FP The publishers permit sharing of the e-paper's pdf on WhatsApp and other social media platforms Vol. 15 No. 230 | BHOPAL | MONDAY | FEBRUARY 2, 2026 | Pages 20 ` 3 | Regd. No. Indore MP/ICD 216/2024-2026 | RNI No. mpeng/2010/35815 FREE www.freepressjournal.in Sports Alcaraz keeps Djokovic’s historic 25th on hold P.16 ESTD-1983 iii QUALITY @ VALUE EDITIONS: BHOPAL WORLD UJJAIN PRESS PUNE INDORE NASHIK MUMBAI E-paper Edit A balancing act between growth, unemployment P.10 Resignation in Slovakia; UK’s ex-prince told to cooperate Cinema I’m a true-blue Mumbaikar: Bhumi P.18 BUDGET FY27 | Positioning India’s youth as engine of growth, the Budget combines measures to boost employment, develop skills, expand manufacturing, promote entrepreneurship and startups, while balancing fiscal discipline and responding to global risks, aiming to transform demographic advantage into sustainable economic development Boost For Young India PTI NEW DELHI oday's budget is historic. It reflects the aspirations of 140 crore Indians. It strengthens the reform journey and charts a clear roadmap for Viksit Bharat Narendra Modi, PM iksit Bharat Budget turbocharges the momentum to bolster India's position on the global stage as the most attractive investment destination for a wide range of sectors, from traditional to the new-age ones Amit Shah, Union Home Minister outh without jobs. Falling manufacturing. Investors pulling out capital. Household savings plummeting. Farmers in distress. Looming global shocks - all ignored. A Budget that refuses course correction, blind to India's real crises Rahul Gandhi, LoP he Modi Government has run out of ideas. Budget 2026 does not provide a single solution to India's many economic, social, and political challenges Mallikarjun Kharge, Congress president T V Y T Pak to boycott T20 WC match against India IANS NEW DELHI Pakistan will not play India in their scheduled Men’s T20 World Cup match at the R Premadasa Stadium in Colombo on February 15, after the government granted the team conditional approval to take part in the tournament. The statement did not specify a reason for that decision, though it is believed that Pakistan will boycott the match against India to show solidarity with Bangladesh, who were pulled out of Men’s T20 World Cup for seeking relocation of their matches out of India, citing security issues and were replaced by Scotland in Group C. “The Government of the Islamic Republic of Pakistan grants approval to the Pakistan Cricket Team to participate in the ICC World T20 2026, however, the Pakistan Cricket Team shall not take 4Continued on | P9 Finance Minister Nirmala Sitharaman on Sunday announced a slew of measures to boost manufacturing, a tax holiday for global data centres, and incentives for the agriculture and tourism sectors as she unveiled a Rs 53.5 lakh crore Budget seen as a long-term blueprint for sustaining growth amid rising global risks. Sticking to fiscal discipline and shunning populist measures despite five key states, including West Bengal and Tamil Nadu, heading to polls soon, her Budget for the fiscal year beginning April, however, rattled stock markets, with a higher transaction tax on derivatives trading weighing on sentiment. The Budget 2026-27 has simplified the customs regime by rationalising exemptions, waiving customs duty on 17 cancer drugs, while easing baggage rules and reducing duty to 10 per cent on goods imported for personal use. Presenting her record 9th straight Budget, Sitharaman stepped up the government's capital expenditure outlay to Rs 12.2 lakh crore from Rs 11.2 lakh crore last year, underscoring its focus on infrastructure-led growth amid global uncertainty. The government will prioritise scaling up manufacturing across seven sectors -- pharmaceuticals, semiconductors, STATE-LED GROWTH POST-CONFLICT SURGE The government has boosted interest-free capex loans for states to ₹1.85 trillion for FY27. This 28% hike provides 50-year capital to build productive assets, accelerating the Viksit Bharat 2047 mission. Following Operation Sindoor, the government hiked the defence budget by 15% to ₹7.85 lakh crore. Capital outlay rose to ₹2.19 lakh crore, with ₹63,733 crore dedicated specifically to aircraft and aero-engines. VERTICAL DEVOLUTION TEXTILE OVERHAUL The government has accepted the 16th Finance Commission's recommendation to maintain the states' share of central taxes at 41% for 2026–2031. Additionally, ₹1.4 lakh crore was allocated for local body and disaster grants. Launches an Integrated Textile Programme with five pillars—Fibre, Expansion, Handloom, Tex-Eco, and Samarth 2.0—alongside Mega Textile Parks and the Mahatma Gandhi Gram Swaraj initiative to boost global branding. STRATEGIC AUTONOMY Zero Duty on Critical Minerals LOGISTICS LEAP ₹10kcr for Containers & 20 Waterways To slash import reliance, Budget 202627 removes customs duties on Monazite and capital goods for processing 25 critical minerals, establishing Rare Earth Corridors to anchor India’s hightech future. Following Operation Sindoor, the government hiked the defence budget by 15% to ₹7.85 lakh crore. Capital outlay rose to ₹2.19 lakh crore, with ₹63,733 crore dedicated specifically to aircraft and aero-engines. STRATEGIC PAUSE DIGITAL HUB 2047 To navigate U.S. sanctions and tariff threats, Budget 2026-27 provides zero allocation for Chabahar port, pausing the ₹100 crore annual funding while temporarily clouding the INSTC’s strategic development. To become a global data hub, Budget 2026–27 offers a tax holiday until 2047 for cloud services, provides manufacturing safe harbours, and grants a 5-year tax exemption for global experts. Defence