Feb 1: India’s Union Budget 2026 has placed technology and innovation firmly at the center of the country’s long-term economic strategy. Recognising that future growth will be driven by advanced capabilities rather than low-cost advantages alone, the government has outlined a strong push toward cutting-edge sectors such as artificial intelligence (AI), semiconductors, biotechnology, and next-generation manufacturing. These measures signal a decisive shift toward building a resilient, innovation-led industrial ecosystem.
Accelerating Advanced Technologies and Next-Gen Manufacturing
At the heart of Budget 2026 is a renewed emphasis on advanced technologies that can enhance productivity, competitiveness, and employment generation. AI, automation, robotics, and smart manufacturing are expected to play a critical role in modernising India’s industrial base. By encouraging innovation across these domains, the government aims to help Indian companies move up the global value chain, reduce import dependence, and strengthen export capabilities.
This focus on next-generation manufacturing aligns with India’s broader ambition to become a global manufacturing hub, particularly in high-value and technology-intensive sectors. Strategic investments, policy support, and industry collaboration are expected to create an environment where innovation thrives alongside large-scale production.
India Semiconductor Mission 2.0: Building a Complete Value Chain
One of the most significant announcements under the technology and industry agenda is the launch of India Semiconductor Mission 2.0, backed by an estimated outlay of ₹40,000 crore. Semiconductors are the backbone of modern electronics, powering everything from smartphones and automobiles to data centres and defence systems. Global supply chain disruptions in recent years have underscored the strategic importance of domestic semiconductor capabilities.
Mission 2.0 goes beyond chip fabrication to focus on building the entire semiconductor value chain—including design, fabrication, packaging, testing, and talent development. By doing so, India aims to reduce its reliance on imports, attract global investments, and position itself as a reliable player in the global semiconductor ecosystem. The initiative is also expected to generate high-skilled employment and spur innovation across electronics, automotive, and digital infrastructure sectors.
‘Biopharma Shakti’: Strengthening India’s Life Sciences Leadership
Complementing the push in electronics and manufacturing, Budget 2026 also introduces the ‘Biopharma Shakti’ initiative, with an allocation of ₹10,000 crore to boost domestic biopharmaceutical manufacturing. India is already a global leader in generic medicines and vaccines, and this initiative seeks to build on that strength by promoting innovation-driven biopharma production.
The programme aims to support research, development, and large-scale manufacturing of advanced biologics, biosimilars, and next-generation therapies. By strengthening domestic capabilities, Biopharma Shakti is expected to enhance India’s healthcare resilience, reduce dependency on critical imports, and increase the country’s share in the global biopharmaceutical market.
Laying the Foundation for a Tech-Driven Economy
Together, these initiatives reflect a clear policy intent: to transform India into a technology-driven economy powered by innovation, skilled talent, and advanced manufacturing. The combined focus on AI, semiconductors, and biopharma demonstrates a holistic approach—one that addresses both digital and life sciences, while creating synergies across industries.
As these programmes unfold, they are likely to attract global partnerships, stimulate private investment, and create a strong foundation for sustainable, high-quality growth. Budget 2026, through its emphasis on technology, innovation, and industry, sets the stage for India’s next phase of economic transformation—one driven not just by scale, but by sophistication and self-reliance.