Union Budget Impact & US Tariff Shock: How 18% US Tariff on Indian Goods Could Shape India’s Economy (02 February 2026)
written by PT Introduction India’s economic landscape today is shaped by two major developments: The Union Budget , which outlines the government’s domestic growth and fiscal strategy, and The United States’ decision to impose an 18% tariff on select Indian exports , a move that could influence trade, manufacturing, and employment. Together, these developments create a complex economic scenario-strong domestic intent through the Budget, but rising external pressure from global trade policies. Union Budget: Strengthening the Domestic Economy Focus on Growth and Infrastructure The Union Budget places strong emphasis on capital expenditure , infrastructure development, and employment generation. Increased allocation toward roads, railways, logistics, and urban development is aimed at: Boosting long-term productivity Creating jobs in construction and allied sectors Supporting private investment through better infrastructure Higher government spending is expected to st...