Budget Hits ₹7.85L-cr Interest-Free Loans Surge 28% States Retain 41% Share 5-Part Program & Mega Parks No Funds for Chabahar Port CREATIVE ECONOMY AVGC Labs & New NID Budget 2026-27 boosts the "Orange Economy" by setting up AVGC content creator labs in 15,500 institutions and establishing a new National Institute of Design in the East via challenge route. Cloud Tax Holiday & Incentives FULL COVERAGE: PAGES 2-8 & 13-14 REFORMS OVER RHETORIC n Today we face an external environment where trade and multilaterism is imperative n Government's Sankalp is to focus on poor, underprivileged and disadvantaged n Our Kartavya is to ensure every family, community, and sector has access to resources, amenities and opportunities BUDGET GROWTH-ORIENTED AND FUTURE-READY: YADAV Says reforms in textile sector to benefit state URBAN ENGINES ₹35,000 Cr for City Regions Targets tier-II, tier-III, and temple towns. Seven City Economic Regions—Bengaluru, Bhubaneswar-Puri-Cuttack, CoimbatoreErode-Tiruppur, Pune, Surat, Varanasi, and Visakhapatnam—receive ₹5,000 crore each over five years for modernization. Madhya Pradesh to lose Rs 25,000 cr in five years: Experts Our Staff Reporter BHOPAL Our Staff Reporter INDORE Chief Minister Mohan Yadav hailed the Union Budget 2026– 27, stating that it will accelerate development and play a key role in positioning India at a higher level in the global economy. Reacting to the budget, the CM said it aligns with the vision of “Viksit Bharat” and reflects the spirit of Sabka Saath, Sabka Vikas. Yadav said the budget focuses on economic progress while addressing the expectations of all sections of society. He highlighted that special emphasis has been given to the poor, youth, farmers and women, which will further strengthen inclusive growth. The CM noted that reforms proposed in the textile sector would significantly benefit Madhya Pradesh’s textile industry. He said the provision of Rs 1.40 lakh crore as grants for states would prove to be a major support for the development of MP and other states. According to him, the ‘Centred on poor, youth, women and farmers’ CM Mohan Yadav on Sunday said the Union Budget is centred on the poor, youth, farmers and women, and will significantly benefit Madhya Pradesh. He said the focus on industry sector reforms would strengthen the state’s economy, while provisions for developing pilgrimage sites in smaller towns would boost local growth. The Chief Minister welcomed the Budget wholeheartedly, calling it people-centric and growth-oriented budget will help India achieve a stronger position in the global economic order. Yadav pointed out that measures such as planned development of cities with populations over five lakh, investment of Rs 5,000 crore over five years in urban econ- omic sectors, development of pilgrimage centres in smaller cities, construction of women’s hostels in every district and upgradation of district hospitals would bring substantial benefits to the state. 4Continued on | P9 Madhya Pradesh is set to face a potential loss of at least Rs 25,000 crore over the next five years due to changes in the 16th Finance Commission’s recommendations. According to officials, the devolution of the state has been reduced from 7.85% to 7.35%, effectively cutting half a percentage point from Madhya Pradesh’s expected funds. This reduction comes at a time when states rely heavily on central transfers for developmental projects, social welfare schemes, and infrastructure spending. The Finance Commission has also shifted its allocation parameters, giving preference to states with higher GDP. Additionally, area-based grants have been curtailed, further limiting funds for geographically larger states like Madhya Pradesh. Experts warn that these changes could slow down planned development initiatives and hamper the state’s ability to meet growing demands in health, education, and infrastructure sectors. rare-earth magnets, chemicals, capital goods, textiles and sports goods, she said. Also, the emphasis will be on job creation and technologydriven development. A series of initiatives were also announced for the livestock, fisheries and high-value agriculture sectors, while a Rs 10,000 crore investment has been proposed over the next five years to develop India as a biopharma manufacturing hub. An integrated programme for the textile sector was also announced. For tourism, the development of ecologically sustainable mountain trails in Himachal Pradesh, Uttarakhand and Jammu and Kashmir, as well as the development of 15 archaeological sites, was also proposed. Support for small businesses includes a dedicated Rs 10,000 crore SME Growth Fund to create future Champions, incentivising enterprises based on select criteria. The measures announced in the Lok Sabha complement last year's sweeping income tax and GST cuts, which, together with spending on infrastructure, labour law overhaul, and the RBI's interest rate reductions, have so far helped the Indian economy withstand the punitive 50 per cent tariff US President Donald Trump has imposed on Indian goods. 