Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Sunday strongly defended the Union Budget 2026-27, describing it as a “mature, positive, and farsighted budget” that strengthens India’s economic resilience during a period of global uncertainty. His remarks came after Finance Minister Nirmala Sitharaman presented her record 9th consecutive Union Budget in Parliament.
“India: An Oasis of Calm in Global Turmoil”
Speaking to ANI, Hardeep Singh Puri said the Union Budget 2026-27 has been presented at a time when global economic and geopolitical instability is affecting many major economies, while India remains comparatively stable.
According to him, this stability reflects long-term economic planning under Prime Minister Narendra Modi, marking the 13th consecutive Union Budget under the current leadership.
“The economy of our country has moved from the 10th position to the 4th position globally,” Puri said, highlighting that India’s GDP has grown from approximately USD 2 trillion to USD 4.3 trillion over the last decade.
Capital Expenditure Surge Signals Policy Consistency
A major highlight of the budget, according to the Petroleum Minister, is the sharp and sustained rise in capital expenditure.
Puri pointed out that capital expenditure stood at around Rs 2 lakh crore in 2014. When it crossed Rs 11 lakh crore in the previous budget, questions were raised about sustainability. However, the Union Budget 2026-27 has further increased capital expenditure to Rs 12.2 lakh crore, reinforcing confidence in India’s infrastructure-driven growth strategy.
He said this sustained capex push demonstrates policy maturity rather than populism.
Rs 20,000 Crore for CCUS: A Game Changer for Energy Sector
One of the most significant announcements praised by Hardeep Singh Puri is the allocation of Rs 20,000 crore for Carbon Capture, Utilization, and Storage (CCUS) over the next 5 years.
Puri said this investment would directly benefit India’s refineries and support the country’s transition toward low-carbon and sustainable energy systems.
The CCUS investment seeks to advance industrial decarbonization, increase technological readiness, and establish India as a pioneer in climate-responsible energy innovation.
Biofuels, Tax Stability, and Viksit Bharat Vision
Highlighting reforms in the biofuel sector, Puri said that biogas blending in Compressed Bio Gas (CBG) will be kept outside the accessible value framework, supporting cleaner fuel adoption.
He also welcomed the 20-year tax holiday, stating that it aligns with the long-term vision of Viksit Bharat, extending up to 2047. According to him, long-term tax stability is critical for investor confidence and economic planning.
“This is a positive, purposeful, and farsighted budget. There is nothing populist about it,” Puri asserted.
Priority to Critical Minerals and Rare Earths
The Union Budget 2026-27 has given high priority to critical minerals and rare earth elements, which are essential for energy transition, electronics manufacturing, electric mobility, and strategic industries.
Puri said this focus will help India reduce import dependence and strengthen its position in global supply chains.
Agriculture Push: Coconut, Cashew, and Cocoa
Presenting the budget in the Lok Sabha, Finance Minister Nirmala Sitharaman announced a coconut promotion scheme aimed at increasing production and productivity in major coconut-growing states.
The scheme includes:
Replacement of non-productive coconut trees
Introduction of high-yielding saplings
Productivity enhancement measures
India contributes about 31 percent of global coconut production, with over 90 percent cultivation concentrated in southern states such as Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh. Nearly 30 million people, including 10 million farmers, depend on coconut cultivation.
Additionally, a dedicated program for cashew and cocoa has been proposed to enhance self-reliance, processing capacity, and export competitiveness.
Data Centres, Manufacturing, and Global Investment Push
Recognizing the need for critical digital infrastructure, the finance minister proposed a tax holiday till 2047 for foreign companies offering cloud services globally using data center infrastructure located in India.
Conditions include:
Services to Indian customers through an Indian reseller
A safe harbour of 15 percent on cost for related entities
To support electronics manufacturing, safe harbor provisions for component warehousing in bonded warehouses have been introduced at a profit margin of 2 percent, resulting in an effective tax of about 0.7 percent, which is lower than competing jurisdictions.
The budget also provides 5-year income tax exemptions for non-residents supplying capital goods and tooling to toll manufacturers in bonded zones.
Simplified Tariffs and Export Competitiveness
The Union Budget 2026-27 includes indirect tax measures aimed at the following:
Simplifying tariff structures
Supporting domestic manufacturing
Promoting exports
Correcting inverted duty structures
According to the Finance Minister, these reforms will enhance ease of doing business and strengthen India’s manufacturing ecosystem.
A Budget Framed as Stability Over Populism
Concluding his remarks, Hardeep Singh Puri reiterated that the Union Budget 2026-27 reflects economic maturity, long-term vision, and strategic consistency.
“This is not a populist budget. It is a mature budget designed for sustained growth,” he said.
