Union Budget 2026: Powering the East’s Rise

Tabled on 1st February, 2026, the Union Budget 2026–27, outlines a feasible and vibrant path toward attaining the dream of Viksit Bharat by 2047. The budget announcements are growth-focused, infrastructure-oriented and reform-driven. The Budget aimed at involving States and Union Territories in the journey of country’s development. The total expenditure in Budget Estimates (BE) for the year 2026-27 is pegged at ₹53.47 lakh crore. Key highlights include ₹12.2 lakh crore capital expenditure for infrastructure and connectivity, reforms to boost manufacturing, investment and jobs, support for rural livelihoods, and expansion of transport, inland waterways and logistics networks.

From Rare Earths to Regional Power

As India advances toward its long-cherished energy security and industrial growth objectives through renewables, domestic technological capabilities, and large-scale manufacturing in electronics, EVs, automotive, and defence sectors, the development of advanced rare earth mineral processing technologies has become imperative. Rare Earth Corridors (RECs) characterize a critical enabler for long-term economic growth and strategic self-reliance in developing economies like India. India is highly dependent on China for the supply of these critical rare earth elements as it controls nearly 70% of total supply. Boosting the domestic rare earth sector can ensure self-reliance and secure production of these strategic inputs.

The Union Budget 2026 recognizes this by advocating extension of support services to mineral-rich States, including Odisha, Kerala, Andhra Pradesh and Tamil Nadu. The call is to establish dedicated RECs under the broader framework of Viksit Bharat 2047. Conceptualised as integrated corridors, they seek to align mining with downstream processing, refining and manufacturing, supported by coordinated logistics infrastructure such as ports, rail networks, power and water systems. This approach indicates a deliberate shift from an extractive model toward domestic value-chain creation.

Odisha’s abundant natural wealth and extant industrial ecosystem make it perfectly fit for RECs. Coastal minerals, chromite, and nickel would supply the raw materials, while ports, rail corridors, waterways, and industrial clusters ensure smooth logistics. Reinforced by power surplus and in-house metals hubs, the State can professionally process and enhance value to rare earth elements. These corridors are expected to create skilled jobs, strengthen manufacturing and enhance revenue through collection of Goods and Services Taxes, royalties, and export earnings.

Improved Infrastructure for Connected Future

The Budget 2026 supports job creation and ensures sustainability in Odisha. Newly announced Freight Corridors and National Waterways have requisite potential to make cargo movement greener and faster within the eastern region. While eco-tourism, such as Turtle Trails along the coast, will generate local livelihoods without harming nature, upgraded training and capacity building centres are expected to provide Odisha’s youth with industry-ready skills.

Focusing Culture and Heritage 

Odisha is all poised to gain from the Union Budget 2026’s targeted push for heritage and cultural tourism. This initiative is aligned with the Purvodaya vision of the Union Government as it aims to enhance farmer incomes through productivity improvements and entrepreneurship, with special attention to small and marginal farmers. It is also designed to boost local livelihoods, accelerate regional development and generate employment opportunities without compromising the State’s rich culture and traditions. 

The Union Budget 2026 focuses on sustainable growth of country’s eastern States, leveraging their rich culture and abundant resources. Ventures like the East Coast Industrial Corridor, Purvodaya tourism destinations, and deployment of 4,000 e-buses would strengthen Odisha’s connectivity, infrastructure, and jobs. The Budget charts a path for inclusive, sustainable, and technology-driven regional growth. It is guided by a long-term vision. While it successfully provides a framework for inclusive, sustainable and tech-driven regional growth in Eastern India, what is needed now is the right development mindset, coupled with sincere and collective implementation effort with coordinated and timely action, to turn the futuristic growth visions and development goals into reality.

H. K. Misra and K. K. Tripathy

Misra, former professor, Institute of Rural Management, and a member of the National Cooperation Policy Drafting Committee.

Tripathy is Joint Secretary in the Economic Advisory Council to the Prime Minister.

Views are personal.

E-mail: tripathy123@rediffmail.com