Budgeting rural prosperity
Union Budget 2026-27 reorients rural development from welfare to enterprise by integrating agriculture, skills, women-led entrepreneurship and regional job creation into a cohesive growth strategy.
The Union Budget 2026-27 reinforces the Government’s commitment to inclusive and sustainable growth by placing rural development, skills, entrepreneurship and employment at the centre of India’s journey towards Viksit Bharat. It reflects a clear shift from welfare oriented interventions to income enhancing, enterprise driven economic models that prioritise productivity, market integration and job creation.
This transition is most evident in the approach to rural development. The Budget moves beyond a narrow crop centric framework towards diversified livelihood systems that reduce agrarian risk and expand income opportunities. Enhanced investments in fisheries, animal husbandry and high value agriculture are aimed at broadening rural income sources. Initiatives such as the integrated development of 500 reservoirs and Amrit Sarovars for fisheries, credit linked support for livestock based entrepreneurship, and the scaling up of Farmer Producer Organisations across value chains signal an intent to embed rural producers within organised markets. These efforts are complemented by crop and region specific programmes for coconut, cashew, cocoa, sandalwood and nuts, which promote value addition, processing and greater participation of rural youth in agri enterprises.
Technology enabled support systems form a critical pillar of this transformation. The launch of Bharat VISTAAR, a multilingual AI enabled advisory platform integrating AgriStack with ICAR knowledge systems, aims to provide real time and customised guidance on crops, inputs, weather and markets. By reducing information asymmetry and improving on farm decision making, the platform has the potential to enhance
productivity and de risk rural livelihoods. This digital push is supported by 1.4 lakh crore rupees in Finance Commission grants, strengthening Panchayati Raj Institutions and decentralised planning so that infrastructure and livelihoods are aligned with district specific economic priorities.
Women’s economic empowerment emerges as a central theme in the Budget. SHE Marts, envisioned as community owned retail platforms, enable Self Help Group members to transition from micro credit linked activities to enterprise ownership and formal market participation. The Mahatma Gandhi Gram Swaraj Initiative further integrates skilling, quality upgradation, branding and market access for khadi, handloom and handicrafts, supporting artisans, village industries and rural youth.
The skilling ecosystem also receives a strategic realignment. The proposed High Powered Education to Employment and Enterprise Standing Committee is intended to better synchronise skilling with services led growth, export opportunities and emerging technologies such as artificial intelligence. Healthcare skilling is prioritised through the expansion of Allied Health Professional institutions to produce 100,000 professionals over five years, alongside the training of 1.5 lakh caregivers under NSQF aligned programmes. New pathways across AVGC, design, tourism, hospitality, sports, animal husbandry and AYUSH are expected to generate non farm employment while meeting evolving labour market demand.
Inclusion and regional balance further anchor the employment strategy. The Divyangjan Kaushal Yojana and Divyang Sahara Yojana strengthen access to customised training and assistive technologies for persons with disabilities.
At the same time, infrastructure and cluster led initiatives, including 5,000 crore rupees per City Economic Region over five years for Tier II and Tier III cities, aim to catalyse local economic activity. A focused push for Purvodaya States and the North East integrates tourism, transport and services led job creation, aligning regional development with sustainable livelihoods.Overall, Budget 2026-27 reflects a maturing development approach that links rural transformation with skills, enterprise and regional growth. By aligning grassroots institutions, digital platforms and market-led livelihoods, the Budget lays the foundation for durable employment, resilient rural economies and inclusive national growth.
The writer is Partner, Livelihoods and Rural Development, Grant Thornton Bharat; views are personal
