Budget 2026: FM Sitharaman unveils Semiconductor Mission 2.0; CG Power, Tata Elxsi jump up to 5%

Finance Minister Nirmala Sitharaman on Sunday announced the launch of the “India Semiconductor Mission 2.0” (ISM 2.0) to boost India’s semiconductor ecosystem during her Union Budget 2026 speech. The move aims to promote domestic manufacturing of semiconductor equipment and encourage industry-led research to develop critical technologies.

The India Semiconductor Mission (ISM) seeks to build a robust semiconductor and display ecosystem, positioning India as a global hub for electronics manufacturing and design, while also acting as the nodal agency for the efficient implementation of semiconductor and display-related schemes.

This marks FM Sitharaman’s ninth consecutive Union Budget. This is the second time in India’s history that stock markets are open for trading on a Budget Sunday—the previous instance being February 28, 1999, during the Atal Bihari Vajpayee-led government.


Semiconductor-linked stocks saw mixed moves, with Bharat Electronics Limited (BEL), ABB India, and ASM Technologies falling up to 5%, while CG Power and Tata Elxsi gained as much as 5%.

"The Budget’s continued focus on electronics manufacturing and semiconductors is a structurally positive development. This is not just a policy announcement but a continuation of a multi-year strategy that markets tend to reward. India’s growing electronics export base has already begun translating into improving order books and capacity expansion for several listed EMS players, component manufacturers, and capital goods companies. The sustained policy push enhances earnings visibility and supports higher valuation comfort over the medium to long term," Divam Sharma, Co-founder and Fund Manager at Green Portfolio PMS, said, reacting on the budget announcement.

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