New Delhi [India], 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 (ISM) 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."