Budget 2026: India Semiconductor Mission 2.0 announced with 40,000cr overlay
What's the story
In her record-breaking ninth consecutive Budget presentation today, Finance Minister Nirmala Sitharaman officially announced the next phase of India's technological evolution by launching India Semiconductor Mission (ISM) 2.0. With a fresh ₹40,000 crore outlay, this second phase is designed to transform India from a manufacturing destination into a global semiconductor powerhouse.
Key points
From assembly to 'full-stack' sovereignty
While ISM 1.0 (with its ₹76,000 crore budget) succeeded in attracting global giants like Micron and Tata-PSMC to set up fabs and assembly plants in India, ISM 2.0 shifts the focus toward the "brain" of the operation. For the first time, specialized incentives will be provided for the production of semiconductor-grade chemicals and manufacturing equipment.
Dedicated corridors
Dedicated corridors to ensure steady supply of critical minerals
The government aims to foster "Indian Intellectual Property," moving away from simply assembling foreign-designed chips. Complementing the chip mission, the FM announced dedicated corridors in Odisha, Kerala, and Tamil Nadu to ensure a steady supply of critical minerals needed for high-tech manufacturing.