Budget 2026: FM Sitharaman announces India Semiconductor Mission 2.0, increases ECM Scheme outlay to Rs 40,000 crore

Union Budget 2026: Union Finance Minister Nirmala Sitharaman on Sunday announced India’s Semiconductor Mission 2.0. While delivering her ninth consecutive Budget speech, FM Sitharaman said that India’s Semiconductor Mission 1.0 expanded the country’s semiconductor capabilities. “Building on this, the government will launch the India Semiconductor Mission (ISM 2.0) to produce equipment and materials, develop full-stack Indian IP, and strengthen supply chains,” the minister stated, proposing to increase the outlay for the Electronics Components Manufacturing Scheme to Rs 40,000 crore to capitalise on the momentum of India's semiconductor growth.

“We will also focus on industry-led research and training centers to develop technology and a skilled workforce. The Electronics Components Manufacturing Scheme launched in April 2025 with an outlay of Rs 22,999 crore already has investment commitments at double the targets," Finance Minister Sitharaman said.