The Union Budget 2026-27, presented by Nirmala Sitharaman on 1 February 2026, marks a decisive push towards building a Viksit Bharat by balancing rapid economic growth with inclusion, capacity building and long-term resilience. A key highlight of Budget 2026 is the large number of new schemes and missions announced across manufacturing, MSMEs, infrastructure, agriculture, social justice, sports, education, and emerging technologies.
Schemes Announced in Union Budget 2026-27
1. Manufacturing & Strategic Sectors
The Budget places strong emphasis on scaling up manufacturing in seven strategic and frontier sectors to reduce import dependence and strengthen India’s global competitiveness.
- Biopharma SHAKTI (₹10,000 crore over five years) aims to develop India as a global hub for biologics and biosimilars, supported by new and upgraded NIPER institutions and over 1,000 accredited clinical trial sites.
- Building on earlier progress, India Semiconductor Mission 2.0 focuses on semiconductor equipment, materials, full-stack Indian intellectual property, and skilled workforce development.
- The Electronics Components Manufacturing Scheme has received a major boost with its outlay increased to ₹40,000 crore, reflecting strong investor response.
- To secure critical mineral supply chains, Dedicated Rare Earth Corridors will be developed in Odisha, Kerala, Andhra Pradesh and Tamil Nadu, linked to the Rare Earth Permanent Magnet Scheme.
- Additional initiatives include a Chemical Parks Scheme (three parks via challenge mode), Hi-Tech Tool Rooms for precision manufacturing, a Construction & Infrastructure Equipment (CIE) Enhancement Scheme, and a Container Manufacturing Scheme with an allocation of ₹10,000 crore.
2. Textile, Khadi and Handicrafts
- An Integrated Textile Programme has been announced with five components, including the National Fibre Scheme, Textile Expansion and Employment Scheme, National Handloom and Handicraft Programme, Tex-Eco Initiative, and Samarth 2.0 for skilling.
- To promote scale and value addition, Mega Textile Parks will be set up in challenge mode.
- Complementing this, the Mahatma Gandhi Gram Swaraj Initiative focuses on strengthening khadi, handloom and handicrafts through training, quality improvement and global branding.
3. MSMEs and Enterprise Support
- Recognizing MSMEs as engines of employment, the Budget introduces a ₹10,000 crore SME Growth Fund to create future “Champion MSMEs”.
- The Self-Reliant India Fund has been topped up by ₹2,000 crore to support micro enterprises.
- The Corporate Mitra Programme will create a cadre of trained para-professionals to help MSMEs meet compliance needs, especially in Tier-II and Tier-III towns.
- Major reforms have also been announced for the TReDS platform, including mandatory use by CPSEs, credit guarantee for invoice discounting, integration with GeM, and securitisation of receivables. Additionally, a Legacy Industrial Cluster Rejuvenation Scheme will revive 200 old clusters.
4. Infrastructure & Connectivity
- Public capital expenditure has been increased to ₹12.2 lakh crore, supported by new institutional mechanisms.
- An Infrastructure Risk Guarantee Fund will provide partial credit guarantees to reduce project risks.
- Key connectivity initiatives include new Dedicated Freight Corridors, expansion of National Waterways, a Coastal Cargo Promotion Scheme, and incentives for seaplane manufacturing and operations.
- The Budget also proposes a ₹20,000 crore Carbon Capture, Utilisation and Storage (CCUS) Programme, development of City Economic Regions, and seven high-speed rail corridors linking major growth centres.
5. Services, Education and Skill Development
- A High-Powered Education-to-Employment and Enterprise Standing Committee will guide India’s services-led growth strategy.
- The Budget announces expansion of Allied Health Professionals, training 1.5 lakh caregivers, and establishment of five Medical Value Tourism Hubs. The AYUSH sector will be strengthened through new institutes and upgraded labs.
- Other initiatives include AVGC content creator labs in schools and colleges, a new National Institute of Design in eastern India, University Townships, girls’ hostels in STEM institutions, and upgraded national telescope infrastructure.
6. Tourism, Culture and Heritage
- Tourism is positioned as a major employment generator.
- The Budget proposes a National Institute of Hospitality, a Tourist Guide Skill Pilot Scheme, and a National Destination Digital Knowledge Grid.
- Eco-tourism trails, development of 15 archaeological sites, and a Buddhist Circuit Development Scheme for the North-East further strengthen cultural tourism.
7. Sports Development
- To leverage India’s manufacturing potential, a Dedicated Sports Goods Manufacturing Initiative has been announced.
- In addition, the Khelo India Mission will transform the sports ecosystem over the next decade through talent pathways, sports science, coaching and infrastructure.
8. Agriculture, Fisheries and Rural Economy
- Major schemes include Fisheries Development in reservoirs and coastal areas, Animal Husbandry Entrepreneurship Support, and promotion of high-value crops such as coconut, cocoa, cashew and sandalwood.
- The Coconut Promotion Scheme targets productivity enhancement, while Bharat-VISTAAR, a multilingual AI-based advisory system, will support farmers with customised information.
- SHE-Marts will help rural women transition from livelihoods to enterprise ownership.
9. Social Justice, Health and Welfare
- The Budget introduces Divyangjan Kaushal Yojana for skill-based employment and Divyang Sahara Yojana for assistive devices.
- Mental healthcare receives a boost with NIMHANS-2, upgraded institutes, and expansion of emergency and trauma care centres.
Question
Q. Which of the following schemes announced in Union Budget 2026-27 aims to develop India as a global manufacturing hub for biologics and biosimilars?
A. India Semiconductor Mission 2.0
B. Biopharma SHAKTI
C. National Fibre Scheme
D. Khelo India Mission