0:04 with our prime minister which have inspired many of the proposals making this a unique Yuba Shakidriven budget. Ladies and gentlemen, the budget of 2026 just signal the end of an era. While most news channels and political parties are focused on the same old headlines on income tax, rupee and inflation, there is a gold mine of business opportunities that the budget openly lays out. >> This year's budget assumes greater significance and lay out a long-term road map for India's economic future. The Union budget 2026 27 focuses heavily on tech manufacturing
0:49 future ready. India has been stuck in a dangerous problem. We produce 20% of all global generic medicines and yet we barely own 3 to 3.5% share of the global pharma value. We have 20% of the world's cheap designers but we barely own anything among the top tier global patents. We are building a massive 12.2 lakh cr infrastructure and yet we don't build the machines that build these projects. But now India is about to break out of its shackles. Budget 26 focuses on boosting
1:34 manufacturing, reviving legacy industries and building globally competitive MSMES. >> Expectations are that the budget will create a long horizon opportunities in electronics autos pharma chemicals and industrial clusters. In this budget, the government of India has identified seven strategic frontier sectors and has backed them with a vortest of over 1 lakh crores. So if you're an investor or an entrepreneur, this budget is a gold mine of opportunities. So in this episode, we break down which are the seven sectors
2:20 that the government is going bullish on amidst this global supply chain disruption. How is India planning to protect people like you and me? And where are the biggest investment and business opportunities in the budget of 2026? Before we move on, we have an important announcement from DAT insurance. Every year over 55 million Indians sleep into poverty because of medical bills. When even basic procedures cost 50,000 rupees to one lakh rupees in private hospitals, when medicine becomes a lifelong expense, chronic care and health care becomes an irreversible disaster for most Indian families. In fact, Nathan Kam put it perfectly when he said most Indians are one hospitalization away from bankruptcy. Which means even a hospital bill of 2 to three lakh rupees
3:07 can wipe out 6 to 12 months of savings just like that. So the real question is as healthcare becomes more and more expensive and long-term how do we protect our families especially our parents that too without draining our savings. The obvious answer we hear is health insurance right but the problem is most people have no idea what their health insurance covers and what it doesn't cover and then during claims we get the shock of our life that is why I personally recommend using Ditto to choose the right health insurance. Ditto is a zerodabat company that acts as your personal insurance guide. It is so authentic and trustworthy that even if you want to buy an expensive health insurance, they will ask you not to buy it. Plus, if your claim ever gets denied, Ditto fights on your behalf with all the paperwork and support and gets you the insurance if your case is
3:52 genuine. And the best part, the consultation, the calls, the claim support, all of this is 100% free for you. And unlike other insurance agents, they don't spam call you. You can buy the policy at your own convenience. So, be tension free and book a free consultation call. So click the link in the description and get a free consultation from Ditto and choose the best policy for yourself and your family. The first initiative that the government is rolling out is the biofarma shaky initiative >> to develop India as a global biofarma manufacturing hub. I propose the biofarma shaky with an outlay of 10,000 crores over the next 5 years. But to understand this you need to understand the difference between generic drugs and biologics. People generic meds are small
4:39 molecule drugs. You take chemical A, add chemical B, process it and you get the drug. And since it's a fixed math formula, anyone can create an identical copy of a generic drug. That is why India is the world's pharmacy. We are the best at copying these simple chemical formulas and shipping it to the world. Paracetamol is a classic example. It is simple, easy to build and every other company makes the same paracetamol and they sell it under different brand names. So you can practically buy a strip of 10 tablets for 10 to 30 rupees and the company that makes it barely makes 1 to 9 rupees per strip in profits. And India is so good at this game that we produce 20% of all generic medicines on the planet. But you know what the problem is? Because we sell those pills so cheaply like your 20 rupee paracetamol, we could only capture
5:26 3% of the world's pharma trade value. But this is where we need biologics. Instead of a chemical tank, biologics are made using living systems like bacteria, yeast, or even animal cells as factories. So scientists genetically program these cells to make a specific medicine such as insulin or advanced treatments for cancer and arthritis. But since living cells are inherently unpredictable and sensitive to their environment, no two batches of a biologic drug are ever perfectly identical. While the cost of ingredients for paracetamol cost $3 to $6 per kg, manufacturing a biologic like insulin costs around $10 per but it sells for $300. You know why? Because while there are thousands of companies making paracetamol, the world's insulin supply is controlled by only three companies.
