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GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE
LOK SABHA
UNSTARRED QUESTION NO. 3968.
TO BE ANSWERED ON TUESDAY, THE 17TH MARCH, 2026.
ALLOCATION OF FUNDS IN BUDGET 2026-27 FOR INDUSTRIAL GROWTH
3968. SHRI SHRIRANG APPA CHANDU BARNE:
DR. D. PURANDESWARI:
SMT. BHARTI PARDHI:
SHRI NARESH GANPAT MHASKE:
DR. SHRIKANT EKNATH SHINDE:
SHRI RAVINDRA DATTARAM WAIKAR:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
वाणिज्य एवं उद्योग मंत्री
(a) whether the strategic allocation under Budget 2026–27 reflects a clear
commitment to accelerating industrial growth and advancing the vision of ‘Viksit
Bharat’;
(b) whether the emphasis on domestic manufacturing and value chain integration
strengthens India’s position as a global production hub;
(c) whether fiscal incentives and targeted sectoral support under the Budget are
designed to boost capital investment, technology adoption and industrial
productivity;
(d) whether regulatory rationalisation and compliance reduction measures have
improved the ease of doing business for industries across sectors;
(e) whether infrastructure expansion and logistics reforms under the industrial
roadmap enhance competitiveness and reduce production costs; and
(f) whether the coordinated fiscal and structural reforms in Budget 2026–27
provide a sustainable foundation for long-term industrial self-reliance and global
competitiveness?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI JITIN PRASADA)
(a) to (f): The Union Budget 2026–27 reflects a clear strategic commitment to
accelerating industrial growth and advancing the vision of ‘Viksit Bharat’
through investments in manufacturing, technology, infrastructure and industrial
ecosystems. The Budget emphasizes strengthening domestic manufacturing,
deepening value-chain integration and promoting high-technology sectors,
thereby positioning India as a globally competitive production hub.The Budget provides targeted fiscal incentives and sectoral support to boost
capital investment, technology adoption and industrial productivity across
strategic sectors such as semiconductors, biopharmaceuticals, electronics,
chemicals, capital goods and textiles. Simultaneously, the Government
continues efforts toward regulatory rationalization, compliance reduction and
simplified tax and labour frameworks, improving the ease of doing business for
industries across sectors.
Complementing these measures, the Budget sustains a strong push for
infrastructure expansion and logistics efficiency, with capital expenditure
proposed at ₹12.2 lakh crore in FY 2026–27 for strengthening industrial
connectivity, lowering logistics costs and improving competitiveness of
domestic manufacturing.
Together, these coordinated fiscal and structural reforms – covering
manufacturing promotion, cluster development, MSME support, infrastructure
investment and technology-led industrialization - provide a sustainable
foundation for long-term industrial self-reliance, productivity growth and global
competitiveness, in line with the vision of Viksit Bharat.
The key industrial initiatives announced in Budget 2026–27 include:
1. Scaling up manufacturing in strategic and frontier sectors
i. Biopharma SHAKTI with an outlay of ₹10,000 crore over five years to
build a domestic ecosystem for biologics and biosimilars, strengthening
India’s position in global biopharmaceutical manufacturing.
ii. India Semiconductor Mission (ISM) 2.0 to promote domestic
semiconductor manufacturing including equipment, materials and full-
stack Indian IP development, along with strengthening supply chains.
iii. Expansion of the Electronics Components Manufacturing Scheme with
outlay increased from ₹22,919 crore to ₹40,000 crore to deepen the
electronics manufacturing ecosystem.
iv. Development of Rare Earth Corridors in mineral-rich States to promote
mining, processing, research and manufacturing of critical minerals.
v. Establishment of three Chemical Parks through a cluster-based plug-
and-play model to strengthen domestic chemical manufacturing and
reduce import dependence.
2. Strengthening capital goods and industrial manufacturing capacity
i. Establishment of Hi-Tech Tool Rooms by CPSEs as automated service
bureaus to design and manufacture high-precision components.
ii. Scheme for Enhancement of Construction and Infrastructure
Equipment (CIE) manufacturing to strengthen domestic production of
technologically advanced equipment.
iii. Container Manufacturing Scheme with ₹10,000 crore over five years
to build a globally competitive container manufacturing ecosystem.3. Expanding labour-intensive manufacturing
i. Integrated textile sector programme comprising the National Fibre
Scheme, Textile Expansion and Employment Scheme, Tex-Eco
Initiative and Samarth 2.0, along with Mega Textile Parks, to enhance
value addition, employment generation and export competitiveness.
ii. Mahatma Gandhi Gram Swaraj initiative to strengthen khadi, handloom
and handicrafts through market linkage, branding, skilling and quality
improvement.
iii. Dedicated initiative for sports goods manufacturing to promote
innovation in equipment design and material sciences.
4. Industrial cluster revitalisation
i. Scheme to revive 200 legacy industrial clusters through infrastructure
modernisation and technology upgradation, aimed at improving cost
competitiveness, productivity and MSME integration into value chains.
The Union Budget 2026–27 thus presents a comprehensive industrial growth
strategy, combining sector-specific fiscal support, advanced manufacturing
initiatives, cluster development and infrastructure expansion. These measures
are designed to boost capital investment, accelerate technology adoption,
improve ease of doing business and reduce logistics costs, while strengthening
India’s integration with global value chains. Collectively, they provide a robust
and sustainable framework for industrial self-reliance, productivity growth and
global competitiveness, supporting India’s transition towards Viksit Bharat.
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