New Delhi, Feb 1: Finance Minister Nirmala Sitharaman on Sunday proposed increasing the allocation for electronics manufacturing to ₹40,000 crore in the 2026–27 fiscal year, as part of the Union Budget presented in the Lok Sabha.
To boost capital goods production, the Budget includes plans to set up high-tech tool rooms at two locations. A dedicated scheme for container manufacturing was also announced to create a globally competitive ecosystem. Additionally, three chemical parks will be established to strengthen domestic output and reduce import dependence.
The announcement comes amid a significant expansion in India’s electronics and mobile manufacturing sector. Mobile production value has surged nearly 30-fold over the past decade, rising from ₹18,000 crore in FY15 to ₹5.45 lakh crore in FY25. Exports of iPhones from India reached ₹2.03 lakh crore in 2025, nearly double the previous year’s ₹1.1 lakh crore.
Mobile production is projected to hit ₹6.76 lakh crore by the end of the current fiscal year, with exports accounting for over USD 30 billion (approximately ₹2.7 lakh crore).
Sitharaman also highlighted semiconductor development, noting that as of August 2025, ten semiconductor manufacturing and packaging projects have been approved across six states, with a total investment of around ₹1.6 lakh crore.