Prime Minister Narendra Modi is firing back at U.S. President Donald Trumps aggressive trade threats through a strategically crafted Union Budget 2026, unveiled yesterday by Finance Minister Nirmala Sitharaman. Aimed at fortifying Indias export-heavy sectors against crippling 50% U.S. tariffs imposed since August, the budget prioritizes resilience, self-reliance, and fiscal prudence amid rocky global ties.

Textiles, furniture, and other labor-intensive industries—key job creators—receive targeted support to weather the tariff squeeze from America, Indias largest trading partner. The measures blend direct aid with incentives for boosting exports and drawing steady foreign investment, helping businesses stay afloat in this high-stakes trade tussle partly triggered by Indias Russian oil imports.

Echoing the self-reliant India mantra, the budget allocates fresh funds to critical areas like semiconductors, pharmaceuticals, and rare earth minerals, focusing on resource-rich southern and eastern states. This diversification cuts reliance on shaky import lines, drawing praise from industry leaders like Mahindra Groups Anish Shah, who hailed it as a forward-looking blueprint for enduring industrial strength.

Defense outlays surge 18% to counter border pressures from China and Pakistan, while infrastructure spending ramps up to sustain economic momentum. Fiscal hawks will appreciate the restraint—no major tax cuts here—to avoid debt spikes ahead of state elections, a move analyst Ashok Malik describes as a savvy holding operation against external headwinds.

To offset U.S. blows, Modi is fast-tracking free trade agreements with the EU (after two decades of talks), UK, and New Zealand—moves reminiscent of Vietnams post-tariff pivot that spiked its electronics exports by 30%. These pacts could unlock gains in tech and autos, spreading Indias trade risks beyond one superpower. Markets reacted with a wince—stocks slipped on equity tax hikes and rising borrowing plans—but growth projections hold steady at 6.8-7.2%. Opposition voices slam it for sidelining farmers and youth jobs, yet in Trumps tariff era, this budget stands as Modis pragmatic shield for Indias economic future.

Disclaimer: This image is taken from NDTV.