Union Budget 2026: India Semiconductor Mission 2.0 Announced

Finance Minister Nirmala Sitharaman has unveiled the India Semiconductor Mission 2.0 as part of the Union Budget 2026. The budget allocation for the Electronics Component Manufacturing Scheme has been substantially raised to ₹40,000 crore, which is approximately $5.2 billion USD. This initiative is a direct intervention in the hardware subsector of the IT industry, with the core objective of enhancing India's domestic manufacturing capacity for semiconductors and electronic components. These elements are fundamental to the hardware supply chain. The substantial increase in funding represents a major strategic push by the government to bolster India's role and competitiveness within the global electronics manufacturing ecosystem.