NEW DELHI, Feb. 1 -- India approved a second tranche of its semiconductor incentive programme, India Semiconductor Mission 2.0 (ISM 2.0) in the Union Budget 2026-27. The scheme aims to push domestic companies up the value chain by supporting the design of full-stack Indian intellectual property and strengthening the country's chip supply ecosystem.

The Centre will also expand the electronics component manufacturing scheme (ECMS) to a net outlay of Rs.40,000 crore, less than a year after the programme was rolled out, underscoring the government's push to deepen electronics manufacturing and reduce import dependence.

Announcing the measures in her Budget speech on 1 February, union finance minister Nirmala Sitharaman said, "India Semicond...