While presenting the Union Budget for 2026, Finance Minister Nirmala Sitharaman on 1 February announced an array of new funds and schemes designed to propel economic growth. The overall capital expenditure has been set at ₹12.2 lakh crore for the financial year 2027, underscoring the government’s commitment to sustaining economic momentum through targeted investments in infrastructure and industry.
Among the key highlights is the introduction of the SME Growth Fund, also known as the Champion SMEs Fund, with an allocation of ₹10,000 crore. This initiative aims to incentivise small and medium enterprises based on specific criteria, nurturing them into champion MSMEs while emphasising job creation and long-term competitiveness.
Complementing this, the Biopharma Shakti scheme has been launched with ₹10,000 crore over five years, in an effort to position India as a global hub for biopharmaceutical manufacturing. It includes plans to establish a dedicated biopharma-focused network, comprising three new institutes, upgrades to existing facilities, the creation of 1,000 accredited clinical trial sites, and enhancements to regulatory bodies such as the Central Drugs Standard Control Organisation.
Further emphasising self-sufficiency in logistics and infrastructure, the Container Manufacturing Scheme has been allocated ₹10,000 crore over five years to develop a domestic ecosystem for container production, thereby supporting broader infrastructure goals.
In the technology domain, the Electronics Components Manufacturing Scheme under the India Semiconductor Mission 2.0 sees an increased outlay to ₹40,000 crore, aimed at expanding semiconductor production, equipment, materials, and full-stack Indian intellectual property. This builds on the previous mission’s achievements, with plans for industry-led research and training centres to strengthen supply chains.
The government has also announced a top-up of ₹2,000 crore for the Self-Reliant India Fund in the financial year 2027, continuing support for micro, small, and medium enterprises to enhance self-reliance across sectors.
Additionally, a new Infrastructure Risk Guarantee Fund has been introduced to provide a prudentially calibrated public credit guarantee mechanism that mitigates risks for lenders during the construction and development phases of infrastructure projects. However, no amount for the fund was announced by the finance minister.
Beyond these funded initiatives, several other schemes were outlined to scale manufacturing in strategic areas and rejuvenate legacy industries. These include Dedicated Rare Earth Corridors for mineral-rich states to facilitate extraction and processing, the Chemical Arks Scheme for establishing specialised chemical parks, and the National Fibre Scheme to advance the textiles sector.
Further support comes through Samarth 2.0, an upgraded training programme for textile workers, and the Mahatma Gandhi Gram Swaraj Initiative, which focuses on rural self-governance and economic empowerment. These measures collectively aim to drive India’s transition towards a more innovative and self-reliant economy.
