Budget 2026 Could Strengthen Indian Supply Chains to Match China

Budget 2026 Could Strengthen Indian Supply Chains

News: As Union Budget 2026 approaches, India is reassessing its supply-chain strategy amid rising imports, a widening trade deficit, and continued dependence on China across machinery, electronics, chemicals, and capital goods.

The government is considering a calibrated mix of higher customs duties and targeted fiscal incentives for nearly 100 import-dependent products, while focusing on cutting logistics costs that erode competitiveness.

Strengthening MSMEs is critical, as they form the backbone of exports but face credit, quality, and compliance challenges.

Budget priorities also include building domestic value chains in rare earths, semiconductors, and electronics, scaling up critical minerals processing, and accelerating infrastructure under PM GatiShakti. Policymakers see Budget 2026 as a test of shifting from reactive import substitution to a coherent, resilient supply-chain strategy capable of narrowing India’s China dependence.