Budget 2026: FM Says ‘Reform Express’ Is Key to Growth Momentum

Presenting her ninth consecutive Union Budget, Nirmala Sitharaman, Finance Minister, Government of India, framed Budget 2026 as a continuation of reform-led governance, declaring that the government has chosen “reforms over rhetoric” as it pushes to sustain growth momentum.

Calling the reform journey a moving train rather than a destination, Sitharaman told Parliament that the “Reform Express” is on its way, signalling continuity rather than disruption in policy direction at a time of global economic volatility.

“Our Kartavya is to ensure every family, community, and sector has access to resources, amenities, and opportunities,” she said during her budget speech.

A Fully Digitized Budget 

Budget 2026 marked another first in the process, with Sitharaman presenting a fully digitised budget, reinforcing the government’s push toward technology-led governance and transparency.

Beyond format, the Finance Minister emphasised outcomes, stating that the dividends of economic growth must reach farmers, Scheduled Castes, Scheduled Tribes, youth, and other under-represented communities. The emphasis on inclusion ran alongside growth, positioning social equity as integral to reform rather than a parallel track.

Six Pillars to Accelerate Economic Growth

The budget outlined six core intervention areas aimed at accelerating and sustaining economic growth. While details span multiple sectors, the framework focuses on:

• Scaling manufacturing capabilities in seven strategic and frontier sectors

• Rejuvenating legacy industrial sectors

• Enhancing productivity and competitiveness

• Strengthening resilience amid global trade and capital flow volatility

• Supporting long-term infrastructure creation

• Building capacity across regions and population segments

The structure reflects an intent to balance ambition with execution, particularly as India positions itself deeper within global supply chains.

Structural Reforms Remain the Backbone

Sitharaman reiterated that the government has already rolled out more than 350 reform measures, spanning GST, labour codes, quality control orders, and financial sector reforms. The focus now shifts to maintaining momentum and reducing compliance burdens in coordination with states.

“This requires a supportive ecosystem and maintaining the momentum of structural reforms – continuous, adaptive and forward-looking,” the Finance Minister said.

She also highlighted the role of a resilient financial sector in mobilising savings and allocating capital efficiently, noting that AI applications can act as a force multiplier for effective governance.

Economic Context Anchors Policy Direction

The reform narrative is supported by the Economic Survey 2025–26, which projects:

• GDP growth of 6.8–7.2% in FY27

• 7.4% growth for FY26

• An upgraded medium-term potential growth rate of 7%

Public capital expenditure continues to be a key lever, with allocations rising from ₹2 lakh crore in FY15 to ₹11.2 lakh crore, and a proposed increase to ₹12.2 lakh crore in FY27, reinforcing demand-side support across sectors.

For enterprises, startups, and the broader B2B ecosystem, Budget 2026 sends a clear signal: policy stability and reform continuity remain central to India’s growth playbook.

The emphasis on digitisation, manufacturing scale, financial sector resilience, and AI-enabled governance suggests that technology will increasingly underpin reform execution. For businesses, this translates into a predictable regulatory environment paired with gradual but sustained structural shifts.

As Sitharaman summed it up, the reform journey is far from over. The “Reform Express”, as framed in Budget 2026, is positioned to keep moving, focused on scale, inclusion, and long-term competitiveness rather than short-term stimulus