Budget 2026 Launches Revival of 200 Legacy Industrial Clusters: Modernization and Technology Upgradation

Budget 2026-27 announces transformative scheme to revive and modernize 200 legacy industrial clusters distributed across India, focusing on improving competitiveness and sustainability. These industrial clusters, many established decades ago, require infrastructure renewal, technology adoption, environmental compliance, and market linkages. The revival programme provides comprehensive support including common facility centers with modern machinery, effluent treatment plants and waste management systems, skill development centers, testing laboratories, design studios, and technology demonstration units. Focus sectors include leather goods, textiles and garments, gems and jewelry, ceramics and pottery, engineering goods, food processing, handicrafts, and light engineering clusters primarily dominated by MSMEs. The scheme facilitates cluster-level interventions such as improved power supply and backup, road connectivity and material handling systems, digital infrastructure for e-commerce, branding and marketing support, and quality certification assistance. By revitalizing these clusters, the budget aims to preserve traditional manufacturing skills while integrating modern technologies, improve export competitiveness of clustered units, create employment opportunities in Tier 2 and Tier 3 cities, and strengthen regional industrial ecosystems supporting balanced economic development across states.