New Delhi, 1 Feb 2026 – Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 in Parliament, outlining government priorities to strengthen India’s economy amid global volatility with a focus on manufacturing, technology, infrastructure, defence and exports.
🔹 Capital and Infrastructure Spending
The government raised capital expenditure to ₹12.2 lakh crore (~₹12.2 trillion) for FY 2026–27, continuing its strategy to boost infrastructure, logistics and urban growth.
🔹 Manufacturing and Technology Push
Budget 2026 emphasised a strategic boost to manufacturing, especially in high-value and technology-intensive sectors. Among key measures:
- India Semiconductor Mission 2.0 with a ₹40,000 crore outlay to expand semiconductor and electronics development.
- Scheme to expand electronics components manufacturing, deepening value chains for chips and hardware.
- A push for container manufacturing and advanced construction equipment with dedicated funds to reduce import dependence and support global trade.
🔹 Defence Production and Exports
Defence received focused attention in the Budget, reflecting the government’s long-term defense-manufacturing agenda:
- Defence production value has surged in recent years and exports have expanded significantly, highlighting the shift toward domestic suppliers and export-oriented defence industry growth.
- Projections and targets include boosting defence output and further expanding exports by 2029.
🔹 Health and Pharma
The Budget introduced “Biopharma Shakti”, a ₹10,000 crore initiative over five years to make India a global biopharmaceutical hub, strengthen research, manufacturing and clinical trial capacity.
🔹 Support for Textiles and Labour-Intensive Sectors
An integrated five-component programme was laid out for labour-intensive industries like textiles, with schemes to modernise clusters, enhance skills, and build up a National Fibre Scheme for self-reliance in raw materials.
🔹 Exports, Rare Earths and Critical Minerals
The Budget placed strategic importance on rare earths and critical mineral supply chains — announcing plans for dedicated corridors in mineral-rich states to promote mining, processing and manufacturing locally.
📌 Fiscal and Economic Context
Sitharaman’s speech also highlighted macro-economic goals, including fiscal consolidation with a continued focus on controlling the fiscal deficit while driving growth through investment, exports, and manufacturing.
The Union Budget 2026 set a clear direction toward strengthening India’s manufacturing base, technological capabilities, export potential, and strategic sectors like defence and semiconductors while maintaining strong infrastructure and fiscal discipline to sustain growth and job creation across the economy.
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