India’s defense boost was expected following the four-day conflict with Pakistan last May. The budget also highlights plans for seven high-speed rail corridors and rare earth corridors.
India sets record budget for infrastructure, defense
local Indian media
India’s defense boost was expected following the four-day conflict with Pakistan last May. The budget also highlights plans for seven high-speed rail corridors and rare earth corridors.
A pedestrian walks past a digital screen displaying a broadcast of the budget speech by Indian Finance Minister Nirmala Sitharaman at the Bombay Stock Exchange (BSE) in Mumbai on February 1, 2026
India’s finance minister said that the government will scale up manufacturing across seven strategic sectors.
India is set to spend a record amount on infrastructure and defense, Finance Minister Nirmala Sitharaman told parliament on Sunday.
New Delhi plans to invest $133 billion (€112 billion) in infrastructure and $85 billion on defence — an increase of around 9% and 15%, respectively, compared to last year’s budget.
The finance minister also announced that the government will scale up manufacturing across seven strategic sectors. They include pharmaceuticals, semiconductors, rare earth magnets, chemicals, capital goods, textiles and sports goods.
“India will continue to take confident steps towards Viksit Bharat (Developed India), balancing ambition with inclusion,” said Sitharaman in her national budget speech for the 2026-2027 financial year
India sets record budget for infrastructure, defense
India’s defense boost was expected following the four-day conflict with Pakistan last May. The budget also highlights plans for seven high-speed rail corridors and rare earth corridor
A pedestrian walks past a digital screen displaying a broadcast of the budget speech by Indian Finance Minister Nirmala Sitharaman at the Bombay Stock Exchange (BSE) in Mumbai on February 1, 2026
India’s finance minister said that the government will scale up manufacturing across seven strategic sectors
India is set to spend a record amount on infrastructure and defense, Finance Minister Nirmala Sitharaman told parliament on Sunday.
New Delhi plans to invest $133 billion (€112 billion) in infrastructure and $85 billion on defence — an increase of around 9% and 15%, respectively, compared to last year’s budget.
The finance minister also announced that the government will scale up manufacturing across seven strategic sectors. They include pharmaceuticals, semiconductors, rare earth magnets, chemicals, capital goods, textiles and sports goods.
“India will continue to take confident steps towards Viksit Bharat (Developed India), balancing ambition with inclusion,” said Sitharaman in her national budget speech for the 2026-2027 financial year.
Modi: India ‘not content’ with just being fastest-growing economy
This is the first Indian budget since US President Donald Trump imposed 50% tariffs on Indian goods in August as punishment for buying Russian oil.
After the budget presentation, Prime Minister Narendra Modi said, “India is not content with simply being the fastest-growing economy.”
“India wants to become the world’s third-largest economy. This year’s budget presents an ambitious roadmap to give new momentum to” domestic manufacturing and self-reliance, Modi added.
