India Semiconductor Mission 2.0 Explained: Budget 2026 Tech Revolution

Context 

The Union Budget 2026–27 marks a decisive step in strengthening India’s position as a global hub for electronics manufacturing, semiconductors and information technology services.

India Semiconductor Mission 2.0

• The Budget announced the launch of India Semiconductor Mission 2.0, building on the foundations laid under ISM 1.0.
• Key Focus Areas
  • Domestic production of semiconductor equipment and materials, reducing dependence on imports.
  • Development of full-stack Indian semiconductor intellectual property (IP).
  • Supply chain fortification across design, fabrication, assembly and testing.
  • Establishment of industry-led research and training centres to create a skilled semiconductor workforce.
• Financial Support
  • ₹1,000 crore allocation for FY 2026–27.
  • ISM 2.0 aims to convert India from a chip consumer to a semiconductor value-chain participant.

Electronics Components Manufacturing Scheme (ECMS)

• The Electronics Components Manufacturing Scheme, launched in April 2025, has exceeded expectations.
• Budget Announcement
  • Outlay increased to ₹40,000 crore, reflecting strong investor response.
  • Investment commitments have already crossed double the original target.
• Importance
  • Focuses on components, the backbone of electronics manufacturing.
  • Supports domestic value addition, import substitution and export competitiveness.
  • Complements India’s push for mobile phones, EVs, consumer electronics and defence electronics manufacturing.

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