Electronics Industry Expects Budget to Rev Up Local Mfg

India's electronics and semiconductor industries are expecting a number of incentives from the upcoming FY26 Union budget, largely focused on increasing the domestic value addition in a steadily growing industry, consultants and stakeholders said.

- Shouvik Das

With finance minister Nirmala Sitharaman set to unveil the budget on 1 February, the electronics retail, manufacturing and design industries have made submissions for benefits. These include tweaks to customs and income tax duty structures to favour local ventures, outright incentives for electronics component manufacturing, supporting private research and development (R&D) teams to build products locally, and the creation of new full-sized ports and metropolitan cities that would revive consumption and upgrade India's logistics and distribution networks.

Two senior officials who work closely with the ministry of electronics and information technology (Meity) said that proposals have been submitted for a comprehensive incentivization scheme for the manufacturing of components in India's electronics ecosystem. While an exact amount is at the discretion of the ministry of finance, the officials cited above said an outlay of "over ₹10,000 crore ($1.1 billion)" is expected on 1 February.