India is stepping up its chip-making ambitions with the launch of India Semiconductor Mission 2.0, announced in the Union Budget 2026. The new mission aims to build on the progress made under the first phase and strengthen India’s position in the global semiconductor space. What is Semiconductor Mission 2.0? The Finance Minister said the new mission is designed to use the momentum already created by the earlier semiconductor push. This time, the focus will be sharper and more practical. The government wants industries to lead research and training centres so that India can develop advanced technology and a skilled workforce at the same time. Big budget boost for chips In a major announcement, the Finance Minister allocated ₹40,000 crore for the semiconductor sector. This funding shows how serious the government is about making India a global hub for chip manufacturing. The Union Budget 2026 was also historic for another reason it was presented on a Sunday, the first time this has ever happened in India. Ninth budget and a reform-first approach This Budget marks the Finance Minister’s ninth consecutive Budget, putting her just one step away from former Prime Minister Morarji Desai’s record of 10 Budgets. In her speech, she stressed that the government is choosing reforms over rhetoric and will keep moving toward the goal of a Viksit Bharat (Developed India). Chip production to start in 2026 Earlier, the Union IT Minister had confirmed that India is on track to begin commercial semiconductor chip production in 2026. Four chip plants are expected to start operations this year, while pilot production has already begun in three plants during 2025. New panel to study AI’s impact on jobs and services A new high-powered committee to study how emerging technologies like Artificial Intelligence (AI) are changing India’s services sector. The Education to Employment and Enterprises Standing Committee will focus on linking education with jobs and businesses, especially for India’s youth. It will suggest ways to boost growth by using the services sector as a key economic driver. What to expect next? Analysts believe India will continue to spend heavily on defence, infrastructure, capital investment, power, and affordable housing in the coming financial year, keeping growth at the center of its plans.
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