eznews.inIn a significant budget announcement on February 1, 2026, Finance Minister Nirmala Sitharaman revealed that New Delhi plans to borrow ₹17.2 lakh crore ($187 billion) for the fiscal year starting April 1, marking an 18% increase from the current year and surpassing analysts' expectations. Following the announcement, India's benchmark 10-year bond yields surged to 6.78%, the highest in over a year, with projections suggesting they could reach 7% soon. This rise in borrowing costs poses challenges for an economy already grappling with high US tariffs and limited room for interest rate cuts by the Reserve Bank of India (RBI). The budget deficit is expected to ease slightly to 4.3% of GDP, but gross borrowing is sharply higher due to increased bond redemptions. The RBI is anticipated to enhance its bond purchases to maintain liquidity, as traders await its monetary policy decision on February 6. 
Published: Feb 02 2026, 10 ameznews.inIndian bonds are set to open significantly weaker on Monday following the government's announcement of a larger-than-expected borrowing plan for the upcoming fiscal year. The benchmark 10-year bond yield is projected to rise to between 6.71% and 6.77%, up from Friday's close of 6.6963%. The federal budget unveiled on Sunday revealed a record gross borrowing of 17.2 trillion rupees ($187.38 billion) for 2026-27, exceeding market estimates and reflecting a 17% increase from the current fiscal year. Analysts noted that the budget lacked incentives for bond investors, contributing to market unease. The Reserve Bank of India’s recent bond purchases may provide some support, having infused over ₹10 trillion into the banking system this financial year. Meanwhile, overnight index swap rates are expected to face upward pressure in line with rising government bond yields.
Published: Feb 02 2026, 10 ameznews.inIndia's annual budget for 2026/27 has been deemed "broadly neutral" for growth by Fitch Ratings, which noted a deceleration in fiscal consolidation efforts. Finance Minister Nirmala Sitharaman announced a target debt-to-GDP ratio of 55.6% and a fiscal deficit of 4.3% of GDP, aimed at bolstering manufacturing amid global uncertainties. While Fitch acknowledged the government's progress in fiscal management, it highlighted that the budget gap has widened compared to pre-pandemic levels, despite improvements in the quality of government finances. The report indicated that elevated general government deficits, debt, and interest payments remain a concern. Fitch maintains a BBB- sovereign rating for India, with Moody’s at Baaa3, while S&P upgraded India to BBB in 2025. The government anticipates economic growth between 6.8% and 7.2% for the upcoming financial year, with Fitch suggesting that sustained GDP growth could enhance India's credit profile over time.
Published: Feb 02 2026, 10 ameznews.inIndia's manufacturing sector showed a slight uptick in January, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) rising to 55.4 from December's two-year low of 55.0, although it fell short of the preliminary estimate of 56.8. The PMI has remained above the critical 50.0 mark, indicating growth, since July 2021. While factory output improved and new orders regained some momentum, export demand remained weak, primarily driven by domestic orders. Job growth saw a modest increase, reaching a three-month high, but overall hiring remained subdued as firms adjusted staffing levels. Business confidence, however, dipped to its lowest in three-and-a-half years, with only 15% of companies expecting increased output in the coming year. Input costs rose at the fastest pace in four months, driven by higher prices for various materials, yet output price inflation fell to its lowest in nearly two years, reflecting limited pricing power for manufacturers.
Published: Feb 02 2026, 10 ameznews.inIn a notable shift, the latest budget emphasizes ecosystem building over mere financial support for technology growth, highlighting a balanced approach to manufacturing, infrastructure, and human capital development. The Semiconductor Mission 2.0 exemplifies this strategy, addressing the entire semiconductor value chain, from fabrication to workforce training. Similarly, advanced manufacturing initiatives, such as duty exemptions for aviation components and the establishment of digitally enabled tool rooms, reflect a dual focus on hardware and skilled personnel. The budget also introduces tax incentives for AI and foreign data centers, positioning India as a global hub for data operations. Additionally, the introduction of 'Corporate Mitras' aims to alleviate compliance burdens for tech firms, while changes in share buyback taxation encourage reinvestment in businesses. Overall, the budget appears tailored for builders, integrating manufacturing incentives with substantial investments in talent and operational expertise.
