Govt gives strong push to manufacturing, infrastructure & job creation, says Finance Minister Ms. Nirmala Sitharaman
- IBEF
- February 3, 2026
In the Union Budget of 2026-27, Finance Minister Ms. Nirmala Sitharaman has proposed a strategy to accelerate the growth of India’s manufacturing, infrastructure, and employment sectors. The strategy aims to enhance homegrown production, particularly by enhancing the allocation for electronics components to Rs. 40,000 crore (US$ 4.44 billion) and launching specific schemes for rare earth magnets, chemical parks, container production, and capital goods to reduce imports and enhance supply chains. The textiles sector, a large employer of people, will receive an integrated employment-oriented support package. The budget also proposes risk guarantee funds and dedicated freight corridors to mitigate risks in infrastructure projects and attract private sector investment. Fiscal responsibility remains a priority, with the deficit set at 4.3% of GDP, lower than the previous year’s estimate. Urban development is the priority area, with a focus on Tier-II and Tier-III cities, and City Economic Regions, which will be supported by funds tied to reform progress.
The services sector is emphasized as a key driver of employment, with the formation of a high-level Education-to-Employment and Enterprise Committee to improve the alignment of skills with market requirements, particularly in new technologies. The creative industries of animation, gaming, and design will be supported through AVGC labs. On the compliance side, the Income Tax Act, 2025, proposes easier filing procedures and more defined timelines, and customs duty rationalization seeks to reduce costs for exporters, MSMEs, and individual importers. Overall, the Budget combines growth-oriented reforms with fiscal and structural stability, offering a multi-faceted approach to enhance India’s competitiveness in the global arena.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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