Post Budget 2026, an almost ₹216.33 billion outlay for MeitY sharpens India’s push on artificial intelligence, semiconductors and domestic electronics manufacturing.
The Union Budget 2026-27 has raised the allocation for the Ministry of Electronics and Information Technology (MeitY) to ₹216.3296 billion, reflecting the government’s push on AI, semiconductors and electronics components. The allocation exceeds ₹202.3295 billion, which was provided in the previous Budget Estimates.
Finance Minister Nirmala Sitharaman said the increased outlay shows a strategic shift toward emerging technologies critical to economic growth and technological self-reliance.
She also announced the launch of India Semiconductor Mission (ISM) 2.0, signalling the next phase of India’s chip strategy.
Budget documents show that central sector schemes and projects account for ₹177.6855 billion of the total MeitY allocation. A large part of the increase has been channelled towards programmes linked to semiconductor manufacturing, artificial intelligence and electronics components.
The Modified Semiconductor and Display Manufacturing Programme has seen the sharpest rise. Its allocation has nearly doubled to ₹80 billion, up from ₹43 billion a year ago. The IndiaAI Mission has been allotted ₹10 billion, underlining the government’s intent to scale domestic AI capabilities.
Support for electronics hardware has also been strengthened. The Electronics Components Manufacturing Scheme (ECMS) has received ₹15 billion, indicating a renewed emphasis on strengthening domestic supply chains and reducing dependence on imports of critical components.
At the same time, spending on large-scale electronics manufacturing under the Production Linked Incentive (PLI) scheme has been reduced. This indicates a recalibration of priorities, with greater focus on upstream manufacturing and core technologies.
The Digital India programme has received a higher allocation as well. The increase is largely driven by enhanced funding for cybersecurity initiatives and capacity-building programmes across government and industry.
Announcing ISM 2.0, Sitharaman said the new phase would build on progress made under the first mission, which focused on establishing chip fabrication and assembly capacity.
She added that expanded incentives for electronics components would help create a resilient and globally competitive electronics ecosystem.
