Budget 2026–27 Signals Shift From Intent To Execution On Growth & Sustainability: TERI

New Delhi, Feb 2 (KNN) The Energy and Resources Institute (TERI) has said the Union Budget 2026–27 reflects continuity in India’s development strategy, with a shift from intent to execution anchored in fiscal discipline, long-term growth and people-centric development. 

Finance Minister Nirmala Sitharaman on Sunday presented her ninth consecutive Union Budget in the parliament.

TERI noted that effective implementation, institutional coordination and environmental safeguards will be critical to translating allocations into outcomes.

Focus on Energy Transition and Climate Action

Dr. Vibha Dhawan, Director General, TERI, said, “The Union Budget 2026 consolidates India’s long-term transition towards clean, secure, and innovation-driven growth. The continued emphasis on green energy—particularly renewed attention to nuclear power alongside solar and battery energy storage—highlights the importance of diversifying India’s energy mix with reliable baseload capacity, especially for hard-to-abate sectors.” 

TERI’s leadership emphasised that the Budget’s continued support for renewable energy, battery storage, nuclear power and carbon capture, utilisation and storage (CCUS) was seen as strengthening India’s long-term energy security and decarbonisation efforts. 

The Rs 20,000 crore allocation for CCUS over five years was described as a significant signal of intent for reducing emissions in hard-to-abate sectors in line with India’s Net Zero 2070 goal.

At the same time, the leadership observed that biodiversity conservation and ecosystem restoration received relatively limited attention, suggesting the need for a more integrated environmental stewardship approach.

MSMEs and Green Growth

Dr. Manish Kumar Shrivastava, Associate Director, TERI, noted, “While the budget focuses on protecting the Indian economy from global volatility and emphasises industrial clusters, it proposes greater integration with the global economy to facilitate the green energy transition.” 

“The proposed procedural ease, along with access to tax benefits for relatively larger small and medium enterprises (SMEs), will reduce transaction costs and help protect and enhance their economic viability and competitiveness,” he added. 

Infrastructure, Manufacturing and Logistics Push

The Budget’s strong thrust on infrastructure was welcomed, particularly proposals for new high-speed rail corridors, dedicated freight corridors, container manufacturing with a Rs 10,000 crore outlay, and expanded urban and transport infrastructure. TERI said these measures could improve logistics efficiency, industrial competitiveness and regional connectivity.

The focus on clean-tech manufacturing, critical and rare earth mineral corridors, semiconductor and biopharma initiatives was also seen as strengthening supply chains and reducing import dependence.

Role of Technology and AI

Dr. Syamal Kumar Sarkar, Senior Advisor, TERI, highlighted, “The Union Budget 2026 introduces measures to leverage artificial intelligence (AI) for agricultural risk mitigation. This is a significant step toward integrating smart technologies—such as drip and sprinkler systems—with AI-driven soil moisture analytics.” 

“While these advancements will curb excessive water consumption and enhance productivity, the initiative is capital-intensive and requires significant improvements in farmers’ data literacy. Consequently, a state-level action plan for water demand-side management is essential,” Sarkar added.

Water, Urban Development and Resilience

The Budget’s proposals for developing reservoirs, Amrit Sarovars, inland waterways and continued support under the AMRUT scheme were seen as steps toward integrated water management and urban resilience. TERI emphasised the need for basin-level planning, groundwater governance and environmental flow safeguards to balance competing water uses.

Overall, TERI described the Union Budget 2026–27 as a long-term, investment-driven budget that strengthens India’s growth and sustainability framework. 

The institute stressed that consistent implementation and stronger institutional capacity will determine how effectively the Budget advances India’s economic resilience, climate goals and inclusive development agenda.

(KNN Bureau)