Lok Sabha Question No. 3968 (UNSTARRED), answered on 2026-03-17
Subject: Allocation of Funds in  Budget 2025-26 for Industrial Growth
Ministry: COMMERCE AND INDUSTRY
Asked by: Smt. Bharti Pardhi, Dr. Shrikant Eknath Shinde, Shri Ravindra Dattaram Waikar, Dr. D. Purandeswari, Shri Naresh Ganpat Mhaske, Shri Shrirang Appa Chandu Barne

## 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 17 TH  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 fullstack 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 plugand-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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