India's 2026 budget: Growth with a tighter wallet
India's 2026 Union Budget focuses on keeping the country on its growth path while tightening government spending.
S. Mahendra Dev, who heads the Economic Advisory Council to the PM, says the big goal is to keep the fiscal deficit under 4.5% of GDP and central debt close to 56.1% of GDP, ensuring India doesn't overspend while still pushing for progress.
Why should you care?
India's current economy has been described as a "Goldilocks zone"—not too hot, not too cold—with solid growth (projected at 7-7.5% in FY26 or 2026), low inflation (averaged 2.3% in 2025 until November), and lower interest rates thanks to RBI cuts.
The budget will pump money into public projects to spark even more private investment, which is already climbing fast.
India aims for smart, sustainable growth without racking up too much debt.