Union Budget 2026–27 announces India Semiconductor Mission (ISM) 2.0 and multiple sector-specific manufacturing schemes

Key facts

• India Semiconductor Mission (ISM) 2.0 launched to strengthen chip manufacturing and ecosystem development.
• Electronics Components Manufacturing Scheme announced to deepen local value addition.
• Biopharma SHAKTI scheme targets pharmaceutical and biotechnology capabilities.
• Three dedicated chemical parks planned to expand domestic chemical production.
• Scheme for rare earth permanent magnets covers research, mining, processing and manufacturing.
• Container manufacturing scheme and initiatives for construction and infrastructure equipment announced.
• Integrated programme for textiles and dedicated push for affordable sports goods manufacturing introduced.
• Revival of 200 legacy industrial clusters and setting up of hi-tech tool rooms in CPSEs planned.
• Five-year income tax exemptions for non-residents supplying capital goods to toll manufacturers in bonded zones.
• Deferred duty payments for trusted manufacturers and expanded duty-free imports for export-oriented sectors such as seafood, footwear, textiles and electronics.