Summary
India has announced its budget for 2026-27, focusing on increasing infrastructure spending and supporting domestic manufacturing. The budget aims for fiscal responsibility while emphasizing sectors like rare earths and semiconductors. India expects slightly slower economic growth next year as global tensions, including U.S. tariffs, impact its economy.
Key Facts
- India's budget for 2026-27 focuses on infrastructure and domestic manufacturing.
- The country plans record spending on infrastructure projects such as roads, ports, and railways.
- Defence spending will increase by over 20% due to global geopolitical tensions.
- India aims to boost manufacturing in sectors like semiconductors and rare earths.
- No new personal tax cuts were announced; previous tax relief measures remain.
- India offers tax benefits for foreign cloud companies investing in data centers.
- The government targets reducing its fiscal deficit, the gap between its spending and income.
- Economic growth is projected to slow slightly next year due to tariffs and global uncertainties.
