Union Budget 2026-27 | Betting on the future

When Union finance minister Nirmala Sitharaman rose to present her ninth budget, expectations were she’d announce big-ticket reforms to strengthen industry and create jobs. Instead, she focused on a clutch of new-economy sectors expected to lead India’s journey towards Viksit Bharat. These were backed by targeted policy interventions and multi-year, sometimes even multi-decadal, investment push. All this was done while keeping fiscal discipline intact, with the fiscal deficit projected at 4.3 per cent of GDP in FY27.The budget identified sectors such as biopharma, semiconductors and rare earths as strategic priorities, with the Narendra Modi government seeking to create national champions that will make India self-reliant and, over time, help the country become a prominent player in the global value chain. For the first time, it also formally recognised the ‘orange economy’ of online content creators as a distinct pillar of India’s economic strategy, framing it as the next frontier of employment and exports.Next came the thrust on linking jobs with skills, an area of sustained focus for the government. Education was reframed as productive infrastructure for a services-led economy, with academic ecosystems rather than isolated campuses.The third prong of the strategy centred on logistics, construction and transport. Tier-2 and Tier-3 cities with populations exceeding 500,000 will now be treated as emerging economic hubs. Connectivity here will be driven by seven high-speed corridors designed to widen labour catchments, promote transit-oriented development and unlock fresh real-estate potential..preferred-source-banner{ margin-top: 10px; margin-bottom:10px;}Taken together, these measures mark a clear departure from the “please-all” budgets of the past. In the following pages, we examine 10 of the forward-looking sectors that the finance minister has focused on, and how they will transform India’s growth trajectory.1. Biopharma | The big bio boostThe budget lays the foundation for India to acquire global supremacy in the manufacture of biosimilars2. Semiconductors | A chip off the global blockIndia Semiconductor Mission 2.0 seeks to anchor India in global supply chains3. Rare Earths | The growth magnetsAfter a disruption in rare earth magnet supplies, India is relying on dedicated corridors to secure these critical industrial inputs and reduce dependence on China4. Chemical Parks | Getting the chemistry rightChemical parks and carbon capture anchor the push to build an integrated, sustainable chemical sector5. MSME 2.0 | Breaking the micro trapEquity-led growth, faster payments and compliance reform are expected to help micro, small and medium enterprises scale up6. Metro Corridors | The new infra bonanzasInfrastructure development in Tier 2 and 3 cities gets special focus. The unlocking of real estate potential through a risk guaran tee fund and an investment trust would aid this7. Mobility | Logistics at super fast speedIntegrated networks of high-speed rail, freight corridors and waterways are set to reduce costs, improve mobility and drive regional growth8. Orange Economy | The creative culture pushDigital and creative economy are being framed as the next frontier of employment and exports9. Lab To Workstation | The skilling corridorsNew university towns near industrial corridors would emphasise latest research in future skills and fuse it with industry exposure and specific employment needs10. Agridiversity | Cracking the coconut puzzleRenewed focus on cash crops like coconut and cashew is expected to change India’s cereal-centrismAt a glance | A fine balanceAs the numbers show, finance minister Nirmala Sitharaman has stuck to fiscal discipline by pushing deficit reduction while sustaining capital spendingPlaying the long game | Board of India Today EconomistsFrom reform ambition and fiscal choices to manufacturing, jobs, and investor confidence, the Board of India Today Economists (BITE) offers a detailed analysis of what the Union budget, presented on February 1, promises- EndsPublished By: Mansi Published On: Feb 6, 2026Must Watch

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Union Budget 2026-27 | Betting on the future

The Modi government boosts 10 cutting-edge sectors to make India a global economic powerhouse

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