Finance Minister Nirmala Sitharaman announced ISM 2.0 and increased the Electronic Component Manufacturing Scheme outlay to ₹40,000 crore in Budget 2026–27.
She said these schemes are already creating jobs and supporting economic growth.
The initiatives aim to strengthen India’s semiconductor and electronics manufacturing ecosystem.
Union Budget 2026: FM Proposes ISM 2.0, Boosts ECMS Outlay to ₹40,000 Cr
Says these schemes already resulting in employment generation, economic growth
Budget 2026 Expectations
Summary
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Finance Minister Nirmala Sitharaman, presenting the Union Budget 2026–27, proposed the second phase of the India Semiconductor Mission (ISM 2.0) and announced an increase in the budget outlay for the Electronic Component Manufacturing Scheme to ₹40,000 crore
While addressing the House, she said that these schemes are already delivering positive results, particularly in terms of employment generation and economic growth.
The India Semiconductor Mission was launched in December 2021 with an initial outlay of about ₹76,000 crore to build a semiconductor and display manufacturing ecosystem in India while the Electronics Component Manufacturing Scheme was launched in April 2025 with an initial outlay around ₹22,919 crore.
Keywords: Budget, Budget FY27, Nirmala Sitharaman, India Semiconductor Mission, Electronic Component Manufacturing Scheme, Chip manufacturing