A Sunday statement of Intent

For the first time, the budget was presented on Sunday.  Finance Minister Nirmala Sitharaman's 83-minute speech was all about reform and resilience. The intention was clear all along - she was determined to make India a global manufacturing, services and innovation hub. However, it fell short on the details of how that would be achieved.

Given the turbulent world trade conditions and the Indian exporters taking a hit, her speech bordered more on rhetoric than substance, as market sentiment was not upbeat after the speech. BSE Sensex tumbled nearly 1,650 points intraday, falling to approximately 80,619, while NSE Nifty 50 slipped below the 25,000 mark, trading down about 482 points.

Credit where due, the Budget is clear about achieving growth through investment. The sharp increase in public capital expenditure to INR 12.2 lakh crore reinforces the government's belief in infrastructure as a prerequisite for growth.  The seven high-speed rail corridors, new freight corridors, inland waterways and coastal shipping incentives underline the focus on connectivity as a growth multiplier.  Budget also bets big on new technologies as vehicles of growth — semiconductors, electronics, biopharma, rare earths, chemicals and capital goods- all find a mention in the Budget. Schemes like Biopharma SHAKTI, ISM 2.0, rare earth corridors and chemical parks reflect a clear strategy: reduce import dependence in critical sectors and position India as a trusted global supplier. However, what is ambiguous is the roadmap to achieve that.

The idea behind 'SME Growth Fund', which aims to ensure that this industrial resurgence is not confined to a few corporate giants but spreads across regions and firm sizes, is laudable, but again, how that would happen remains ambiguous. There is a renewed emphasis on services and skills. From allied health professionals and caregivers to AVGC creators, designers, tourism guides and sports professionals, the finance minister pins her hope on these professionals, mostly comprised of GenZ.  On the fiscal front, the government has stayed the course. A fiscal deficit of 4.3 per cent and a declining debt-to-GDP ratio signal continued discipline, even as social and capital spending rise.  Incentives for IT, data centres, cloud services and global professionals reflect a desire to make India a magnet for global capital and talent.

Yet, while all this is impressive, the Budget has blind spots. It speaks eloquently of farmers, women and the poor, but offers little in the way of direct income support or consumption stimulus to a sector which is under tremendous pressure. Issues such as farm price volatility, crop insurance gaps and climate risks receive limited attention. Employment generation, though implicit in many schemes, lacks a clear strategy.  And despite the talk of inclusion, inequality and stagnant middle-class incomes are not directly addressed. In sum, Budget 2026-27 is a confident, reformist document that doubles down on India's long-term growth story. Whether that growth will translate into relief for the people and lead to job creation will be the real test of this ambitious Sunday Budget.