Finance Minister Nirmala Sitharaman announced doubling the Electronics Components Manufacturing Scheme outlay from ₹22,999 crore to ₹40,000 crore in Union Budget 2026, building on doubled investment commitments from the April 2025 launch. This capitalizes on proven success to fortify India’s electronics value chain.
ISM 2.0 Launch for Semiconductor Self-Reliance
India Semiconductor Mission 2.0 targets equipment/materials production, full-stack design with indigenous IP, and resilient supply chains. Complementing ISM 1.0’s fabrication gains, it positions India for end-to-end chipmaking leadership across mobiles, EVs, defense, and computing sectors.
Strategic Mineral and Chemical Infrastructure
Rare earth corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu develop mining-to-manufacturing ecosystems for EV magnets, renewables, and electronics. Three challenge-based chemical parks adopt cluster plug-and-play models, slashing import reliance through localized specialty chemicals production.
Comprehensive Manufacturing Ecosystem
These interconnected initiatives create synergies with ₹12.2 lakh crore capex, MSME funds, and export incentives. They promise job multipliers in Tier II/III cities, export growth to $300 billion by 2030, and reduced vulnerability to global supply shocks.
