India's Finance Minister Nirmala Sitharaman has presented her annual budget for 2026-27, announcing higher infrastructure spending and measures to support domestic manufacturing amid rising global uncertainties.
India is expected to close this financial year with 7.4% gross domestic product (GDP) growth according to the country's Economic Survey, but economic expansion will slow slightly next year as US President Donald Trump's 50% tariffs on Indian exporters start taking a greater toll.
The budget has laid a strong emphasis on fiscal restraint, targeting a lower deficit for the upcoming financial year. The fiscal deficit is the gap between the government's total expenditure and its total revenue.
Here are five key takeaways from the budget announcements:
Infrastructure such as road, port and railway projects has been a mainstay focus of the Narendra Modi government for the past decade, and this budget continues to expand allocations to these sectors.
