3 forces to build a Viksit Bharat powerhouse

India Budget 2026: India’s Viksit Bharat vision of becoming a developed nation by 2047 depends heavily on how well union budgets align short-term priorities with long-term goals. Strategic Budget commitments can accelerate this journey by boosting infrastructure, creating jobs, improving connectivity and attracting private investment.Beyond capital spending, India must prioritise skills, innovation and technology to harness artificial intelligence and emerging sectors that can significantly lift GDP and productivity. Targeted tax reforms and fiscal incentives for manufacturing, exports and MSMEs will also be critical in driving industrial growth and employment.Read more: Sitharaman & Co will be counting every rupee on the road to Viksit Bharat 2047As Budget 2026–27 approaches, attention has shifted to identifying the sectors that can best translate the Viksit Bharat roadmap into everyday gains for citizens. Agriculture, youth and middle class are three key factors.Agriculture contributes about 18% of India’s GVA and employs a large workforce, making it a government priority, with a push to double agri exports. India’s youth and expanding middle class remain central to growth, driving skills, jobs and consumption that fuels over 60% of GDP, said Aidit Gupta, Economist at Bank of Baroda.Read more: Should Budget 2026 put India’s data centre backbone at the centre of its AI ambitions?Growth numbers before Union Budget 2026According to the first advance estimates of national income released by the Ministry of Statistics & Programme Implementation (MoSPI), India’s economy is likely to grow at 7.4% in 2025–26, up from 6.5% in the previous fiscal, largely driven by robust performance in manufacturing and services. Manufacturing and construction are estimated to grow by 7%. Services are expected to remain a major growth driver, contributing to a projected real GVA growth of 7.3%. Agriculture, allied sectors, and utilities like electricity, gas, and water are expected to see moderate growth.Nominal GDP is estimated to grow by 8% in 2025–26.These advance estimates will guide preparations for Union Budget 2026–27, likely to be presented on February 1, as policymakers focus on sectors that can translate the Viksit Bharat vision into tangible benefits for citizens.What is the Viksit Bharat vision?The Modi government has consistently pitched Viksit Bharat by 2047 as India’s defining national ambition, to transform the country into a developed economy by the time it completes 100 years of Independence.From large infrastructure drives and digital public platforms to Union Budget speeches and Independence Day addresses, the emphasis has remained on growth that is broad-based, inclusive and future-ready.Key priorities in Budget 2025–26In Budget 2025–26, Finance Minister Nirmala Sitharaman outlined six key priorities:Zero povertyUniversal access to quality school educationAffordable and comprehensive healthcareA fully skilled workforce with meaningful employment70% participation of women in economic activityFarmers helping make India the ‘food basket of the world’According to the government, the Viksit Bharat vision rests on four pillars: Yuva (youth), Garib (poor), Mahilayen (women) and Annadata (farmers).The previous Budget rolled out several key measures.Income tax reforms:Giving relief to taxpayers, the Finance Minister announced that there will be no income tax on income up to Rs 12 lakh under the new tax regime.Agricultural development:A high-yield crop scheme covering 17 million farmers was announced, along with higher subsidised credit and a greater focus on sustainable farming.Support for MSMEs and start-ups:Enhanced credit guarantee schemes were introduced to improve access to finance and encourage entrepreneurship.Infrastructure investment:Capital spending saw a modest increase across transport, energy and digital infrastructure to stimulate economic activity and employment.What Budget 2026–27 may prioritiseAccording to Rajya Sabha MP Ashok Mittal, three sectors directly affect the lives of most Indians.“Budget 2026–27 presents an opportunity to prioritise farming, education-to-employment, and middle-class governance,” said Mittal, who is also the chancellor of Lovely Professional University. He added that progress in these areas would have a strong multiplier effect across the economy.PwC India Partner and Chief Industries Officer Arnab Basu offered a broader economic view.“There three sectors together expected to account for more than 60% of India’s gross value added by 2035,” Basu said, adding that focused government action would be key to sustaining India’s position as the world’s fastest-growing major economy, with IMF projections of 6.2% growth in 2025 and 6.3% in 2026.Union Budget 2026: Agriculture remains centralDespite rapid urbanisation, agriculture remains India’s largest employer.“Agriculture accounts for roughly 45.6% to 46.1% of total employment,” Mittal said, stressing that raising farm incomes is not just a welfare issue but a growth imperative.He said income growth would require sustained investment in productivity and climate resilience, proposing a national micro-irrigation grid, modern storage infrastructure and an open Agri Data Stack to improve price transparency. He also highlighted the need for easier access to credit through warehouse receipts and parametric weather insurance as climate risks grow more unpredictable.Basu echoed the importance of the agri-food sector, calling food security critical in the coming decades. He said the sector urgently needs investment in intelligent logistics, cold chains and digital platforms to reduce wastage and improve market access, while backing precision farming and data-driven agriculture.Government data shows that the Agriculture and Farmers’ Welfare budget has grown six-fold since 2013, rising from Rs 21,933.50 crore in 2013–14 to Rs 1.27 lakh crore in 2025–26.Bank of Baroda’s Aditi Gupta said agriculture remains a top priority due to its economic and social significance.