0.1 Nature and Context of the Article

0.1.1 The article is prescriptive, outlining policy suggestions for Budget 2026–27, not announced measures.
0.1.2 It argues what the Union Budget should prioritise to sustain growth amid global uncertainty.
0.1.3 Recommendations are based on recent economic resilience despite global headwinds and US tariffs.

0.2 Macro-Fiscal Direction

0.2.1 Budget 2026–27 should strengthen domestic growth levers through productive capital expenditure.
0.2.2 It should maintain the fiscal consolidation glide path to contain debt risks.
0.2.3 Policy certainty and macro stability should anchor budgetary choices.

0.3 Defence as a Growth Engine

0.3.1 Defence capex share should be raised to 30% from 26.4% (2025–26 estimate).
0.3.2 DRDO allocation should increase by at least ₹10,000 crore.
0.3.3 Defence industrial corridors should be expanded, including to eastern India.

0.4 Defence Exports Strategy

0.4.1 Budget should institutionalise a defence export promotion council.
0.4.2 Greater coordination should be enabled among ministries, armed forces and embassies.
0.4.3 This should support the defence export target of ₹50,000 crore by 2028–29.

0.5 Strategic Minerals and Manufacturing

0.5.1 Budget should build on the National Critical Mineral Mission (NCMM).
0.5.2 A dedicated tailings recovery programme should be financed.
0.5.3 This should secure inputs for clean energy, EVs and semiconductors.

0.6 Export Competitiveness

0.6.1 Budget should provide a stronger export policy thrust in a volatile global environment.
0.6.2 Allocation under RoDTEP (₹18,233 crore) should be significantly enhanced.
0.6.3 This should improve price competitiveness of Indian exports.

0.7 Emerging Technologies and Drones

0.7.1 Budget should accelerate drone adoption through targeted financial support.
0.7.2 PLI outlay should increase from ₹120 crore to ₹1,000 crore.
0.7.3 A ₹1,000 crore drone R&D fund should be created.

0.8 Finance and Credit Markets

0.8.1 Budget should deepen corporate bond markets to diversify credit sources.
0.8.2 Borrowing thresholds should be lowered and issuer base widened.
0.8.3 Long-term capital should be mobilised via insurance, provident funds and debentures.

0.9 Tax Dispute Resolution

0.9.1 Budget should prioritise clearing pendency at CIT(A) level.
0.9.2 A dual-track dispute resolution mechanism should be introduced.
0.9.3 Vacancies at CIT(A) should be urgently filled.

1.0 Trade Facilitation and Customs

1.0.1 Newly incorporated firms should be made eligible for AEO certification.
1.0.2 Customs tariff rationalisation should continue to address inverted duties.
1.0.3 Import duty calibration should support domestic manufacturing competitiveness.

1.1 Core Takeaway

1.1.1 The article presents a reform-oriented roadmap for Budget 2026–27.
1.1.2 It focuses on what the Budget should do, not what it has already done.
1.1.3 Implementing these measures can sustain growth and crowd in private investment.