Union Budget 2026-27: Strategic Investments in Critical Minerals and Creative Economy Signal Geoeconomic Shift

The Union Budget for fiscal year 2026-27, tabled today, outlines a comprehensive fiscal strategy centered on bolstering India's industrial base and securing strategic supply chains. With a capital expenditure allocation of ₹12.2 lakh crore—a significant year-on-year increase—the government signals a sustained commitment to infrastructure-led growth. The fiscal deficit is projected at 4.3% of GDP, reflecting a calibrated approach to consolidation amid expansionary spending. Analytically, the budget's most consequential elements are its focus on critical minerals and the formal recognition of the 'Orange Economy.' A dedicated policy push for rare earths and semiconductor production aims to reduce import dependency in sectors vital for defense, electronics, and green technology, directly aligning with broader 'Atmanirbhar Bharat' (self-reliant India) objectives. Concurrently, structured support for creative and knowledge-based industries under the Orange Economy framework seeks to monetize India's cultural and intellectual capital. The introduction of a new Income Tax Act and the 'Biopharma Shakti' scheme further underscores a dual agenda: simplifying the regulatory environment while strategically funding sunrise sectors. This budget, therefore, is not merely an annual accounting exercise but a deliberate geoeconomic document positioning India to capitalize on global supply chain realignments and the post-industrial knowledge economy.