Finance Minister Nirmala Sitharaman on Sunday announced an outlay of Rs 40,000 crore for electronics manufacturing in the country for the fiscal year 2026-27. The minister, while presenting the Union Budget 2026-27, said the previous allocation had been a success, as investment commitments have exceeded twice the original target.
“We propose to increase the outlay to Rs 40,000 crore to accelerate this momentum,” Sitharaman said as she tabled the Union Budget 2026 in Parliament.
According to the Economic Survey released on Friday, India’s electronics exports reached $22.2 billion in the first half of FY 2025-26, putting the sector on track to become the country’s second-largest export category. The survey highlighted that the sector has undergone a structural transformation, rising from the seventh-largest export category in FY22 to the third-largest and fastest-growing by FY25.
The major driver of this growth is mobile manufacturing, which saw a nearly 30-fold increase in production value, rising from Rs 18,000 crore in FY15 to Rs 5.45 lakh crore in FY25. This growth has transformed India from a net importer to the world’s second-largest mobile phone manufacturer. Today, the country hosts over 300 mobile manufacturing units, a significant rise from just two units in 2014.
The Electronics Manufacturing Cluster Scheme (ECMS), launched by the Ministry of Electronics and Information Technology (MeitY) on April 8, 2025, was initially allocated Rs 22,919 crore over six years. The scheme aims to create a strong ecosystem for electronics components in India by providing incentives across 11 sectors, including printed circuit boards (PCBs), capacitors, resistors, display modules, and more.