India’s government plans a modest improvement in its fiscal picture in the coming financial year, with reductions in the fiscal deficit and debt, while boosting manufacturing in sectors ranging from textiles to chips.
Finance Minister Nirmala Sitharaman, in her ninth consecutive budget speech, said on Sunday that the government sees its fiscal deficit falling to 4.3% of GDP in the 2026-27 financial year, down from 4.4% in 2025-26.
Sitharaman said the government expects India’s debt-to-GDP ratio to fall to 55.6% in the coming financial year from 56.1% in 2025-26.
The finance minister pointed to the wider uncertainties facing India.
“Today, we face an external environment in which trade and multilateralism are imperilled and access to…