Union Budget 2026: Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026 today, and the tech sector had high expectations from this budget. During her speech, she emphasized that the government will focus on strengthening the semiconductor sector in India. She announced the launch of Semiconductor Mission 2.0 to increase semiconductor manufacturing capacity and strengthen the entire supply chain. The aim of this initiative is to make India self-reliant in chip manufacturing.
In the Union Budget 2026, the government made a major announcement for the semiconductor sector. Semiconductor Mission 2.0 will be launched, along with a ₹40,000 crore EMS PLI scheme. Additionally, plans are underway to develop a Rare Earth Mineral Corridor and position India as a hub for technology manufacturing.
In addition, to boost electronics manufacturing, the scope of the EMS PLI (Production Linked Incentive) scheme will be expanded to ₹40,000 crore. This is expected to give a significant push to electronics production in India.
The Role of Semiconductors in Driving AI and the Digital Economy
Semiconductors are considered the most critical foundation for the expansion of AI and the digital economy. Industry organizations have noted that the India Semiconductor Mission and the PLI scheme have already begun showing positive results at the ground level. However, they emphasize that further budgetary support is necessary to maintain and accelerate this momentum.
Companies have also demanded that India Semiconductor Mission (ISM) 2.0 receive stronger funding and that the approval and fund disbursement process be simplified. Since investments in the semiconductor sector are long-term, tax stability and a clear policy framework are considered crucial. These measures could provide a solid foundation for India’s chip manufacturing and supply chain.
Three Fundamental Duties to Drive National Development
The Finance Minister highlighted three key duties for the nation’s development. First, to accelerate and sustain economic growth. Second, to fulfill people’s aspirations and develop their capabilities. And third, and most importantly, to ensure equal access to resources for every family and region. She described this approach as the mantra of “Sabka Saath, Sabka Vikas” (Collective Effort, Inclusive Growth) and noted that over 350 economic reforms have already been implemented, steadily moving toward their intended goals.
