Union Budget 2026-27 Strengthens India's Deep-Tech Pipeline with Focus on Public Value
The Union Budget 2026-27 has garnered significant attention from the science, technology, and innovation community, with technology mentioned 16 times in the document. According to experts, this budget signals a clear intent to prioritize mission-mode, industry-linked capability building in India's scientific endeavors.
Key Allocations and Initiatives
The Department of Science and Technology has been allocated a budget estimate of ₹28,049.32 crore for the fiscal year 2026-27. A notable provision within this allocation is ₹20,000 crore under 'Loans for Other Scientific Research'. This move indicates an evolution in funding architecture, shifting from traditional grants towards larger financial instruments aimed at catalyzing translation at scale.
Additionally, the Department of Biotechnology stands at ₹3,446 crore, while the Department of Higher Education is estimated at ₹78,496.22 crore to support the research ecosystem in universities.
Expert Insights on Budget Provisions
Dr. K M Paknikar, ANRF Prime Minister Professor at COEP Technological University in Pune, highlighted that the budget emphasizes continuity in India's science-and-technology priorities. He noted that the focus is on aligning proposals with mission outcomes and national capability gaps, building credible pathways from lab to deployment, and investing in trained manpower.
Dr. Paknikar stated, "If implemented with speed, transparency, and competitive selection, these provisions can strengthen India's deep-tech pipeline while keeping science anchored to public value." He also welcomed the India Semiconductor Mission (ISM) 2.0, emphasizing that semiconductors are not merely factories but learning systems.
Standout Announcements in the Budget
Three key announcements have particularly stood out according to experts:
- Biopharma SHAKTI: A ₹10,000 crore, five-year initiative aimed at building an ecosystem for biologics and biosimilars manufacturing, expanding clinical-trial capacity, and strengthening scientific review capabilities in drug regulation.
- India Semiconductor Mission (ISM) 2.0: Focused on equipment and materials, "full-stack" Indian IP, and industry-led research and training centers. The Electronics Components Manufacturing Scheme outlay is proposed to rise to ₹40,000 crore, reflecting the government's intent to sustain momentum in domestic value chains.
- New Technologies as Force Multipliers: Linking the national push to the AI Mission, National Quantum Mission, the Anusandhan National Research Fund (ANRF), and the Research, Development and Innovation (RDI) Fund.
Dr. Shekhar Mande, former director general of the Council for Scientific and Industrial Research, also praised the budget, noting that setting up three National Institutes of Pharmaceutical Education and Research is a welcome step. He emphasized the need for strong support for innovation in pharma, including policy interventions to help India lead in generic markets and discover new drugs.
Implications for Research Institutions and Universities
Dr. Paknikar outlined clear implications for research institutions and universities: they must align proposals with mission outcomes and national capability gaps, build credible pathways from lab to deployment through industry consortia and testbeds, and invest in trained manpower. He stressed that manufacturing-led science and technology strategies succeed only when research, skilling, standards, and regulation move together.
Dr. Mande added that the emphasis on tech-led development across all sectors, including good governance, is a welcome aspect of the budget, highlighting its comprehensive approach to fostering innovation and growth.
