In a significant policy revelation during her Lok Sabha address on the 2026-27 budget, Finance Minister Nirmala Sitharaman revealed the government’s pivot towards waterways development. This comes as a direct response to the logistical challenges faced by landlocked states, which struggle with high transportation costs due to limited sea access.
The minister underscored that infrastructure spending isn’t confined to asphalt and concrete; inland water transport is gaining precedence. “States not connected to seaports will benefit immensely from reduced logistics costs via waterways,” she affirmed. Experts hail this as a game-changer, potentially mirroring successes seen in countries like the Netherlands and China, where water freight dominates.
Turning to economic multipliers, Sitharaman spotlighted labor-heavy industries and MSMEs. Budgetary allocations for top-performing MSMEs include financial incentives and skill programs, poised to accelerate national development. Parallel efforts in animal husbandry promise district-level veterinary infrastructure, from surgeons to advanced labs, safeguarding livestock and boosting farmer incomes.
Fiscal devolution remains a cornerstone, with states receiving Rs 25.44 lakh crore in tax shares—up by Rs 2.7 lakh crore. Job prospects are burgeoning: five medical hubs will draw global patients, creating 1 lakh positions in five years. Five integrated textile-leather parks promise a employment boom in manufacturing.
For India’s aging population, a comprehensive care system is underway, with 1.5 lakh trained caregivers ready by year-end. Sitharaman’s vision integrates efficiency, equity, and employment, positioning India for a resilient economic future amid global uncertainties.