The Union Budget for FY26-27 is expected to maintain a strong focus on infrastructure spending and structural reforms, even as global geopolitical uncertainty, trade tensions with the US, and slowing private investment pose fresh challenges, according to a report by PL Capital. India enters the Budget season retaining its position as the world’s fastest-growing large economy and ranking fourth globally by GDP size. FY26 has delivered several macroeconomic positives, including multi-year low inflation, cumulative interest rate cuts of 125 basis points, reductions in income tax rates, GST rationalisation, and a normal monsoon.
