In New Delhi on Monday, 10 November 2025, Finance Minister Nirmala Sitharaman formally launched the pre-Budget consultation process ahead of the upcoming Union Budget 2026-27. The initial meeting brought together leading economists and senior officials from the Department of Economic Affairs as part of a structured sequence of stakeholder engagements planned by the Ministry of Finance.
The first of these consultations, held at the Finance Ministry’s offices, featured contributions from prominent economists, policy experts, and senior officials, including the Chief Economic Adviser and the Secretary of the Department of Economic Affairs. Key issues highlighted during the session included the need to boost manufacturing, empower micro, small and medium enterprises (MSMEs), enhance research and development, and simplify the tax regime. Economists emphasised that the forthcoming budget should prioritise capital expenditure due to its multiplier effect on growth, even if it temporarily slows fiscal consolidation.
Discussions also focused on streamlining the tax structure and improving the ease of doing business to strengthen India’s competitiveness and operational efficiency. On the agriculture front, separate consultations scheduled later in the day involved farmer organisations and agricultural economists, reflecting the government’s intent to balance industrial and agricultural priorities in the upcoming budget.
With the economy navigating headwinds from global trade uncertainties and a changing domestic investment environment, participants urged that the Union Budget 2026-27 must remain both growth-oriented and fiscally prudent. While fiscal discipline remains crucial, the government was advised to sustain public investment to stimulate long-term growth and job creation.
Historically, the pre-budget consultation process has served as a vital indicator of the government’s economic priorities for the year ahead. This year’s early engagements suggest a sharpened focus on manufacturing, MSMEs, and technology-driven growth. The government’s announcement that budget preparations would begin in early October set the stage for these discussions, reflecting a proactive approach toward budget planning.
As India prepares for the presentation of the Union Budget 2026-27, expected in February, the opening round of consultations led by Nirmala Sitharaman underscores a shift toward growth-centred reforms, simplified taxation, and increased capital investment. The outcomes of these dialogues are likely to shape key policy decisions that will influence India’s economic direction in the coming fiscal year. With global economic uncertainties persisting, the government’s ability to balance reform, investment, and fiscal responsibility will be closely watched by investors, businesses, and citizens alike.
