Budget 2026–27: Government Targets Industry 4.0 Push Through Electronics Manufacturing Support

The government will accelerate support for domestic manufacturing and electronics as part of a broader effort to deepen India's integration into global supply chains and leverage opportunities arising from Industry 4.0, Finance Minister Nirmala Sitharaman said while presenting the Union Budget for 2026–27.

The Finance Minister said, “Support will be provided to strengthen domestic manufacturing capacities and integrate our economy with global supply chains,” adding that sectors will be identified based on objective criteria, with facilitation groups comprising “senior officials and industry representatives” set up for select products and supply chains.

“These measures will unlock significant opportunities in Industry 4.0, which demands high skills and advanced talent. Our youth have both,” she said.
Sitharaman said the government would support the domestic electronics industry to enable it to leverage these opportunities, linking manufacturing growth to employment creation for the country’s young workforce.

Industry 4.0, driven by automation, connected systems, and data-led manufacturing, is increasingly reshaping global production networks, particularly in electronics-intensive sectors. Policymakers see electronics manufacturing as a critical enabler for participation in these advanced value chains.

The announcement fits into the government’s wider manufacturing strategy, which combines facilitation-led policy support with efforts to move Indian industry up the value chain as global companies diversify sourcing and production footprints.