Budget 2026 Anchored on Three ‘Kartavya’ to Shape India’s Next Phase of Growth

Union Finance Minister Nirmala Sitharaman has anchored Union Budget 2026 around three core “kartavya” or duties, presenting them as the philosophical and policy foundation for India’s next phase of economic transformation. In her ninth consecutive Budget, Sitharaman emphasised that governance and fiscal decision-making must be guided by a responsibility toward the poor, vulnerable and underprivileged, while strengthening India’s long-term economic resilience.

Prepared for the first time at Kartavya Bhavan, the Budget reflects both symbolic and substantive alignment with a duty-centric approach to development. The three kartavya are designed to serve as guiding principles that connect economic growth, institutional reform and financial stability with India’s broader vision of becoming a developed nation by 2047.

FM Nirmala Sitharaman | Moneycontrol

Kartavya One: Accelerating and Sustaining Economic Growth

The first kartavya focuses on accelerating and sustaining economic growth by improving productivity, competitiveness and the economy’s ability to withstand global uncertainty. The Budget reinforces manufacturing, infrastructure and MSMEs as central pillars of India’s growth strategy, positioning them as engines for job creation, private investment and industrial expansion.

A major emphasis has been placed on scaling up strategic and frontier manufacturing, alongside the modernisation of traditional industrial clusters. The government has also announced measures to develop city economic regions as growth hubs, aimed at strengthening urban-led economic expansion and improving the investment climate.

Public capital expenditure has been increased to ₹12.2 lakh crore, underlining the government’s continued belief in infrastructure-led growth. High-speed rail corridors, improved logistics connectivity and urban infrastructure development are expected to enhance productivity, reduce transaction costs and support long-term economic competitiveness.

Kartavya Two: Strengthening Financial Stability and Mobilising Domestic Savings

The second kartavya centres on building a strong and resilient financial system capable of mobilising domestic savings, efficiently allocating capital and managing economic risks. Sitharaman highlighted that financial stability is essential for sustaining investment, supporting entrepreneurship and funding India’s long-term development priorities.

The Budget reinforces reforms in banking, capital markets and financial regulation, with the objective of strengthening capital formation and improving risk management. Technology-driven governance has been positioned as a key enabler, with artificial intelligence and digital platforms expected to enhance administrative efficiency, improve compliance and strengthen service delivery.

This pillar also aligns with the government’s broader fiscal consolidation strategy. While maintaining high levels of capital expenditure, the Budget continues to prioritise deficit management and long-term fiscal sustainability, signalling a balanced approach between growth support and financial discipline.

Kartavya Three: Sustaining the Momentum of Structural Reforms

The third kartavya focuses on maintaining the pace of structural reforms to modernise governance, reduce compliance burdens and improve ease of doing business. Sitharaman reiterated that the government’s reform agenda, described as the “Reform Express,” will continue at full speed, highlighting reform as a permanent feature of India’s economic strategy rather than a one-time effort.

Recent initiatives such as GST simplification, labour code implementation, deregulation measures and rationalisation of quality control norms reflect this continued push. The government has also emphasised closer coordination with states and the formation of high-level committees to accelerate regulatory reforms and improve policy execution.

Officials have indicated that hundreds of reform measures have been rolled out in recent months, underscoring the government’s focus on institutional strengthening, productivity enhancement and job creation as part of a long-term structural transformation agenda.

Infrastructure, Manufacturing and India’s New Growth Architecture

Beyond the three-kartavya framework, Budget 2026 places strong emphasis on building a new growth architecture anchored in infrastructure, advanced manufacturing and strategic sectors. The government has prioritised areas such as semiconductors, rare earth processing, container manufacturing, textiles and green energy to strengthen domestic supply chains and reduce external dependence.

Initiatives such as India Semiconductor Mission 2.0, the development of rare earth corridors and incentives for high-technology manufacturing reflect a deeper push toward technological self-reliance and global value chain integration. Investments in logistics, urban development and sustainable mobility further signal the government’s intent to future-proof India’s economic model.

The MGMM Outlook

The Union Budget 2026 frames India’s next phase of growth around three core kartavya that link economic policy with a broader sense of national responsibility. By anchoring development in duty toward the vulnerable while strengthening long-term resilience, the Budget positions growth, productivity and competitiveness as central to India’s 2047 vision. Higher public capital expenditure, renewed focus on manufacturing, MSMEs and infrastructure, and the creation of city economic regions signal a continued reliance on investment-led expansion to drive jobs, private sector confidence and industrial capacity, even amid global uncertainty.

At the same time, the Budget reinforces financial stability and structural reform as equally critical pillars of sustainable development. Strengthening banking, capital markets and technology-driven governance is aimed at mobilising domestic savings, improving capital allocation and maintaining fiscal discipline alongside high growth spending. Ongoing reforms in taxation, labour, regulation and ease of doing business reflect an effort to institutionalise reform as a permanent process. Together, these measures outline a growth architecture that combines infrastructure, advanced manufacturing and strategic sectors with governance modernisation, positioning India for long-term, reform-driven and resilient economic expansion.

(Sources: Moneycontrol, Economic Times, Times of India)