What is the projected GDP growth for India in the Union Budget 2026?

The Union Budget 2026 is likely to set a growth target of 8.5-9% for the upcoming year.

Which sectors will the Union Budget 2026 prioritize?

The upcoming budget is expected to prioritize MSMEs and export-oriented sectors due to global economic headwinds.

Will the RBI cut interest rates in 2026 according to Sonal Badhan?

Yes, the Economist at Bank of Baroda anticipates the RBI may cut its policy rate by 25 bps in its final policy for FY26.

Home / Business and Economy / Budget 2026: India Eyes 9% Growth, Boosts Capex

Budget 2026: India Eyes 9% Growth, Boosts Capex

12 Jan

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Summary

Union Budget 2026 likely to target 8.5-9% growth.
Capital expenditure to rise to Rs 12-12.2 lakh crores.
MSMEs and export sectors to be prioritized amid global headwinds.

Budget 2026: India Eyes 9% Growth, Boosts Capex

India's Union Budget 2026 is anticipated to set an ambitious growth target of 8.5-9% for the upcoming fiscal year. Economists project a significant increase in capital expenditure, aiming for Rs 12-12.2 lakh crores, signaling a strong focus on infrastructure development and economic expansion.

The budget is expected to prioritize support for MSMEs and export-oriented sectors, crucial for navigating intensifying global economic headwinds. While significant tax cuts are not foreseen, further rationalization of customs duties and potential interest subvention schemes for these key sectors are anticipated to boost competitiveness and resilience.

Furthermore, the Reserve Bank of India may consider a 25 basis points cut in its policy rate to stimulate growth. The government also plans to enhance its flagship Production Linked Incentive (PLI) scheme, potentially introducing new incentives for research and development and expanding coverage to emerging sectors like AI and robotics.