Finance Minister Nirmala Sitharaman presented her ninth Budget in Parliament on Sunday.
Rather than introducing new flagship schemes, the Budget largely focuses on expanding and extending existing programmes that were launched over the past few years.
Electronics Component Manufacturing Scheme Sees Higher Allocation
The government has nearly doubled the allocation under the Electronic Component Manufacturing Scheme (ECMS) to ₹40,000 crore. The scheme was approved last year with an initial outlay of ₹22,919 crore and was opened to applications in May.
The increased allocation indicates continued focus on domestic manufacturing of electronic components, a segment considered critical to reducing import dependence and strengthening supply chains.
India Semiconductor Mission Moves To Phase Two
Budget 2026 also confirms the rollout of the second phase of the India Semiconductor Mission. Officials had previously stated that most of the ₹76,000 crore allocated under the first phase had already been committed.
Phase two is expected to continue support for semiconductor fabrication, packaging, and related infrastructure projects.
Additional Support For MSMEs
The Self-Reliant India Fund will receive an additional ₹4,000 crore in 2026-27. The fund, announced in 2023, aims to provide equity support to micro, small, and medium enterprises with the potential to scale into larger firms.
MSMEs play a key role in electronics and semiconductor supply chains, particularly in components, tooling, and ancillary services.
AVGC Sector Gets Skill-Focused Push
The Budget also outlines support for the AVGC sector, covering animation, visual effects, gaming, and comics. The government estimates the sector will require around two million professionals by 2030.
As part of this push, the Indian Institute of Creative Technologies in Mumbai will establish AVGC labs in 15,000 secondary schools and 500 colleges.
Tax Incentives For Cloud Services
To encourage data centre and cloud infrastructure growth, Budget 2026 offers a tax holiday until 2047 for foreign companies providing cloud services through Indian resellers.
The move is aimed at strengthening India’s digital infrastructure and increasing local participation in global cloud services.
Stricter Compliance For Crypto Platforms
The Budget proposes new penalty provisions for crypto platforms that fail to accurately report user transactions. These measures will come into effect from April 1, 2026, and are intended to improve compliance and regulatory oversight in digital asset trading.