Published: Feb 02 2026, 9 ameznews.inIn the context of India's evolving economic landscape, Budget 2026 emphasizes the integration of technology, particularly artificial intelligence (AI), into various sectors to enhance productivity and inclusivity. Venkatraman Narayanan, Managing Director of Happiest Minds Technologies, highlights the budget's focus on real-world applications of AI, which are now central to both large corporations and government services. The initiative includes the establishment of 15,000 creator labs in educational institutions, aimed at bridging the gap between education and employment. With a significant allocation for the IndiaAI Mission and support for the National Quantum Mission, the budget signals a commitment to advancing emerging technologies. Additionally, regulatory simplifications and tax incentives, such as a tax holiday for foreign cloud service providers, position India as a global hub for data and cloud services. Overall, Budget 2026 reflects a strategic vision for leveraging technology to drive economic growth and job creation.
Published: Feb 02 2026, 9 ameznews.inIndia's Finance Minister Nirmala Sitharaman presented a cautious Budget on Sunday, prioritizing economic stability amid rising global risks. The Budget increased spending on manufacturing and infrastructure while maintaining fiscal discipline, with a projected deficit reduction to 4.3% of GDP for the upcoming fiscal year. However, the announcement of higher taxes on equity transactions and increased government borrowing led to a slump in stock markets. Analysts noted that the Budget's focus on fiscal prudence could provide the predictability investors seek in uncertain times. Despite the government's aim for self-reliance and investment in key sectors, opposition parties criticized the Budget for not addressing critical issues like job creation and economic growth. The government anticipates economic growth of 6.8% to 7.2% for the next fiscal year, slightly lower than the current year's 7.4%. Key highlights include a record borrowing plan of 17.2 trillion rupees and increased capital expenditure.
Published: Feb 02 2026, 8 ameznews.inDr. Devi Prasad Shetty, Founder and Chairman of Narayana Health, emphasizes that a nation's true wealth lies in the health and productivity of its citizens, not merely in GDP figures. The Union Budget for 2026-27 highlights healthcare as central to India's economic and social vision, with initiatives like the ₹10,000 crore Bio Pharma Shakti program aimed at enhancing self-reliance in biologics and making advanced treatments more accessible. The budget also prioritizes last-mile healthcare delivery, expanding emergency care in district hospitals and establishing mental health centres to address critical gaps. Furthermore, the integration of artificial intelligence in healthcare is set to improve diagnostics and patient outcomes. By positioning healthcare as a key economic driver, the government aims to transform India into a global medical hub, fostering both domestic job creation and international patient influx. This comprehensive approach signals a commitment to a healthier, more prosperous future for all citizens.
Published: Feb 01 2026, 10 pmeznews.inKrishna Ella, Executive Chairman of Bharat Biotech, has praised the Union Budget 2026 for its strategic vision, marking a departure from traditional transactional approaches. He highlights the budget's focus on long-term national strength through investments in knowledge, science, agriculture, healthcare, and job creation. Key initiatives include a ₹10,000 crore allocation for biotechnology, aimed at enhancing India's BioPharma capabilities, and significant regulatory reforms to streamline clinical trials, fostering innovation. The budget also prioritizes human capital development, with plans to train 1.5 lakh healthcare professionals and establish regional health hubs. In agriculture, the shift towards high-value crops and veterinary science is expected to boost farmer incomes and food security. Additionally, support for MSMEs and legacy industries like textiles aims to create jobs and strengthen rural economies. Ella concludes that if executed effectively, this budget could lay the groundwork for sustainable growth and a brighter future for India.
Published: Feb 01 2026, 11 pmeznews.inSuneeta Reddy, Managing Director of Apollo Hospitals, has praised the Union Budget 2026 for its innovative approach and focus on healthcare, emphasizing a shift towards a future-oriented vision. The budget aims to enhance India's healthcare sector through the establishment of Medical Value Tourism hubs, which will cluster accredited hospitals and wellness centres, making treatments more accessible to international patients. Reddy highlighted the importance of integrating traditional medicine with modern healthcare, ensuring a standardized experience for transnational patients. The budget also addresses pressing health challenges, including mental health issues among youth and chronic conditions in women and the elderly, advocating for a shift towards preventive healthcare. With significant investments in research and affordable therapeutics, Reddy believes the budget lays the groundwork for a comprehensive healthcare ecosystem, transforming healthcare from a cost to an investment for the nation’s future.
Published: Feb 01 2026, 11 pm
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