economy
February 1, 2026
India's finance minister projects modest fiscal consolidation in budget
Nirmala Sitharaman sees small improvements in fiscal deficit and debt-to-GDP ratio
TL;DR
- Fiscal deficit projected to fall to 4.3% of GDP in 2026-27.
- Debt-to-GDP ratio expected to decrease to 55.6% in 2026-27.
- Government to encourage manufacturing in seven key sectors: semiconductors, rare-earth magnets, pharmaceuticals, chemicals, capital goods, textiles, and sports goods.
- Budget addresses global uncertainties like disrupted supply chains and new technology demands.
- India's economy is projected to grow between 6.8% and 7.2% in fiscal year 2027.
- Emphasis on global market integration, exports, and attracting long-term investment.
- PwC India views the budget as a catalyst for national transformation and future readiness.
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