IN HER NINTH consecutive Budget, finance minister Nirmala Sitharaman laid down India’s growth blueprint via a major thrust on manufacturing, MSMEs, industries, and public capital expenditure. Budget 2026 has an overarching philosophy of “strategic resilience”, in a global economy divided by geopolitical disruptions. Tax tweaks have been made to provide a further fillip to industry, and gain a competitive edge in the global markets. During a post-Budget press conference, Sitharaman stressed on reforms for sustained economic growth. Edited excerpts:

On reforms and growth

We are laying the path and giving a push to maintain the growth momentum. To ensure momentum and sustained economic growth, we are primarily looking at an ecosystem with structural reforms, which will go on. Reforms will continue, with the aim to improve productivity and ensure employment generation. The 21st century is driven by technology. We will ensure that technology is brought in to benefit the common man. And above all is inclusive development, with schemes having good allocation.

On fiscal deficit

It will be gradual. On the fiscal deficit [front], drastic changes do not go down well. One section or the other gets hurt. We will have to be gradual, but yet, keep it well within the band which gives confidence. And to show that we care for fiscally prudent management, there is no point in me dropping it to, let’s say, 4% of GDP. It has to be steady so that the economy [moves at] a steady speed. So, it is a responsible and a realistic number. We should achieve it, and equally not bring in any kind of turbulence anywhere.

On capital expenditure

The advantage we gained since Covid by increasing public capital expenditure will continue. We have announced a public capex of ₹12.2 lakh crore this time. It is 4.4% of GDP. It is the highest, at least in the last 10 years. Sustained increment towards public capital expenditure allocation has not taken place earlier.

We will have dedicated freight corridors. I have highlighted the plan for 20 new national waterways... Developing city economic regions is a very big measure we are coming up with. Seven high-speed rail corridors have also been announced.

On biologics and biosimilars

There is going to be a big change in the way we are looking at enhancing R&D capacity. A ₹10,000-crore initiative for domestic biologics and biosimilar products is a clear message, backed with substance, that India’s lead in the pharmaceutical sector should be kept intact, while bringing in newer ways of helping the sector.

On the semiconductor mission

There were two announcements on the semiconductor mission, which will improve the India Stack as well as IP-related matters. The Electronics Component Manufacturing Scheme is a major encouragement for [the] electronics [sector] to become self-sufficient. We have also announced the establishment of rare-earth corridors so that India can meet its own requirements. States where rare-earth corridors will be established have been identified. It will have a multiple decadal impact on the economy.

On legacy industrial clusters

Legacy industrial corridors have got saturated. Manufacturing is constricted because they are not able to bring in robotics, etc. We want to upgrade these clusters so that they become cost competitive and efficiency comes into these places.

On championing MSMEs

MSMEs will be given all support and a three-pronged approach will be followed. We are giving equity, liquidity, and professional support. The equity support is [by way of] the ₹10,000-crore SME fund. MSMEs should not face any dearth of resources for equity. Similarly, they should not feel any liquidity [issues] because the TReDS [Trade Receivables Discounting System] platform will now be treated almost as a security-backed instrument, and they will be [entitled] to discounts.

On a high-level committee for banks

The terms of reference of the high-level committee will be prepared. We are looking at the committee to go into the entire expanse of the banking sector so that they come up with recommendations, which will help plan for ‘banking for 2047’. By the time we become Viksit Bharat — for which 2047 is the goal — we need to understand the steps that need to be taken in the banking sector. And based on the recommendations, we will go forward.