India’s authorities plans a modest enchancment in its fiscal image within the coming monetary yr, with reductions within the fiscal deficit and debt, whereas boosting manufacturing in sectors starting from textiles to chips.
Finance Minister Nirmala Sitharaman, in her ninth consecutive funds speech, mentioned on Sunday that the federal government sees its fiscal deficit falling to 4.3% of GDP within the 2026-27 monetary yr, down from 4.4% in 2025-26.
Sitharaman mentioned the federal government expects India’s debt-to-GDP ratio to fall to 55.6% within the coming monetary yr from 56.1% in 2025-26.
The finance minister pointed to the broader uncertainties going through India.
“Right this moment, we face an exterior setting wherein commerce and multilateralism are imperilled and entry to sources and provide chains are disrupted,” Sitharaman mentioned. “New applied sciences are reworking manufacturing programs whereas sharply growing calls for on water, power and important minerals.”
The federal government plans to encourage manufacturing in seven key sectors, together with semiconductors, rare-earth magnets, prescribed drugs, chemical substances, capital items, textiles and sports activities items.
India’s benchmark Nifty 50 inventory index was down about 1.7% shortly after Sitharaman’s speech to parliament and closed 1.96% decrease.
In its financial survey for the monetary yr 2026 launched on Thursday, India mentioned it sees its economic system rising between 6.8% to 7.2% within the fiscal yr 2027, outpacing most different main economies.
“As a rising economic system with increasing commerce and capital wants, India should additionally stay deeply built-in with international markets, exporting extra and attracting secure long-term funding,” Sitharaman mentioned.
Consultancy agency PwC India mentioned the funds locations the nation “at a crossroads to push the nation into its subsequent section of transformation”.
“The Union Price range 2026-27 holds alternatives to set India’s position in the direction of monetary stability, whereas boosting companies to be future prepared — particularly as they navigate the alternatives of AI adoption alongside challenges round expertise, infrastructure, governance and belief,” PwC India mentioned in a web based commentary.
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