OPINION | Union Budget 2026 reflects swadeshi economics, aspirational Bharat and India’s civilisational confidence

The commitment to ‘Swadeshi’ was amply reflected in this budget.

The Union Budget 2026–27 underlines, in a significant way, the Modi government’s approach towards an aspirational ‘Bharat’ that lives beyond the metros, along with a concerted effort to resurrect India’s civilisational past. This approach is overall rooted in the ideological framework of ‘Swadeshi Economics’, whose emphasis has always been on decentralisation through the growth of Micro, Small and Medium Enterprises (MSMEs).

Swadeshi Economics

At the core of ‘Swadeshi Economics’ lies ‘self-reliance’ for India, and Union Finance Minister Nirmala Sitharaman began her speech by stating, “Keeping Atmanirbharta (self-reliance) as a lodestar, we have built domestic manufacturing capacity, ensured energy security, and reduced critical import dependencies.”

The commitment to ‘Swadeshi’ was amply reflected as the Modi government announced a dedicated ₹10,000 crore SME Growth Fund. It has also proposed topping up the Self-Reliant India Fund, set up in 2021, with ₹2,000 crore to continue support to micro enterprises and maintain their access to risk capital.

Swadeshi Economics is not a regressive, inward-looking model; rather, it is one of the strongest votaries of reforms aimed at making life easier for ordinary citizens. This explains why organisations such as the Bharatiya Mazdoor Sangh (BMS) and Swadeshi Jagaran Manch (RSS) have supported over 350 reforms rolled out following Prime Minister Narendra Modi’s announcement on Independence Day in 2025. These include GST simplification, notification of Labour Codes, and rationalisation of mandatory Quality Control Orders.

The Finance Minister also stated in her budget speech, “High-level committees have been formed and, in parallel, the Central Government is working with State Governments on deregulation and reducing compliance requirements.”

Beyond Metros

Although the Modi government is known for its focus on rural India and smaller cities, this budget will be remembered for its ‘statement of purpose’, in which a central government has arguably, for the first time, announced top priority for tier-2 and tier-3 cities. At the beginning of her budget speech, the Finance Minister made it clear: “Cities are India’s engines of growth, innovation and opportunity. We shall now focus on Tier II and Tier III cities, and even temple towns, which need modern infrastructure and basic amenities.”

She further added, “This Budget aims to further amplify the potential of cities to deliver the economic power of agglomerations by mapping City Economic Regions (CERs), based on their specific growth drivers. An allocation of ₹5,000 crore per CER over five years is proposed for implementing their plans.”

Civilisational Connect

Several announcements in this budget clearly indicate the Modi government’s commitment to strengthening the presentation of India’s civilisational values while blending them with modernity. Consequently, India’s spiritual, religious and cultural centres are being rejuvenated. This comprehensive overhaul has already been witnessed in Ayodhya, Kashi, Kedarnath, Ujjain and Somnath, among others.

This work remains ongoing, and a new technology-driven thrust has been provided in this budget, as the Modi government now intends to establish “a National Destination Digital Knowledge Grid to digitally document all places of cultural, spiritual and heritage significance.”

The government is strategically linking India’s cultural heritage with tourism to create a self-sustaining ecosystem. The massive influx of devotees and tourists in Ayodhya, Kashi, Ujjain, Kedarnath and other spiritual centres stands as proof of concept. Accordingly, the government has decided to develop 15 archaeological sites, including Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur and Leh. These sites will “be developed into vibrant, experiential cultural destinations”.

In addition, the budget has placed renewed emphasis on India’s traditional medicine system, Ayurveda. The government has announced plans to set up three new All India Institutes of Ayurveda; upgrade AYUSH pharmacies and drug testing laboratories to enhance certification standards; expand the skilled workforce; and strengthen the WHO Global Traditional Medicine Centre in Jamnagar to bolster evidence-based research, training and awareness in traditional medicine.

Re-establishing Ayurveda on the global stage is a logical extension of Prime Minister Narendra Modi’s successful effort to establish Yoga internationally. This further reinforces his government’s connection with its core voters, who take pride in India’s rich civilisational heritage. Strengthening Ayurveda will also have a significant grassroots impact, as in rural and semi-urban India it is often the local Vaidya (Ayurvedic practitioner) who serves as the first line of care.

Conclusion

In a nutshell, this budget marks a milestone by placing significant emphasis on tier-2 and tier-3 cities. The Modi government recognises that aspirational Bharat lives beyond the metros and is increasingly conscious of, and committed to, pride in India’s civilisational past. This reality has been reflected election after election in the low voter turnout in large cities, in stark contrast to smaller towns and semi-urban areas, which consistently turn out in large numbers to vote for their preferred party and candidate.

(Arun Anand has authored two books on the RSS. His X handle is @ArunAnandLive.)

Views are personal, and do not represent the stand of this publication.