# FM Sitharaman: Global Uncertainty “Never Experienced Before” Shapes India’s Budget 2026

URL: https://technosports.co.in/fm-sitharaman-global-uncertainty-never-budget-2026/  
Published: 2026-02-02  
Updated: 2026-02-02  
Author: Reetam Bodhak

Finance Minister Nirmala Sitharaman acknowledged that India faces unprecedented global [economic uncertainty](https://en.wikipedia.org/wiki/Economic_uncertainty) while presenting Budget 2026-27, but emphasized that these external risks are being carefully incorporated into India’s fiscal planning and policy framework.

## Budget 2026: Key Highlights at a Glance

| **Parameter** | **FY 2026-27** | **FY 2025-26** |
| --- | --- | --- |
| **Fiscal Deficit** | 4.3% of GDP | 4.4% of GDP |
| **Capital Expenditure** | ₹12.2 lakh crore | ₹11.2 lakh crore |
| **Debt-to-GDP Ratio** | 55.6% | ~56% |
| **Total Budget Size** | ₹53.5 lakh crore | — |
| **STT on F&O** | Increased 150% | Base rate |

## Navigating Unprecedented Global Challenges

During a post-Budget press conference on February 2, 2026, Sitharaman stated that the magnitude of global uncertainties confronting India is something the nation has never experienced before. However, she stressed that policymakers continuously factor these risks into their decision-making process.

![FM Sitharaman](https://technosports.co.in/wp-content/uploads/2026/02/image-84-1024x576.png)

“Global uncertainty definitely occupies all the officers’ minds as we were preparing for the Budget. But I wouldn’t attribute it as the cause for any one step,” the Finance Minister explained, noting that these considerations are woven throughout budget planning rather than driving specific measures.

## Strong Domestic Fundamentals Amid Global Volatility

Despite external headwinds, India maintains robust macroeconomic foundations. The Finance Minister highlighted that while domestic fundamentals remain sound, the country operates in an increasingly uncertain global environment marked by disrupted trade, threatened multilateralism, and volatile supply chains.

**Key areas impacted by global uncertainty include:**

- Currency movements, particularly the rupee versus dollar exchange rate
- Import dependency on critical minerals and resources
- Export market volatility affecting small businesses
- Capital flow pressures from geopolitical tensions

Sitharaman clarified that currency pressures largely stem from global factors rather than domestic weaknesses, emphasizing India has done everything internally to ensure strong fundamentals.

## Strategic Policy Measures

The Budget 2026-27 demonstrates fiscal prudence while addressing growth imperatives. The government prioritized capital expenditure at ₹12.2 lakh crore, reinforcing infrastructure-led development despite global headwinds.

Manufacturing will be scaled up across seven priority sectors—pharmaceuticals, semiconductors, rare-earth magnets, chemicals, capital goods, textiles, and sports goods—reducing import dependence and strengthening domestic capabilities.

For comprehensive coverage of India’s economic policies and financial markets, explore our [business news section](https://technosports.co.in) and stay updated with the latest [market analysis](https://technosports.co.in/category/business).

## Balancing Growth with Fiscal Discipline

Industry body FICCI praised the Budget for providing stability and policy clarity amid growing global volatility. The government’s focus on continuity helps businesses navigate uncertain external environments while maintaining growth momentum.

The modest reduction in fiscal deficit from 4.4% to 4.3% reflects careful calibration to avoid economic turbulence while progressing toward fiscal consolidation goals.

## FAQs

### **Q: How is India protecting itself from global economic uncertainty?**

  
A: India maintains strong domestic fundamentals, builds strategic self-reliance in critical sectors, and continuously factors global risks into policymaking while sustaining capital expenditure.

### **Q: Will global uncertainty affect India’s economic growth targets?**

  
A: While external volatility creates challenges, India’s large domestic market, sound fundamentals, and strategic policy measures help maintain growth momentum despite global headwinds.