The road map for 2026 was already in place before the year was ushered in. The first challenge of the new year is always the Union Budget and this year it shall be presented on a Sunday since the established budget presentation date of 1st February falls on the weekend. This also underscores another message from the Modi Government – there are no holidays or time offs. Apart from that, the more important messaging will be in the budget statement itself as the government has to revive the economy stalled by Trump Tariffs, lack of enthusiasm from foreign investors and jobless growth. The needs of the salaried class were taken into account in the last budget but a lot more needs to be done. Will the government address these? Will it increase taxes or try to increase spending by putting more money in the hands of the people? And where will it get the funds for the slew of welfare schemes?
The other challenge is political as there are some crucial state elections slated for 2026 including West Bengal, Assam, Kerala and Tamil Nadu. The BJP is in power in only one but fancies its chances of making some sort of a power play in West Bengal where current CM Mamata Bannerji is holding on to her bastion. But after Orissa and Bihar the BJP is hoping for a win in this state and has been working hard for it. Will Mamata Bannerji hold on to her citadel for her popularity remains. Another high profile fight is to be expected in Assam where the BJP’s Himanta Biswa Sarma is being challenged by Gaurav Gogoi of the Congress. Also, to make things a bit more exciting Congress General Secretary Priyanka Gandhi Vadra has been given charge of this state. Expect a lot of face offs between the two with some very catch soundbites. Both these states promise to be media delight in terms of headlines and personalities. As for Kerala – the Congress is hopeful of wresting this state from the LEft but this is also another state where the BJP is making its presence felt. Will Rajeev Chandrasekhar do to Kerala what Amit Shah has done to West Bengal ie edge out the Left and emerge as the single most dominant Opposition party. As for the other southern state of Tamil Nadu the BJP is riding piggy back on its alliance partner the AIADMK. However here it is the Congress that needs to be watched. While the party still cannot make it on its own, it seems to be flirting with two rival camps – the DMK and actor turned politician Vijay. Will the Congress break with its most steadfast ally or is this just posturing for better seats?
And then of course there is the US President Donald Trump to keep the global pot boiling. There really is no predicting as to what he will do next but India has to take some hard decisions on its geopolitical positions. Reaching out to China will have its blowback but the USA is hardly proving to be a reliable ally?
And so, in a nutshell, smart economics & a tactical foreign policy remain the biggest challenges for tje Modi Govt in 2026. For the Congress – and the rest of the opposition – the challenge is to make its presence felt in domestic politics.