Budget 2026: India Unveils Major Manufacturing Boost for Electronics, Capital Goods, and Chemicals
Finance Minister Nirmala Sitharaman announced significant manufacturing initiatives in Budget 2026-27. Key plans include increasing electronics manufacturing outlay to Rs 40,000 crore, establishing high-tech tool rooms for capital goods, and introducing a scheme for container manufacturing. Three dedicated chemical parks will also be set up to reduce import dependency. These measures underscore India's commitment to scaling up domestic production, building on substantial growth already seen in sectors like mobile manufacturing and semiconductor projects, aiming for global competitiveness.
The Union Budget for 2026-27, presented by Finance Minister Nirmala Sitharaman, outlines ambitious strategies to significantly strengthen India's manufacturing sector. A cornerstone of the announcement is the planned increase in the outlay for electronics manufacturing to a substantial Rs 40,000 crore for the 2026-27 fiscal year, underscoring the government's persistent focus on this high-growth industry. To bolster capital goods production and innovation, the budget proposes the establishment of two high-tech tool rooms at strategic locations.Further broadening and deepening domestic industrial capabilities, a new scheme for container manufacturing is slated, designed to foster a globally competitive ecosystem. In a move aimed at enhancing local production and reducing reliance on imports, three dedicated chemical parks will also be developed. These budgetary proposals are part of a larger government-wide push to aggressively scale up manufacturing across various sectors within the country.The article highlights impressive progress already achieved, particularly in the electronics segment. Mobile manufacturing, for instance, has demonstrated phenomenal growth, with its production value skyrocketing nearly 30-fold from Rs 18,000 crore in FY15 to Rs 5.45 lakh crore in FY25. Projections suggest that mobile phone production in the country could reach approximately Rs 6.76 lakh crore by the end of the current fiscal year, with exports alone projected to exceed USD 30 billion. Notably, iPhone exports from India almost doubled in 2025, reaching Rs 2.03 lakh crore. Furthermore, the approval of ten semiconductor manufacturing and packaging projects across six states, attracting a cumulative investment of around Rs 1.6 lakh crore, reaffirms India's commitment to becoming a prominent player in advanced manufacturing and reducing its dependence on imported components.
