Budget 2026-27: A future-ready step on path to Viksit Bharat 2047

Higher capex, green mobility and strategic manufacturing bets in Budget 2026-27 aim to boost competitiveness, infrastructure and self-reliance on the road to Viksit Bharat 2047

The Union Budget 2026-27 proposes about a 10 per cent increase in capital expenditure to Rs 12.2 trillion, amounting to over 4.4 per cent of GDP, which reinforces the government’s structural vision for sustained, infrastructure-led development. The increased outlay, together with the proposed scheme for the enhancement of construction and infrastructure equipment will further bolster domestic manufacturing of high-value, technologically advanced equipment, deepening India’s capability in critical infrastructure-building assets.

 

Manufacturing competitiveness receives a substantial push through interventions in infrastructure and construction sectors, rejuvenation of legacy industries, and continued support for MSMEs, advancing atmanirbharta (self-reliance) by localising new-age technologies and deepening domestic supply chain resilience. 

 

The continued momentum behind the production-linked incentive and PM E-Drive schemes for advanced automotive technologies will catalyse faster adoption of new-age, zero-emission mobility by strengthening domestic component ecosystems and lowering cost barriers. The provision of 4,000 e-buses will act as a strong demand catalyst for electric mobility, enhancing regional connectivity and accelerating the shift towards cleaner public transportation.

 

Investments in Semiconductor Mission 2.0 and the development of rare earth corridors mark a strategic leap, enhancing supply chain reliability, reducing import dependence and enabling deeper integration into global high-value technology and manufacturing ecosystems.

 

Collectively, these measures, supported by expanded road networks, highways, freight corridors and multimodal logistics systems, will unlock faster connectivity, reduce transit inefficiencies and directly fuel stronger, broad-based demand for the commercial vehicles’ sector.

 

Overall, the Budget delivers continuity with ambition and takes a meaningful step forward towards achieving the aspiration of a more competitive, resilient and self-reliant Viksit Bharat by 2047.

 

The writer is MD and CEO, Tata Motors