Education
- Dr. Debashis Sanyal
Director, Great Lakes Institute of Management, Chennai
” The Budget’s proposal to set up an Education to Employment and Enterprise committee signals a shift from access-led education to outcome-led education. By anchoring skills, services, and AI-driven job disruption within the same policy frame, the Budget recognises that education policy is economic policy. The real test will be how quickly intent translates into institutional and curriculum reform. “
2. Prof. Vishwanathan Iyer
Great Lakes Institute of Management, Chennai
” Budget 2026 marks a substantive shift in education policy from access and enrolment to employability and economic productivity. The proposed Education to Employment and Enterprise Standing Committee is a significant institutional signal that the government recognizes India’s core challenge as a skills mismatch rather than a capacity deficit. This is reinforced by the explicit focus on services, exports, and the impact of AI on jobs, which is economically sound given that services contribute over half of India’s GVA and nearly half of exports. The Budget also moves beyond abstractions by committing to concrete workforce outcomes, including adding 100,000 allied health professionals over five years and training 150,000 caregivers, sectors with high employment elasticity. However, the real test will be whether these reforms translate into binding curriculum changes, industry participation, and state-level execution. Without accountability mechanisms, even well-designed institutions risk remaining advisory rather than transformative. “
Taxation
Prof. Vishwanathan Iyer
Great Lakes Institute of Management, Chennai
” Budget 2026 adopts a deliberately conservative tax stance that prioritizes predictability, compliance reform, and fiscal credibility over short-term stimulus. The decision to avoid changes in income tax slabs preserves revenue buoyancy at a time when net tax receipts are projected at about ₹28.7 lakh crore, reinforcing confidence in the fiscal consolidation path. The more consequential reform lies in the operationalization of the simplified Income Tax Act from April 2026, which aims to reduce complexity, litigation, and compliance costs over time. However, the increase in securities transaction tax on derivatives introduces immediate friction in capital markets by raising trading costs and potentially reducing liquidity. While defensible from a revenue and stability perspective, this move partly explains market unease. Overall, the tax strategy strengthens macro discipline but falls short in addressing the near-term demand slowdown facing middle-income households. “
Economy & Growth Outlook
Prof. Vishwanathan Iyer
Great Lakes Institute of Management, Chennai
” Budget 2026 reinforces a disciplined, supply-side growth strategy that prioritizes investment quality over short-term acceleration. The continuation of public capital expenditure at ₹12.2 lakh crore anchors the investment cycle, while the projected reduction in the fiscal deficit to 4.3 percent of GDP signals commitment to macro stability. This balance is particularly important in a global environment marked by high interest rates, a strong dollar, and volatile capital flows. The Budget consciously avoids broad consumption stimulus, implying that growth will remain investment-led and productivity-driven in the near term. This strengthens medium-term earnings durability and sovereign credibility, but limits immediate upside to demand-sensitive sectors. From a financial markets perspective, the strategy is sound but patience-testing. The growth model is robust, yet its payoff is incremental rather than dramatic. “
AI, Technology & Governance
Sridhar Gadhi
Founder & Managing Director, ParadigmIT
” The 2026 Budget signals India’s shift from e-Governance to intelligent Governance – where productivity, service delivery and policy execution are powered by intelligence, not just systems. A sovereign, domain-trained AI platform in governance, education, agriculture and public services will become the enabler to for governments to operate at population scale. By explicitly calling “AI a force multiplier for better governance”, the Budget elevates it to a strategic national priority. Continued support for the India AI Mission alongside other frontier missions signals long-term institutional commitment. This is about building Sovereign domain-trained AI capability in core areas like governance, education, critical infrastructure, public services, education and agriculture. “
