India's 2026-27 budget allocates $133 billion for infrastructure, boosts defense by 15%, and incentivizes tech and small business growth.

India has set a record $133 billion for infrastructure in its 2026-27 budget, a 9% increase over the previous year, with a focus on high-speed rail, highways, waterways, and digital infrastructure. The government also increased defense spending by 15% to $85 billion, citing regional security concerns, and plans to invest in domestic semiconductor, electronics, and rare earth manufacturing. Foreign cloud providers using Indian data centers will receive a tax break until 2047, while credit support and a growth fund will help small businesses. The budget anticipates a 4.3% fiscal deficit and 6.8% to 7.2% economic growth, fueled by domestic demand and long-term reforms.