First kartavya- Accelerate and sustain economic growth

Biopharma

• Announced Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology & Innovation) to develop India as global Biopharma manufacturing hub

• To be launched with an outlay of ₹ 10,000 crores over next 5 years
• To build ecosystem for domestic production of biologics & biosimilars
• Will include a Biopharma focused network with 3 new National Institutes of Pharmaceutical Education and Research & upgrading 7 existing ones
  • To create network of over 1000 accredited India Clinical Trials sites

Semiconductors

• Building on the initial success of the India Semiconductor Mission (ISM) 1.0, the government is launching ISM 2.0.
• Focus Areas: While 1.0 focused on sector capabilities, ISM 2.0 targets the production of equipment and materials, the design of "full-stack Indian IP," and the fortification of supply chains

Electronics Components

• The budget proposes increasing the outlay for the Electronics Components Manufacturing Scheme l from ₹22,919 crore to ₹40,000 crore. 

Critical Minerals and Rare Earths

• Rare Earth Corridors: Support will be provided to the mineral-rich states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to establish dedicated corridors for mining, processing, research, and manufacturing

Chemicals

• Chemical Parks: The government will launch a scheme to support states in establishing 3 dedicated Chemical Parks. 
• These will be set up through a challenge route using a cluster-based "plug-and-play" model.

Capital Good 

• Construction and Infrastructure Equipment (CIE): A new scheme will support the manufacturing of high-value, advanced equipment ranging from tunnel-boring machines to fire-fighting equipment and lifts
• Scheme for Container Manufacturing :A budgetary allocation of ₹10,000 crore is proposed over a 5-year period.

Textile Sector

• Announced Integrated Programme with 5 sub-parts:
  • National Fibre Scheme for self-reliance in natural fibres such as silk, wool and jute, man-made fibres, and new-age fibres
  • Textile Expansion and Employment Scheme to modernise traditional clusters with capital support for machinery, etc.
  • A National Handloom and Handicraft programme to integrate and strengthen existing schemes and ensure targeted support for weavers and artisans
  • Tex-Eco Initiative to promote globally competitive and sustainable textiles and apparels 
  • Samarth 2.0 to modernize and upgrade the textile skilling ecosystem. 
• Proposed to set up Mega Textile Parks in challenge mode. They can also focus on bringing value addition to technical textiles. 
• Announce to launch the Mahatma Gandhi Gram Swaraj initiative to strengthen khadi, handloom and handicrafts. 

Sports Good 

• Propose a dedicated initiative for sports goods that will promote manufacturing, research and innovation in equipment design as well as material sciences. 

Equity Support 

• Dedicated ₹10,000 crore SME Growth Fund will be establish to create future Champions, incentivizing enterprises based on select criteria.
• Proposed to top up the Self-Reliant India Fund set up in 2021, with ₹2,000 crore to continue support to micro enterprises and maintain their access to risk capital.

Liquidity Support 

• Budget focuses heavily on maximizing the potential of the TReDS (Trade Receivables Discounting System) platform. Four specific measures are proposed to enhance this mechanism:
  • Mandatory TReDS Use: All CPSE purchases from MSMEs to be settled via TReDS, setting a benchmark for other corporates.
  • Credit Guarantee Support: CGTMSE to provide guarantees for invoice discounting on TReDS, reducing lender risk.
  • GeM–TReDS Integration: Linking GeM with TReDS to share government purchase data with financiers, enabling faster and cheaper MSME credit.
  • Secondary Market Development: Introduction of TReDS receivables as asset-backed securities to boost liquidity.

Professional Support (Corporate Mitras)

• These accredited para-professionals will help MSMEs meet compliance requirements at affordable costs. 
• Professional institutions like ICAI, ICSI, and ICMAI will be facilitated to design short-term, modular courses to train these professionals.

Infrastructure Risk Guarantee Fund

• It will provide prudently calibrated partial credit guarantees to lenders.  

Freight Corridors

• A new Dedicated Freight Corridor is proposed to connect Dankuni in the East to Surat in the West. 

Waterways

• The government plans to operationalize  20 new National Waterways over the next 5 years, starting with NW-5 in Odisha to connect mineral-rich areas (Talcher/Angul) to ports (Paradeep/Dhamra). 
• Additionally, a Coastal Cargo Promotion Scheme aims to double the share of inland waterways and coastal shipping from 6% to 12% by 2047

Seaplanes

• To enhance remote connectivity and tourism, a Seaplane Viability Gap Funding (VGF) Scheme will be introduced to support operations. 

Asset Monetisation

• Asset Monetisation will be done through Real Estate Investment Trusts (REITs)
• Proposal to accelerate recycling of CPSE real estate assets through dedicated REITs for CPSEs.

Public capital expenditure 

• It will be increased to ₹12.2 lakh crore in FY 2026-27.

• Carbon Capture Utilization and Storage (CCUS) technologies at scale will achieve higher readiness levels in end-use applications across five industrial sectors, including, power, steel, cement, refineries and chemicals.  
• An outlay of ₹20,000 crore is proposed over the next 5 years. 

• Announced to introduce a Scheme to revive 200 legacy industrial clusters to improve their cost competitiveness and efficiency through infrastructure and technology upgradation.

• Government will develop seven High-Speed Rail corridors between cities as 'growth connectors', namely Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi, and Varanasi-Siliguri.

Banking Sector

• Committee Formation: A "High Level Committee on Banking for Viksit Bharat" is proposed to comprehensively review the sector
• Restructuring NBFCs: There is a specific proposal to restructure the Power Finance Corporation and Rural Electrification Corporation to improve efficiency and scale

Deepening the Bond Markets

• Corporate Bond Market: To enhance liquidity and accessibility, the government proposes introducing a market-making framework with access to funds. 

• Additionally, they plan to introduce derivatives on corporate bond indices and total return swaps on corporate bonds.

• Municipal Bonds: There is a push to encourage large cities to issue higher-value bonds.

Foreign Investment and Ease of Doing Business

• Individual Foreign Investors (PROI): Individual PROIs will be permitted to invest in equity instruments via the Portfolio Investment Scheme
• FEMA Review: A comprehensive review of the Foreign Exchange Management (Non-debt Instruments) Rules is proposed to create a framework that is more contemporary and user-friendly, aligning with evolving economic priorities