Budget 2026 is expected to integrate five-year sectoral action plans aligned with India’s Viksit Bharat 2047 vision.
Government-led inter-ministerial meetings are underway to align long-term projects with the upcoming budget.
Core infrastructure sectors saw a slowdown in September, while the IT sector continues to face global headwinds and investor pullback.
The pharmaceutical sector showed steady growth driven by key therapies, signaling resilience amid global uncertainties.
The Union Budget 2026 is likely to be a strategic blueprint to gear up India’s vision for Viksit Bharat 2047. The government is mulling integrating five-year sectoral action plans which cover major sectors including infrastructure, energy, technology, and pharmaceuticals into the budget, according to reports. The budget is expected to be presented in early February.
A high-level inter-ministerial meeting headed by NITI Aayog and the finance ministry has already started, Moneycontrol reported. NITI Aayog member Rajiv Gauba, along with other top officials from the finance ministry, held a meeting last week on the five-year infrastructure plans. They also discussed key areas of energy including petroleum and natural gas. Five-year plans for technology, including science and telecom, will be taken up for discussions on October 23, followed by discussions on pharmaceuticals on October 24.
“These sessions are crucial for aligning each ministry’s long-term projects with the budget framework. It ensures continuity and accountability in policy execution,” Moneycontrol reported, citing government officials.
5-Year Plan: A Fast Track to Viksit Bharat 2047
India’s Viksit Bharat 2047 strategically aims to build self-sufficiency and reliance to mark the centenary of India’s independence. Aligning the union budget with sectoral action plans that align with the vision accelerates India’s drive to become a developed economy. By making Budget 2026 a financial tool for long-term development, the government is ensuring sustainable sectoral priorities that can be implemented efficiently. The five-year plan is likely to link fiscal policy directly with medium-term sectoral goals by incorporating policy directives, fund allocations, and priority projects, as per the report by Moneycontrol .
Infra Sector Sees Dip; Fiscal Boost Necessary Going Ahead
According to government data released on Tuesday, eight of India’s key infrastructure sectors’ performance stood at 3% in September, slower than the 6.5% reported in the month prior. In the corresponding period last year, the core sectors’ output growth was 2.4%. India’s core infrastructure sectors recorded the slowest pace in the last three months owing to a fall in the output of coal, crude oil, refinery products, and natural gas.
Steel and electricity output increased 14.1% and 2.1%, respectively, year-on-year in September, while growth in fertilizer dropped to 1.6% and cement slowed to 5.3%. In September 2024, fertilizer and cement recorded growth of 1.9% and 7.6%, respectively.
According to the data, during April-September, the key eight infrastructure sectors expanded by 2.9%, compared to 4.3% for the same period last year.
Amid rising geopolitical tensions and subdued capital investment, the sector continues to struggle for momentum, making a fiscal policy boost critical to reviving India’s infrastructure growth.
IT Sector Remains Sluggish Amid Global Headwinds
India’s tech firms are likely to report another subdued quarter amid global headwinds, weak demand, and aggressive reciprocal tariffs from the US. Sector analysts expect continued single-digit growth as reduced client spending in the US weighs on performance, Economic Times reported.
Citi Research projects FY26 to be the third consecutive year of sluggish growth for the Indian tech industry, while Ambit Capital has warned that weak macroeconomic indicators and global policy uncertainty may persist into FY27, according to the report.
So far in 2025, foreign investors have net withdrawn $7.64 billion from Indian IT stocks — the largest sectoral outflow among all industries.
Amid continued policy uncertainty and sustained foreign investor exit, the Indian tech sector requires strong fiscal and policy backing to regain stability.
Indian Pharma Posts Steady Growth, Data Show
The Indian pharmaceutical market reported steady growth in September, with total sales reaching ₹20,886 crore or a 7.3% year-on-year increase, according to data released by Pharmarack. The growth was driven by key therapy areas such as antidiabetic, cardiac, and respiratory segments, the report stated.
Among corporates, Sun Pharma led the market with an 8.4% share and 8.8% year-on-year growth, followed by Abbott, Mankind, Cipla, and Alkem. Most pharmaceutical companies recorded double-digit growth in value, despite a mixed trend in sales volume.
Amid rising global power shifts, policy uncertainties, and continued foreign investor exits, it becomes imperative for the government to equip domestic sectors, including pharmaceuticals, with targeted fiscal and policy support to strengthen industry resilience and accelerate progress toward the Viksit Bharat 2047 vision.
