Budget 2026 Boosts India’s Electronics and Telecom Manufacturing with ₹40,000 Crore Allocation Semiconductor & tech leadership angle
By Tanuj Patro, CFO, HMD
“The increased ₹40,000 crore allocation for the Electronic Components Manufacturing Scheme is a strong boost for the telecom and electronics ecosystem, adding depth to domestic supply chains and helping India evolve from an assembly hub to a high-value manufacturing destination. Timely implementation, backed by robust infrastructure, will be critical to de-risk investments in advanced PCBAs, display assemblies and camera modules, enabling the transition from ‘Made in India’ to ‘Designed in India’.
The Semiconductor Mission 2.0 is equally commendable for its focus on materials, equipment and Indian-owned IP, strengthening full-stack domestic capabilities and positioning India as a future global semiconductor hub.
Notably, the 22-year tax exemption for data centres stands out as one of the smartest moves in Budget 2026, offering long-term policy certainty and accelerating foreign investment into India’s digital infrastructure, while the government’s focus on improving the debt-to-GDP ratio and fiscal deficit reinforces confidence in India’s macroeconomic stability.”