BUDGET
Govt to launch ISM 2.0; ups outlay for electronics component scheme
This story was originally published at 17:10 IST on 1 February 2026
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--BUDGET: Propose India Semiconductor Mission 2.0
NEW DELHI – The government will launch India Semiconductor Mission 2.0 to produce equipment and materials, design full-stack Indian intellectual property, and fortify supply chains, Finance Minister Nirmala Sitharaman said, presenting the Union Budget for 2026-27 (Apr-Mar) in the Lok Sabha Sunday. The government also proposes to increase the outlay for the Electronics Components Manufacturing Scheme to INR 400 billion, she added.
The Electronics Components Manufacturing Scheme, launched in April 2025 with an outlay of INR 229.29 billion, has already garnered investment commitments that exceed its initial target by double, Sitharaman said. This scheme aims to build a self-sustaining ecosystem for electronics component manufacturing in India through large investments.
As part of ISM 2.0, the Centre will also focus on industry-led research and training centres to develop technology and a skilled workforce, Sitharaman said. "India Semiconductor Mission 2.0 aims to expand chip manufacturing capacity, strengthen supply chains for electronics, EVs (electric vehicles), defence and high-tech sectors, and reduce dependence on external sources for critical technologies," a government post on X said.
This announcement aims o build on the India Semiconductor Mission 1.0, which was launched in December 2021 with an outlay of INR 760 billion to incentivise companies to set up smiconductor manufacturing facilities in India. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Shakshi Jain
Edited by Saji George Titus
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