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POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Key Policy developments/Significant news in Energy sector

Union Budget 2026–27 Reflects Confidence of a Strong, Resilient and Fast-Growing India: Hardeep Singh
Puri

Shri Hardeep Singh Puri, Union Minister for Petroleum and Natural Gas, addressed the media during a
press interaction on Union Budget 2026–27 in Dehradun, stating that the Budget reflects the confidence
and maturity of an economy that has undergone a fundamental transformation since 2014. He said the
Budget strikes a careful balance between promoting growth and maintaining fiscal discipline,
underscoring India’s journey from being counted among the “fragile five” to becoming the world’s fourth-
largest economy and one of the most trusted global growth stories.

Describing the Budget as forward-looking and consolidation-oriented, Shri Puri said it builds on the
foundations laid over the past decade while preparing India for the next phase of global leadership. India’s
GDP growth for FY26 is estimated at 7.4 per cent, driven by consumption and investment, reaffirming
India’s position as the fastest-growing major economy for the fourth consecutive year, even as global
growth hovers around 3 per cent.

On price stability, the Minister highlighted the sharp improvement achieved since 2014, noting that India
recorded the steepest reduction in headline inflation among major economies in 2025, at around 1.8 per
cent. Between April and December 2025, inflation averaged about 1.7 per cent, supported by lower food
prices, particularly vegetables and pulses. He pointed out that India’s inflation levels are significantly lower
than those prevailing in several advanced and emerging economies.

Emphasising the decisive shift towards capital-led growth since 2014, Shri Puri said overall capital
expenditure in 2026–27 stands at about ?12.2 lakh crore, representing an increase of over 430 per cent
compared to 2013–14. Allocations for national highways have risen by about 500 per cent, defence by
over 210 per cent, health and family welfare by nearly 176 per cent, and education by over 110 per cent
during this period. He noted that infrastructure spending has become a key growth engine, with every
rupee spent on national highway development generating ?3.2 in GDP.

Highlighting the strengthening of defence and strategic capabilities, the Minister said sustained
investment since 2014 has helped reduce import dependence while accelerating indigenous defence
manufacturing in line with the Aatmanirbharta vision.

Shri Puri underscored that human capital development has been central to India’s growth trajectory over
the past decade. Since 2014, the number of IITs has increased from 16 to 23, IIMs from 13 to 21, AIIMS
from 7 to 23, and medical colleges from 387 to 819. He added that India now has international IIT
campuses in Zanzibar and Abu Dhabi, reflecting the global recognition of India’s education ecosystem.

The Minister said infrastructure expansion since 2014 has transformed connectivity and everyday life
across the country. The length of national highways has expanded from about 91,000 km in 2014 to nearly
1.46 lakh km in 2026, while the metro network has grown from 248 km to over 1,000 km. The number of
airports has more than doubled from 70 to around 160. Over the last five years alone, more than 57,000
km of national highways have been constructed, generating around 33 crore person-days of employment

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