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UnionBudget – The Union Budget has drawn a constructive response from economists and business leaders in the United States, who say the policy direction reinforces India’s growth trajectory and sends encouraging signals to global investors. While welcoming the emphasis on infrastructure, defence, and manufacturing, experts also noted that stronger measures could further enhance India’s competitiveness in global manufacturing.

Economists Point to Consistent Growth Performance

Steve Hanke, a professor of applied economics at Johns Hopkins University, said India’s current economic momentum reflects a continuation of trends seen over the past decade rather than a sudden shift. He described the country’s performance under Prime Minister Narendra Modi as aligned with expectations formed by sustained policy focus on growth and trade.

Hanke referred to projections by the International Monetary Fund, which estimate India’s annual real gross domestic product growth at around 6.45 percent between 2025 and 2030. According to these estimates, India is expected to grow faster than other major economies during that period. He added that such figures help explain why India continues to draw attention from global markets and international investors.

Trade and Investment Signals Seen as Encouraging

Hanke linked India’s economic outlook to policies that prioritize trade openness and long-term expansion. He said the combination of domestic reforms and steady growth prospects positions India as a key destination for global capital, particularly as investors seek stable and fast-growing markets.

He also noted that international interest in India is not limited to market size alone, but increasingly tied to policy consistency and growth predictability. These factors, he said, are critical for sustaining investor confidence over the coming decade.

Infrastructure Spending and Logistics Gains

From a business perspective, Gunjan Bagla, chief executive officer of Amritt, a US–India consultancy based in Los Angeles, described the budget as a measured step forward for international trade and investment. He pointed to the nine percent rise in infrastructure spending as a development that could improve logistics, connectivity, and trade efficiency over time.

Bagla said better transport networks and modernized infrastructure are essential for reducing costs and delays, which remain key concerns for foreign companies operating in or trading with India. He added that while the impact may not be immediate, such investments tend to deliver long-term benefits for export-oriented industries.

Defence Allocation and Strategic Readiness

Bagla also welcomed the 15 percent increase in defence expenditure, noting that it would help strengthen preparedness across India’s armed forces. He said higher spending supports modernization and readiness, though he acknowledged that certain equipment-related vulnerabilities still need to be addressed over time.

According to Bagla, sustained investment in defence not only contributes to national security but also has spillover effects for domestic manufacturing and technology development.

Manufacturing Push Draws Mixed Reactions

Both experts agreed that the budget’s focus on manufacturing is a positive signal, though Bagla said the approach could have been more ambitious. He argued that a broader and more aggressive push across sectors would better position Indian manufacturers to compete with established global players, particularly China.

Bagla said Indian entrepreneurs have built several successful companies over the past two decades, demonstrating strong capabilities and resilience. With a more supportive and expansive policy framework, he added, many more firms could emerge as globally competitive manufacturers.

Job Creation and Global Perception

Manufacturing, Bagla said, has the potential to generate hundreds of millions of jobs in India if supported by the right mix of policy incentives, infrastructure, and market access. He emphasized that employment growth remains a critical priority for sustaining economic expansion.

He added that for the global economy, India’s role should extend beyond being viewed as a fast-growing consumer market. Instead, he said, policymakers and investors worldwide need to recognize India’s potential to evolve into a major manufacturing power alongside its services-led growth story.