Fiscal consolidation, increase in capital expenditure in Budget to drive economic growth: Kant

Former NITI Aayog CEO Amitabh Kant on Sunday praised Finance Minister Nirmala Sitharaman for upholding her commitment to fiscal discipline in Budget 2026-27. Alstom India Managing Director Olivier Loison said the focus on improving Indias rail infrastructure with the announcement of seven new high-speed rail corridors will significantly boost Indias passenger mobility, strengthening the overall economic ecosystem.

Former NITI Aayog CEO Amitabh Kant on Sunday praised Finance Minister Nirmala Sitharaman for upholding her commitment to fiscal discipline in Budget 2026-27. Kant in a social media post on X said Sitharaman has impressively reduced the fiscal deficit to 4.3 per cent of GDP, a significant drop from the peak of 9.2 per cent in FY21. ''Kudos to @nsitharaman for successfully upholding her commitment to fiscal discipline! ''This achievement has not only strengthened confidence in our economy and created a more favourable environment for credit to flow to the private sector,'' he added. Kant said this fiscal consolidation has been paired with an increase in capital expenditure, with effective capex now at 4.4 per cent of GDP. ''This strategic move is helping to unlock supply-side constraints and drive economic growth,'' he said, adding that looking ahead, the high-level committee on banking reforms must focus on lowering the cost of capital for private enterprises. According to DP World's Middle East and North Africa Chief Executive Officer, Rizwan Soomar, this Budget takes a decisive step towards strengthening India's end-to-end trade and logistics ecosystem. ''The Rs 10,000 crore allocation for domestic container manufacturing directly addresses a critical supply chain vulnerability, while digital customs, AI-enabled inspections and modern warehousing will materially reduce dwell time and improve cargo predictability,'' he said. Alstom India Managing Director Olivier Loison said the focus on improving India's rail infrastructure with the announcement of seven new high-speed rail corridors will significantly boost India's passenger mobility, strengthening the overall economic ecosystem. Furthermore, infrastructure development in Tier 2/3 cities and tourism initiatives will enhance national railway and urban mobility, he said.

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