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India budget will focus on accelerating, sustaining strong economic growth, finance minister says
The Indian economy is seen growing at 7.4 per cent in the current financial year, with inflation expected at near 2 per cent
- PUBLISHED: Sun 1 Feb 2026, 10:38 AM
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- Reuters
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India's annual budget will look to accelerate and sustain strong economic growth while improving business competitiveness, amid a volatile global environment, Finance Minister Nirmala Sitharaman said as she laid out priorities for the economy.
The budget for the next fiscal year will focus on structural reforms, building a robust financial sector and stepping up investments in cutting edge technologies, including artificial intelligence, she said.
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The Indian economy is seen growing at 7.4 per cent in the current financial year, with inflation expected at near 2 per cent. The government's fiscal deficit for the year is expected at 4.4 per cent of GDP.
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To spur private investment and demand, New Delhi has rolled out a series of reforms in recent months, including consumption and income tax cuts, overhaul of labour laws and steps to open up the tightly controlled nuclear-power sector. More policy changes are expected in the budget.
"The nation is moving away from long-term problems to tread the path of long-term solutions. Long term solutions provide predictability that fosters trust in the world," Modi said on Thursday before the government's economic survey forecast growth of between 6.8 per cent and 7.2 per cent for the fiscal year starting in April.
India will continue with "next-generation reforms", as the next 25 years will be key to meeting the goal of making the South Asian nation a developed economy, he said.
Modi's government also plans a third major push to boost manufacturing as a share of the economy, after two failed attempts. It is also expected to ease rules for investments in defence manufacturing.
India is also striking deals such as a landmark trade agreement with the European Union to offset the hit from the 50 per cent tariffs President Donald Trump has imposed on some Indian goods shipped to the US.
