Industry experts have praised the Union Budget 2026–27 for its consistent and inclusive approach, focusing on bolstering India’s manufacturing and technology sectors through ongoing policies, scale, and targeted reforms. Noteworthy initiatives such as the India Semiconductor Mission (ISM) 2.0 and the expansion of the Electronics Component Manufacturing Scheme (ECMS) underscore the government’s dedication to fortifying domestic supply chains and enhancing India’s global competitiveness in electronics. The budget also introduces a tax holiday extension until 2047 for foreign firms providing global cloud services from India-based data centers, a move seen as forward-thinking and offering stability in policy.
The Chairman of the electronics industry body ICEA, Pankaj Mohindroo, highlighted that the Budget 2026–27 reinforces the government’s commitment to driving growth in manufacturing, particularly in electronics and semiconductors, through a strategic blend of continuity, scale, and targeted reforms. He emphasized that measures like the expansion of ECMS, support for ISM 2.0, and incentives for cloud and data infrastructure signal a clear intent for long-term policy stability and strategic growth. The success in mobile manufacturing due to consistent policy measures was also acknowledged.
Ashok Chandak, President of IESA, noted the significance of the Finance Minister’s emphasis on ISM 2.0 for India’s semiconductor aspirations, marking a shift towards a comprehensive value-chain strategy encompassing equipment, materials, Indian IP, and supply chain resilience. The industry’s positive reception to the substantial increase in the Electronic Component Manufacturing Scheme’s allocation to Rs 40,000 crore further underscores the sector’s optimism towards the budget’s provisions.
The Union Budget’s support for the semiconductor and electronics industry reflects the collaborative efforts of MeitY and the sector in progressing from vision to implementation. The Chairman of EEPC India, Pankaj Chadha, commended the budget’s focus on infrastructure development, reforms, and local manufacturing, with specific measures aimed at boosting the MSME sector. Notable proposals include the establishment of the Rs 10,000 crore SME Growth Fund and initiatives like the Scheme for Container Manufacturing and dedicated rare earth corridors, all contributing to a growth-oriented budget that aims to stimulate local manufacturing.
Paritosh Prajapati, CEO of GX Group, highlighted the government’s transition from intent to action, evident in the increased allocation for the Electronics Component and Manufacturing Scheme (ECMS) from Rs 22,919 crore to Rs 40,000 crore. The renewed focus on building a robust component ecosystem aligns with the evolving global supply chains, emphasizing the production of critical components essential for various industries, including PCBs, power electronics, and semiconductor-related components.
