Budget 2026 Pushes AI, Biopharma, Semiconductors to Build Future-Ready Economy [Read Finance Bill 2026]
Budget 2026 lays strong focus on AI, biopharma and semiconductors to build a future-ready and globally competitive Indian economy
The Union Budget for the Financial Year 2026-27 was presented by Finance MinisterNirmala Sitharaman in the Lok Sabha today (Sunday, 1 February 2026).
The Budget places a strong focus on future technologies such as artificial intelligence (AI), biopharma and semiconductors to prepare India for long-term economic growth and global competition.
In her Budget speech, Sitharaman said India must remain deeply connected with global markets while building strong domestic capabilities. She stressed that new technologies can act as force multipliers for better governance, higher productivity and quality jobs, especially for the youth.
A major announcement was the launch of Biopharma Shakti, with an outlay of Rs. 10,000 crore over five years. The initiative aims to make India a global hub for biopharmaceutical manufacturing, especially for biologics and biosimilars, as the country’s disease burden shifts towards non-communicable diseases such as diabetes and cancer. The government will also strengthen drug regulation systems and expand clinical trial infrastructure.
To boost chip-making capabilities, the Finance Minister announced India Semiconductor Mission 2.0, focusing on equipment, materials, design and full-stack Indian intellectual property. The move is aimed at strengthening supply chains, promoting industry-led research and creating a skilled workforce in the semiconductor sector.
Artificial intelligence also featured prominently in the Budget. Sitharaman said AI and other cutting-edge technologies will be used to improve public services, governance and economic efficiency. Continued support was announced for initiatives such as the AI Mission, National Quantum Mission and research and innovation funding.
The Budget also underlined the government’s commitment to inclusive growth. Sitharaman said the goal is to transform aspirations into achievements while ensuring that the benefits of growth reach farmers, the poor, women, youth, Scheduled Castes, Scheduled Tribes and other disadvantaged groups.
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