Union Budget 2026 Expectations | Focus must shift to quality of growth, insuring economy against uncertainty: Economist

With the Union Budget 2026 set to be presented on February 1 by Finance Minister Nirmala Sitharaman, economists have urged the government to move beyond headline growth numbers and focus on making growth more durable and inclusive.

Dr Partha Chatterjee, Dean of Academics and Professor of Economics at Shiv Nadar University, Delhi-NCR, said that while strong GDP growth and easing inflation are positive signals, the real challenge for the Budget lies in improving the quality of growth through better job creation, wage growth and stronger rural demand.

He flagged global and domestic uncertainty as the central concern for Budget 2026, citing risks from currency volatility, shifting capital flows, tariff disruptions and inflation spillovers. “The budget should insure the economy against uncertainty at both macro and micro levels,” he said, calling for measures to build macro-resilience and reduce the cost of risk for producers and exporters, particularly MSMEs.

Chatterjee also stressed the need for policy support to channel patient capital into long-term projects, arguing that this would help sustain growth momentum in an increasingly uncertain global environment.