Budget 2026: Electronics manufacturing outlay doubled to ₹40,000 crore

Union Budget 2026-27: FM Nirmala Sitharaman announced several new manufacturing schemes in the Budget 2026 to boost domestic production

Union Finance Minister Nirmala Sitharaman on Sunday proposed to increase the outlay on electronics manufacturing to ₹40,000 crore.

 

While presenting the Union Budget for the financial year 2026–27 (FY27), Sitharaman said, "The electronics components manufacturing scheme was launched in April 2025 with an outlay of ₹22,919 crore. We propose to increase the outlay to ₹40,000 crore."

 

The announcements come as the government is pushing to expand electronics manufacturing. According to PTI, mobile phone production has grown nearly 30 times, rising to ₹5.45 trillion in FY25 from ₹18,000 crore in FY15.

Several manufacturing schemes announced

Sitharaman announced several new manufacturing schemes in the Union Budget 2026–27 to boost domestic production.

 

 

She set aside ₹10,000 crore for a new container manufacturing scheme to help India build a strong and globally competitive industry. The scheme will also support the local manufacturing of construction and infrastructure equipment, including tunnel-boring machines for metros and roads, and lifts for high-rise buildings.

 

Sitharaman also announced the setting up of three dedicated chemical parks to increase domestic production and reduce dependence on imports. High-tech tool rooms will be established at two locations to provide a boost to capital goods manufacturing, she said.