India, Feb. 1 -- Finance Minister Nirmala Sitharaman on Sunday announced the launch of India Semiconductor Mission (ISM) 2.0 while presenting the Union Budget 2026-27, aimed at strengthening domestic production of semiconductor equipment and materials, developing full-stack Indian intellectual property (IP), and fortifying supply chains.

The Electronics Components Manufacturing Scheme (ECMS), launched in April 2025, has already attracted investment commitments exceeding its initial targets. In view of strong industry response, the government has proposed increasing its outlay to Rs.40,000 crore to capitalise on the momentum.

To strengthen India's position as a global IT hub and provide tax certainty, the Budget proposes new safe harbour...