India’s budget for 2026-27 looks broadly apt for the moment, with capex-led growth the order of the day. But as fiscal policy adopts a distant debt target, the Centre must remain adaptive—and ready to rein back its big-spender instincts should aggregate demand spring a surprise.
India's budget doubles down on a tried and tested formula—with debt reduction as a distant target
India's budget for 2026-27 looks broadly apt for the moment, with capex-led growth the order of the day. But as fiscal policy adopts a distant debt target, the Centre must remain adaptive—and ready to rein back its big-spender instincts should aggregate demand spring a surprise.
India kept calm and carried on this fiscal year, with a GST spur for retail offtake, an urgency for foreign trade deals and a few tariff tweaks for factory-cost relief making up the bulk of our response to trade adversity.