Budget 2026: Sitharaman’s six-point plan to propel India’s next growth phase

Finance Minister Nirmala Sitharaman on Sunday outlined a six-point roadmap aimed at accelerating and sustaining India’s economic growth, placing manufacturing, infrastructure, MSMEs and urban development at the centre of the government’s strategy.

Presenting the Union Budget, Sitharaman said the government’s priority was growth-led development, adding: “Under our first duty, to accelerate and sustain a sustainable economic growth, I propose interventions in six areas.”

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She listed the focus areas as: “Scaling up manufacturing in several strategic and frontier sectors, rejuvenating legacy industrial sectors, creating champion MSMEs, delivering a powerful push for infrastructure, ensuring long-term security and stability, and developing city economic regions.”

Reiterating the framework later in her speech, Sitharaman said: “I propose interventions in six areas one, scaling up manufacturing in seven strategic and frontier sectors. Two, rejuvenating legacy industrial sectors. Three, creating champion MSMEs. Four, delivering a powerful push for infrastructure, and five, ensuring long term security and stability. And six, developing city economic regions.”

Manufacturing push led by strategic sectors

A central pillar of the growth strategy is the scaling up of manufacturing across strategic and frontier sectors, with a particular focus on health, electronics, semiconductors, chemicals and capital goods.

As part of this push, Sitharaman announced Biopharma Shakti, which she described as “biopharma Shakti, meaning biopharma strategy for health advancement through knowledge, technology and innovation.”

Highlighting the changing healthcare needs of the country, she said: “India's disease burden is observed to be shifting towards non communicable diseases like diabetes, cancer and auto immune disorders, biologic medicines are key to longevity and quality of life at affordable costs.”

To position India as a global manufacturing hub in this space, Sitharaman said the government aims “to develop India as a global biopharma manufacturing hub.” She added that “it is proposed the biopharma Shakti, with an outlay of 10,000 crores over the next five years,” to build an ecosystem for domestic production of biologics and biosimilars.

The strategy will include “a biopharma focus network with three new National Institutes of pharmaceutical Education and Research,” along with the creation of “a network of 1000 accredited India clinical trials sites.”

The government will also strengthen drug regulation, with Sitharaman stating: “we propose to strengthen the central drug standard control organization to meet global standards and approve time frames through dedicated scientific radio Canada and specialists.”

Semiconductors, electronics and supply chains

Semiconductors form another core element of the manufacturing agenda. Sitharaman said the government will build on existing initiatives, noting: “India's semiconductor mission, one point of extended India semiconductor sector capabilities.”

She added: “Building on this, we will launch ism point oh produce equipment and fortify supply chains.” The Budget also places emphasis on skills and innovation, with a focus on “industry led research and training centers to develop technology and skip workforce.”

In electronics manufacturing, Sitharaman referred to the electronics components manufacturing scheme, stating: “The electronics components manufacturing scheme launched in April 2025, with an outlay of 22,919 crores, already has investment commitments and double the targets.”

The Budget also signals support for critical minerals and materials. Referring to permanent magnets, she said the initiative “was launched in 2025 November, we now propose to support the mineral Rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu.”

Chemicals, capital goods and industrial capacity

To reduce import dependence in chemicals, Sitharaman said: “To enhance domestic chemical production dependency and reduce dependency, we will launch a scheme to support states in establishing three dedicated chemical parks to challenge on a cluster based model.”

Capital goods manufacturing will also be strengthened, with the finance minister announcing: “I propose the following high tech, two rules will be established by central public sector enterprises at two locations, high precision components.”

MSMEs, infrastructure and urban growth

Beyond manufacturing, Sitharaman emphasised the importance of strengthening traditional industries and small businesses, listing “rejuvenating legacy industrial sectors” and “creating champion MSMEs” as core pillars of the growth plan.

Infrastructure investment remains another key driver, with the Budget committing to “delivering a powerful push for infrastructure” to support economic expansion and job creation.

The roadmap also seeks to address long-term economic resilience through “ensuring long-term security and stability,” alongside a new focus on urban-led growth via “developing city economic regions.”

Taken together, the six-point agenda reflects the government’s attempt to combine manufacturing-led growth with institutional stability, infrastructure expansion and urban development, positioning these levers as central to sustaining India’s economic momentum in the years ahead.