No key Reform push ::: Budget suffers from one major defect — its business-as-usual approach

When it comes to BUDGET making, the Modi Govt has two problems.

One, it does not undersrand much about Economy and secondly -- it understsnds the Politics of Economy -- or political economy much better. 

Hence it is always over cautious. In Defence matters; it is aggressive and slso assertive. 

In politics, its superb and BJP has almost achieved one nation-one party nilestone. But when it comez to Reform and hard core Economy - the Modi govt. has been much cautious -- either 2014 or 2026 -- that is after 12 years in power. 

So in Budget 2026 -- no steps were taken to reduce gatekeepers and rent-seekers, who increase the cost of production in India. 

Moreover, Similarly, reforming the archaic agricultural distribution system has not been unlocked. And this means there will be huge loss in this sector either. 

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Except for offering a tax holiday for data centres set up by foreign investors, Nirmala Sitharanan had nothing worthwhile, either in terms of incentives or reforms. 

 Ms Sitharaman continued fiscal consolidation by lowering the fiscal deficit to 4.3 per cent in the financial year 2026–27 from 4.4 per cent in the fiscal year 2025–26. Similarly, she did not splurge on either populist policies or growth-focused capital spending. 

Despite Operation Sindoor, capital expenditure grew merely from Rs 11.11 lakh crore to Rs 12.2 lakh crore in FY26.

This is the kind of financial discipline that global investors and credit rating agencies want governments to have. However, the Budget suffers from one major defect — its business-as-usual approach. 

When protectionism is rising, and great powers are forcing middle powers to choose sides, India cannot buy time; it must set its house in order and make itself attractive for investors.

Pro Govt views however ;;; - 

Bottom line:

Budget 2026 will not excite those who look for giveaways.

It will reassure those who understand statecraft.

It is a budget that assumes India’s rise is inevitable but only if policy remains patient, boring, and relentless.

That, arguably, is the hardest kind of leadership.  

But ....

The reality check is ☆ *** 

At a time when China has emerged as the second biggest world economy and it is now moving to the top position, India could have taken some bold steps to reach to the third position. 

The Indian economy is still way behind the $5 billion economy mark, which the government had promised to achieve in 2024. 

Economists also believe that Nirmala Sitharaman missed the big-ticket reforms like lowering tax rates or simplifying tax structures, bold deregulation, structural labour and land reform.

Privatisation of loss-making PSUs or major policy announcements also did not come..

The finance minister attempted some structural and policy pushes, particularly aimed at longer-term industrial and economic goals rather than one-off headline reforms. 

She put some extra thrust on renewed manufacturing and strategic sectors like those of semiconductors and rare-earth corridors to deepen domestic industrial capacity.

But FM Nirmala Sitharaman should be credited for custom rationalising, focusing on fiscal discipline, increasing infrastructure spending, giving more support to the MSME sector. 

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