India plans to moderately improve its financial situation and expand support for manufacturing in areas such as chips.

The Indian government plans to moderately improve its financial situation in the next fiscal year, while reducing the fiscal deficit and debt levels, while also expanding support for manufacturing industries in various sectors from textiles to semiconductors. Finance Minister Nirmala Sitharaman said in her ninth consecutive budget speech on Sunday that the government expects the fiscal deficit for the 2026-27 fiscal year to decrease to 4.3% of GDP, lower than the 4.4% for the 2025-26 fiscal year. Sitharaman stated that the government expects India's debt-to-GDP ratio for the coming year to decrease from 56.1% in the 2025-26 fiscal year to 55.6%. She also pointed out that India is facing broader external uncertainties. The government plans to promote manufacturing development in seven key industries, including semiconductors, rare earth magnets, pharmaceuticals, chemicals, capital goods, textiles, and sports goods.