Union Budget 2026-27 launches India Semiconductor Mission (ISM) 2.0 with ₹40,000 crore (up from ₹22,919 crore) for electronics components, focusing on equipment manufacturing, full-stack Indian IP, and supply chains. Presented yesterday, this builds on ISM 1.0’s successes like Micron’s Gujarat fab, aiming for advanced nodes below 28nm.
Finance Minister Sitharaman announced industry-led R&D centers for skilled workforce development, alongside viability gap funding for startups and tax breaks on raw materials. Rare earth corridors and permanent magnet schemes address critical mineral needs.
Rare earth corridors and permanent magnet schemes address critical mineral needs.The impacts: By 2030, India targets 5% global semiconductor share, adding ₹10,000-15,000 crore annually to GSDP in states like Gujarat and Andhra Pradesh. Job creation: 1.5-2 lakh in design and fabrication, reducing 90% import dependence and saving forex.
Synergies with AI and EVs could unlock $350 billion in electronics exports.Challenges like disbursement delays persist, but the budget’s focus on quantum computing (₹10,000 crore) and biopharma enhances resilience. This strategic push cements India’s role in global tech supply chains, driving Viksit Bharat.
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