Budget 2026 Manufacturing Strategy: Biopharma SHAKTI and Chemical Parks to Boost Make in India Initiative

Union Budget 2026 frames manufacturing as strategic frontier sector for sustaining economic growth through continuation of structural reforms improving productivity boosting competitiveness and strengthening resilience against global disruptions. Budget introduces Biopharma SHAKTI as five-year programme with Rs 10,000 crore allocation positioning India as global hub for biopharma manufacturing by strengthening capabilities in biologics and biosimilars addressing pharmaceutical sector requirements. Government launches scheme supporting States in developing chemical parks expanding domestic production capacity in chemicals sector reducing import dependence and creating integrated manufacturing ecosystems with modern infrastructure facilities. Capital goods sector receives comprehensive support package including establishment of Hi-Tech Tool Rooms by Central Public Sector Enterprises as digital service hubs for precision components manufacturing supporting advanced machinery production. Budget allocates Rs 10,000 crore over five years developing competitive container manufacturing ecosystem localizing production and reducing logistics costs for export-oriented industries strengthening supply chain infrastructure. Scheme proposed for advanced construction and infrastructure equipment manufacturing supporting domestic production of heavy machinery and reducing technology dependence on imports while creating skilled employment opportunities. Budget extends support to labour-intensive sectors including textiles with dedicated thrust developing India into global centre for high-quality affordable sports goods manufacturing creating employment in traditional sectors. Government proposes scheme to revive 200 legacy industrial clusters improving cost competitiveness and efficiency through infrastructure upgradation technology modernization and skill development initiatives supporting MSME manufacturing growth. Basic customs duty exemptions extended across emerging sectors including lithium-ion cell battery storage systems critical mineral processing equipment raw materials for wind turbines and nuclear power plants reducing input costs for strategic manufacturing.