India has unveiled Semiconductor Mission 2.0 in its 2026 budget, signaling a major push to expand domestic chip production, strengthen supply chains, and develop advanced technology skills nationwide. Building on the success of the 2025 Electronics Components Manufacturing scheme, which had an initial allocation of ₹22,919 crore, the government plans to increase funding to ₹40,000 crore to accelerate investment in semiconductor manufacturing and research.
The new phase prioritizes the production of equipment and materials, the development of full-stack Indian IP, and the creation of industry-led training centers to bridge skill gaps in advanced semiconductor technologies. Dedicated rare earth corridors are also set up in mineral-rich states like Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to support mining, processing, research, and manufacturing of critical materials.
Finance Minister Nirmala Sitharaman emphasized that this strategy aims to reduce India’s reliance on global chokepoints in electronics, electric vehicles, defense, and renewable energy sectors, while boosting domestic resilience in Assembly, Testing, and Packaging (ATMP) and rare earth magnet production. Analysts note that the country still faces a workforce gap in operational skills required for high-yield semiconductor fabrication, making training initiatives a crucial part of the plan.
In addition to semiconductors, the government is focusing on the services sector to meet the aspirations of India’s young population. A high-powered Education to Employment and Enterprises Standing Committee will recommend measures to enhance skills, employment, and export potential, with particular attention to emerging technologies like AI. The broader goal is to strengthen India’s global position in services, aiming for a 10% share of global trade in the sector by 2047.
Officials say that these initiatives, combined with previous programs such as the India AI Mission and National Quantum Mission, are intended to create opportunities for youth, improve industrial resilience, and position India as a technology and services hub on the global stage.
CIOs and enterprises are advised to prepare for evolving skill requirements, plan reskilling programs, and align workforce strategies with these emerging government priorities.
