The Indian budget was presented in Parliament by the Finance Minister, Nirmala Sitharaman, a little over a fortnight ago, but certain aspects still remain unclear or perhaps have become irrelevant, as several major economic developments in India criss-crossed with it this year. I have always maintained that the Indian budget is a useful comparison point for ours, not only because it is released around four months earlier, but also because it sets the precursor for what we ought to focus on, especially from a South Asian perspective. Ironically, many economic pundits have termed this year’s Indian budget a non-event, or even boring, as it was overshadowed by a series of other major developments.

First, there was the overhang of a massive and broad-based trade deal inked between the European Union and India just prior to the presentation of the budget. Second, less than 24 hours after the budget was presented, the USA and India softened their respective hard lines on mutual trade, though the finer contours remain fuzzy, with both sides claiming different interpretations. Third, the Leader of the Opposition, Rahul Gandhi, crossed swords with the government, challenging the very basis of the budget on grounds that it compromises India’s economic future and sovereignty, ultimately leading to a stalemate and the suspension of Parliament. The bottom line is that the budget itself lost some of its efficacy and relevance amid these three major developments.

However, it is important to cut through this sudden maze of coinciding events and objectively evaluate what the budget itself focused on and what plan this government has for India’s growth and economic development in 2026–27, with or without the trade breakthroughs with the EU and the USA. Interestingly, a close analysis shows that the Finance Minister threw caution to the wind and refreshingly refrained from indulging in politics. Instead, she ensured that the budget single-mindedly focused on where India should be in 2047, marking 100 years of Independence. With this long-term objective in view, she outlined reforms to be implemented over the next four years to help achieve that vision.

The policy measures seek to build on the improved foundations of the Indian economy and enhance state capacity, industrial depth and long-term economic discipline. It is this confidence in Indian industry that appears to underpin the government’s willingness to clinch trade deals with the EU and the USA. These agreements are a two-way street, exposing Indian industry to levels of foreign competition it has not previously faced, albeit with the government firmly backing domestic industry. In that sense, the budget reads as a workmanlike effort, devoid of dramatic flourishes. It would be a mistake to assess it purely through conventional number-crunching. While the fiscal boxes are largely ticked and the budget appears balanced, its real strength lies in unleashing reforms, particularly in taxation and ease of doing business, aimed at taking industrial India to the next level of manufacturing. Sadly, for Pakistan, the trend has been in the opposite direction, with an increasingly unfriendly business environment and a revenue machinery that often coercively extracts productive capital from the private sector to sustain an ever-expanding state footprint.

Another clear positive of the budget is its emphasis on deliverables, ensuring access to electricity, banking, cooking gas, drinking water, education and transport for the general population. A deeper reading also reveals the influence of the highly regarded Indian Chief Economic Adviser, Anantha Nageswaran, whose long-term outlook is evident in the budget’s emphasis on sustainability. Employment-linked incentive schemes, corporate internships, and a boost to technical and industrial apprenticeships reflect this approach. These are complemented by substantial direct tax relief and earlier GST rationalisation announced in September 2025.

Importantly, the budget enjoys sufficient fiscal leeway to focus on the long term, particularly by boosting manufacturing in areas where India seeks to build domestic capability. It aligns closely with the latest Economic Survey, which stresses the need to deepen India’s industrial base by encouraging sustained private-sector investment. The focus is not merely on generating growth, but on pursuing growth that safeguards sovereignty in a world where access is contested and self-reliance is strategic. The Economic Survey underscores exports as the central mantra, bringing the discussion back to the free trade agreements India has signed with developed countries over the past five years. These agreements commit the government to support domestic industry in adopting manufacturing discipline, improving efficiency and productivity, and developing the capacity to compete globally, while continuously strengthening the country’s manufacturing backbone.

Conclusion: Full marks to Ms Sitharaman. All eyes are now on our own Finance Minister, with the hope that he, too, will deliver a sustainable path forward in his upcoming budgetary announcements in May/June 2026.

Dr Kamal MonnooThe writer is an entrepreneur and economic analyst. Email: kamal.monnoo@gmail.com

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