“Agriculture accounts for about 18% of total gross value added and supports a large share of the workforce,” she said, adding that the government is also pushing agricultural exports, with a target of raising agri exports to $100 billion from around $50 billion currently.She noted that India’s recent measures have focused on reducing import dependence on cereals, pulses and oilseeds, promoting indigenous products such as makhana and shree anna, and strengthening supply-side infrastructure through eNAM, Kisan Credit Cards and support for allied sectors such as fisheries, poultry and horticulture.BDO India Partner Soumyak Biswas said that “India’s agriculture sector, though employing nearly 45% of the workforce, contributes only around 18% to national GVA, reflecting low productivity, limited value addition, and persistent structural challenges. Small and fragmented landholdings, inadequate investment in allied sectors, high post-harvest losses, and underfunded research continue to restrict growth.”He noted that the upcoming Budget offers an opportunity to strengthen long-term resilience through targeted interventions:Scaling research and climate-smart agriculture: Increasing funding for DARE, promoting PPP-led innovation, and supporting micro-irrigation and regenerative farming.Strengthening allied sectors: Livestock, fisheries, horticulture, and cold-chain and processing infrastructure to boost incomes.Empowering FPOs: Market-linked product strategies and credit guarantees to integrate small producers into value chains.Promoting crop diversification: Horticulture, pulses, and oilseeds to reduce overdependence on water-intensive crops.Accelerating technology adoption: Digital equipment subsidies, shared tech centres, and subsidised advisory services to improve productivity for small farmers.Financial resilience: Enhanced credit access, insurance coverage, and climate-risk buffers to stabilise incomes.Biswas added that a well-funded, re-imagined agricultural strategy can ensure rural prosperity, food security, and sustainable growth.Budget 2026 for Youth, skills and employmentFor Rajya Sabha MP Mittal, youth-focused reforms that link education directly to employment must be the second priority.“India’s median age is around 28, and nearly two-thirds of the population is under 35. This budget must therefore be youth-first,” he said.He called for industry-aligned curricula and wider adoption of the “earn while you learn” model to give students practical exposure alongside their degrees.Recent budgets have moved in this direction. In 2024, the government announced five schemes with a Rs 2 lakh crore outlay to skill 4.1 crore young people over five years. Budget 2025 added 50,000 Atal Tinkering Labs, broadband connectivity for rural schools and a Rs 500 crore AI Centre of Excellence for education.Aditi Gupta said India’s demographic dividend remains one of its biggest advantages.“Providing adequate skilling and employment opportunities for the youth is crucial for long-term economic growth,” she said, noting that labour law reforms and expanded vocational training have also been key focus areas.Union Budget: Middle-class governance and infrastructureFor the third priority, Mittal highlighted governance reforms aimed at the middle class.“Middle-class governance today is about time-bound approvals, fewer compliances and simpler processes,” he said, arguing that efficiencies seen in platforms such as UPI should extend to refunds, permits and grievance redressal.Recent budgets have focused on boosting middle-class spending power through higher income tax rebates, increased TDS thresholds on rent and GST rationalisation to lower the cost of household essentials, while maintaining higher taxes on luxury and sin goods.Basu identified infrastructure and construction as another critical pillar, noting that the sector’s value pool could reach $1.3 trillion by 2035. He called for sustainable construction practices, faster approvals and resource-efficient building methods.Gupta said India’s expanding middle class remains the main driver of domestic consumption, which accounts for over 60% of GDP. She added that recent changes in direct and indirect taxes, including income tax slab relaxations and GST rationalisation, have benefited middle-class consumers.Union Budget 2026-27: Balancing growth and inclusionOn balancing immediate challenges with long-term development, Basu said India must blend short-term relief with future-focused investments.“This means supporting job creation and MSMEs in the short run, while committing to multi-year capital expenditure in infrastructure, technology and human capital,” he said, also recommending an “intelligent foresight engine” within government to track global trends and risks.Both experts stressed the importance of public-private partnerships across agriculture, infrastructure and urban services. Basu also suggested innovative financing tools such as green bonds, infrastructure bonds, blended finance models and R&D tax credits.Looking ahead, Gupta said Budget 2026–27 is likely to continue existing schemes, with greater emphasis on climate-resilient agriculture, skill upgradation for youth and limited relief for the middle class through customs duty changes.While these are the sectors experts believe deserve priority, the real challenge as Budget 2026–27 unfolds will be turning the Viksit Bharat vision into measurable outcomes, driving rapid growth while ensuring no section of society is left behind.