In a world rife with geopolitical uncertainties, the central government has preferred to keep eyes peeled on stability and continuity of reforms to stay on the Viksit Bharat course.
The proposals announced on Sunday imply a dual approach: A strategic arc that will continue to pave the path for faster potential growth, and a tactical arc of facilitations and reliefs.
The emphasis on infrastructure development continues, while strategic and frontier manufacturing sectors have been incentivised. There are reliefs and facilitations for small and medium enterprises, and there is a move to deepen the corporate bond market.
For the tariff hit sectors, there is some salve for short-term wounds as well.
The strategic arc
The Budget for 2026-27 (FY27) has announced the largest infrastructure outlay so far of ₹12.2 trillion, up 9 per cent from the ₹11.2 trillion in the FY26 Budget estimates, underscoring the continuing quest for productivity and efficiencies.
The focus remains on developing a multimodal logistics network spanning high-speed rail corridors, dedicated freight corridors, inland waterways and higher coastal shipping, seamlessly integrating with mega parks to amplify manufacturing scale and slash logistics costs nationwide. While government investments continue to expand, more private sector infrastructure investments are also being encouraged. To that end, a new Infrastructure Risk Guarantee Fund fostering public-private collaboration will be set up to mitigate project risks for all stakeholders through partial credit guarantees to lenders.
With a cumulative outlay of nearly ₹1 trillion for biopharma, semiconductors, electronic components, and capital goods, the government is signaling serious intent on driving growth through manufacturing as global headwinds hover.
The Biopharma Shakti initiative with a ₹10,000 crore outlay will help India become a global hub, enabling domestic companies to capitalise on the $100-110 billion opportunity from patent expiries of blockbuster biologics.
With ₹10,000 crore assistance, India Inc can reduce dependence on China for container manufacturing.
The additional measures to spur investments in data centers, where there has been a boom, and rare-earth permanent magnets, where there is a geopolitics-driven scarcity, will help to incentivise new-age private sector capital expenditure.
The Budget promotes ease of doing business through a multi-pronged approach: Single-window clearances for infrastructure and manufacturing projects.
The tactical arc
Export promotion measures for seafood, textiles and leather products will support medium, small and micro enterprises (MSMEs) in these tariff-hit sectors. Measures such as an increase in value limit of duty-free import to 3 per cent from 1 per cent of exported seafood and extension of duty exemption to specified leather products would support MSME profitability. The slew of schemes announced for the textile sector will improve fibre self-reliance, upgrade textile clusters and promote sustainable textiles, while also modernising the skilling ecosystem to provide employment opportunities to rural youth.
There are also measures to deepen the corporate bond market and improve secondary market liquidity, such as a market-making framework and introduction of total return swaps.
In addition, to encourage large cities to issue municipal bonds of higher value, the government is offering an incentive of ₹100 crore for a single bond issuance of more than ₹1,000 crore. This is to promote a vibrant municipal bond market and enable cities to raise funds for infrastructure development and other urban initiatives.
What is salutary is that the plethora of pronouncements have been made while keeping a firm leash on the fiscal arithmetic.
Summed up, Sunday’s pronouncements stay true to the atmanirbharta goals even as they aim to improve India’s economic resilience and competitiveness.
The Kartavya Path march, as it were, continues towards Viksit Bharat by 2047.
The writer is managing director, Crisil Ratings
 "Budget 2026: The twin arcs of progress shaping India's growth path")
