Sustaining growth momentum

BUDGET FY27 REINFORCES

- NILESH SHAH MANAGING DIRECTOR, KOTAK AMC

India’s medium-term investment led growth framework with a continued emphasis on infrastructure and capital expenditure alongside a credible commitment to fiscal discipline.The balancing act between the need to support growth and maintain fiscal prudence is of great importance, especially amid rising global uncertainties. Much like a well-paced cricket innings—where early discipline allows the run rate to accelerate later—the government’s steady focus on public investment over recent years is now creating the conditions for sustained growth.

While supporting growth, the focus on fiscal consolidation is unwavering. The fiscal deficit framework moves towards targeting a lower debt-to-GDP ratio with the aim of reaching 50% (+/-1%) by FY31 (as compared to 56.1% in FY26), resulting in the budget targeting a gross fiscal deficit of 4.3% of GDP.