Ahead of the Union Budget 2026-27, Prime Minister Narendra Modi held consultations with eminent economists, sectoral experts, and key officials from NITI Aayog to discuss priorities and measures to support sustained economic growth. The meeting, attended by Finance Minister Nirmala Sitharaman, NITI Aayog Vice Chairman Suman Bery, CEO BVR Subrahmanyam, and other experts, focused on gathering insights and recommendations ahead of the budget scheduled for February 1, 2026.

According to reports, the upcoming Union Budget is likely to reinforce India’s growth trajectory by supporting strong domestic demand, complementing the Reserve Bank of India’s growth-oriented monetary policy stance. The EY Economy Watch report highlighted that while certain revenue sacrifices may occur due to income tax and GST reforms, additional non-tax revenue receipts and a reduction in budgeted revenue expenditure may allow the government to meet its fiscal deficit and capital expenditure targets. Recently announced revenue-enhancing measures, including excise duty on tobacco products and the national security and public health cess, are expected to further support budget objectives.

The Confederation of Indian Industry (CII) proposed a comprehensive set of reforms to drive investment-led growth across public, private, and foreign sectors. Key suggestions include:

• Increasing central capital expenditure by 12% and providing 10% additional capex support to states in FY27.

• Launching a Rs 150 lakh crore National Infrastructure Pipeline (NIP) 2.0 covering the period 2026-2032, aimed at enhancing infrastructure development and creating economic multipliers.

• Offering incremental tax credits or compliance relaxations for firms achieving significant new investment, production, or tax contribution milestones, incentivising private sector participation.

• Establishing an NRI Investment Promotion Fund to attract overseas Indian capital into productive sectors, further boosting domestic investment and employment.

The consultations with economists and experts also included discussions on sector-specific strategies, measures to improve ease of doing business, and policies to enhance India’s global competitiveness. Emphasis was laid on ensuring that the budget supports sustainable growth while maintaining fiscal discipline and creating a robust environment for both domestic and foreign investors.

The Union Budget 2026-27 is expected to balance fiscal prudence with growth-oriented measures, including targeted fiscal support for key sectors, infrastructure expansion, and reforms to encourage private and foreign investment. By leveraging inputs from policymakers, economists, and industry representatives, the government aims to craft a budget that accelerates India’s economic momentum, strengthens domestic demand, and reinforces the country’s position as one of the world’s fastest-growing major economies.

In conclusion, PM Modi’s engagement with economists and sectoral experts reflects a collaborative and data-driven approach to the Union Budget 2026-27, ensuring that policy measures are grounded in expert insights and aligned with India’s broader economic objectives. With suggestions from bodies like CII and focus on infrastructure, fiscal support, and investment incentives, the upcoming budget is set to play a pivotal role in driving sustainable and inclusive growth for the nation.

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