By Admin 
Semiconductor Budget: In this changing era of Artificial Intelligence, India is also focusing more and more on it. This is the reason why in order to further strengthen the country’s semiconductor ecosystem, the government has allocated a huge budget of Rs 40,000 in the budget 2025-26.
In his budget speech, the Finance Minister said, “Moving forward in this direction, we will launch ISM 2.0 to manufacture equipment and materials, do full stack design, strengthen Indian IP and supply chain. We will also focus on industry-led research and training centers to develop technology and skilled workforce.”
Why is this investment important?
This investment of Rs 40,000 crore on semiconductors will strengthen India’s efforts for high-tech manufacturing amid global supply-chain disruptions, geopolitical tensions, increasing demand for semiconductors in AI, electric vehicles, 5G/6G telecom, defense and consumer electronics. The sector is critical to Prime Minister Narendra Modi’s vision of a developed India, which aims to meet a large portion of domestic demand locally and establish India as a major global hub by 2030.
What will be its effect?
After this announcement in the budget, investors’ confidence in India’s ambitions regarding semiconductors is expected to increase. This may reflect positive sentiment in stocks of related sectors like electronics manufacturing, defense and tech infrastructure as analysts see it as continuation of capex-driven growth in strategic areas.
According to earlier estimates, India is going to enter the upcoming growth in semiconductor sector rapidly. According to MARC Group estimates, India’s semiconductor market size is expected to reach approximately US$177 billion by 2034 and is also expected to grow at a CAGR of 12.18 percent between 2026 and 2034.
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