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Budget 2026 signals India’s strategy to shield economy from global tariff shocks

Budget 2026 highlights India’s cautious approach to global trade tensions, focusing on defence, infrastructure and strategic self-reliance while sticking to fiscal discipline.

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Prime Minister Narendra Modi’s economic strategy to protect India from rising global trade tensions became clearer with the presentation of the Union Budget 2026, which focused on strengthening strategic sectors, supporting exporters and maintaining fiscal stability.

The spending plan comes at a time when India faces an uncertain external environment, marked by tariff pressures from the United States and disruptions to global supply chains. The budget announced fresh support for exporters affected by overseas trade barriers and increased backing for critical sectors such as rare earths, semiconductors and critical minerals.

A key highlight of the budget was a significant push towards national security and infrastructure. The government announced an 18% increase in defence expenditure alongside new infrastructure outlays, positioning the move as a safeguard against regional security challenges involving China and Pakistan.

Despite higher spending in select areas, the government largely adhered to its fiscal roadmap. Overall expenditure remained controlled, with no major tax cuts for households and no large-scale stimulus measures. The budget also avoided major populist announcements in a year when the ruling party faces electoral contests in several states.

According to policy analysts, the approach reflects caution amid global uncertainty. The emphasis is on insulating the economy while keeping a close watch on external risks rather than pursuing aggressive expansion.

Market reaction to the budget was muted, with equities declining after the announcement. Investors attributed the fall mainly to a tax increase on equity market transactions aimed at curbing speculation, rather than dissatisfaction with the broader spending plan. The government’s decision to borrow more than expected in the next fiscal year also raised concerns about potential pressure on the bond market.

Setting the tone for the budget speech in Parliament, Finance Minister Nirmala Sitharaman highlighted the challenges posed by weakening multilateral trade systems and disruptions in access to resources and supply chains. She stressed the need for India to remain integrated with global markets while boosting exports and attracting long-term investment.

Although not named directly, the budget addressed challenges arising from recent tariff measures imposed by the US, including steep duties affecting labour-intensive sectors such as textiles and furniture. These measures have added pressure on industries dependent on overseas demand.

The government’s response has been to strengthen domestic capabilities. Over the past year, steps have been taken to boost consumption, simplify labour regulations and open up sectors such as nuclear energy and finance to investors. The latest budget builds on that direction by deepening reforms and improving productivity across sectors.

At the same time, India is seeking to diversify its trade relationships. Recent free trade agreements with the European Union, the UK and New Zealand aim to reduce dependence on any single market and provide exporters with greater stability.

Focus on self-reliance and strategic sectors

The budget placed strong emphasis on self-reliance, announcing new initiatives to promote domestic manufacturing in semiconductors and pharmaceuticals. It also outlined plans to develop mining, processing and manufacturing capacity for rare earth minerals, particularly in mineral-rich eastern and southern states.

Industry leaders described the initiatives as essential for building a resilient industrial ecosystem capable of withstanding global shocks.

However, questions remain over whether the cautious spending approach will be sufficient to support growth and generate employment for India’s young workforce. While the government has projected growth between 6.8% and 7.2% for the coming fiscal year, market estimates are slightly lower.

Opposition leaders criticised the budget for not addressing issues such as youth unemployment and declining household savings. The government, however, appears focused on navigating geopolitical and economic uncertainty while staying committed to fiscal discipline.

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Raj Thackeray questions Vivek Oberoi and R. Madhavan over living in Dubai despite praising PM Modi

Raj Thackeray questioned Vivek Oberoi and R. Madhavan over residing in Dubai while praising the Narendra Modi government. He also condemned abusive language directed at Prime Minister Narendra Modi during the CJP protests and urged all sides to avoid such rhetoric.

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Maharashtra Navnirman Sena (MNS) chief Raj Thackeray on Saturday questioned actors Vivek Oberoi and R. Madhavan over residing in Dubai despite publicly praising Prime Minister Narendra Modi and the BJP-led central government.

Addressing an event organised by the Maharashtra Navnirman Vidyarthi Sena, the student wing of the MNS, in Mumbai, Thackeray criticised the Centre and claimed that many industrialists had left the country over the years.

Raj Thackeray questions actors over Dubai residence

During his speech, Thackeray referred to Vivek Oberoi, who portrayed Prime Minister Narendra Modi in the 2019 biographical film based on the Prime Minister’s life, and questioned why he now lives in Dubai.

He also mentioned actor R. Madhavan, saying that if those who praise the Prime Minister believe India has progressed significantly under his leadership, they should explain why they have chosen to reside abroad with their families.

Thackeray further alleged that actors participate in government-backed projects in India before returning overseas.

While responding to similar questions in the past, R. Madhavan has said he relocated to Dubai during the Covid-19 pandemic to support his son’s swimming career. Vivek Oberoi has previously stated that he moved to Dubai to expand his business interests.

Comments on language used during CJP protests

The MNS chief also commented on the abusive language used against Prime Minister Narendra Modi during the Cockroach Janta Party (CJP)-led protests at Delhi’s Jantar Mantar.

Referring to the Prime Minister’s recent appeal that “misguided children” should be forgiven and guided in the right direction, Thackeray said he agreed that abusive language should not be used against anyone. However, he added that members and supporters of the BJP should also refrain from using similar language against political opponents.

He alleged that BJP troll groups have targeted several leaders and public figures, including Mahatma Gandhi, Jawaharlal Nehru, Indira Gandhi and members of the Thackeray family. According to him, trolling has discouraged many actors from expressing their views publicly.

Thackeray said that respect should be maintained in political discourse and that abusive language directed at anyone should be avoided.

