Union Budget 2026 needs long-term vision, former Reserve Bank of India Governor Raghuram Rajan said while stressing the need for stronger economic planning. He spoke on January 28, 2026, during an interview with PTI Videos.
Rajan said the Union Budget should connect clearly with India’s long-term goals. He explained that earlier five-year plans existed, yet budgets often failed to support them. Therefore, he urged the government to link fiscal decisions with a broader national strategy.
Union Budget 2026 needs long-term vision to make India more resilient and self-reliant. Rajan warned that the global economy faces serious risks due to geopolitical tensions. However, he also highlighted new opportunities from rapid growth in artificial intelligence.
He cautioned against excessive dependence on a few global players. Such reliance, he said, can make India vulnerable during global disruptions. Instead, India must strengthen domestic capabilities and diversify partnerships.
Rajan expressed hope that Finance Minister Nirmala Sitharaman’s Budget, scheduled for February 1, 2026, would push meaningful reforms. He welcomed steps like tariff rationalisation and investor-friendly state policies. Still, he said India needs more structural reforms.
He also called for stronger economic ties with neighbouring countries. According to Rajan, collaboration with Bangladesh, Sri Lanka, and Nepal can support stable growth. He concluded by urging India to restart bold reforms, similar to those seen in the 1990s.
