Union Budget 2026 gives Gujarat a growth edge, says CM Patel

Projecting the Union Budget 2026 as a decisive leap towards Viksit Bharat, Gujarat Chief Minister Bhupendra Patel said the budget lays a strong, future-ready foundation for economic expansion, inclusive growth and public participation while placing Gujarat firmly at the centre of India’s next phase of development.Addressing a press conference in Gandhinagar, the Chief Minister described the budget as a “visionary and forward-looking roadmap” anchored in three core duties accelerating sustainable economic growth, empowering citizens through capacity building to fulfil aspirations, and advancing Prime Minister Narendra Modi’s vision of Sauno Saath, Sauno Vikas. Finance Minister Kanubhai Desai, Finance Department Principal Secretary Dr T Natarajan and Principal Secretary to the Chief Minister Sanjeev Kumar were present on the occasion.
A Budget Aligned with Gujarat’s Development Trajectory
CM Patel said the Union Budget delivers a “quantum jump” towards Viksit Bharat, reinforcing India’s reform momentum at a time when the country is on course to become the world’s third-largest economy. He expressed confidence that Gujarat—already a growth engine of the national economy—will derive disproportionate gains from the budget’s thrust on manufacturing, infrastructure, logistics, urbanisation and innovation.The budget’s commitment to fiscal discipline, with a fiscal deficit target of 4.3 per cent of GDP alongside a record ₹12.22 lakh crore capital expenditure, sends a strong signal of stability and long-term confidence. For Gujarat, which has consistently aligned state policy with infrastructure-led growth, the emphasis on sustained capex is expected to accelerate investment inflows and job creation.
MSMEs, Pharma and Semiconductors Get a Boost
Highlighting Gujarat’s industrial strength, the Chief Minister said the ₹10,000 crore SME Fund announced to create “Champion MSMEs” would directly benefit the state’s more than 42.9 lakh micro, small and medium enterprises—the backbone of its economy—by improving access to credit and liquidity.He said Gujarat’s globally competitive pharmaceutical industry stands to gain significantly from the ₹10,000 crore Bio-Pharma Shakti Programme, aimed at positioning India as a global biopharma manufacturing hub. “Gujarat is already a leader in pharmaceuticals, and this initiative will further strengthen its global footprint,” Patel said.The Chief Minister also pointed out that Gujarat’s emergence as India’s semiconductor hub—with four semiconductor plants—will gain further momentum from the India Semiconductor Mission 2.0 announced in the budget, reinforcing the state’s role in high-technology manufacturing.
Logistics, Railways and GIFT City in Focus
On infrastructure, Patel said PM Gati Shakti and the Delhi–Mumbai Industrial Corridor (DMIC) have already strengthened Gujarat’s logistics backbone. The newly announced dedicated freight corridor from Dankuni in West Bengal to Surat will further enhance logistics efficiency for Gujarat’s textile, manufacturing and export sectors.The Chief Minister noted that Gujarat has received a significant ₹17,366 crore allocation in the Railway Budget, while railway projects worth ₹1.28 lakh crore are currently under implementation across the state—underscoring the Centre’s continued focus on connectivity and mobility.Welcoming the extension of the tax holiday for GIFT City from 10 years to 20 years, Patel said the move would boost investor confidence and attract long-term global capital to India’s premier fintech hub. “This decision strengthens GIFT City’s position as an international financial centre and reinforces Gujarat’s leadership in financial services,” he added.
Urban Growth, Sports and Youth Opportunities
The announcement to develop Tier-2 and Tier-3 cities with populations of over five lakh as City Economic Regions will accelerate balanced urban growth in Gujarat, Patel said, benefiting smaller cities alongside major urban centres.As Gujarat prepares to host the Commonwealth Games, the Chief Minister said the sports sector will receive fresh momentum through the Khelo India Mission, strengthening sports infrastructure and talent development across the state.He also highlighted a forward-looking initiative aimed at preparing 20 lakh professionals in the AVGC (Animation, Visual Effects, Gaming and Comics) sector by 2030. The proposed establishment of Content Creator Labs in nearly 15,000 schools and 500 colleges nationwide is expected to open new employment avenues for Gujarat’s youth in the fast-growing digital content ecosystem.
Higher Central Devolution Recognises Gujarat’s Contribution
Emphasising Gujarat’s contribution to national growth, Patel said the 16th Finance Commission has increased the state’s share in central tax devolution from 3.48 per cent to 3.75 per cent. This enhanced allocation will provide additional fiscal space for infrastructure development, including in rural areas.Expressing confidence in the state’s growth trajectory, the Chief Minister said Gujarat would leverage the benefits of this development-oriented Union Budget to move towards Viksit Bharat “with double speed under the double-engine government.”Senior officials, including Additional Principal Secretary to the Chief Minister Dr Vikrant Pandey and Secretary to the Chief Minister Dr Ajay Kumar, were also present at the event.

(State Correspondent)