Says NEET issue became trigger for wider discontent

Speaking about the ongoing CJP protests, Raj Thackeray said the alleged NEET paper leak issue served as the immediate trigger, but the large public response reflected broader grievances that had accumulated over the years.

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Bengal STF says Pakistan-linked terror suspect planned to infiltrate CJP protest

The West Bengal STF alleges a Pakistan-linked terror suspect planned to infiltrate the CJP protest at Jantar Mantar in a police uniform and gather intelligence on the chief minister. Investigators say the probe expanded after tracing the suspect’s girlfriend through social media.

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The West Bengal Special Task Force (STF) has alleged that a suspected operative linked to the Pakistan-based terror outfit Jaish-e-Mohammad (JeM) planned to infiltrate the recent CJP protest at Delhi’s Jantar Mantar while posing as a police officer. Investigators also claim the accused had been tasked with gathering intelligence on the movements of the state’s chief minister.

The accused, identified as Hamim Mondal, was arrested from Purba Bardhaman district. According to STF officials, he was allegedly acting on instructions from Pakistan-based handlers and is now in 14-day STF custody as the investigation continues.

STF alleges plan to infiltrate protest in police uniform

Addressing a press conference, STF Inspector General Gaurav Sharma said Pakistani handlers had instructed Mondal to enter the CJP protest at Jantar Mantar dressed in a police uniform and create unrest.

The agency further alleged that Mondal had been assigned to monitor the chief minister’s movements and gather information about locations where security arrangements could be comparatively weak. Officials described the chief minister as one of the intended targets, according to the investigation.

The STF said questioning of Mondal has also helped investigators identify links to several suspected handlers associated with the JeM network.

Girlfriend arrested as probe uncovers alleged honeytrap links

The investigation also led to the arrest of Arpita Sarkar from Jharkhand. According to the STF, the two had allegedly conspired to honeytrap and kidnap the son of state minister Umesh Ray to extort money from the family.

Officials alleged that the duo was working at the behest of Pakistan-based handlers connected to the Shahzad Bhatti gang.

Police claimed Sarkar had allegedly honeytrapped several influential individuals, including politicians, to collect information that was later shared with Mondal. Investigators said WhatsApp chats recovered during the probe revealed alleged links to Pakistan.

Social media trail helped investigators

According to the STF, investigators recovered international SIM cards issued in the United Kingdom and Mexico from the accused. The agency suspects these were used for encrypted communication with handlers and sleeper cells.

Officials also said an examination of Mondal’s mobile phone and social media activity suggested he had been radicalised online before allegedly coming into contact with Pakistan-based operatives.

The STF identified suspected handlers by the aliases “Rana”, “Uzair”, “Abid Jatt 333”, and “Hamad”, who are believed to be associated with the Shahzad Bhatti gang. The group is alleged to be involved in radicalisation, terror recruitment and narco-terror activities.

Investigators said Mondal and Sarkar first connected through Instagram and had been in a relationship for around four years. The probe reportedly began after the STF traced Sarkar’s social media accounts during an investigation into the alleged honeytrap case, eventually leading officers to Mondal.

The agency said efforts are continuing to determine the full extent of the suspected network and identify any additional members or cross-border connections. Officials added that further details cannot be disclosed at this stage because of the sensitivity of the investigation.

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Mountaineering icon Nirmal Purja dies after avalanche on Broad Peak

Record-breaking mountaineer Nirmal ‘Nims’ Purja died after an avalanche struck Broad Peak. Expedition company Elite Exped confirmed the tragedy and paid tribute to his remarkable legacy.

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Legendary mountaineer Nirmal ‘Nimsdai’ Purja has died after an avalanche struck Broad Peak, the world’s 12th-highest mountain, his expedition company Elite Exped confirmed in an Instagram post on Saturday.

Purja and five other climbers had been reported missing since Friday after an avalanche hit the expedition on Broad Peak’s standard West Ridge route. According to Elite Exped, the incident also claimed the lives of other members of the team.

“Today, it is with profound sadness and immense heartbreak that we confirm that Nirmal ‘Nimsdai’ Purja tragically lost his life following the avalanche on Broad Peak. We have also received confirmation that other members of the expedition sadly did not survive,” the company said.

Avalanche struck on Broad Peak

Broad Peak is located in the Karakoram mountain range along the border of Gilgit-Baltistan in Pakistan and China’s Xinjiang region, close to K2 in Pakistan-Occupied Kashmir (PoK).

The avalanche struck the expedition along the mountain’s standard West Ridge route at an altitude of approximately 21,600 to 21,850 feet.

Elite Exped also confirmed the deaths of Purja’s climbing partners and guides, Pur Bahadur Gurung (Yukta) and Nima Sherpa, while expressing condolences to the families of all those who lost their lives.

“The world has lost one of mountaineering’s greatest climbers; a leader who inspired millions through his courage, humility and unwavering belief that human potential is far greater than we often imagine,” the company said.

A pioneering career in mountaineering

Before becoming a full-time mountaineer and expedition guide, Purja served in Britain’s Brigade of Gurkhas and later in the Royal Marines’ elite Special Boat Service (SBS).

He rose to global prominence in 2019 after completing his ambitious Project Possible, climbing all 14 mountains above 8,000 metres in just six months and six days, setting a world record.

In 2021, Purja was part of the 10-member Nepali team that achieved the first successful winter ascent of K2, one of mountaineering’s most celebrated achievements.

His accomplishments also reached a global audience through the Netflix documentary 14 Peaks: Nothing Is Impossible, which chronicled his record-breaking expedition and inspired renewed interest in high-altitude climbing.

According to Elite Exped, Purja’s legacy will continue through the organisations he founded and the countless people he inspired to push beyond perceived limits.

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