India's Strategic Electronics Surge: ₹40,000 Crore Infusion and ISM 2.0 Unveiled in 2026-27 Budget

In a decisive move to fortify India's technological sovereignty, the Union Budget 2026-27 has allocated an additional ₹40,000 crore to the Electronics Component Manufacturing Scheme, marking a significant escalation in the nation's electronics manufacturing ambitions. Concurrently, the government has launched the India Semiconductor Mission 2.0 (ISM 2.0), a strategic initiative aimed at catalyzing domestic semiconductor production. This dual-pronged approach underscores a calculated effort to reduce import dependency, enhance supply chain resilience, and position India as a global hub for electronics and semiconductor manufacturing. The enhanced funding is expected to accelerate the development of critical components, while ISM 2.0 focuses on advanced fabrication, design, and packaging capabilities. Analysts view these measures as pivotal for bolstering national security, fostering innovation, and creating high-value employment in the technology sector. The initiatives align with broader economic objectives of self-reliance and industrial growth, signaling a robust commitment to transforming India's electronics landscape.