Chief Minister Bhupendra Patel has stated that the Union Budget 2026-27, presented under Prime Minister Narendra Modi's leadership, will provide significant advantages to Gujarat's MSME, pharmaceutical, and semiconductor industries while improving liquidity across these sectors.
Budget Propels Reform Express Towards Viksit Bharat 2047
During a media briefing on Thursday, CM Patel emphasized that this budget accelerates the "reform express" forward and delivers a quantum leap toward achieving the mission of Viksit Bharat by 2047. The event was attended by State Finance Minister Kanubhai Desai, Additional Chief Secretary (Finance) T Natrajan, and Principal Secretary to the CM Sanjeev Kumar, among other officials.
Pharmaceutical Sector to Become Global Manufacturing Hub
According to an official release from the Chief Minister's Office, Patel highlighted the allocation of Rs 10,000 crore specifically for the pharmaceutical sector. This substantial funding aims to transform India into a global bio-pharma manufacturing hub. Gujarat, already a leader in this field, stands to gain considerably from the newly announced Bio-Pharma Shakti Programme.
MSME Sector Receives Major Liquidity Boost
The budget introduces an SME Fund of Rs 10,000 crore dedicated to building "Champion MSMEs." This initiative is expected to directly benefit the MSME sector in Gujarat by enhancing liquidity and supporting growth. The state's robust MSME ecosystem will likely see improved access to capital and resources.
Semiconductor Hub Expansion with India Semiconductor Mission 2.0
CM Patel noted that Gujarat is emerging as India's semiconductor hub with four operational plants. The budget's announcement of India Semiconductor Mission 2.0 will further bolster this sector, attracting more investments and technological advancements to the state.
Infrastructure and Logistics Enhancements
The budget includes a new dedicated freight corridor linking Surat in Gujarat to Dankuni in West Bengal. Patel explained that this corridor will facilitate faster logistics services, benefiting trade, industry, and the manufacturing sector by reducing transit times and costs.
Railway and GIFT City Developments
Regarding railway projects, Patel mentioned that Rs 17,366 crore has been allocated to Gujarat in the Railway Budget, with ongoing projects worth Rs 1.28 lakh crore. Additionally, the extension of the tax holiday in GIFT City from 10 to 20 years is expected to attract long-term investors, fostering greater trust and financial growth in this hub.
Sports Sector and Financial Devolution
With Gujarat set to host the Commonwealth Games in the coming years, the Khelo India Mission announced in the budget will provide additional encouragement and strength to the sports sector. Furthermore, under the 16th Finance Commission, Central devolution for Gujarat has increased from 3.48% to 3.75%, ensuring more funds for state development.
