Together, the three duties (not rights) frame the budget as an economic roadmap while maintaining a careful balance between economic ambition, social inclusion and fiscal prudence.

The Union Budget 2026-27, presented by finance minister Nirmala Sitharaman, places human development at the core of India’s journey towards becoming a Viksit Bharat by 2047, while maintaining a careful balance between economic ambition, social inclusion and fiscal prudence.

Anchored in the government’s vision of Sabka Saath, Sabka Vikas, the budget is structured around three overarching “kartavyas” or duties: accelerating economic growth, building people’s capacities, and ensuring inclusive access to resources for all families, communities and regions.

Presenting the first Budget, Sitharaman said India would continue to take “confident steps towards Viksit Bharat by balancing ambition with inclusion,” underlining the centrality of agriculture, education, labour, health, women, employment and environmental sustainability in shaping long-term growth.

The Union Budget pegs total expenditure at ₹53.5 lakh crore, with public capital expenditure at ₹12.2 lakh crore, reaffirming the government’s commitment to infrastructure-led growth even as it deepens investments in human capital. The fiscal deficit is estimated at 4.3 per cent of GDP, signalling continuity in fiscal consolidation while accommodating development priorities.

Three Kartavyas to Balance Growth, Inclusion and Capacity Building

The first kartavya focuses on accelerating and sustaining economic growth by enhancing competitiveness, productivity and resilience in a volatile global environment. Measures under this pillar include a renewed push for manufacturing, infrastructure expansion and strategic technologies such as semiconductors, electronics, biopharma and rare earths.

The second kartavya emphasises building people’s capacities through education, skills, health and innovation, recognising that India’s demographic advantage can translate into economic strength only if supported by quality human capital.

The third kartavya seeks to ensure that the benefits of growth reach all sections of society, particularly women, small farmers, workers, persons with disabilities and vulnerable communities, with a focus on lagging regions including the North-East and Purvodaya states.

Together, these three duties frame the Budget as an economic roadmap rather than a purely fiscal exercise.

Agriculture and Rural Economy Get a Human-Centric Push

Agriculture, which employs 46.1 per cent of India’s workforce according to the Periodic Labour Force Survey 2023-24, receives a major thrust with an allocation of ₹1,62,671 crore, a 7 per cent increase over the previous year’s revised estimates. The emphasis is on raising productivity, diversifying income sources and strengthening rural livelihoods, particularly for small and marginal farmers.

A flagship announcement is Bharat VISTAAR, a multilingual, AI-powered agriculture platform that integrates AgriStack portals with ICAR’s scientific practices and artificial intelligence systems. Designed to provide farmers with real-time advisories on crop planning, weather, pest management and markets in regional languages, the tool aims to reduce climate and market risks while enabling informed decision-making at the farm level.

The Budget also promotes diversification into high-value crops such as coconut, sandalwood, cashew, cocoa, walnuts, almonds and pine nuts. India, the world’s largest coconut producer, sustains livelihoods for nearly 30 million people through coconut farming. A dedicated coconut promotion scheme will focus on replacing senile plantations with high-yielding varieties, while targeted programmes for cashew and cocoa aim to build self-reliance, export competitiveness and premium global branding by 2030. Restoration of India’s sandalwood ecosystem, in partnership with states, seeks to balance conservation with economic returns.

Allied sectors receive equal attention. Animal husbandry is supported through a credit-linked capital subsidy scheme for veterinary services, diagnostics and breeding infrastructure, alongside strengthened livestock, dairy and poultry value chains. Fisheries development will include integrated projects covering 500 reservoirs and water bodies, with a focus on startups, women-led enterprises and Fish Farmer Producer Organisations (FFPOs), aligning with the inclusive growth agenda of the third kartavya.

Education, Skills and Employment to Power India’s Demographic Dividend

Education and skill development emerge as key pillars of the Budget’s human development strategy. To address barriers faced by women in higher education, especially in STEM disciplines, the government has announced the establishment of one girls’ hostel in every district, supported by viability gap funding and capital assistance. The initiative aims to improve safety, mobility and retention of female students, enabling greater participation in advanced fields such as astrophysics and engineering.

To nurture future-ready skills, the Budget proposes five university townships, creative and digital content labs in 15,000 secondary schools, and expanded support for artificial intelligence through a national AI mission, research fund and innovation ecosystem. National mental health institutes are also planned to address psychological well-being, reinforcing a holistic approach to education.

Employment generation is a central objective, particularly in labour-intensive sectors. An integrated programme for textiles includes mega parks, technical textile hubs and cluster modernisation, complemented by the National Fibre Scheme aimed at self-reliance in man-made fibres. Together with support for khadi, handicrafts, footwear and leather sectors, these initiatives are expected to generate 22 lakh jobs, with significant gains in turnover and exports.

The proposed Employment-Linked Incentive Scheme, with potential outlays of up to ₹30,000 crore, targets the creation of millions of new jobs within a short time frame, while apprenticeships and skilling initiatives in AVGC, healthcare and tourism align with services-led growth.

Health, Women’s Empowerment and Green Transition Take Centre Stage

Healthcare receives a strong innovation-oriented push through the Biopharma SHAKTI scheme, backed by ₹10,000 crore over five years, aimed at positioning India as a global biopharmaceutical hub. The scheme spans manufacturing, clinical research and advanced technologies, reinforcing India’s role in affordable healthcare solutions.

Social inclusion measures form a major component of the third kartavya. For persons with disabilities, the Budget introduces the Divyang Sahara Yojana for timely access to high-quality assistive devices and the Divyangjan Kaushal Yojana for customised, industry-linked skill training in sectors such as IT, AVGC and hospitality. Geriatric caregiver training and expanded mental health and trauma care further underline the focus on dignity and well-being.

Women’s empowerment receives a multifaceted boost. Building on the Lakhpati Didi programme, the Budget introduces SHE Marts (Self-Help Entrepreneurs Marts) — community-owned retail outlets run by self-help groups — to transition women from credit-linked livelihoods to enterprise ownership. Enhanced financing, branding and market access are expected to strengthen grassroots entrepreneurship and sustainable incomes.

Environmental sustainability is woven into multiple sectors. The allocation for the Ministry of Environment, Forest and Climate Change rises by 8 per cent to ₹3,759.46 crore, with ₹1,091 crore earmarked for pollution control. Key initiatives include rare earth corridors critical for clean energy technologies, a ₹20,000 crore investment over five years in carbon capture, utilisation and storage, and duty exemptions for green technologies such as lithium-ion batteries and solar glass. Incentives for biogas-blended CNG further align the Budget with India’s net-zero target by 2070.