Budget 2026 should focus on private capex and long-term reforms, says Crisil’s Chief Economist Joshi
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Ahead of the Union Budget 2026, Crisil Chief Economist Dharmakirti Joshi said the government should focus on supporting private investment while maintaining macroeconomic stability.
Joshi said the Budget is being prepared in a relatively stable and comfortable economic environment. “The growth and inflation mix has turned out to be much better than expected,” he said, adding that global growth has also held up despite high volatility, rising tariffs, and policy uncertainty across major economies.
The main challenge, he noted, in this phase has been volatile capital flows. “Capital flows were quite volatile, and that translated into weakness and volatility for the currency as well.” However, India’s macro story remains largely intact, he said.
Maintaining strong macroeconomic fundamentals
According to Joshi, the priority for the government should be maintaining strong macroeconomic fundamentals. “It is important to keep the fiscal deficit under check and preserve macro stability,” stressing that this is crucial in an uncertain global environment.
The second priority should be to ensure private sector investment gains momentum and remains on course. “Private corporate investment is showing signs of a pickup, but it needs to become more sustained,” Joshi said. He added that the government can help by improving the ease of doing business and providing targeted support to select sectors. “Support to a few sectors, especially the new-age sectors, can make a difference,” he said.
January 2026
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According to Joshi, the Budget should continue to push forward with reforms. “The process of macroeconomic reforms has already started in 2025, and the government needs to keep pushing the pedal hard,” he said.
The Budget should balance fiscal discipline with measures that encourage private capital expenditure and long-term reforms, laying the groundwork for steady and sustainable growth, he added.
Budget should support job creation
Experts have also outlined their expectations ahead of the Union Budget. Industry surveys and advisory firms say the Budget should support job creation, infrastructure development, and exports while maintaining fiscal prudence.
Many analysts have called for clear tax policies and steps that boost private investment, export competitiveness, and growth in manufacturing and services. They said strong growth and predictable rules will help build investor and business confidence.