The Union Budget 2026 lays out an ambitious, execution-focused roadmap aimed at strengthening India’s manufacturing base, accelerating healthcare innovation, expanding renewable energy capacity, and modernising traditional industries. With targeted capital allocation and cluster-based development, the Budget reinforces Atmanirbhar Bharat while positioning India for long-term global competitiveness.
MSMEs and Industrial Clusters: Reviving India’s Manufacturing Backbone
A major highlight of the Budget is the ₹10,000 crore MSME Fund alongside the restoration of 2,000 industrial clusters, signalling a renewed focus on decentralised manufacturing and employment generation.
Raghunandan Saraf, Founder & CEO, Saraf Furniture, said:
“The government of India demonstrates its dedication to maintaining worldwide manufacturing supremacy through the implementation of FM Sitharaman’s ₹10,000 crore MSME fund together with the establishment of 200 industrial cluster restoration projects.”
He added that the investment will modernise clusters through logistics, digital adoption, and workforce training:
“The fund enables MSMEs to develop their businesses through research and development and equipment and international distribution network investments.”
Saraf emphasised the employment multiplier effect:
“Structured financial support addresses credit challenges enabling business expansion. The multiplier effect generates millions of jobs, primarily benefiting rural and semi-urban populations across India.”
Lokendra Ranawat, Co-Founder & CEO, WoodenStreet, echoed similar sentiments, highlighting inclusive growth:
“The ₹10,000 crore MSME fund established by FM Sitharaman together with the 2000 cluster revival program creates economic stability through support of local enterprises.”
He noted that the programme blends tradition with technology:
“The modernization of clusters applies new technological solutions to traditional textile and pottery industries while maintaining environmentally friendly methods.”
Ranawat added that special focus on women, artisans, and youth will strengthen local economies:
“The program provides special assistance to women business owners, rural artisans, and young artistic talent.”
Healthcare and Biopharma: A Strategic National Priority
Healthcare received a transformative push through the ₹10,000 crore Biopharma Shakti initiative, aimed at positioning India as a global biopharma leader.
Jeevan Kasara, Chairman, Steris Healthcare, described the initiative as a paradigm shift:
“The Indian government will use Finance Minister Nirmala Sitharaman’s Budget 2026 masterstroke ‘Biopharma Shakti’ which provides ₹10,000 crore for five years to establish India as a biopharma superpower instead of remaining a generic medicine producer.”
Kasara underscored the national security dimension of healthcare:
“The government budget spends money to deal with the healthcare problem which includes 101 million diabetes cases and 1.5 million newly diagnosed cancer cases and various autoimmune disorders because this matter represents national security needs.”
He highlighted the long-term economic impact:
“The ‘Biopharma Shakti’ program provides support for startups while it strengthens micro small and medium enterprises and it speeds up clinical research which results in 40% lower therapy costs and 2030 biopharma export increases from 15 billion dollars to 50 billion dollars.”
According to Kasara, biotech corridors could generate over 500,000 specialised jobs, helping prevent non-communicable diseases from eroding workforce productivity.
Renewable Energy: Accelerating the Clean Power Transition
Clean energy and energy security gained momentum through targeted customs duty reforms.
Pawan Garg, Founder & Joint Managing Director, Fujiyama Power Systems Limited, said:
“The Union Budget 2026 strategic customs duty changes represent a masterstroke that will advance India toward its clean energy goals.”
He noted that exemptions on Battery Energy Storage Systems and solar glass inputs will reduce domestic manufacturing costs:
“The duty exemption which lasts indefinitely for nuclear power projects demonstrates a strong dedication to producing coal-free foundational power sources.”
Garg added that the policy environment is already driving business growth:
“The new regulations will lead to faster investment growth which will decrease project expenses while enhancing India’s energy protection capabilities.”
Textiles: Modernisation, Jobs, and Global Scale
The textile sector received a comprehensive policy push combining infrastructure, skills, and heritage preservation.
Anuj Mundhra, Founder, Chairman & Managing Director, Nandani Creation Limited (Brand Jaipur Kurti), said:
“FM Sitharaman’s textile sector blueprint creates revolutionary changes which solve major problems hindering India’s manufacturing system.”
He highlighted the importance of skill development and infrastructure:
“Samarth 2.0 serves as an essential program which will help India solve its current shortage of 15 million textile workers because it provides necessary skills to workers.”
Mundhra pointed to the scale of opportunity:
“India holds only 5 percent of the worldwide textile market even though it produces more cotton than any other country. The implementation of these strategies will enable us to achieve a market share increase of 10 percent within five years while creating 10 million new employment opportunities.”
Outlook
Union Budget 2026 presents a cohesive strategy that links industrial revival, healthcare innovation, clean energy transition, and labour-intensive manufacturing. Industry leaders see the Budget as a decisive move from incremental reform to structural transformation one that balances economic growth with inclusion, sustainability, and long-term resilience.
With execution now in focus, stakeholders believe the Budget has laid a strong foundation for India’s next phase of development.
Last Updated on Tuesday, February 3, 2026 9:34 pm by Startup Magazine Team
About The Author
