Union Budget 2026-27 Prioritises Expansion of Manufacturing Across Seven Strategic Sectors

• ₹10,000 crore allocated over 5 years to create a strong domestic ecosystem for biologics and biosimilars.
• Establishment of 3 new NIPERs and upgrading 7 existing NIPERs.
• Creation of over 1,000 accredited India Clinical Trial sites.
• Strengthening the Central Drugs Standard Control Organisation with dedicated scientific review cadres to meet global standards and approval timelines.

• Expansion of India’s semiconductor capabilities with focus on producing equipment, materials, and full-stack Indian IP.
• Fortification of supply chains and development of a skilled workforce through industry-led research and training centres.
• Builds on the success of ISM 1.0 to create self-reliant and globally competitive semiconductor manufacturing.

• Initial outlay of ₹22,919 crore in April 2025 increased to ₹40,000 crore to accelerate electronics manufacturing.
• Encourages domestic production of critical components to reduce import dependency.

• Dedicated corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to promote mining, processing, research, and manufacturing of rare earth permanent magnets.
• Aims to strengthen India’s strategic mineral supply chains and support industrial growth.

• Establishment of 3 cluster-based plug-and-play chemical parks via challenge route in various States.
• Designed to boost domestic chemical production, reduce imports, and enhance research and innovation.

• Hi-Tech Tool Rooms at 2 CPSE locations to design, test, and manufacture high-precision components locally.
• Construction & Infrastructure Equipment (CIE) Scheme to strengthen manufacturing of advanced machinery—from tunnel-boring machines to lifts, fire-fighting, and metro infrastructure equipment.
• Container Manufacturing Scheme with ₹10,000 crore allocation over 5 years to build a globally competitive ecosystem.

• Integrated Programme with 5 components:
  • National Fibre Scheme for self-reliance in natural and man-made fibres.
  • Textile Expansion & Employment Scheme for modernising clusters and upgrading technology.
  • National Handloom & Handicraft Programme to strengthen artisans and integrate existing schemes.
  • Tex-Eco Initiative for globally competitive and sustainable textiles.
  • Samarth 2.0 to enhance textile skill development through industry-academia collaboration.
• Mega Textile Parks in challenge mode to boost technical textiles and value addition.
• Mahatma Gandhi Gram Swaraj Initiative to strengthen khadi, handloom, handicrafts, and provide global market linkages.
• Focus on training, skilling, quality control, and supporting rural youth through One-District-One-Product initiatives.

• Dedicated initiative to make India a global hub for high-quality, affordable sports equipment.
• Promotes research, innovation, and material science advancements in sports manufacturing.
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• The Budget reinforces India’s position as a global manufacturing hub.
• Focus on inclusive growth ensures benefits reach all sections—farmers, artisans, youth, and vulnerable communities.
• Investments in technology, skill development, and infrastructure will enhance competitiveness and productivity.
• Strategic alignment with Atmanirbhar Bharat and global integration aims to attract long-term investment and increase exports.

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