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BUDGET TO KEEP FISC STEADY AMID GLOBAL STORM

Mint Mumbai

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January 23, 2026

The Union Budget for FY27 is being formulated against the backdrop of some positive surprises, despite a highly volatile and uncertain global environment.

- DHAMAKIRTI JOSHI

India’s growth-inflation mix has proved way more favourable than anticipated, as has global growth. Overall, FY26 has been a year of resilience for India. The economy’s flexibility has been underpinned by accommodative monetary and fiscal policies, robust corporate balance sheets, and favourable factors such as an above-average monsoon and low crude oil prices.

Trade has been cushioned by the front-loading of exports, exemptions for electronics and pharmaceuticals, and a high proportion of service exports, which are less exposed to tariffs.

We expect real gross domestic product (GDP) growth to moderate (6.7% versus 7.4%) next fiscal, but the nominal one to accelerate (10.5% versus 8% in FY26) as inflation normalizes. That should support tax collections and corporate revenues.

Mint Mumbai

यह कहानी Mint Mumbai के January 23, 2026 संस्करण से ली गई है।

हजारों चुनिंदा प्रीमियम कहानियों और 10,000 से अधिक पत्रिकाओं और समाचार पत्रों तक पहुंचने के लिए मैगज़्टर गोल्ड की सदस्यता लें।

क्या आप पहले से ही ग्राहक हैं?

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