India Proposes Higher Capital Spending and Targeted Manufacturing Support in New Budget

Finance Minister Nirmala Sitharaman presented the 2026/2027 budget on Sunday with proposals for higher capital spending to boost manufacturing and infrastructure.

Insights:
Finance Minister nirmala sitharaman presented the 2026/2027 budget to the Parliament of India ININon Sunday. The fiscal plan proposes to increase capital spending to 12.2 trillion rupees in 2026/27. These proposals change the national budgetary commitments and signal a strategic shift in policy priorities for manufacturing, infrastructure, and technology across the country.
India's Finance Minister Nirmala Sitharaman waves as she holds a folder bearing the Government of India's emblem, while posing with her officials before leaving her office to present the annual federal budget in parliament, in New Delhi, India, February 1, 2026. REUTERS/Altaf Hussain
India's Finance Minister Nirmala Sitharaman waves as she holds a folder bearing the Government of India's emblem, while posing with her officials before leaving her office to present the annual federal budget in parliament, in New Delhi, India, February 1, 2026. REUTERS/Altaf Hussain
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