4Continued on | P9 Tier-2 & 3 cities set for major boost Big-ticket urban funding, MSME reforms to benefit MP towns Our Staff Reporter BHOPAL Small and mid-sized cities of Madhya Pradesh are set to gain significantly from the Union Budget, which has placed strong emphasis on the development of Tier-2 and Tier-3 urban centres. A massive outlay of Rs 12.2 lakh crore has been earmarked for cities with populations above five lakh, a category that includes a large number of towns across the state. In addition, the state is expected to benefit from the Rs 5,000 crore provision for the creation of City Economic Regions, aimed at promoting regional economic growth and better urban planning. The Budget’s proposal to establish content creation labs in 15,000 higher secondary schools is also likely to give a major push to education, digital skills and creative industries in Madhya Pradesh. HIGHLIGHTS Rs 2,000 cr top-up for Self-Reliant India Fund 25 cr people came out of multi-dimentional poverty in 10 years Debt to GDP ratio estimated at 55.6% of GDP in 2026-27 vs 56.1% in 2025-26 Fiscal deficit estimated at 4.3% of GDP for 2026-27 Targeted effort to increase farmer income 7 high-speed rail corridors between cities as growth connectors 20 new national waterways over next 5 years Foreigners can buy Indian stocks directly now Self-Help Entrepreneur marts to support women entrepreneurship Stock indices nosedive, Sensex dips 1,843 points Agencies NEW DELHI The agricultural sector stands to gain as well, with increased tax deductions for cooperative members supplying cotton seed and straw. Madhya Pradesh, being one of the country’s leading cotton-producing states, is expected to reap substantial benefits from this measure. The MSME and industrial sectors are also poised for growth due to proposed industry reforms and easier access to support mechanisms. Social infrastructure has received attention too, Indian stock indices nosedived as Union Finance Minister Nirmala Sitharaman presented the Budget for 2026-27 in the Parliament on Sunday. Pre-Budget, the indices were largely steady, but they dipped as the Budget speech progressed and closed the session deep in the red. Sensex closed at 80,722.94 points, down 1,843.43 points or 2.23 per cent, while Nifty closed at 24,825.45 points, down 593.45 points or 2.33 per cent. According to Ponmudi R, CEO of Enrich Money, a SEBI - registered online trading and wealth tech firm, initial optimism faded quickly as higher transaction costs driven by the increase in Securities Transaction Tax (STT) on equity derivatives--and the lack of strong measures to revive foreign capital inflows weighed on sentiment and near-term liquidity expectations. 4Continued on | P9 4Continued on | P9 Proposal to establish content creation labs in 15,000 higher secondary schools is likely to give a major push to education, digital skills and creative industries Univs, Skills and an Education Turn: Budget 2026’s Quiet Revolution A s we aspire to move ahead towards a Viksit and an Atmanirbhar Bharat, it is clear that we need to learn to grow – and in this scenario, our nation cannot afford to treat learning, specifically learning opportunities for the youth, as a secondary concern.The Union Budget 2026 appears to have internalized this truth by offering what can be called an ‘Academic Budget’. With over 65% of the population under the age of 35, the Union Budget recognizes that India’s demographic advantage can contribute to econ- omic growth only if our youth have the relevant skills, are provided opportunities to gain quality education, and have strong pathways to productive employment. Thus, offering an education-first agenda, the Union Budget allocates real resources and programmatic detail where they matter the most. The Ministry of Education’s gross allocation in FY26 stands at `1,28,650 crore, higher from the previous year, strengthening the government’s resolve to treat education as investment-grade public capital rather than merely a welfare expenditure. While last year’s budget focused on ensuring that the educational institutions have the main building blocks such as smart classrooms, tinkering labs, and internet connections, 2026 encourages physical university clusters, industry-aligned credentials, and governance mechanisms to translate inputs into placements and research outputs. The creation of five university townships near industrial and logistics hubs and the construction of girls’ hostels in every district By invitation Prof Himanshu Rai Director, IIM-Indore will not only strengthen industry linkages and widen access for young women, but also provide them with a safe and secure learning and living environment, as they will feel comfortable relocating. In addition to the Centre of Excellence in Artificial Intelli- gence for Education, the establishment of a highpowered Education-to-Employment committee is a positive initiative that will help upskill the youth by restructuring the curriculum and keeping it relevant. In technical terms, the policy vector has shifted from supply expansion toward ecosystem integration and outcome accountability, which will benefit students immensely, as clustered universities reduce transaction costs for collaboration, stimulate local innovation spillovers, and make large capital projects, such as research labs and shared instrumentation, economically viable. The AI Centre and portable microcredentials will create transparency between employers and graduates, and the Education-to-Employment committee will create an institutional feedback loop to keep curricula relevant to the current industry requirements, making our youth skilled and employable. Outcome metrics, such as the GER targets, placement rates, research citations, transparent financing for township land and utilities, and strong state-centred coordination, still remain critical. The Budget’s large overall capex lift, including a national push for infrastructure, will matter because universities need roads, power, and connectivity to provide proper facilities to youth across the nation. In Madhya Pradesh, the universities will definitely benefit from increased central research and development grants and collaborative opportunities. 4Continued on | P9