Budget 2026-27 announces the launch of India Semiconductor Mission (ISM) 2.0

Union Finance Minister Smt. Nirmala Sitharaman today presented the Union Budget for the Financial Year (FY) 2026-27. The announcements also included significant measures for accelerating the growth of India’s Electronics and Information Technology Sector.

The Finance Minister announced the launch of India Semiconductor Mission (ISM) 2.0 to produce equipment and materials, design full stack Indian IP, and fortify supply chains. The focus will be on industry led research and training centres to develop technology and skilled workforce. Provision of Rs. 1,000 crores has been made towards this for FY 2026-27. ISM 1.0 has expanded India’s semiconductor sector capabilities and ISM 2.0 will build on the same.

The Electronics Components Manufacturing Scheme (ECMS), launched in April 2025 with an outlay of 722,919 crore, already has investment commitments at double the target. It has now been proposed to increase the outlay to Rs. 40,000 Crores to capitalize on the momentum.(UPDATED ON 1ST FEBRUARY 26)