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Budget 2026's Rs 40,000 Crore Chip Push Hailed as "Sure Win for Nation"

The India Cellular and Electronics Association (ICEA) has strongly welcomed the Union Budget 2026, particularly its focus on building domestic supply chains in electronics and semiconductors. Key announcements include the launch of India Semiconductor Mission 2.0 with a Rs 40,000 crore outlay and a significant expansion of the Electronics Component Manufacturing Scheme. The budget also provides a tax holiday until 2047 for foreign companies offering global cloud services from India-based data centers. Industry leaders view these measures as providing critical policy stability and reinforcing India's strategic intent to become a global manufacturing and digital hub.

Key Points: Budget 2026: Rs 40,000 Cr for Semiconductors, Tax Holiday Till 2047

  • Rs 40,000 cr for India Semiconductor Mission 2.0
  • Tax holiday for global cloud services till 2047
  • Expansion of Electronics Component Manufacturing Scheme
  • Measures to improve ease of doing business
2 min read

ICEA hails Union Budget 2026 for semiconductor, electronics boost; calls it "a sure win for our nation"

ICEA praises Union Budget 2026 for launching India Semiconductor Mission 2.0, expanding component manufacturing, and offering a cloud tax holiday till 2047.

"Long-term predictability as provided in this measure will be a sure win for our nation. - ICEA statement"

New Delhi, February 1

Finance Minister Nirmala Sitharam presented the Union Budget 2026 on Sunday. Through the budget, the Union Minister announced the launch of India Semiconductor Mission 2.0, with a Rs 40,000 crore outlay, aiming to boost the country's semiconductor ecosystem. This initiative focuses on producing equipment and materials, designing full-stack Indian intellectual property, and strengthening supply chains.

Welcoming the budget, India Cellular and Electronics Association (ICEA) said in a statement that, "the sustained focus on electronics manufacturing, the launch of India Semiconductor Mission (ISM) 2.0, and the significant expansion of the Electronics Component Manufacturing Scheme (ECMS) reaffirm the government's long-term commitment to building resilient domestic supply chains and strengthening India's position in global value chains."

ICEA also welcomed "the announcement of a tax holiday till 2047 for foreign companies offering global cloud services using India-based data centres, describing it as a forward-looking measure that provides long-term policy certainty, anchors global digital infrastructure in India, and enhances the country's credibility as a trusted hub for data, cloud, and AI-led services. Long-term predictability as provided in this measure will be a sure win for our nation."

According to the statement issued by the ICEA, "additional measures such as the five-year income tax exemption for foreign suppliers of capital equipment in bonded zones, the Safe Harbour framework for non-resident component warehousing, customs decriminalisation, and extended validity of advance rulings are expected to improve ease of doing business, reduce compliance friction, and strengthen investor confidence."

Talking about the budget, Pankaj Mohindroo, Chairman, ICEA, said, "Budget 2026-27 reinforces the government's commitment to manufacturing-led growth, particularly in electronics and semiconductors, through continuity, scale, and targeted reforms. Measures such as the expansion of ECMS, support for ISM 2.0, and long-term incentives for cloud and data infrastructure send a strong signal of strategic intent and policy stability."

- ANI

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Reader Comments

P
Priya S
Great to see the focus on manufacturing. But I hope this translates into more high-quality jobs for our engineers and technicians, not just assembly line work. The proof will be in the execution.
V
Vikram M
Rs 40,000 crore is a huge commitment. We need to ensure there's no red tape and the funds are used efficiently to build a world-class ecosystem. Jai Hind!
S
Sarah B
As someone working in tech, the long-term policy certainty for cloud and data centers is a game-changer. It will make India a truly competitive hub for digital innovation.
R
Rohit P
Building "full-stack Indian IP" is the key phrase here. We can't just be a manufacturing base; we need to own the designs and the brains behind the chips. Aatmanirbhar Bharat in the truest sense!
M
Michael C
The focus on ease of doing business with measures like customs decriminalisation is very welcome. It reduces the fear factor for foreign investors. Smart move.
K
Kavya N
Hoping this leads to more affordable electronics made in India. Sometimes these big schemes don't trickle down to lower prices for the common person. Let's wait and watch.

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