New Delhi, Dec. 9 -- The Centre is preparing to reinforce and expand its focus on labour-intensive industries in the FY27 Union budget, according to two persons familiar with ongoing discussions. This continues the thrust that began with sharply higher allocations last year to labour-facing industries, and the recent rollout of the four labour codes.

New scheme announcements and expansions of existing ones are likely for small and medium industries in general and for sectors like textiles, leather and footwear, gems and jewellery, and handicraft, among others, when finance minister Nirmala Sitharaman presents the budget on 1 February, the persons cited above said on condition of anonymity.

Policy makers feel that India must deliberately...