The Indian economy is currently standing at a point which in the language of economics is called ‘scarce equilibrium’. Union Finance Minister Nirmala Sitharaman said this while replying to the budget discussion in the Rajya Sabha on Thursday. He said that the period of strong GDP growth and historically low inflation in the country is not a coincidence or a fluke. He described this as the result of the government’s meticulous planning, tireless efforts and timely action. Sitharaman stressed that Budget 2026-27 will further strengthen the foundation of making India a developed nation by 2047.
GDP 7.4% and inflation 2%: In words of figures, the Finance Minister presented the government’s side with the figures in the House. Citing the first advance estimates of the National Statistical Office (NSO), he said that the real GDP growth rate for the financial year 2025-26 is estimated to be 7.4%, while the nominal growth will be around 8%. The biggest relief is on the inflation front, where CPI inflation has come down to around 2%. Sitharaman called it India’s “golden moment”.
Booster dose to MSMEs
Describing small and medium enterprises as the backbone of the economy, the Finance Minister said that the treasury has been opened for them.
- New Fund: Rs 10,000 crore has been allocated in the budget for SME Development Fund.
- Cluster Revival: The government has planned the revival of 200 old industrial clusters across the country. The Finance Minister said that these steps will have a direct impact on employment generation and increasing domestic manufacturing capacity.
- Mission 2047: The government has set an ambitious target for the service sector with an eye on 10% global share in the service sector. The Finance Minister announced that India’s share in the global services market aims to be 10% by 2047. For:
- A high level ‘Education to Employment’ committee is being formed.
- This committee will focus on areas like IT, Fintech, Logistics and AI.
- Opportunities in Healthcare: 1 lakh allied health professionals to be prepared in the next 5 years. For this, Rs 1,000 crore has been allocated this year, which will give a boost to medical tourism.
Better use of funds than UPA
Responding to the opposition’s allegations during the budget discussion, Sitharaman held a mirror to the UPA government on the utilization of funds. He said that in the last 10 years only Rs 37,000 crore could not be spent on 14 social sector schemes, whereas during the UPA tenure this figure was Rs 94,000 crore. He appealed to the states to actively participate in the schemes announced in the budget and the funds of any state have not been stopped.
At the end of his speech, the Finance Minister described energy security and self-reliance as the center of future planning. He said that this budget is not just an account of one year, but a roadmap for the development journey of the next two decades. Nirmala Sitharaman said in the Rajya Sabha that the balance of 7.4% GDP and 2% inflation is no coincidence. A target of Rs 10,000 crore has been set for MSMEs and 10% global share in the service sector.
