Budget 2026: High-level committee on Banking to be set up for India's next phase of growth

NEW DELHI: Presenting the Budget, finance minister Nirmala Sitharaman has proposed setting up a "High Level Committee on Banking for Viksit Bharat", to comprehensively review the sector and align it with India's next phase of growth.

"I propose setting up a 'High Level Committee on Banking for Viksit Bharat'", to comprehensively review the sector and align it with India's next phase of growth, while safeguarding financial stability, inclusion and consumer protection," she said, in her 90-minute-long Budget speech.




The finance minister asserted that the Indian banking sector today is characterised by strong balance sheets, historic highs in profitability, improved asset quality and coverage exceeding 98 per cent of villages in the country.

"At this juncture, we are well placed to futuristically evaluate the measures needed to continue on the path of reform-led growth of this sector," she said.

Further, to achieve scale and improve efficiency in Public Sector NBFCs, the finance minister proposed, as a first step, restructuring the Power Finance Corporation and Rural Electrification Corporation.

"The vision for NBFCs for Viksit Bharat has been outlined with clear targets for credit disbursement and technology adoption," she said, spelling out proposals for the financial sector.

Presenting the Budget, finance minister Nirmala Sitharaman also announced a set of indirect tax measures in the Union Budget 2026-27, aimed at further simplifying the tariff structure, supporting domestic manufacturing, promoting export competitiveness, and correcting duty inversion.

Finance minister Sitharaman presented her record ninth consecutive Union budget today in the Parliament.

On Thursday, Union finance minister Nirmala Sitharaman tabled the Economic Survey of India in Parliament for the financial year 2025-26.

The tabling of the Economic Survey ahead of the Budget follows the long-standing tradition of outlining the state of the economy before detailing future fiscal plans.

The document provided a comprehensive, data-backed review of the economy's performance over the previous year and offers a broad roadmap for future policy direction. As the government's flagship annual report, it reviews key economic developments over the past 12 months.

India's real GDP growth for 2026-27 is projected to be 6.8-7.2 per cent, reflecting sustained medium-term growth capacity amid a challenging global environment.