The Union Budget 2026 sends a strong signal to markets about India’s long-term growth ambitions, with a clear focus on capital expenditure, national security and industrial self-reliance, according to Sushant Sarin, Managing Director – Strategy & Commercial Risk Solutions, India, Aon.
Commenting on the Budget, Sarin said the allocation of Rs. 12.2 lakh crore for capital expenditure underlines the government’s determination to build future-ready infrastructure, while the Rs. 7.5 lakh crore earmarked for defence spending reinforces priorities around national security and strategic preparedness. Together, these measures are expected to have strong multiplier effects across core industries and allied sectors.
A key business-relevant announcement in the Budget is the proposed Infrastructure Risk Guarantee Fund, which aims to provide credit guarantees to de-risk large and complex projects. The initiative is designed to “crowd in” private investment by improving bankability and reducing risk perception, potentially unlocking fresh capital for infrastructure development.
The Budget also outlines a strategic push towards manufacturing resilience through the announcement of rare earth corridors and chemical parks. These initiatives are expected to reduce import dependency, strengthen domestic supply chains and support India’s broader industrial self-reliance goals.
“This is a budget that speaks to ambition and resilience,” Sarin said, adding that the measures position India to enhance its competitiveness and leadership on the global stage.
