The Union Budget 2026 arrives at a critical juncture for the Indian economy, as global deglobalisation trends, domestic growth imbalances, and rapid technological change reshape policy priorities. With a strong emphasis on infrastructure-led development, capital expenditure, artificial intelligence, and risk mitigation, the Budget seeks to strengthen India’s economic foundations while preparing for long-term competitiveness.
Agriculture: Addressing the Growth Gap
Economists have flagged agriculture as a sector requiring urgent attention, particularly given its divergence from overall economic growth.
Dr. Kedar Vishnu, Associate Professor of Economics, Department of Liberal Arts, Humanities, and Social Sciences, Manipal Academy of Higher Education, Bengaluru, said:
“At a time when agriculture accounts for nearly 17% of GDP but is growing at barely 3% in real terms and less than 1% at current prices for Financial Year 2025–26, the Union Budget 2026–27 must urgently address the widening divergence between overall economic growth and agricultural performance. With the sector receiving ₹1.378 lakh crore in the Union Budget 2025–26—only 2.72% of the total expenditure—Policymakers expect a decisive scale-up of allocations to at least ₹2 lakh crore in the upcoming budget. This enhanced outlay should prioritise investment-led growth through higher capital expenditure, strengthened agricultural R&D, technology deployment, and innovation-driven productivity improvements to ensure income stability and long-term sustainability of the sector.”
The call highlights the need for capital investment and productivity-led reforms rather than short-term support mechanisms.
Building Domestic Strength in a Deglobalising World
As global supply chains fragment, policy experts see infrastructure and industrial capability as essential to India’s resilience.
Dr. Abhishek Rohit, Professor of Economics and Associate Dean at TAPMI Bengaluru, Manipal Academy of Higher Education, Bengaluru, said:
“Deglobalisation, increasingly shaping global policy, calls for a Union Budget that strengthens India from the ground up. Better roads, ports and power must make it easier to do business. Capital spending should visibly improve cities and industrial hubs. Small firms need steady credit and export support. Clear focus on defence, electronics, renewables and food processing can create jobs. In a divided world, India’s future rests on how confidently it builds at home.”
The Budget’s continued emphasis on capital expenditure reflects this strategic shift towards domestic capacity building.
AI Emerges as a Present-Day Growth Engine
From a marketing and communications perspective, the Budget signals a clear move from AI experimentation to large-scale adoption.
Mr. Dinakar Menon, Managing Partner and Business Head of BigTrunk Communications, said:
“When we look at this Budget through the lens of the marketing industry, the message is clear that artificial intelligence is no longer a future tool but a present-day growth engine. The decision to increase funding for AI-powered, industry-linked labs in Tier 2 and Tier 3 institutions is especially important because it expands the talent and innovation base beyond metros and brings applied intelligence closer to real business problems.”
He added that the policy approach balances opportunity with responsibility:
“The formation of a standing committee to study the impact of emerging technologies on jobs also reflects a balanced approach that recognises both opportunity and responsibility. With sustained support through national AI and research missions, India has a chance to build a marketing ecosystem that is smarter, more export-ready, and globally competitive while remaining inclusive and future-facing.”
Infrastructure and Real Estate: Unlocking Private Capital
The real estate and infrastructure sectors have welcomed the introduction of the Infrastructure Risk Guarantee Fund and CPSE REITs as decisive interventions.
Shiv Garg, Director, Forteasia Realty Pvt. Ltd., said:
“The Infrastructure Risk Guarantee Fund provides essential support which our sector requires at this moment. Private developers have long hesitated on Tier-II/III projects due to construction phase risks. The partial credit guarantee system will enable billions in dormant assets to be released for investment while dedicated CPSE REITs help with asset monetization efforts. The combination of ₹12.2 lakh crore capex with other elements creates new business possibilities which will arise throughout India.”
Aman Gupta, Director, RPS Group, noted:
“The Risk Guarantee Fund has the potential to transform infrastructure financing according to our industry. Lenders will now confidently fund projects in cities with 5+ lakh population, addressing our sector’s biggest pain point. The CPSE REITs proposal monetizes massive government assets, creating liquidity. This budget positions real estate as a key driver of India’s urban transformation story beyond metros.”
Anurag Goel, Director, Goel Ganga Developments, added:
“We support the government’s infrastructure risk mitigation efforts because of its specific focus on targeted solutions. The Guarantee Fund directly addresses lender apprehensions that have constrained private investment in emerging cities. CPSE REITs will create benchmark assets, improving market confidence. The comprehensive framework establishes a foundation for Indian real estate development through its combination of public capital expenditure and private sector involvement.”
Vijay Raundal, Managing Director, Teerth Realties, said:
“The budget solves essential problems of real estate which involve risk assessment and capital reallocation. The Guarantee Fund de-risks construction financing for developers, while CPSE REITs unlock government asset value. The market trends indicate that Tier-II/III cities will experience the most development. The infrastructure-led development model which we have promoted for sustainable urban expansion received validation from our sector.”
Outlook
Overall, Union Budget 2026 reflects a pragmatic shift toward execution-led growth balancing capital investment, technology adoption, and risk mitigation. From agriculture and AI to infrastructure and urban expansion, stakeholders view the Budget as a signal of continuity, confidence, and domestic capacity building in an increasingly uncertain global environment.
The effectiveness of implementation will now determine how quickly these policy signals translate into on-ground economic outcomes.
Last Updated on: Tuesday, February 3, 2026 9:13 pm by Monisha Angara | Published by: Monisha Angara on Tuesday, February 3, 2026 9:13 pm | News Categories: Business
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