The mobile manufacturing segment witnessed a nearly 30-fold increase in production value, rising from ₹18,000 crore in FY15 to ₹5.45 lakh crore in FY25. Representational image.
| Photo Credit: Getty Images/iStockphoto
Union Finance Minister Nirmala Sitharaman on Sunday (February 1, 2026) announced that the outlay for the Electronics Component Manufacturing Scheme (ECMS) would be increased from ₹22,805 crore to ₹40,000 crore. The outlay is being doubled even as the scheme “already has investment commitments at double the target,” and the near-doubling of the outlay will “capitalise on the momentum,” she said.
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The ECMS’s application window is open until 2027 for just one category of goods: indigenously manufactured capital machinery to make components. The increased outlay is likely to benefit this category.
The ECMS, which provides a turnover-linked incentive payout to firms investing in component manufacturing, has already been approved for investments of over ₹1 lakh crore in 46 existing and greenfield manufacturing projects. Electronics manufacturing stocks reacted positively, rising 5–6% after the announcement.
Semiconductor Mission 2.0
Ms. Sitharaman also announced the India Semiconductor Mission (ISM) 2.0, with an outlay yet to be announced.
“ISM 1.0 expanded India’s semiconductor sector capabilities,” she said. “Building on this, we will launch ISM 2.0 to produce equipment and materials, design full-stack Indian IP, and fortify supply chains. We will also focus on industry-led research and training centres to develop technology and skilled workforce.”
ISM 1.0 had an outlay of ₹76,000 crore, with funds used to provide generous fiscal assistance in setting up semiconductor fabrication and packaging plants across the country.
Published – February 01, 2026 12:14 pm IST
