Context: The Union Budget 2026–27, announced a major push to scale up manufacturing across 7 strategic and frontier sectors as part of the ‘First Kartavya’ priorities.
About Union Budget 2026–27: Scaling up Manufacturing in 7 Strategic and Frontier Sectors:
What is it?
- The Union Budget 2026–27 outlines a comprehensive industrial strategy to strengthen manufacturing capacity, technology depth, and supply-chain resilience across seven high-impact sectors—Biopharma, Semiconductors, Electronics Components, Rare Earths, Chemicals, Capital Goods & Containers, Textiles, and Sports Goods.
Budget Announcements:
- Biopharma SHAKTI: ₹10,000 crore over 5 years to develop India as a global hub for biologics and biosimilars, with new and upgraded NIPERs, 1,000+ clinical trial sites, and a stronger CDSCO.
- India Semiconductor Mission (ISM) 2.0: Focus on semiconductor equipment, materials, full-stack Indian IP, and resilient supply chains.
- Electronics Components Manufacturing Scheme: Outlay increased from ₹22,919 crore to ₹40,000 crore.
- Rare Earth Corridors: Dedicated corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu for mining, processing, R&D, and manufacturing.
- Chemical Parks Scheme: 3 plug-and-play chemical parks through a challenge-based, cluster model.
- Capital Goods & Containers: Hi-Tech Tool Rooms, CIE manufacturing scheme, and ₹10,000 crore Container Manufacturing Scheme.
- Textiles & Sports Goods: Integrated Textile Programme (5 components), Mega Textile Parks, Mahatma Gandhi Gram Swaraj initiative, and a dedicated sports goods manufacturing and R&D push.
Significance:
- Shifts India from assembly-led growth to deep manufacturing and technology creation.
- Reduces dependence in critical areas like semiconductors, rare earths, chemicals, and containers.
- Strong focus on labour-intensive sectors such as textiles, handicrafts, and sports goods.
