Who got big bucks? From Biopharma to Defence: Breakdown of budget allocations in 2026 across key sectors

Union Finance Minister Nirmala Sitharaman has proposed to push the biopharma sector of India under a Bio Pharma Shakti programme, allocating Rs 10000 crore for the next 5 years. The programme is aimed to setup ecosystem for biopharma and biosimilars.

She announced the launch of the 'Mahatma Gandhi Handloom Scheme', asserting that the government focuses on bringing reforms in the textile industry sector. Additionally, she also proposed an integrated programme with key components, emphasising the first pillar of her plan, the National Fibre Scheme, which is aimed at “achieving self-reliance in natural fibres like silk, wool, and jute, as well as man-made and new industrial-age fibres.”

Sitharaman also proposed to introduce a dedicated 10,000 crores SME growth fund to create future jobs, incentivising enterprises based on select criteria. She said the central government recognises MSMEs as a vital engine of growth, proposing a three-pronged approach to help them grow as champions.

In the sports sector, she announced a dedicated move towards manufacturing and research of high-quality sports goods, while presenting the Union Budget 2026-27. "I propose a dedicated initiative for high-quality sports goods manufacturing, research and innovation in equipment design as well as material sciences," Sitharaman said.

The government on Sunday announced the creation of a high-level Education to Employment and Enterprises Standing Committee aimed at improving employment outcomes and evaluating the impact of emerging technologies, including artificial intelligence, on jobs and future skill needs.

Stating that the Union Budget 2026–27 is anchored in “Yuvashakti” and guided by “three kartavyas,” Finance Minister Nirmala Sitharaman proposed the development of seven high-speed rail corridors, new dedicated freight corridors, and the operationalisation of 20 national waterways over the next five years.

While presenting the Union Budget 2026–27, the government announced the removal of basic customs duty on 17 cancer-related medicines, providing major relief to patients. The Finance Minister also said that seven additional rare diseases would be brought under customs duty exemptions.

The government proposed an outlay of Rs 20,000 crore over the next five years for Carbon Capture, Utilisation and Storage (CCUS) technologies to enhance scale and application readiness. Addressing the Lok Sabha, Sitharaman also announced a Coconut Promotion Scheme to raise output, improve productivity, and strengthen India’s competitiveness in coconut cultivation.

In a surprising move, the Centre has allocated a budget of Rs 7.8 lakh crore to the Defence Ministry for the year 2026-27. To modernise under the Capital Outlay budget, the defence forces will receive Rs 2.19 lakh crore. In a nutshell, the defence ministry will witness a 15 percent increament in its budgetary allotment. There is a 21.84 per cent spike in capital outlay hiked in FY26-27, from Rs 1.80 lakh crore in FY 25-25 to Rs 2.19 lakh crore.

Highlighting the importance of strengthening critical infrastructure and encouraging investment in data centres, Finance Minister Nirmala Sitharaman proposed a tax holiday until 2047 for foreign companies offering global cloud services using data centre facilities based in India. She also clarified that such companies would be required to serve Indian customers through an Indian reseller entity. The Finance Minister also proposed a 15 per cent safe harbour on costs where the data centre service provider in India is a related entity.