Budget to accelerate execution, deepen value addition for electronics and semiconductor sector: IESA

Finance minister Nirmala Sitharaman presenting the budget on February 1.

The Budget measures for the electronics and semiconductor sector will help consolidate recent gains, speed up execution of approved projects and significantly deepen domestic value addition, the India Electronics and Semiconductor Association (IESA) said on February 1.

The enhancement of the Electronics Component Manufacturing Scheme (ECMS) to Rs 40,000 crore, along with the announcement of ISM 2.0, signals sustained policy momentum when the ecosystem is transitioning from approvals to large-scale execution, IESA president Ashok Chandak said.

The continued focus on value addition, customs simplification, SEZ-to-DTA support, MSME enablement, capital goods and ease-of-doing-business reforms will provide the stability and confidence required for long-term investments, he said.

The expanded semiconductor strategy — covering equipment, materials, chemicals and gases, design tools, R&D, training, and supply-chain resilience —marks a shift toward building a full value-chain ecosystem.

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This will reduce import dependence and strengthen domestic capabilities across upstream and downstream segments, Chandak said.

The measures are also expected to accelerate implementation of projects already approved under the India Semiconductor Mission and related schemes such as PLI, DLI and C2S, helping India move beyond assembly-led growth toward structural competitiveness.

According to IESA, the combined impact of these measure will further establish India as a globally competitive and trusted hub for electronics and semiconductor manufacturing.

Over the coming years, these will lay a strong foundation for meeting a significant share of domestic semiconductor demand through local design and manufacturing, strengthening both economic resilience and strategic autonomy.