In her Union Budget 2026 speech, Finance Minister Nirmala Sitharaman announced a major increase in government support for the semiconductor and electronics sector by allocating Rs 40,000 crore under the newly launched India Semiconductor Mission 2.0. This enhanced outlay is aimed at strengthening India’s semiconductor ecosystem and building on the progress made under the first mission.
The India Semiconductor Mission 2.0 will focus on domestic production of semiconductor equipment and materials, the development of full‑stack Indian intellectual property (IP), and fortifying supply chains. The mission also places emphasis on establishing industry‑led research and training centres to nurture skilled talent needed for this high‑tech industry.
In addition to the mission itself, the Electronics Component Manufacturing Scheme (ECMS) — first introduced in 2025 – has had its outlay increased to ₹40,000 crore to further support local manufacturing of electronic components and reduce dependence on imports, signaling a broader push to make India a competitive hub for electronics and chips.
