Budget 2026–27 Gives Major Push To Electronics, Semiconductors Sectors

New Delhi, Feb 1 (KNN) Providing further impetus to electronics and semiconductors sectors, Finance Minister Nirmala Sitharaman on Sunday proposed to increase outlay for Electronics Components Manufacturing Scheme to Rs 40,000 crore while also announcing to launch India Semiconductor Mission (ISM) 2.0.

Presenting Budget 2026-27, the Minister said that the Electronics Components Manufacturing Scheme, launched in April 2025 with an outlay of ₹22,919 crore, already has investment commitments at double the target.

"We propose to increase the outlay to Rs 40,000 crore to capitalise on the momentum," she said.

The Finance Minister stated that the Indian Semiconductor Mission (ISM)

1.0 expanded India’s semiconductor capabilities. To enhance this initiative, she proposed the launch of ISM 2.0 to produce equipment and materials, design full stack Indian Intellectual Property (IP) and fortify supply chains.

The aim of the initiatives is to scale up electronics and semiconductor manufacturing in the country. The government will also focus on industry led research and training centres to develop technology and skilled workforce.

  To increase value addition in the consumer electronics sector, Sitharaman also proposed to exempt basic customs duty on specified parts in the manufacture of microwave ovens.

Commenting on Budget proposals, Benjamin Lin, President, Delta Electronics India said that the Budget brings together multiple strands of India’s manufacturing and technology growth story in a balanced and forward-looking manner.

"By aligning capital support with capability building and innovation, the Budget creates a solid foundation for sustainable, technology-led growth and reinforces India’s ambition to emerge as a globally competitive electronics manufacturing hub," Lin said.

(KNN Bureau)