Budget 2026 fiscally prudent, private sector must lead growth, says Amitabh Kant

The Union Budget 2026-27 is a fiscally prudent one and focuses on manufacturing and infrastructure which will remain key for growth and job creation, Former NITI Aayog CEO Amitabh Kant said.

• Budget 2026-27 focuses on manufacturing, infrastructure, and job creation
• Fiscal deficit reduced to 4.3%, debt-to-GDP ratio down to 65.6%
• Public capital expenditure raised to Rs 12.2 lakh crore for infrastructure boost

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The Union Budget 2026-27 is a fiscally prudent one and focuses on manufacturing and infrastructure which will remain key for growth and job creation, Former NITI Aayog CEO Amitabh Kant told Moneycontrol.

“In the midst of great global turmoil, there's huge disruption taking place over the world and global supply chains are broken. In the midst of all this, it's very important that we remain fiscally responsible to have brought down the fiscal deficit down to 4.3% and to have brought down the debt to GDP ratio to 55.6%,” Kant said.

Kant highlighted that the Budget 2026 needs to be looked at in terms of how it is handling the issue of US tariffs.

Kant said that since the budget focuses on sectors like textiles, footwear, leather as well as marine sector, which have implications for jobs, it will eventually give a big thrust and drive to urbanisation, which will be critical for the country’s growth story.

The Union Budget 2026 has aimed to provide a boost to the country’s infrastructure. The government has increased public capital expenditure to Rs 12.2 lakh crore in FY 2026-27.

The government will also set up an Infrastructure Risk Guarantee Fund to strengthen the confidence of private developers regarding risks during infrastructure development and construction phase.

Kant noted India’s long term growth has to be driven by the private sector. “In the long term, the challenge for India is really to grow at 8-9% over the next 22 years to be Viksit Bharat by 2047. That can't be done on the back of public spending,” Kant said. He added that the public spending has already reached its peak. “You need the private sector to drive India's growth story in the long run."

Calling the Budget ‘on course for Viksit Bharat 2047’, he said that the private sector needs to invest in infrastructure and pointed out the need for higher Foreign Direct Investments (FDI).

“We need to do a little more on the consumption story, and need to get Foreign Direct Investment back in a very, very big way. We need to promote and market India in a far more comprehensive manner,” Kant said.

Presenting the Budget 2026, Finance Minister Nirmala Sitharaman on February 1 said that the budget is inspired by three kartavyas which is to accelerate and sustain economic growth, to fulfil aspirations of  people and build their capacity, and to ensure that every family, community, region and sector has access to resources, amenities and opportunities for meaningful participation.