15% for military spending.. India reveals the features of the new budget
This is the first draft budget presented since the outbreak of India’s new budget In the midst of negotiations on a bilateral trade agreement, last August, US President Donald Trump imposed additional duties of 50% on Indian exports, in response to New Delhi’s purchases of Russian oil, which he believes contribute to financing the Russian war effort in Ukraine. Under American pressure, India intensified the signing of agreements. Bilateral trade, the latest of which was this week with the European Union. Sitharaman said to members of Parliament "We face an external environment that threatens trade and multilateralism, and puts access to resources and supply chains at risk" The Indian government expects growth ranging between 6.8% and 7.2% during the next fiscal year, after recording annual growth of 8.2% in the third quarter of 2025. To achieve this goal, the government will continue to invest in infrastructure, allocating the equivalent of about $133 billion to this current public sector, an increase of approximately 10% over the previous year, according to Ministry of Finance documents. Priorities also include the textile, pharmaceutical, and chemical sectors, as they are major sources of job opportunities. India will also raise its military spending by 15% to reach about $85 billion, according to the same documents, in an increase that comes months after a days-long armed confrontation with Pakistan. In May, it was the worst since 1999. The government, in return, plans to reduce the fiscal deficit slightly to 4.3% of GDP, compared to 4.4% in the current fiscal year.Growth in India
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In addition to transportation projects, especially high-speed trains, the plan focuses on modern technologies and artificial intelligence, including semiconductors, data centers, and the extraction of rare metals.Priorities
