and expanded inland waterways. The Budget also pushes the textile sector toward modernised clusters, more sustainable manufacturing and a stronger workforce skilling aligned with global trade demand. Gaps remain in customs simplification, export finance and duty structures, but the Budget supports a shift from cost-led assembly to higher-value, globally integrated production.

Inclusion

The focus on inclusion shifts from cash support to helping people and businesses participate more fully in the economy. MSMEs get better access to liquidity and markets. Healthcare and medical tourism receive targeted regional support. Rural and artisanal sectors gain from improved branding, training and access to global markets. Gaps in digital and physical infrastructure persist in some regions, but the Budget expands the reach of growth across districts, workers and small enterprises.

A decisive step toward Viksit Bharat

The Union Budget 2026–27 provides a clear, ecosystem-driven blueprint for building India’s long-term competitiveness. By strengthening climate readiness, technology depth, regulatory clarity, private investment flows, value-chain integration and inclusive participation, the Budget moves India from incremental reforms to structural capacity creation. While execution and specific sectoral clarity will shape outcomes, the Budget sets a solid foundation for India’s next phase of resilient, innovative and inclusive growth — a decisive step toward Viksit Bharat.

Union Budget 2026
Download the report

Union Budget 2026

A Budget built for stability and growth

Download

Our insights

View more
Union Budget 2026-27: Building momentum for a Viksit Bharat
Follow #BudgetWithGT Union Budget 2026-27: Building momentum for a Viksit Bharat
As India prepares for a defining fiscal moment, the Union Budget 2026–27 is expected to set the tone for the country’s next growth cycle. At a time of shifting global dynamics and evolving domestic priorities, this Budget will be closely watched for clear signals on reform momentum, investment focus, and economic resilience.
09 Jan 2026
Budget 2026: Building resilience for a Vibrant Bharat
Article Budget 2026: Building resilience for a Vibrant Bharat
Union Budget 2026 prioritises resilience and long-term growth for a vibrant Bharat through self-reliance, balanced manufacturing and services, MSME support, regulatory simplification, and mid-market empowerment — moving from reform to performance.
5 min read | 09 Feb 2026
Budget signals India's strategic bet on CCUS for deep decarbonisation
Article Budget signals India's strategic bet on CCUS for deep decarbonisation
Union Budget 2026-27 marks a quiet but consequential inflection point in India's climate and industrial policy. While much of the global discourse continues to revolve around renewable capacity additions and long-term net zero pledges, this Budget signals something more structural.
4 min read | 06 Feb 2026
Investment-led productivity, growth in agriculture budget
Article Investment-led productivity, growth in agriculture budget
Union Budget 2026 should shift India’s health system from hospital-centric treatment to prevention-led care by boosting primary health services, mission-mode NCD and cancer screening, mental health programmes, frontline health workforces and cross-sector public health interventions for long-term resilience and productivity.
3 min read | 04 Feb 2026
    View more