Union Budget 2026-27 emphasised scaling up manufacturing across 7 strategic sectors
New Delhi: The Union Budget 2026-27 emphasised scaling up manufacturing across seven strategic and frontier sectors, with Finance Minister Nirmala Sitharaman announcing major policy and funding measures in Parliament.
During her Budget speech, Sitharaman said the manufacturing push formed part of the six priority areas under the ‘First Kartavya’ framework. As a result, the government proposed targeted interventions to boost domestic capacity and global competitiveness.
To develop India as a global biopharma hub, the Union Budget manufacturing strategy introduced Biopharma SHAKTI with an outlay of ₹10,000 crore over five years. The scheme aimed to strengthen domestic production of biologics and biosimilars.
Moreover, the strategy included setting up three new National Institutes of Pharmaceutical Education and Research and upgrading seven existing institutes. In addition, the government proposed creating over 1,000 accredited India clinical trial sites nationwide.
To improve regulatory efficiency, the Budget proposed strengthening the Central Drugs Standard Control Organisation. It planned a dedicated scientific review cadre to meet global approval standards and timelines.
Union Budget manufacturing push expanded to semiconductors, textiles and capital goods
To expand semiconductor capabilities, the Union Budget manufacturing roadmap announced India Semiconductor Mission 2.0. The programme aimed to produce equipment and materials, design full-stack Indian intellectual property and secure supply chains.
Furthermore, the Finance Minister said the mission would focus on industry-led research and training centres. These centres would help develop both advanced technology and skilled manpower.
In electronics, the Budget proposed raising the outlay of the Electronics Components Manufacturing Scheme to ₹40,000 crore. Earlier, the scheme carried an allocation of ₹22,919 crore.
To strengthen strategic minerals, the Budget proposed Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu. These corridors will promote mining, processing, research and manufacturing.
Similarly, to reduce import dependence, the government proposed a scheme to help States establish three Chemical Parks. The parks will follow a challenge-based, cluster-driven, plug-and-play model.
For capital goods, the Budget proposed setting up hi-tech tool rooms through CPSEs at two locations. These centres will design, test and manufacture precision components at scale.
In addition, the Budget announced a Scheme for Enhancement of Construction and Infrastructure Equipment. The scheme will support domestic manufacturing of advanced equipment, including lifts and tunnel-boring machines.
The Budget also introduced a Container Manufacturing Scheme with an allocation of ₹10,000 crore over five years. The initiative aims to build a globally competitive container ecosystem.
For the labour-intensive textile sector, the Union Budget manufacturing plan announced an integrated programme with five components. These covered fibres, cluster modernisation, sustainability, handlooms and skilling under Samarth 2.0.
Additionally, the Budget proposed setting up Mega Textile Parks in challenge mode to promote value addition in technical textiles.
To support traditional industries, the Budget announced the Mahatma Gandhi Gram Swaraj initiative. The programme will strengthen khadi, handloom and handicrafts through training, skilling and global branding.
Finally, the Finance Minister said India could emerge as a global sports goods hub. Accordingly, the Budget announced a dedicated initiative to promote manufacturing, research and innovation in sports equipment.
