My Take on budget     

Published: February 15, 2026
Updated: February 15, 2026

Budget with eye to India’s future

It was undoubtedly a tough task for Union Finance Minister Nirmala Sitharaman to prepare and present the budget at a time when the global environment is vitiated by geopolitical tensions, growing economic and social uncertainties with US President Donald Trump trap waging a relentless tariff war, a slowing down of global economic growth and the growing spectre of unemployment on account of newer technologies. But a cautious and intelligent FM chose a new track – thinking of the future with 2047 as the target date for transforming India into a developed nation.

To begin with, in order to lay down a strong economic foundation, Ms Sitharaman concentrated on fiscal consolidation and successfully achieved the fiscal deficit target of 4.4 per cent for fiscal 2025-26. What is more, with total expenditure for fiscal 2026-27 estimated at Rs 53.5 lakh crore and the fiscal deficit estimated at 4.3 per cent of the GDP, the latest budget seeks to sustain GDP growth while adhering to fiscal discipline. It reflects the government’s effort to balance public investment, social spending and macro-economic stability.

3 ‘KARTAVYAS’

Overall, what I like most about this fiscal exercise is that the budget is anchored around three ‘Kartavyas’ — accelerating and sustaining economic growth, fulfilling aspirations and building human capabilities, and ensuring inclusive development. These pillars align with the broader objective of transforming India into a developed economy by 2047.

The most interesting aspect of the budget I liked is the focus on data centres. Among a range of announcements made by the Finance Minister, the move on data centres stood out. This initiative signals that the country is ready to move with the times and host AI infrastructure at a global scale so as to strengthen India’s AI ecosystem. An increase in data centre capacity not only positions India as a global hub but also leads to employment generation – unemployment is a big problem that the country is facing today

DATA CARROT

The Finance Minister has also announced a 20-year tax holiday for foreign data centre investments. Cloud, AI and digital infrastructure are long-term, capital-intensive foundations. One cannot build this thinking five years ahead – one needs to think 20 or 30 years ahead. Ms Sitharaman’s announcement of a tax holiday till 2047 conveys exactly that thinking. I was thrilled when I came to know that India’s push to become a global data centre hub has received a significant boost from Nvidia CEO Jensen Huang, following major incentives announced in the 2026-27 Indian budget. Among others, the budget has proposed a tax holiday till 2047 for foreign firms offering global cloud services from India-based data centres, a move expected to attract up to $ 200 billion in investments. Speaking at the 3D Experience World 2026 event in Houston recently, Mr Huang emphasised that India should both welcome global providers and build domestic capacity, emphasizing that AI infrastructure is now as essential as water and electricity.

In short, Ms Sitharaman’s ninth consecutive budget reflects sustained policy continuity and a clearly articulated economic vision shaped by resilience, structural reform and measured responses to evolving global and domestic conditions. It signals a steady, confidence-driven approach to long-term growth and fiscal governance.

(MP Taparia, a first-gen entrepreneur who strongly believes in fair trade practices and corporate governance, is the architect of the Supreme group of companies.)