Finance Minister
The Indian government presented its annual budget in Parliament on Sunday, focusing on maintaining the country’s economic growth despite volatile financial markets and trade uncertainties. Prime Minister Narendra Modi’s government, which presented this budget, has stated that it has also maintained continuity in grant assistance for neighboring nation Nepal.
Presenting the budget for the fiscal year 2026-27, Indian Finance Minister Nirmala Sitharaman stated that the government’s plan is to increase investment in infrastructure and domestic production while remaining steadfast on fiscal prudence.
8 Billion Rupee Grant for Nepal
Through the budget, India has announced an 8 billion Indian Rupee grant (approximately 12 Arab 80 Crore Nepali Rupees) for Nepal for the upcoming fiscal year. Finance Minister Sitharaman stated that this grant amount is the same as the initial allocation of the last fiscal year.
India has allocated this amount for Nepal under the assistance it provides to neighboring countries through its Ministry of External Affairs. Among the neighboring countries, the highest allocation of 22 Arab 88 Crore Rupees has been made for Bhutan, while the budget mentions plans to provide 550 Crore Rupees to the Maldives, 400 Crore Rupees to Sri Lanka, and 300 Crore Rupees to Myanmar.
Focus on Infrastructure and Production
According to the Finance Ministry’s Economic Survey, India’s economy is estimated to grow between 6.8 to 7.2 percent in the upcoming fiscal year. The Finance Minister stated that the government has set a target to limit the Gross Domestic Product (GDP) deficit to 4.3 percent.
Sitharaman said New Delhi will focus on building resilience at home while strengthening its position in global supply chains. She said, “India will step forward on the path to a developed India, balancing ambition with inclusion.”
Strategic Investment and New Infrastructure
For the upcoming fiscal year, India has set a target to spend 122 Lakh Crore Rupees (133 Billion Dollars) on infrastructure. The government has stated it plans to increase investment in seven strategic sectors, including bio-pharma, semiconductors, and electronic components, to boost production growth and create employment.
With the aim of taking a big leap in the transport sector, Finance Minister Sitharaman announced plans to construct seven high-speed rail corridors and operationalize 20 new waterways in the next five years. She also stated that three chemical production parks will be established to reduce dependence on imports.
