“Three Kartavyas Will Guide India’s Growth with Inclusion and Resilience,” Says Finance Minister
Peerzada Masarat Shah
New Delhi, February 1, 2026 (BuzzBytes):
Presenting the Union Budget 2026–27 in Parliament, Finance Minister Nirmala Sitharaman said the Budget is inspired by three kartavyas and reflects the government’s Sankalp to focus on the poor, underprivileged and disadvantaged while accelerating India’s journey towards Viksit Bharat.
“This is the first Budget prepared in Kartavya Bhawan. It is inspired by three kartavyas,” the Finance Minister said, adding that the first kartavya is to accelerate and sustain economic growth by enhancing productivity, competitiveness and resilience to volatile global dynamics.
She said the second kartavya is to fulfil the aspirations of people by building their capacity and making them strong partners in India’s path to prosperity. “The third kartavya, aligned with the vision of Sabka Sath, Sabka Vikas, is to ensure that every family, community, region and sector has access to resources, amenities and opportunities for meaningful participation,” she said.
Describing the Budget as Yuva Shakti-driven, Sitharaman said India will continue to take confident steps towards inclusive development while remaining deeply integrated with global markets. “As a growing economy, we must export more and attract stable long-term investment,” she said, while noting that global trade disruptions and rapid technological change are reshaping production systems and resource demands.
She informed Parliament that over 350 reforms have been rolled out since the Prime Minister’s announcement on Independence Day 2025, including GST simplification, labour code notifications and rationalisation of Quality Control Orders. “We are working closely with States to reduce compliance and deregulate,” she said.
Manufacturing and Infrastructure Push
Outlining measures under the first kartavya, the Finance Minister said interventions will focus on six areas, including scaling up manufacturing in seven strategic sectors, rejuvenating legacy industries, creating Champion MSMEs, infrastructure expansion, long-term energy security and development of City Economic Regions.
“To develop India as a global biopharma manufacturing hub, we will launch Biopharma SHAKTI with an outlay of ₹10,000 crore over five years,” she said, adding that three new NIPER institutes will be set up, seven upgraded and over 1,000 accredited clinical trial sites created.
For the textile sector, she announced an integrated programme covering fibre self-reliance, cluster modernisation, handloom and handicrafts support, sustainable textiles and upgraded skilling through Samarth 2.0.
Recognising MSMEs as a key growth engine, Sitharaman said, “We propose a dedicated ₹10,000 crore SME Growth Fund to create future champions.”
On infrastructure, she said public capital expenditure will be increased to ₹12.2 lakh crore in 2026–27. “We will establish new Dedicated Freight Corridors from Dankuni to Surat and operationalise 20 National Waterways over the next five years,” she said.
She also announced seven high-speed rail corridors, including Mumbai–Pune and Delhi–Varanasi, to promote sustainable passenger transport.
Building Capacity and Aspirations
Speaking on the second kartavya, the Finance Minister said nearly 25 crore people have exited multidimensional poverty over the past decade. “To promote India as a hub for medical tourism, we will support States in establishing five Regional Medical Hubs in partnership with the private sector,” she said.
She announced support for creating over 20,000 veterinary professionals, AVGC content creator labs in schools and colleges, a girls’ hostel in every district for STEM students and the setting up of a National Institute of Hospitality.
“We will launch a Khelo India Mission to transform the sports sector over the next decade through talent pathways, coaching, sports science and infrastructure,” she said.
Focus on Farmers, Women and Mental Health
Addressing the third kartavya, Sitharaman said targeted efforts are required to raise farmer incomes, empower Divyangjan and strengthen mental health care. “We propose Bharat-VISTAAR, a multilingual AI tool integrating AgriStack portals and ICAR practices to provide customised advisory support to farmers,” she said.
She announced Self-Help Entrepreneur Marts to build on the Lakhpati Didi programme and said, “We will set up NIMHANS-2 and upgrade mental health institutes in Ranchi and Tezpur as regional apex centres.”
Special initiatives were also announced for Purvodaya States and the North-East, including an East Coast Industrial Corridor, tourism destinations, 4,000 e-buses and a Buddhist Circuit development scheme.
Fiscal Discipline and Tax Reforms
On fiscal consolidation, the Finance Minister said, “The fiscal deficit for 2026–27 is estimated at 4.3 percent of GDP, and the debt-to-GDP ratio will decline to 55.6 percent.”
She announced that the New Income Tax Act, 2025 will come into effect from April 2026, with simplified rules and redesigned forms. “We are reducing TCS rates, rationalising TDS provisions and extending timelines for return revisions,” she said.
Measures to reduce litigation, decriminalise minor defaults and rationalise penalties were also announced, along with incentives for cooperatives, IT services, global investors and data centres.
Concluding, Sitharaman said the Union Budget 2026–27 lays a strong foundation for sustained growth with inclusion. “This Budget balances ambition with responsibility and prepares India for the opportunities and challenges of the coming decade,” she said.
