New Delhi: In a decisive push to bolster India’s semiconductor and electronics manufacturing capabilities, Finance Minister Nirmala Sitharaman on Sunday announced the launch of India Semiconductor Mission 2.0 with an allocation of ₹40,000 crore as part of the Union Budget 2026-27.
The expanded initiative, presented in the Lok Sabha, aims to go beyond traditional chip fabrication incentives to focus on production of semiconductor equipment and materials, design of full-stack Indian intellectual property (IP), and strengthening of supply chains.
Building on the groundwork laid by the original India Semiconductor Mission, the new phase will also prioritise industry-led research and training centres to develop a skilled workforce tailored to the requirements of advanced electronics and semiconductor sectors.
The increased outlay nearly doubles the previous Electronics Component Manufacturing Scheme (ECMS) funding, reflecting growing government emphasis on technology and high-value manufacturing.
Sitharaman said the revamped mission is aimed at reducing import dependence, fortifying domestic supply chains and fostering innovation in a sector considered critical to emerging technologies such as artificial intelligence, electric vehicles and telecommunications.
Market participants welcomed the announcement, with semiconductor-related stocks such as Dixon Technologies and Kaynes Technologies surging in early trade following the Budget announcements.
The Finance Minister highlighted that the Mission 2.0 would leverage strong investor interest observed under the initial scheme, which saw commitments exceed expectations.
India has already approved several semiconductor projects under the earlier mission, and the upgraded programme is expected to attract further capital and partnerships to build deeper value-chain capabilities.