Union Budget bets big on electronics manufacturing, outlay raised to ₹40,000 cr

New Delhi: Finance Minister Nirmala Sitharaman on Sunday announced that the government plans to raise the allocation for electronics manufacturing to ₹40,000 crore in the 2026–27 financial year.

While presenting the Union Budget, she said high-tech tool rooms would be set up at two locations to strengthen capital goods manufacturing. The finance minister also proposed a new scheme for container manufacturing aimed at building a globally competitive ecosystem.

In addition, three dedicated chemical parks will be established to boost domestic production and cut import dependence, Sitharaman said.

The proposals come as part of the government’s continued push to expand electronics manufacturing in the country. Mobile phone manufacturing has recorded nearly a 30-fold increase in production value, growing 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, almost double the ₹1.1 lakh crore worth of shipments recorded in calendar year 2024.

Overall mobile phone production in India is projected to touch about ₹6.76 lakh crore by the end of the current fiscal, including exports of over USD 30 billion, or roughly ₹2.7 lakh crore.

As of August 2025, the government has approved 10 semiconductor manufacturing and packaging projects across six states, involving total investments of around ₹1.6 lakh crore, reported PTI.