Budget 2026-27 Balances Fiscal Discipline with Growth, Says Economic Affairs Secy

Addressing a post-Budget interactive session organised by the Confederation of Indian Industry (CII) here, she said India's economy has shown strong resilience despite global uncertainties, supported by a stable financial system that has laid a firm foundation for long-term growth.

"A stable financial system has helped reduce risks and has created a strong base for sustained economic growth," Thakur said.

Thakur stressed that the role of industry and the private sector is critical in taking India's growth story forward. She said closer cooperation between the government and industry is essential to drive investment, productivity and long-term growth.

Reaffirming the government's commitment to macroeconomic stability, she said fiscal discipline will continue alongside efforts to support economic expansion.

Speaking on state finances, Thakur said states must manage their resources carefully in line with Finance Commission guidelines. She added that the 50-year interest-free loans to states are aimed at supporting productive capital expenditure and boosting long-term growth.

She also highlighted that the Budget places strong focus on manufacturing and services, which remain the main pillars of growth, along with targeted skill development initiatives.

Pointing to opportunities for industry, she said sectors such as pharmaceuticals, textiles, chemicals and other high-growth areas can benefit significantly.

She noted that nearly 70 biologics and biosimilars are expected to go off-patent in the coming years, creating a major opportunity for Indian pharma companies.

Chief Economic Adviser V. Anantha Nageswaran said the Budget should be seen as part of a continuous reform process rather than a one-time exercise. He said the government is focusing on strengthening structural reforms while maintaining fiscal prudence, strategic resilience and long-term competitiveness, in line with the Economic Survey.

Nageswaran highlighted initiatives such as the rare earth corridor, support for construction equipment, chemicals and the biopharma mission as reflections of India's strategic priorities in an uncertain global environment.

He also said measures such as customs duty reductions and exemptions on select electronic components will help bring down input costs and improve manufacturing competitiveness.

Secretary of the Department of Financial Services, Nagaraju Maddirala, spoke about the proposed High-Level Committee on Banking for Viksit Bharat. He said the committee will focus on expanding access to credit, encouraging banks to grow in size, and strengthening their ability to fund large corporate projects.

Department of Expenditure Secretary V. Vualnam said the Budget continues to focus on improving the quality of spending, with higher allocations for key social schemes such as the Pradhan Mantri Awas Yojana and Pradhan Mantri Gram Sadak Yojana.

- IANS