Rs 40,000 Crore For SemiConductor Push, Says Nirmala Sitharaman

Presenting the Union Budget 2026 today, Finance Minister Nirmala Sitharaman announced a Rs 40,000 crore outlay for semiconductors. The Finance Minister announced the 'India Semiconductor Mission 2.0' to "capitalise on the momentum of the semiconductor mission."

Sitharaman said that the focus will be on industry-led research and training centres for semiconductors. 

"Semiconductor mission 2.0 will focus on producing equipment and materials designed for full-stack Indian IP," the Finance Minister said. 

Sitharaman, in her speech, said that for the Union Budget 2026, the government has chosen the path of reforms over rhetoric. She added that India will continue to take steps towards becoming a Viksit Bharat.

The Union Budget 2026 is Sitharaman's ninth consecutive Budget, bringing her closer to former Prime Minister Morarji Desai's record of 10 budgets. 

Union Electronics and Information Technology Minister Ashwini Vaishnaw had earlier this month said that India is on track to begin commercial semiconductor chip production in 2026, meeting the timeline set under the first India Semiconductor Mission launched in January 2022.

"The first commercial production will begin in 2026, with four plants expected to commence operations this year. The pilot production has already started in three plants in 2025," he said.

Analysts expect India, the world's fastest-growing major economy, to prioritise spending on defence, infrastructure, capex, power, and growth in affordable housing in FY2026/27.