Union Budget 2026, presented on Sunday, February 1, laid out a broad reform and investment roadmap, with the government proposing targeted interventions across six key areas to strengthen India’s economic foundation and future growth potential.
While presenting the Budget, Nirmala Sitharaman said the government will focus on scaling up manufacturing in seven strategic and frontier sectors, aimed at enhancing domestic capabilities, reducing import dependence, and improving India’s competitiveness in emerging technologies and high-value industries.
Another priority highlighted was rejuvenating legacy industrial sectors, with an emphasis on modernisation, productivity improvements, and alignment with current market and sustainability requirements. The government believes revitalising traditional industries remains critical for employment generation and balanced regional development.
The Budget also places strong emphasis on creating champion MSMEs, recognising their role as a backbone of the economy. Policy interventions are expected to focus on improving access to finance, technology adoption, scale, and integration into global supply chains.
A powerful push for infrastructure forms another core pillar of the Budget strategy. Continued public capital expenditure is intended to support growth momentum, improve logistics efficiency, and crowd in private investment across sectors such as transport, energy, and urban development.
Ensuring long-term security and stability was identified as a key intervention area, reflecting the government’s focus on macroeconomic resilience, fiscal prudence, and policy continuity amid global uncertainties.
Finally, the Budget proposes developing city economic regions, aimed at creating integrated urban growth hubs that can drive industrial activity, services expansion, and employment while easing pressure on existing metropolitan centres.
Together, these six intervention areas frame the government’s approach in Union Budget 2026, signalling a combination of manufacturing-led growth, infrastructure expansion, and structural reforms to support India’s medium- to long-term economic trajectory.
