Budget 2026: Manufacturing Boost & Rare Earth Corridors

New Delhi, Feb 1 (PTI) From rare earth metal corridors to healthcare advancement to container making ecosystem, manufacturing initiatives are on the 'Reform Express' being steered by the latest Union Budget.

At least allocations totalling Rs 20,000 crore have been announced for Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation) and container manufacturing ecosystem.

In her 2026-27 Union Budget speech on Sunday, Finance Minister Nirmala Sitharaman said one of the kartavyas was to accelerate and sustain economic growth, including by scaling up manufacturing in seven strategic and frontier sectors.

"A Scheme for Rare Earth Permanent Magnets was launched in November 2025. We now propose to support the mineral-rich States of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated Rare Earth Corridors to promote mining, processing, research and manufacturing," Sitharaman said.

Just to add, Kerala and Tamil Nadu are among the states set for polls in the coming months.

Mentioning Biopharma SHAKTI, the minister said India's disease burden is observed to be shifting towards non-communicable diseases like diabetes, cancer and autoimmune disorders.

"Biologic medicines are key to longevity and quality of life at affordable costs. To develop India as a global Biopharma manufacturing hub, I propose the Biopharma SHAKTI with an outlay of Rs 10,000 crore over the next 5 years," she said.


As efforts continue to boost the country's self-reliance, the government will increase the outlay for the the Electronics Components Manufacturing Scheme to Rs 40,000 crore.

As part of boosting the country's capital goods capability, a scheme of container manufacturing will be launched with a budgetary allocation of Rs 10,000 crore over a five-year period.

According to Sitharaman, India has the potential to emerge as a global hub for high quality, affordable sports goods.

"I propose a dedicated initiative for sports goods that will promote manufacturing, research and innovation in equipment design as well as material sciences," she said.

Among other initiatives, a scheme will be launched to support states in establishing three dedicated Chemical Parks, through a challenge route, on a cluster-based plug-and-play model.

The government will also launch India Semiconductor Mission (ISM) 2.0 to produce equipment and materials, design fullstack Indian IP and fortify supply chains.

As the finance minister mentioned in the speech, "The Reform Express is well on its way and will maintain its momentum to help us fulfil our kartavya". PTI RAM DR

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