Budget 2026: Nirmala Sitharaman unveils 6-point strategy for economic growth
What's the story
Finance Minister Nirmala Sitharaman has unveiled a six-point strategy to accelerate and sustain India's economic growth. The plan focuses on key areas such as manufacturing, infrastructure development, support for micro, small and medium enterprises (MSMEs), and urban development. Sitharaman emphasized that the government's priority is growth-led development during her Union Budget presentation today.
Strategy breakdown
What are the strategies?
Sitharaman's six-point strategy includes scaling up manufacturing in strategic and frontier sectors, reviving legacy industrial sectors, creating champion MSMEs, and pushing infrastructure development. Ensuring long-term security and stability, and developing city economic regions are also included. She reiterated these focus areas later in her speech to highlight the government's commitment to sustainable economic growth through targeted interventions across various sectors.
Sector focus
Biopharma push
A major focus of the growth strategy is to boost manufacturing in strategic and frontier sectors, especially health, electronics, semiconductors, chemicals, and capital goods. Sitharaman announced the Biopharma Shakti initiative as part of this push. The government plans to make India a global biopharma manufacturing hub with an outlay of ₹10,000 crore over five years for domestic production of biologics and biosimilars.
Regulatory measures
Semiconductor Mission announced
To strengthen drug regulation, Sitharaman proposed to enhance the Central Drug Standard Control Organisation to meet global standards. She also highlighted the importance of semiconductors in the manufacturing agenda and announced plans for India's Semiconductor Mission. The government will launch ISM Point Oh to fortify supply chains as part of this initiative.
Boost
Support for critical minerals, materials
The Budget also proposes support for critical minerals and materials with a focus on permanent magnets to aid mineral-rich states such as Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. To reduce import dependence in chemicals, Sitharaman announced a scheme to support states in setting up three dedicated chemical parks on a cluster-based model. She also announced plans to strengthen capital goods manufacturing by establishing high-tech tools by central public sector enterprises at two locations.