New Schemes Get Major Push for Jobs, Skills and Industry
The Union Budget 2026–27 has introduced a set of new government schemes that signal a shift in public spending priorities towards employment creation, industrial capacity building, technology adoption, and long-term economic resilience. Unlike existing welfare programmes that dominate budget outlays each year, the newly launched initiatives focus on creating productive assets, upgrading skills and strengthening strategic sectors of the economy.
A major highlight of this year’s budget is the introduction of the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin), which has received a substantial allocation of ₹95,692 crore. The scheme is aimed at strengthening rural employment and livelihood opportunities through a more structured framework, marking a shift from demand-driven wage support towards planned job creation. The government expects the programme to stabilise rural incomes while supporting local economic activity.
In parallel, the Centre has launched the PM Viksit Bharat Rozgar Yojana with an allocation of ₹20,083 crore, targeting formal sector job creation. The scheme is designed to incentivise employment generation, particularly for first-time workers, as part of a broader effort to address labour market pressures and improve workforce participation.
Skill development has emerged as another focus area. The newly introduced PM SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) has been allocated ₹6,141 crore. The scheme aims to modernise Industrial Training Institutes and align vocational education with current industry requirements. The government expects this to improve employability among youth and reduce skill mismatches across manufacturing and services sectors.
Social inclusion has also found space in the new budget architecture. The Divyangjan Kaushal Yojana, with an allocation of ₹200 crore, seeks to provide targeted skill training to persons with disabilities. The initiative is expected to improve workforce participation among Divyangjan by linking training with employment-oriented sectors rather than limiting support to welfare measures.
On the technology and manufacturing front, the budget has introduced India Semiconductor Mission 2.0 with an initial allocation of ₹1,000 crore. This is complemented by the Electronics Components Manufacturing Scheme, which has been allotted ₹1,500 crore. Together, these schemes aim to strengthen domestic capabilities in electronics and semiconductor manufacturing, reduce import dependence and attract global supply chains to India.
The healthcare manufacturing ecosystem also receives attention with the launch of Bio-pharma SHAKTI, supported by an allocation of ₹500 crore. The scheme is intended to promote domestic production of high-value biopharmaceuticals and position India as a competitive player in advanced healthcare manufacturing.
In the area of sustainability and energy transition, the budget introduces the Carbon Capture, Utilisation and Storage Scheme with an allocation of ₹500 crore. The initiative focuses on encouraging cleaner technologies in emission-intensive industries such as steel and cement. Alongside this, the government has announced Viability Gap Funding for Battery Energy Storage Systems, allocating ₹1,000 crore to support grid-scale energy storage and improve renewable energy integration.
Urban and industrial infrastructure development has been reinforced through the launch of the Urban Challenge Fund, which has received ₹10,000 crore. The fund is expected to support competitive urban infrastructure projects and improve planning outcomes in cities. In addition, the New Scheme for Plug and Play Industrial Parks, with an allocation of ₹3,000 crore, aims to reduce project delays by offering ready-to-use industrial infrastructure for investors.
Smaller but strategically important initiatives include the Maritime Development Fund with ₹1,000 crore, reflecting a renewed push towards port-led development, logistics efficiency and coastal manufacturing.
Overall, the new schemes introduced in the Union Budget 2026–27 reflect a clear policy direction towards job creation, skills, industrial depth, technology-led growth and energy transition. While several schemes begin with modest first-year allocations, their design indicates an emphasis on long-term capacity building rather than short-term fiscal support. The effectiveness of these initiatives will depend on timely implementation, coordination with states and the ability to attract private investment.
