The Union Budget 2026 has unveiled a wide-ranging set of measures aimed at accelerating industrial growth, strengthening domestic manufacturing, improving export competitiveness and advancing the vision of Viksit Bharat through sustained reforms and large-scale investment.
A central pillar of the Budget is a capital expenditure allocation of ₹12.2 lakh crore, signalling continued public investment-led growth to crowd in private capital and enhance infrastructure quality across sectors. The Budget places strong emphasis on manufacturing depth, technology leadership and integration with global value chains.
Among the major announcements is the launch of India Semiconductor Mission 2.0, which will focus on designing full-stack Indian intellectual property, producing equipment and materials domestically, and fortifying semiconductor supply chains through industry-led research and specialised training centres. Complementing this, the outlay under the Electronics Components Manufacturing Scheme has been enhanced to ₹40,000 crore to strengthen domestic electronics ecosystems.
To support enterprise growth, particularly in the MSME segment, the Budget has introduced a dedicated ₹10,000 crore SME Growth Fund to create future champion enterprises, along with a ₹2,000 crore top-up to the Self-Reliant India Fund to sustain access to risk capital for micro enterprises. These measures are expected to improve scale, productivity and resilience among small businesses.
Manufacturing and logistics capacity will receive further support through an allocation of ₹10,000 crore for container manufacturing, aimed at creating a globally competitive ecosystem and reducing import dependence. The Budget also proposes a scheme to revive 200 legacy industrial clusters through infrastructure and technology upgrades, improving efficiency and cost competitiveness.
Urban and regional development is addressed through City Economic Regions, with an allocation of ₹5,000 crore per region over five years, to be implemented through a challenge-based approach. In addition, seven high-speed rail corridors have been announced as growth connectors, alongside the creation of five university townships near major industrial and logistics corridors to align education with industry demand.
Sector-specific initiatives feature prominently. The Biopharma SHAKTI scheme, with an outlay of ₹10,000 crore over five years, aims to position India as a global biopharmaceutical manufacturing hub. A further ₹20,000 crore has been earmarked over five years for Carbon Capture Utilisation and Storage technologies to support long-term energy security and decarbonisation. An integrated programme for the labour-intensive textile sector has been announced to drive employment, exports and value addition.
The Budget also proposes support to States for establishing three dedicated chemical parks, promotion of SHE-Marts to empower rural women-led enterprises, and the setting up of AVGC content creator laboratories in 15,000 secondary schools and 500 colleges to build future-ready creative skills. A scheme to establish five regional hubs for medical tourism has been announced to strengthen healthcare services and global outreach.
To attract global investment, the Budget provides a tax holiday till 2047 for foreign companies providing cloud services globally using data centre services from India. Trade facilitation measures include easier customs processes, relief to Special Economic Zone units for limited access to the domestic market, and reforms aimed at reducing compliance burdens and improving scale efficiencies.
Amardeep Bhatia, Secretary, Department for Promotion of Industry and Internal Trade, said the Budget continues the reform trajectory required to achieve the goal of Viksit Bharat. He noted that the announced schemes will deepen domestic value chains, integrate them with global value chains, build skills aligned with modern technology-led industry, improve productivity and infrastructure, and attract foreign investment. He added that simplified customs processes will facilitate exports and enable manufacturers to take full advantage of recent free trade agreements.
Commerce Secretary Rajesh Agarwal said the Budget provides much-needed systemic and structural support for long-term export growth. He stated that trade facilitation measures will reduce costs and improve competitiveness, while limited domestic market access for SEZ units will help achieve economies of scale and promote import substitution. He added that initiatives in services, semiconductors, marine products, textiles, leather and other labour-intensive sectors will further support export expansion.
Overall, the Union Budget 2026 presents a comprehensive policy framework focused on investment, innovation, skills and trade competitiveness, reinforcing India’s ambition to emerge as a globally integrated manufacturing and export-driven economy.
