India Semiconductor Mission 2.0 Gets ₹40,000 Crore Boost As Nirmala Sitharaman Unveils Budget 2026

Finance Minister Nirmala Sitharaman on Saturday unveiled a ₹40,000 crore outlay for semiconductors while presenting the Union Budget 2026, signalling a major expansion of the government's chip manufacturing push.

Announcing the launch of India Semiconductor Mission 2.0, Sitharaman said the move aims to capitalise on the momentum generated by the first phase of the mission and accelerate India's journey towards technological self-reliance.

India Semiconductor Mission 2.0 gets major budget push

The Finance Minister said the enhanced allocation would support the rollout of India Semiconductor Mission 2.0, with a clear focus on strengthening domestic capabilities across the semiconductor value chain. The increased outlay of ₹40,000 crore is intended to scale up efforts under the mission and build on progress made since its launch in January 2022.

Focus on industry-led R&D and training centres

Highlighting the core priorities of the new phase, Sitharaman said the government would back industry-led research and training centres to create a skilled workforce for the sector.

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

She added that the approach would encourage deeper collaboration between industry and academia, helping India develop homegrown technologies rather than remaining dependent on imports.

Support for mineral-rich states and supply chains

The expanded semiconductor mission is also expected to benefit mineral-rich states such as Odisha, Kerala, Andhra Pradesh, and Tamil Nadu, which play a key role in supplying critical raw materials. By strengthening domestic supply chains, the government aims to reduce vulnerabilities and support end-to-end semiconductor manufacturing within the country.

Budget reforms and India's chipmaking timeline

In her Budget speech, Sitharaman said that the Union Budget 2026 reflects the government's choice of reforms over rhetoric. She added that India would continue taking decisive steps towards becoming a Viksit Bharat.

The 2026 Budget marks Sitharaman's ninth consecutive Budget as Finance Minister, bringing her closer to former Prime Minister Morarji Desai's record of presenting 10 budgets.

Earlier this month, Union Electronics and Information Technology Minister Ashwini Vaishnaw said India is on track to begin commercial semiconductor chip production in 2026, in line with the timeline set under the first India Semiconductor Mission.