The Union Budget 2026-27 places a decisive bet on strengthening India’s manufacturing base, with a sharp focus on strategic sectors such as semiconductors, electronics, biopharma, rare earths, textiles, transportation, energy storage and capital goods. To meet future demand in a tech-driven world, the government announced India Semiconductor Mission (ISM) 2.0 to scale up domestic production of semiconductor equipment and materials, develop full-stack Indian IP, strengthen supply chains, and drive industry-led research and skilling.