FM announces India Semiconductor Mission 2.0: What tech companies have to say on Union Budget 2026 and electronics manufacturing

Union Finance Minister Nirmala Sitharaman on Sunday (February 1) launched the India Semiconductor Mission (ISM) 2.0, and announced waiving customs duty on TV equipment, camera and other instruments imported by a foreign film unit or TV team for shooting films removed from April 1. She also announced, customs duty exemption on video game manufacturing parts removed from April 1. Speaking in Parliament, the Minister outlined a vision to move India beyond assembly and into the high-value sectors of semiconductor intellectual property (IP) and raw materials.

“India's semiconductor mission, 1.0 expanded India's semiconductor sector capabilities. Building on this, we launch ISM 2.0 to produce equipment and materials, develop full-stack Indian IP, and strengthen supply chains. We will also focus on industry-led research and training centers to develop technology and a skilled workforce,” Sitharaman said in the Parliament.

Tech companies have welcomes her decision. Here’s what they said:

Sanjay Chitkara, Co-CSMO, LG Electronics India Limited

The Union Budget 2026 reinforces India’s ambition to become a global high-tech manufacturing hub through higher capital investment, Semiconductor Mission 2.0, and expanded support for electronics component manufacturing. Measures such as duty exemptions, MSME funding, and improved infrastructure will strengthen supply chains and enhance industry competitiveness. This creates a stronger ecosystem for localized manufacturing, innovation, and long-term growth. At the same time, tax rationalization and policies aligned with middle-class needs will boost consumption and job creation, delivering balanced growth for both industry and citizens.

Muneer Ahmad Khant Managing Director at ViewSonic India
India’s Budget 2026 sends a strong signal that the future of growth lies at the intersection of education, technology, and industry. The proposed Education-to-Employment Standing Committee, along with initiatives such as Content Creator Labs across 15,000 schools and plans for university townships near industry corridors, reflect a clear intent to align learning with real-world skills, particularly in emerging areas like AI and advanced technologies.

Coupled with an effective capital expenditure of ₹17.14 lakh crore and continued momentum toward domestic manufacturing and a robust semiconductor ecosystem, the Budget lays a strong foundation for modern digital classrooms and future-ready campuses. This convergence of education, technology, and manufacturing is shaping India’s next phase of economic leadership.

Manoj Nair (Head of Applications at Fujitsu)
The Hon’ble Finance Minister has presented a forward-looking Union Budget that strongly reinforces India’s Viksit Bharat ambition, and conducive policies to make India a global technology hub. There is a huge focus on AI by positioning it as a force multiplier, combined with robust policies to support the growth of data centres. The launch of the India Semiconductor Mission 2.0 will accelerate the development of a resilient semiconductor ecosystem, spanning materials, equipment, full-stack IP design, and enhancing supply chains. The move to approve Safe Harbour for IT services through an automated, rule-based mechanism is a significant reform that enhances ease of doing business and provides certainty in taxation for the industry. Equally encouraging is the focus on positioning data centres as critical infrastructure, along with the proposal to extend tax holidays till 2047 for global cloud service providers operating from India. Together, these measures will help in boosting investor confidence, enhance innovation, create long-term growth opportunities for semiconductor and IT services companies, including data centre players, while further strengthening India’s role in the global technology value chain.

Avneet Singh Marwah, CEO, SPPL, exclusive brand licensee for Blaupunkt, Kodak and Thomson in India

Budget 2026-27 provides a strong platform to accelerate the growth of India’s semiconductor and electronics manufacturing ecosystem. If India has to become competitive globally, the focus should shift from announcement to execution. Design-linked incentives, deeper component localisation and semiconductor-linked supply chains are critical to help Indian manufacturers climb up the value chain.
Arijeet Talapatra, CEO, TECNO India

This budget reinforces India’s shift from scale to substance in electronics manufacturing. As the country deepens its semiconductor and electronics capabilities, it opens the door to large-scale, future-ready employment, especially for young engineers, technicians and skilled workers who will drive the next phase of growth.

The focus on semiconductors, advanced manufacturing and stronger supply chains gives the smartphone industry exactly what it needs to build long-term value, not just volume. We see Semiconductor Mission 2.0 as a long-term enabler for affordable innovation and our commitment to Make in India is for the long run. These measures create the right foundation for us to localise deeper, innovate faster, and design technology that is truly made for Indian users to lead globally.Tadashi Chiba, MD & CEO, Panasonic India

The Government’s consistent focus on infrastructure continues to be central to India’s growth agenda. The Union Budget 2026–27, with capital expenditure increased to Rs 12.2 lakh crore, reaffirms infrastructure as the backbone of India’s economic expansion. This sustained push will directly support the scaling of Panasonic’s advanced B2B solutions and offerings, which are integral to large-scale infrastructure development. The continued focus on strengthening India’s manufacturing ecosystem through ECMS and the exemption of basic customs duty on select electrical appliances, including microwaves, is a timely measure that will improve cost efficiencies, encourage domestic value creation, and boost market adoption.The emphasis on the strategic deployment of cutting-edge technologies, including AI, to improve governance and productivity, will lay a strong foundation for inclusive, sustainable, and people-centric growth in India.

Rajeev Singh, Managing Director, BenQ India and South Asia

The Union Budget 2026 makes a clear statement on reimagining education as a direct driver of employability and economic growth. The proposed Education-to-Employment Standing Committee acknowledges the urgent need to align learning with industry demand and the accelerating impact of technologies such as artificial intelligence.Initiatives such as Content Creator Labs in 15,000 schools and the development of university townships near industry corridors mark an important shift towards hands-on, technology-enabled, and industry-connected learning environments. These measures will encourage creativity, collaboration, and real-world skill development across K-12 and higher education.Together with continued support for domestic manufacturing and the semiconductor ecosystem, the Budget creates a strong foundation for modern digital classrooms and future-ready campuses. It enables education and enterprise technology providers to play a meaningful role in building skills, improving learning outcomes, and preparing India’s talent base for global competitiveness. It will be good to see how these initiatives take shape in the coming days, and we will support them to the best of our ability.

Ravi Agarwal, Co-Founder and Managing Director, Cellecor

The Union Budget 2026 reflects a steady and constructive approach toward strengthening India’s consumer electronics and technology manufacturing ecosystem. The near doubling of the Electronics Components Manufacturing Scheme outlay from Rs 22,919 crore to Rs 40,000 crore is a meaningful step toward building a stronger domestic component supply chain. Alongside the expansion of the India Semiconductor Mission (ISM) 2.0 into a broader, full-stack programme covering materials, equipment, design, and R&D, this signals strong momentum toward positioning India higher on the global electronics value chain.The parallel focus on employment generation and large-scale skilling in electronics manufacturing and emerging technologies will help create a future-ready workforce across factories, assembly lines, and service ecosystems. Overall, the Budget creates a supportive environment for consumer electronics brands to invest with confidence. We look forward to contributing to this growth journey through innovation, localisation, and product development.

Avi Avula, President, Applied Materials India
India Semiconductor Mission 2.0, announced in the Union Budget 2026, is a positive step towards strengthening India’s semiconductor ecosystem. We are proud to contribute through our growing capabilities designed to accelerate research and innovation in partnership with industry and academia.





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