New Delhi, February 1
Finance Minister Nirmala Sitharaman on Sunday proposed a significant increase in government support for electronics manufacturing, announcing an outlay of ₹40,000 crore for the sector in the 2026–27 fiscal year.Presenting the Union Budget for 2026–27, the Finance Minister outlined a series of measures aimed at strengthening domestic manufacturing capabilities across electronics, capital goods, chemicals, and logistics-related industries.
High-Tech Tool Rooms and Capital Goods Push
As part of the capital goods manufacturing strategy, the government will establish high-tech tool rooms at two locations. These facilities are intended to support advanced manufacturing requirements and enhance industrial productivity.Container Manufacturing Scheme Announced
The Budget also proposed a dedicated scheme for container manufacturing, aimed at creating a globally competitive ecosystem. The initiative seeks to strengthen domestic capacity and reduce reliance on imports in logistics and related infrastructure.Three Chemical Parks to Reduce Import Dependence
To boost domestic chemical production, the government will set up three dedicated chemical parks. These parks are expected to enhance manufacturing capacity, improve supply chain resilience, and lower import dependency in the chemical sector.Electronics Manufacturing Sees Sharp Growth
The policy push comes against the backdrop of rapid expansion in India’s electronics manufacturing sector. The value of mobile phone production has increased nearly 30 times, rising from ₹18,000 crore in FY15 to ₹5.45 lakh crore in FY25.iPhone exports from India reached ₹2.03 lakh crore in 2025, almost double the ₹1.1 lakh crore exported by Apple in calendar year 2024.
Mobile phone production in the country is expected to touch approximately ₹6.76 lakh crore by the end of the current fiscal year, including exports of over USD 30 billion, or about ₹2.7 lakh crore.
Semiconductor Projects Gain Momentum
As of August 2025, a total of 10 semiconductor manufacturing and packaging projects have been approved across six states. These projects involve cumulative investments of around ₹1.6 lakh crore, marking a key step in building India’s semiconductor ecosystem.The measures announced in the Budget underline the government’s continued focus on positioning India as a global manufacturing hub across high-growth and strategic sectors.
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