India's latest budget prioritizes fiscal consolidation with a gentle approach, focusing on capital expenditure to counter elusive private investment and geopolitical risks. The industrial strategy aims to boost electronics, support labor-intensive sectors against rising tariffs, and derisk critical supply chains. However, risks include state fiscal wobbles, potential disruption in rural employment schemes, and neglect of mega-city livability.
Union Budget 2026-27: Business as usual with capex push, modest fiscal consolidation and risks
