India Doubles Semiconductor Ambitions: ECMS Allocation Surges to ₹40,000 Crore, ISM 2.0 Unveiled in Strategic Manufacturing Push

In a decisive move to solidify India's position in the global electronics supply chain, Finance Minister Nirmala Sitharaman has announced a significant fiscal expansion for the sector. The budgetary allocation for the Electronics Components and Semiconductors (ECMS) scheme has been doubled to ₹40,000 crore for FY 2026, marking a substantial escalation in government support. Concurrently, the launch of the India Semiconductor Mission (ISM) 2.0 framework signals a strategic evolution from foundational policy to a more mature, execution-focused phase. This dual-pronged initiative is designed to catalyze domestic manufacturing, reduce import dependency, and attract high-value investments in semiconductor fabrication, assembly, testing, and packaging. The enhanced ECMS incentives are expected to lower production costs for manufacturers, while ISM 2.0 aims to streamline regulatory processes and foster a robust ecosystem of design, research, and skilled talent. This policy reinforcement underscores a clear national imperative to build resilient, self-sufficient electronics and semiconductor industries, positioning India as a competitive alternative in a geopolitically sensitive and supply-constrained global market.