6:13 Alli Lily in the US, Noah Nordisk from Denmark, and Sanophi from France. They control over 90% of the global market by value. And because of this insane intellectual property advantage, these companies make more money than hundreds of generic drug companies combined. This is why the budget of 2026 is pushing India to stop being the world's cheap generic shop and start becoming the global hub for high-tech biologics. So the government is rolling out a 10,000 cr bio fund to help companies build expensive living labs and bioreactors. On top of that thousand clinical trial sites are being built to test and prove Indian biologics so that we can save our companies billions in global testing costs. In addition to that the government is also launching and upgrading 10 national institutes to
6:58 train scientists. So keep a close eye on giants like Bioon and Dr. Reddies as they pivot towards biosimilars and see how you can become a part of their value chain. If this is clear, let's look at the silicon choke point that India intends to break. >> India's semiconductor mission to produce equipment and materials, design full stack Indian IP industry-led research and training centers and fortify supply chains to develop technology and skilled workforce. >> Look at this. The semiconductor value chain is roughly divided into four stages. The first stage is the design stage. This is a high value, high margin business where the brain of the chip is made. Currently, American companies like Nvidia and Qualcomm own the most advanced designs. On top of that, 90% of the software used to design these chips
7:44 are controlled by only three US companies Synopsis Cadence and Seammens. And then there is fabrication where the printing of design is done on silicon wafers. This is capital intensive and requires extraordinary tech. Here, Taiwan's TSMC alone produces over 90% of the world's most advanced chips. So if Taiwan stops for a week, the global tech production will come crashing down. And then there is equipment and materials where there are again specialized chemicals and equipments required. Here a Dutch company called ASML has an equipment monopoly and China controls the most important raw materials. Today China controls 90% of the world's gallium, 60% of world's germanium and 80% of world's silicon supply. This is the third stage
8:30 and the last stage is ATM or assembly, testing, marking and packaging which is a low value labor intensive process. This is where India succeeded until now. Now the catch over here is that we have 20% of the world's semiconductor design engineers. So every major company like Intel, AMD and Qualcomm, they have their largest design centers outside the US in India. So when AMD sells a chip, the major chunk of the revenue doesn't go to the engineer who worked 18 hours testing. It goes to AMD which owns the intellectual property. So now India intends to move up from testing and assembling to owning the IP. Which is why this year's budget funds designing full stack Indian IP. So instead of designing for American companies, Indian engineers will design chips owned by
9:17 Indian entities. So watch out for players like Tata Alexe, L&T technology services and MOS chip who are moving up the value chain in this space and see how you can become a part of their value chain. So if India breaks the silicon choke point, it will reduce the import bill, create highquality jobs and locally made chips will make Indian EVs, smartphones and medical devices globally competitive. Then we come to the third choke point. >> Scheme for rare earth permanent magnets. We now propose to promote mining, processing, research, and manufacturing. >> In simple words, rare earth minerals are a group of 70 minerals like neodium and drosium that are not actually rare, but they're incredibly difficult and dirty to extract and process. But China dominates 60% of the mining and nearly
10:02 90% of the processing of these minerals. So every EV motor, every smartphone, every wind turbine requires these rare earth minerals. So if China controls the supply, they can strangle our supply overnight. But you know what the fun fact is? India strangely has the world's fifth largest reserve of rare earth minerals. But for decades, we only did the mining and exported it for pennies. But the 2026 budget is about taking control of our rare earth processing without depending on China. Which is why India is building rare earth corridors in Odisha, Kerala, Andhra Pradesh and Tamiladu. The budget also provides specific customs duty exemption for the import of capital goods required for processing of critical minerals in India. So monitor
10:47 PSUs like NMDC and private players like Vidanta and Nalco that are bidding for critical mineral blocks and see how you can become a beneficiary of their pivot. The fourth choke point that India is tackling >> to enhance domestic chemical production and reduction import dependency. We will launch a scheme to support states in establishing three dedicated chemical parks through challenge route which basically says India is heavily dependent on China for chemicals like titanium dioxide for paints, epoxy reasons for aircrafts and electronics, active pharmaceutical ingredients and many more as mentioned on the screen. So the budget says that the government will invest 600 crores into building chemical parks to make India self-reliant. Now which chemicals will the government go bullish on? We don't know it yet. The
11:34 fifth choke point, >> a scheme for enhancement of construction and infrastructure equipments. This can range from lifts in a multi-story apartment or firefighting equipment and to tunnel boring equipments for building metros and high alitude roads. In simple words, today we buy complex equipments like tunnel boring machines or high-speed elevators from global giants in Germany or Japan. So every time we build a metro, we send billions of dollars abroad to rent or buy these specialized tools. So this budget has allocations to promote the making of these machines in India. Similarly, today China produces over 85% of the world's shipping containers. So this year's budget is deploying 10,000 crores over 5 years into a container manufacturing scheme to make India self-reliant. So look at what L & D
12:20 action construction equipment and concore are doing and see how you can become a part of their value chain. Then we have two other updates where the budget intends to launch the national fiber scheme to build advanced materials like new age and man-made fibers and reduce dependence on expensive inputs. So study what technical textile players like Gervare technical fibers and wellspun living are doing. And lastly, the government is increasing the outlay for electronic components to 40,000 crores. And the logic is that if you assemble a phone you capture 10% value but if you make the circuit boards sensors and capacitors in India you capture 40%. Here studying Dixon technologies can technology and amber enterprises will help you understand the opportunities in this sector better. These are the seven sectors that the godfather is betting on and the success
13:06 in these seven strategic sectors will give us three economic superpowers. Firstly, by manufacturing high value products like the 3 nanometer chips and cancer biologics, we will stop sending billions of dollars abroad for imports. Hopefully, we will go from net importer to being a net exporter of technology. Secondly, basic economics dictates that as exports surge and import dependency vanishes, the demand for the rupee skyrockets. So, by breaking our chopine dependencies on China and the west, we can strengthen our currency. And as we all know, a stronger rupee means lower inflation in India. And lastly, the helper jobs in assembly lines have a low wage ceiling. Whereas R&D, design and high precision engineering, they're all high wage works. So by shifting to high value manufacturing, we create millions of highpaying roles that will skyrocket
13:52 our per capita income and bring more money to our people. So the godfather of the market says that India is ready to move up the value chain. But the only question is whether the godfather can actually deliver. Because you see, deploying 10,000 crores into a bioparma fund is one thing, and building a worldclass bioreactor that doesn't fail is another. Launching a rare earth corridor on paper is easy, but digging through layers of bureaucracy, environmental red tapes, and state level friction is where the high IQ dreams usually go to die. So, at this moment, all we can do is wait and watch. And we at Things School, as always, are rooting for India to win. That's all from my side today, guys. If you learned something valuable from this case study, please hit the like button in order to make YouTuber happy. And for more such insightful business and political case studies, please subscribe to our channel. And don't forget to check out
14:38 Ditto from the link in the description. Thank you so much for watching. I will see you in the next one. Bye-bye.
