"Indian Prime Minister Narendra Modi's government has unveiled its annual budget, aiming for steady growth in an uncertain global economy rocked by recent tariff wars. Finance Minister Nirmala Sitharaman presented the budget for the 2026-2027 financial year in Parliament on Sunday, prioritising infrastructure and domestic manufacturing, with a total expenditure estimated at $583bn. India's economy has so far weathered punitive tariffs of 50 percent imposed by United States President Donald Trump over New Delhi's imports of Russian oil."
"Despite the past year's challenges, the Indian economy has remained one of the world's fastest growing. The budget for the new financial year, which starts on April 1, projects gross domestic product (GDP) growth in the range of 6.8 to 7.2 percent, according to the government's annual Economic Survey presented in Parliament. It is a shade softer than this year's projected 7.4 percent but still outpaces estimates by global institutions such as the World Bank."
"To keep growth strong, the government said it will spend 12.2 trillion rupees ($133bn) on infrastructure in the new fiscal year, compared with 11.2 trillion rupees ($122bn) last year. It will also aim to boost manufacturing in seven strategic sectors, including pharmaceuticals, semiconductors, rare-earth magnets, chemicals, capital goods, textiles and sports goods while stepping up investments in niche industries like artificial intelligence."
The government presented the 2026-2027 budget focusing on infrastructure, domestic manufacturing and niche industries to sustain economic expansion. Total expenditure is estimated at $583 billion, with 12.2 trillion rupees ($133bn) allocated to infrastructure, up from 11.2 trillion rupees last year. GDP growth for the new fiscal year is projected between 6.8 and 7.2 percent, slightly below this year's 7.4 percent but ahead of many global estimates. Manufacturing support will target seven strategic sectors including pharmaceuticals, semiconductors, rare-earth magnets, chemicals, capital goods, textiles and sports goods, alongside investments in artificial intelligence. The government plans to lower the federal debt-to-GDP ratio and reduce the fiscal deficit while offsetting punitive tariffs through trade deals.
#indian-budget-2026-27 #infrastructure-spending #manufacturing-policy #gdp-growth-projection #trade-tariffs
Read at www.aljazeera.com
Unable to calculate read time
Collection
[
|
...
]