Openomics 2026: The Power of Partnership

UNION FINANCE ministers often quote a few lines from poetry or sayings of saints in their Budget speech that end up underlining the theme of the Budget propos­als of the year. In her 2026 Budget speech, Finance Minister Nirmala Sitharaman referred to the birth anniversary of Guru Ravidas in her open­ing sentence, and left it at that. For me, the theme of her ninth Budget speech emerged elsewhere, in the very methodical mention of the new preferred way of creation of in­frastructure using the challenge mode.

While we wait for the details, the common understanding is this will en­tail planning and developing of infra­structure project ideas by private players, and a bidding process that will allow the original developer the liberty to match any other better commercial bids. It is a clear indicator of the government’s de­sire to cut red tape and a willingness to trust the private sector with the design of a project like a textile or chemical park. But beyond that, it is also a recognition by the government of the private sector as an equal partner in this journey to see India as a developed nation by 2047. The Budget proposals, in more ways than one, have set up the pathways to that goal, and have thrown down the gauntlet to the private sector to walk up the road.

There is reason for this confidence. If we look at the numbers, you will see that 92 per cent of all investments, cumula­tively over ₹10.1 lakh crore, has been pri­vate-sector investments. There has been a 30 per cent growth in private-sector ca­pex over the last five years. In FY26, 1,700 projects are getting completed, worth ₹9 lakh crore. There are 11 large projects upwards of ₹20,000 crore each that are in the works, amounting to ₹4,75,000 crore mainly in the area of electronics, solar, steel and chemicals. Clearly, the private sector investments that have been lined up and are being completed give the finance minister and the gov­ernment the confidence to move ahead. We have moved on from stimulus and incentives-led Budget making to a new approach that maps the way forward and bets on the future. The announcement of the US-India trade deal, with reciprocal duties capped at 18 per cent, is now the icing on the cake.

The Roadmap

The emphasis of the Budget proposals were less in headline announcements and more in building forward. We do not require frequent policy resets. The prior­ity now is to act decisively in areas that can strengthen competitiveness, enable scale and improve resilience. The finance minister’s emphasis on integration— across manufacturing, exports and in­vestment—sets the right framework.

Within this approach, three areas stand out for their relevance to India’s manufacturing ecosystem. The first is the clear focus on building scale. By identifying strategic sectors such as rare earths, semiconductors and chemicals, the finance minister recognises the need for India to deepen its role in global value chains. The adoption of challenge-based mechanisms places greater emphasis on speed, quality and accountability rather than lowest-cost outcomes.For capital-intensive industries, particu­larly chemicals, this is critical. Even a limited number of successfully executed industrial parks can materially enhance India’s manufacturing competitiveness.

The second is the renewed attention to legacy industrial clusters. India has more than 200 such zones that have supported manufacturing for decades but are now constrained by ageing infra­structure, limited technology upgrades and logistical bottlenecks. By directing investment and policy focus towards upgrading existing clusters, the govern­ment acknowledges both their economic relevance and their potential to support the next phase of industrial growth.

The third pillar is the continued em­phasis on MSMEs, which remain integral to every industrial value chain. The focus on equity support, improved credit access and expanded market linkages addresses long-standing structural challenges faced by smaller enterprises. It may help them move from survival to scale.

Running across these priorities are two horizontal themes. Sustainability emerges clearly, with tax exemptions and incentives aligned to green tech­nologies, including energy storage, car­bon capture, clean power and advanced materials. At the same time, technology and artificial intelligence underpin ini­tiatives across sectors—from industrial clusters and agriculture to tourism and digital infrastructure. The extension of tax exemptions for data centres until 2047 is a notable signal of intent to build global-scale digital capacity in India.

Taken together, the Budget reflects a calibrated approach focused on execu­tion, partnership and long-term capabil­ity building. For industry, the message is clear: policy intent has been articulated, and the onus now lies on enterprise to respond with investment, innovation and delivery.

The Outcome Challenge

Budgets ultimately succeed or fail not on intent, but on outcomes. This Budget lays out a framework that prioritises execution, capability and partnership, recognising that the next phase of India’s growth will be driven by how effectively policy and enterprise work together. For industry, the responsibility now is to respond with seriousness of purpose.

If India is to realise its ambition of becoming a developed nation by 2047, growth will need to be broad-based, re­silient and globally competitive. The policy framework outlined in this Bud­get creates the conditions for that transi­tion. Alongside, trade deals with the EU and the US are all but completed. Deals with the UK and New Zealand have been recently sealed.

The challenge now lies in translating intent into execution—and in ensuring that industry steps forward as a credible, capable and committed partner in that journey. India’s next phase of growth will depend on how effectively policy and enterprise work together.