On Magha Purnima, coinciding with the birth anniversary of Guru Ravidas, Finance Minister Nirmala Sitharaman presented India’s Union Budget 2026–27, On February 1, 2026.
Government marks a pivotal step toward “Viksit Bharat” by 2047, with a strong emphasis on youth empowerment, manufacturing resurgence, infrastructure modernization, and fiscal discipline in the face of global headwinds like geopolitical tensions and supply chain disruptions. This budget builds on the interim measures from prior years, allocating resources to scale up economic multipliers while maintaining a glide path for debt sustainability, reflecting the government’s confidence in sustaining 7-8% GDP growth, over 350 reforms have been rolled out, including GST simplification, notification of Labour Codes, and rationalisation of mandatory Quality Control Orders.
The Government’s ‘Sankalp’ is to focus on the poor, underprivileged and the disadvantaged. She Titled the Budget 2026-2027 as “Yuva Shakti-driven Budget” and as the budget prepared very first time in Kartavya Bhawan, it contains 3 Kartavyas to delivered the Sankalp.
- First Kartavya – To Accelerate and sustain economic growth
- Second Kartavya – To Fulfil aspirations of our people
- Third Kartavya – To Vision of Sabka Sath, Sabka Vikas
The budget outlines a total expenditure of ₹53.5 lakh crore, reflecting a moderated 7.7% increase over FY26 revised estimates to balance growth imperatives with consolidation efforts.
Under first Kartavya – it’s focused on the Manufacturing – Strategic and Frontier Sectors as the interventions in six areas: i) Scaling up manufacturing in 7 strategic and frontier sectors; ii) Rejuvenating legacy industrial sectors; iii) Creating “Champion MSMEs”; iv) Delivering a powerful push to Infrastructure; v) Ensuring long-term energy security and stability; and vi) Developing City Economic Regions.
Under Second Kartavya – It’s focused to fulfil aspirations and build capacity. Close to 25 crore individuals have come out of multidimensional poverty through a decade of the government’s sustained and reform-oriented efforts.
Under Third Kartavya – a) Increasing farmer incomes through productivity enhancement and entrepreneurship, with special 15 access attention to small and marginal farmers; b) Empowering Divyangjan through to livelihood opportunities, training and high-quality assistive devices; c) Empowering the vulnerable to access mental health and trauma care; d) Focus on the Purvodaya States and the North-East Region to accelerate development and employment opportunities.
All the 3 Kartavyas were focused on multiple area to promote, grow, increase the capabilities long with the women safety with their growth and future, 1 Hostel in each district allotted which is great news for many girls who struggle to find stay nearby hometown, Offices or institutions,
Also, Major decisions were shared by Finance Minister Nirmala Sitharaman to support the MSME (Micro, Small, Medium and Enterprises), it’s relief for the many Struggling entrepreneurs to develop the ideas as reality and for any support system in order to grow.
- Scaling up manufacturing in 7 strategic and frontier sectors
- Biopharma SHAKTI – ₹10,000 crore initiative over 5 years for domestic biologics and biosimilars production.
- India Semiconductor Mission (ISM) 2.0 will be launched.
- Electronics Components Manufacturing Scheme to ₹40,000 crore, to increase the outlay.
- Rare earth Corridors to support the mineral-rich States of Odisha, Kerala, Andhra Pradesh and Tamil Nadu.
- Schemes to establish 3 dedicated Chemical Parks, to enhance domestic chemical production and reduce import dependency.
- For Building Strong Capital Goods capability
- Hi-Tech Tool Rooms will be established by CPSEs at 2 locations.
- Scheme for Container Manufacturing with a budgetary allocation of ₹10,000 crore
- ‘Mahatma Gandhi Gram Swaraj’ initiative to be launched to strengthen khadi, handloom and handicrafts.
- Rejuvenating Legacy Industrial Sectors
- Scheme to revive 200 Legacy Industrial Clusters
- Champion MSMEs – The Budget Introduces 3-pronged approach to help MSMEs grow as ‘Champions’:
- Equity support – ₹10,000 crore SME Growth Fund,
- to create future Champions & Top up the Self-Reliant India Fund set up in 2021, with ₹2,000 crore to continue support to micro enterprises.
- Maximizing TReDS’s impact.
- To develop a cadre of ‘Corporate Mitras’, especially in Tier-II and Tier-III towns to help meet MSMEs compliance requirement.
The way budget take the stand for the entrepreneurs & entrepreneurship, it’s expected to have major shift in MSMEs and growth expected, its upcoming schemes are going to support more and improve quality issues, the industries are currently facing. Also, MSMEs growth is going to contribute in India GDP, as from last FY25 it’s around 33%.
Industries are expecting to focus on increasing the Indian-Export, Swadeshi campaign and Swadeshi sprit are increasing together we can and we’ll.
Overall, we can say it’s a Swadeshi Budget for Swadeshi Bharat.
– Priya Kumari, Research Assistant
