Expectations from the Union Budget
31-Jan-2026 11:54 AM
To successfully address the growing challenges at the domestic and global levels and to keep the country's economy on a growth trajectory, the government may have to propose some important and practical measures in the Union Budget for the financial year 2026-27.
Free trade agreements with various countries/regions are likely to hinder the progress of some sectors, and the Finance Minister will focus on this. India's Gross Domestic Product (GDP) growth rate is quite high, and maintaining this will be a challenge.
The international landscape is constantly changing, and some new measures may be included in the Union Budget to protect Indian businesses (importers/exporters) from its potential negative consequences.
The Indian rupee's exchange rate against the dollar has plummeted, which is certainly helping to boost exports, but imports from abroad have become significantly more expensive.
This will naturally affect the domestic market. The increased cost of petroleum imports will impact various sectors. In fact, foreign investors are withdrawing large amounts of capital from the Indian market and sending it abroad, which needs to be strictly controlled. Increasing foreign exchange reserves is equally important.
The Finance Minister will not only have to announce necessary measures for the development of the agricultural sector but also increase the budget allocation.
The Prime Minister's Office has already expressed its concern on this issue. The growth rate of the agricultural sector was 4.6 percent in the financial year 2024-25, which is estimated to fall to 3.1 percent in 2025-26.
Agriculture and allied sectors remain the primary source of livelihood for millions of people in the country. It is true that most agricultural products are not currently included under free trade agreements, and not many concessions have been given under the Most Favored Nation (MFN) status,
but the government will have to prepare a roadmap in advance so that the country's progress continues uninterrupted. Meanwhile, the Finance Minister is also expected to announce some important reliefs and concessions in the domestic sector.