Union Budget 2026-27 earmarks high support for electronics and semiconductor manufacturing

The Indian Union Budget for the fiscal year 2026-27 has substantially increased financial allocations to boost domestic electronics and semiconductor manufacturing. The funding for the Electronics Component Manufacturing Scheme has been raised to ₹40,000 crore (approximately $5.15 billion USD). Additionally, the India Semiconductor Mission 2.0 has received enhanced budgetary backing. This strategic move signals a strong governmental push to strengthen domestic hardware production capabilities. The initiative is expected to directly benefit the IT hardware subsector by potentially reducing import dependency, attracting significant investments, and fostering the development of robust local supply chains.