Critical Minerals and Supply Chain Security
Finance Minister Nirmala Sitharaman has presented a comprehensive industrial roadmap for the country through Budget 2026-27. In an environment of slowdown in the global economy, geopolitical tensions and increasing protectionism, the government has adopted a strategy to stabilize India’s growth pace and strengthen domestic manufacturing by identifying six priority sectors. This approach is considered to be more ecosystem based and long-term than the Budget 2025-26.
Promotion of manufacturing in strategic areas
The main focus of the budget is on strategic sectors like semiconductor, biopharma and critical minerals. Health Advancement through Knowledge, Technology and Innovation strategy has been announced for the biopharma sector, which aims to make India not just a drug manufacturing hub but an innovation-based global player. Under the India Semiconductor Mission 2.0, emphasis has been laid on chip manufacturing along with equipment, materials and Indian intellectual property.
Critical Minerals and Supply Chain Security
Critical minerals have been given special importance in the budget. After the Rare Earth Magnet Scheme, now rare earth corridors will be developed in states like Odisha, Kerala, Andhra Pradesh and Tamil Nadu. Its objective is to provide secure domestic supply to electric mobility, electronics and defense sectors.
Effort to make MSME a champion
An SME Growth Fund of Rs 10,000 crore has been proposed for the MSME sector. There is a plan to create large and competitive enterprises by providing performance based assistance through this fund. This step is being considered important towards making MSMEs not only sustainable but also strong participants in global value chains.
Old industries and new clusters
Integrated schemes have been announced for labour-intensive sectors like textiles, handloom and handicrafts. There is also a proposal to revive 200 old industrial clusters and establish three new chemical parks. This is expected to promote employment generation and regional balance.
Industrial approach to urban development
The budget also includes a plan to develop city economic regions, so that industrial policy can be linked with urban infrastructure, logistics and skill development. Overall, Budget 2026-27 is being seen as a decisive step towards making India a strong industrial power amid global uncertainties.