Budget Foundation
FY27 Budget lays foundation for medium to long-term goals, says Sitharaman
This story was originally published at 19:23 IST on 11 February 2026
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NEW DELHI – The Budget for the next financial year, which is the first Budget of the second quarter of the 21st century, has laid the foundation for India's medium to long-term goals till 2050, Finance Minister Nirmala Sitharaman said Wednesday.
The Budget, presented on Feb. 1, has measures related to investments that will have a bearing in the long term, Sitharaman said in the Lok Sabha, responding to a discussion in the House on the Budget for 2026-27 (Apr-Mar). Measures like Biopharma SHAKTI and India Semiconductor Mission 2.0 in the Budget will ensure India's long-term leadership in new-age sectors, she said.
The government has proposed an outlay of INR 100 billion for Biopharma SHAKTI over the next five years to build an ecosystem for domestic production of biologics and biosimilars, create a network of over 1,000 accredited India Clinical Trials sites, and strengthen the Central Drugs Standard Control Organisation to meet global standards and approval timeframes through a dedicated scientific review cadre and specialists. The strategy also includes a Biopharma-focused network, with three new National Institutes of Pharmaceutical Education and Research and the upgrading of seven existing ones.
The Budget also announced that the government will soon launch India Semiconductor Mission 2.0 to produce equipment and materials, design full-stack Indian intellectual property, and fortify supply chains. Under the mission, the government will focus on industry-led research and training centres to develop technology and a skilled workforce.
"The estimates in the Budget are also largely based on the recommendations of the 16th Finance Commission, so I am taking care of the next five years," Sitharaman said. The report of the 16th Finance Commission, accepted by the Union government, has recommended 41% vertical tax devolution to states for the next five years starting FY27.
The finance minister assured the House that the central government has been devolving the states' share in taxes as per the recommendation of the Finance Commissions. The Budget has projected devolution of taxes to states of INR 15.26 trillion in FY27, up 9.6% from the revised estimate of INR 13.93 trillion. The total transfers to states and Union Territories in the next financial year are projected at INR 26.21 trillion, up 12.2% from the revised estimate of INR 23.36 trillion for FY26. The Budget for FY26 had projected the transfer to states at INR 25.60 trillion. End
Reported by Krity Ambey
Edited by Saji George Titus
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