India’s Budget 2026 focuses on strengthening domestic manufacturing and reducing import dependence amid global political and economic changes. The government plans to streamline import duties and simplify import procedures to boost local production and exports. This move comes after rising concerns about India’s import reliance, especially on China, which restricts exports of critical minerals and technology used in electronics and electric vehicles. Despite India's strong GDP growth, manufacturing performance lags, with shrinking industrial jobs and capacity. Past initiatives like Make in India haven’t curbed reliance on imported goods. The Budget targets this with tariff changes, reducing duties on capital and intermediate goods to encourage local value addition. Special focus is on electronics and rare earth materials. The Budget proposes a rare earth corridor across Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to promote mining and processing. Tax breaks will also support lithium-ion battery production. With the US imposing tariffs on Indian exports, the Budget pushes for modernized MSME clusters and financial help to increase productivity and diversify exports away from the US market. However, it offers little support for foreign direct investment, key for high-tech growth. The government also allows special economic zone businesses to sell part of their output domestically, a move seen as easing export pressures but possibly weakening export ambitions. The Budget does not address Centre-State financial issues amid new fiscal commission recommendations. Its success in reversing India’s industrial decline depends on effective execution of policies amid uncertain global conditions. The Budget reflects India’s urgent need to become more self-reliant while navigating complex international trade and security challenges.