Budget Makes Big Proposals For Biopharma, Textiles, Rare Earth Without Required Allocations
The Budget said that a scheme for Rare Earth Permanent Magnets will support Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated Rare Earth Corridors
Chennai: The Budget made big proposals for biopharma, MSMEs, electronics, and container manufacturing for the next five years. However, this year’s budget does not seem to support these announcements with required allocations as the total capital expenditure outlay increase for the fiscal has been just Rs 1 lakh crore.
“To develop India as a global Biopharma manufacturing hub, I propose the Biopharma SHAKTI with an outlay of Rs 10,000 crores over the next 5 years. This will build the ecosystem for domestic production of biologics and biosimilars,” the Budget said.
The strategy will include a Biopharma-focused network with 3 new National Institutes of Pharmaceutical Education and Research (NIPER) and upgrading 7 existing ones. It will also create a network of over 1000 accredited India Clinical Trials sites and strengthen the Central Drugs Standard Control Organisation.
However, the expenditure demand for the department for pharmaceuticals is estimated at Rs 2102 crore in BE FY27 against Rs 2055 crore in RE FY27 and of this capital expenditure is estimated at Rs 45 crore.
Similarly, the Semiconductor Mission (ISM) 2.0 will be launched, and the Electronics Components Manufacturing Scheme, launched in April 2025 with an outlay of Rs 22,919 crore, will see outlay increased to Rs 40,000 crore. The Semiconductor Mission 2.0 has received Rs 1000 crore allocation, Electronics Components Manufacturing Scheme has received Rs 1500 crore for FY27.
The Budget said that a scheme for Rare Earth Permanent Magnets will support Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated Rare Earth Corridors, but the allocation for FY27 has not been specified. Further, three dedicated Chemical Parks, through challenge route, and a Scheme for Container Manufacturing to create a globally competitive container manufacturing ecosystem, will be introduced with a budgetary allocation of Rs 10,000 crore over a 5 year period.
The total capital outlay in the Budget of Rs 12.2 lakh crore, which is an increase of Rs 1 lakh crore, will hardly support investments in all the schemes.
The Budget also announced the National Fibre Scheme, Textile Expansion and Employment Scheme to modernise traditional clusters, National Handloom and Handicraft programme, Tex-Eco Initiative, Samarth 2.0 for skilling and Mega Textile Parks in challenge mode. While these schemes do not have individual allocations, a new Integrated Textile Scheme has been provided Rs 1500 crore. The total allocation for central sector schemes and projects under the Ministry of Textiles has come down from Rs 5100 crore in RE FY26 to Rs 4659 crore in BE FY27
