India’s fertilizer subsidy bill is expected to rise about 20% this financial year as higher prices ripple through supply chains after the Middle East crisis. The country is importing record volumes of urea, but at sharply higher costs. Those increased import expenses are likely to translate into larger subsidies for fertilizer sellers, keeping prices lower for farmers.
India’s fiscal deficit for FY27 is likely to exceed the budgeted target, with BMI projecting it could reach about 4.5% of GDP. The pressure is linked to policy responses to the West Asia conflict, including support for firms, higher energy and fertilizer subsidies, and possible export curbs on critical inputs like helium and sulphur. Infrastructure spending may also be deferred to contain costs.
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Union Budget 2026 left crypto taxation largely unchanged, retaining a 1% TDS levy and the existing restrictions on setting off losses. The crypto industry has reacted with disappointment, arguing these measures continue to discourage investors and active traders. With reforms expected by many in the sector, today’s fiscal update has fallen short of what participants hoped for.
IMF Managing Director Kristalina Georgieva praised India’s Union Budget as a thoughtful policy agenda, highlighting its emphasis on innovation across research and development, human capital investment, and digitalisation. Her remarks underscore international confidence in India’s investment priorities, especially around skills and technology-led growth—key areas the budget seeks to strengthen for long-term economic resilience.
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