Preparing the ground for next generation of reforms against global headwinds

While acknowledging the impact of global headwinds on economic growth, finance minister (FM) Nirmala Sitharaman laid emphasis on the fact that India remains one of the fastest-growing economies in the world.

- Pinaki Chakraborty

The FY26 Union Budget shows the government is now aiming to accelerate growth by catalysing private-sector investments and strengthening the middle class. The budget's stated focus is on key population segments—the poor, youth, farmers, and women—and three sectors (agriculture, MSMEs, and exports) that have been dubbed the primary drivers of India's economic expansion.

The government has launched the Pradhan Mantri Dhan Dhanya Krishi Yojana to boost agricultural productivity, promote crop diversification, and improve storage facilities at the panchayat and block levels. This initiative aims to expand irrigation infrastructure and enhance both short- and long-term credit availability for farmers. By increasing access to agricultural credit and improving storage capacities, this scheme seeks to address key challenges in the farming sector and contribute to food security. At the same time, the question is whether the budget allocation towards this will prove adequate.