Prime Minister Narendra Modi held consultations with leading economists as preparations gather pace for the Union Budget for 2026–27. The discussions centered on sustaining economic growth, managing inflation, strengthening fiscal discipline, and navigating global uncertainties. The engagement reflects the government’s intent to incorporate expert perspectives into policymaking at a time when India’s economy faces both opportunities and risks. With infrastructure investment, job creation, and macroeconomic stability expected to remain priorities, the interaction underscores a consultative approach to budget formulation aimed at balancing growth ambitions with prudent fiscal management.
Consultative Approach to Budget Planning
The meeting between the prime minister and a group of economists marks an early step in shaping the policy framework for the FY27 Union Budget. Such consultations are intended to provide a broad-based assessment of economic conditions and policy options, drawing on academic and market expertise.
Participants are understood to have shared views on domestic growth drivers, global economic trends, and structural reforms needed to sustain momentum. The discussions also highlighted the importance of maintaining policy credibility amid volatile global financial conditions.
Key Themes: Growth, Inflation, and Fiscal Balance
Growth sustainability featured prominently in the deliberations, with economists emphasizing the need to support investment while safeguarding macroeconomic stability. Managing inflation remains a central concern, particularly in the context of food prices and external shocks that can influence domestic cost structures.
Fiscal consolidation was another key theme. Experts reportedly underlined the importance of adhering to medium-term deficit targets while ensuring adequate capital expenditure. A credible fiscal path, analysts note, is essential to maintain investor confidence and preserve room for countercyclical policy if global conditions deteriorate.
Infrastructure, Jobs, and Structural Reform
Economists also stressed the role of infrastructure spending in crowding in private investment and generating employment. Continued focus on manufacturing, logistics, and digital infrastructure is seen as critical to enhancing productivity and competitiveness.
In addition, structural reforms in areas such as labor markets, skilling, and ease of doing business were highlighted as necessary to translate headline growth into broad-based economic gains. These measures are expected to form an integral part of the budget narrative.
Setting the Tone for FY27
While the budget is still months away, the prime minister’s engagement with economists signals the broad direction of policy thinking. Markets and businesses will closely watch how these consultations translate into concrete fiscal and reform measures.
As India positions itself for sustained growth amid global uncertainty, the FY27 Budget is likely to reflect a calibrated balance between ambition and prudence—anchored in expert advice and informed by evolving economic realities.
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