Finance Minister Nirmala Sitharaman’s seventh consecutive budget presentation introduces a pioneering ‘Triple Kartavya’ (Three Duties) framework that fundamentally reshapes India’s approach to science-led development. Thethreefold dutyTriple Kartavya) frameworkanchored with Union Budget 2026-27 is said to be transformative and guides India’s path to Viksit Bharat (Developed India).
First Kartavya: Accelerate and Sustain Economic Growth
- Enhancing productivity and competitiveness
- Building resilience to volatile global dynamics
- Focus on strategic manufacturing and infrastructure
Second Kartavya: Fulfill Aspirations and Build Capacity
- Making citizens strong partners in India’s prosperity
- Creating pathways from education to employment and enterprise
- Developing skilled professionals across sectors
Third Kartavya: Sabka Sath, Sabka Vikas (Inclusive Development)
- Ensuring every family, community, region, and sector has access to resources
- Meaningful participation opportunities for all
- Bridging regional and sectoral disparities
This framework is supported by three critical enablers:
- Sustained structural reforms (350+ reforms already rolled out)
- Robust financial sector for efficient capital allocation
- Cutting-edge technologies including AI as force multipliers
The budget marks India’s transition from “action over ambivalence, reform over rhetoric, and people over populism” to concrete, measurable outcomes in science and technology domains.
I. SCIENCE, ENGINEERING & TECHNOLOGY: BUILDING FUTURE FOUNDATIONS
1.1 Semiconductor Revolution: ISM 2.0
The India Semiconductor Mission (ISM) 2.0 represents a quantum leap beyond ISM 1.0’s manufacturing capabilities. This iteration focuses on:
Equipment & Materials Manufacturing
Developing indigenous fabrication equipment and specialty chemicals, reducing critical import dependencies that currently exceed $23 billion annually.
Full-Stack Indian IP Development
Creating proprietary chip architectures, Electronic Design Automation (EDA) tools, and Process Design Kits (PDKs) for true technological sovereignty.
Supply Chain Fortification
Establishing resilient domestic supply chains for wafers, substrates, and packaging materials.
Scientific Impact: ISM 2.0 positions India to move from assembly to innovation, potentially creating 500,000+ jobs in semiconductor design, manufacturing, and R&D by 2030. The focus on industry-led research centers and training infrastructure addresses the critical talent gap, currently estimated at 300,000 skilled professionals.
1.2 Electronics Components Manufacturing: ₹40,000 Crore Expansion
The Electronics Components Manufacturing Scheme, launched in April 2025 with ₹22,919 crore, attracted investment commitments at double the target within 10 months. The budget proposes increasing allocation to ₹40,000 crore, capitalizing on momentum in:
- Active components (transistors, integrated circuits, microprocessors)
- Passive components (resistors, capacitors, inductors)
- Electromechanical components (connectors, switches, relays)
- Display technologies (LED, OLED, micro-LED)
- Power electronics (IGBTs, MOSFETs, power modules)
This positions India as a viable alternative to China-centric supply chains, particularly critical post-COVID supply disruptions.
1.3 Critical Minerals: Rare Earth Corridors
A dedicated Rare Earth Permanent Magnets scheme establishes corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu for:
| Activity | Focus Areas |
| Mining | Monazite, beach sand minerals, laterite deposits rich in REEs |
| Processing | Separation, refining, and purification of 17 rare earth elements |
| Research | Advanced separation techniques, environmental remediation, recycling technologies |
| Manufacturing | NdFeB magnets, SmCo magnets for EVs, wind turbines, electronics |
Strategic Importance: REEs are indispensable for green technology transition. Neodymium and dysprosium enable high-performance permanent magnets in electric vehicles (each EV requires 1-2 kg of REE magnets) and wind turbines. China currently controls 90% of global REE processing—India’s domestic capabilities reduce strategic vulnerability while supporting clean energy ambitions.
1.4 Carbon Capture Utilization and Storage (CCUS): ₹20,000 Crore
Aligning with December 2025 roadmap, CCUS technologies will achieve higher Technology Readiness Levels (TRL 7-9) across five industrial sectors:
1. Power Generation
Post-combustion capture from coal-fired plants, targeting 10 million tonnes CO₂/year by 2030
2. Steel
Blast furnace gas utilization, hydrogen-based direct reduced iron
3. Cement
Calcination process capture, carbon-negative concrete development
4. Refineries
Blue hydrogen production, carbon capture from steam methane reforming
5. Chemicals
Methanol synthesis from captured CO₂, CO₂-based polymers
The ₹20,000 crore allocation over five years supports:
- Pilot-scale demonstration plants (50-100 tonnes CO₂/day)
- Scale-up to commercial installations (1000+ tonnes CO₂/day)
- CO₂ transport infrastructure (pipelines, shipping)
- Geological storage characterization and monitoring
- CO₂ utilization pathways (enhanced oil recovery, mineralization, chemical feedstocks)
1.5 Hi-Tech Tool Rooms & Capital Goods
Strong capital goods capability is a determinant of productivity and quality across different sectors:
A. Hi-Tech Tool Rooms (CPSEs at 2 locations)
Digitally enabled automated service bureaus that locally design, test, and manufacture high-precision components at scale and at lower cost.
B. Construction and Infrastructure Equipment (CIE) Scheme
Strengthening domestic manufacturing of high-value and technologically-advanced CIE ranging from lifts in multi-story apartments, fire-fighting equipment, to tunnel-boring equipment for building metros and high-altitude roads.
C. Container Manufacturing Scheme
₹10,000 crore over 5 years to create a globally competitive container manufacturing ecosystem.
1.6 Chemical Parks: Three Dedicated Facilities
To enhance domestic chemical production and reduce import-dependency, a Scheme to support States in establishing 3 dedicated Chemical Parks through challenge route, on a cluster-based plug-and-play model.
Benefits:
- Common effluent treatment facilities
- Shared utility infrastructure
- Specialized logistics
- Regulatory compliance support
- R&D collaboration platforms
– Ram Koundinya Potharaju
