Reform, Perform, Transform: PM Modi Lays Out Reform-Driven Vision for Budget Session 2026

Prime Minister Narendra Modi set the tone for the Budget Session of Parliament by outlining a reform-focused vision aimed at strengthening India’s long-term economic foundations. Addressing the media ahead of the session, the Prime Minister called for sustained reforms, productive parliamentary debate, and policy continuity to support India’s next phase of growth. He stressed that the session is critical for shaping economic priorities that will define India’s medium- and long-term development path.

Referring to President Droupadi Murmu’s address to the joint sitting of Parliament, PM Modi said it reflects the confidence and aspirations of 140 crore Indians, particularly the youth. He described India as a growing global force and said the country’s democratic strength and demographic advantage position it as a key pillar of stability and growth in the global economy.

Finance Minister Nirmala Sitharaman is set to table the Economic Survey in Parliament on January 29, ahead of the Union Budget presentation on February 1. | Moneycontrol

Historic Ninth Budget for Nirmala Sitharaman

This Budget Session marks a historic milestone for Finance Minister Nirmala Sitharaman, who is set to present her ninth consecutive Union Budget on February 1. This achievement makes her the first finance minister and the first woman to deliver nine successive budgets. Ahead of the Budget, she is tabling the Economic Survey, which will provide a detailed assessment of India’s macroeconomic performance, fiscal health, and growth outlook.

The Economic Survey is expected to offer crucial insights into sectoral trends, investment conditions, and structural challenges. It will serve as the analytical foundation for Budget proposals and help frame policy decisions aimed at sustaining high growth while managing fiscal discipline.

India–EU Free Trade Agreement Emerges as Centrepiece of Economic Strategy

A major focus of the Prime Minister’s remarks was the recently finalised India–European Union Free Trade Agreement, which he described as the “mother of all deals.” The agreement, concluded after nearly two decades of negotiations, is being widely seen as a landmark development in India’s global trade strategy. The pact is expected to significantly deepen economic integration between India and the 27-nation European Union.

According to international coverage, the agreement will reduce or eliminate tariffs on a vast majority of traded goods, providing Indian exporters with expanded access to one of the world’s largest consumer markets. Key Indian sectors such as textiles, pharmaceuticals, engineering goods, gems and jewellery, leather, and MSMEs are expected to benefit from improved market access, while European exporters will gain greater entry into India’s fast-growing market.

Quality-Led Manufacturing and Export Push

PM Modi placed strong emphasis on quality-led growth, urging Indian manufacturers and exporters to focus on world-class standards to build a strong and lasting presence in European markets. He said the opening of the EU market creates a major opportunity for Indian industry but stressed that long-term success will depend on consistent quality and reliability.

The Prime Minister noted that under the agreement, a large share of Indian exports will either face zero or very low duties, creating fresh opportunities for businesses, artisans, and small entrepreneurs. He highlighted that this will help strengthen the global “India brand” and position Indian products more competitively across Europe.

Boost to Trade, Investment, and Global Integration

Global analysts and media outlets have described the India–EU FTA as a strategic realignment in global trade. The deal is expected to boost bilateral trade, which already stands at over $130 billion annually, and could significantly increase investment flows between India and Europe. The agreement is also seen as part of India’s broader effort to diversify trade partnerships and reduce vulnerability to global economic uncertainties.

The pact aligns with India’s wider push to position itself as a global manufacturing and export hub, supporting initiatives such as Make in India and export-led growth strategies. It also strengthens India’s role in shaping new global supply chains at a time of shifting geopolitical and economic dynamics.

Technology-Driven, Human-Centric Governance Reforms

Beyond trade, PM Modi reiterated the government’s commitment to technology-driven and human-centric governance reforms. He said India is moving away from long-pending structural bottlenecks toward long-term, sustainable solutions that improve service delivery, competitiveness, and institutional efficiency.

The Prime Minister highlighted that next-generation reforms will continue to focus on innovation, digital infrastructure, and governance modernization. He underlined that India’s democratic institutions, young population, and growing technological capabilities provide a strong foundation for sustained economic transformation.

The MGMM Outlook

India’s Budget Session 2026 signals a continuation of reform-led governance aimed at strengthening long-term economic fundamentals. The Prime Minister’s emphasis on sustained reforms, productive parliamentary functioning, and policy continuity highlights a focus on building durable growth drivers rather than short-term gains. The milestone of Finance Minister Nirmala Sitharaman presenting her ninth consecutive Union Budget, supported by the Economic Survey, underlines policy stability and institutional continuity. Together, these developments reinforce a framework that prioritizes macroeconomic discipline, sectoral growth, and long-term planning to support India’s evolving economic ambitions.

The India–European Union Free Trade Agreement emerges as a central pillar of this economic strategy, positioning India to significantly expand its global trade footprint. With improved access to European markets, Indian exporters across textiles, pharmaceuticals, engineering goods, MSMEs, and other sectors stand to benefit from reduced trade barriers and stronger integration into global value chains. The parallel focus on quality-led manufacturing, technology-driven governance, and human-centric reforms reflects an effort to enhance competitiveness while modernizing institutions. This combination of trade expansion, manufacturing strength, and digital governance is set to accelerate India’s role as a key global economic and manufacturing hub.

(Sources: Moneycontrol, NDTV, The New Indian Express)