Budget 2026 Raises MeitY Allocation to Rs.21,633 Crore
For the fiscal year 2026–27, the Ministry of Electronics and Information Technology (MeitY) has been granted Rs.21,632.96 crore, an increase from the Rs.20,232.95 crore allocated in the preceding Budget Estimates, indicating a more vigorous policy emphasis on artificial intelligence, semiconductors, and electronics production.
Although Finance Minister Nirmala Sitharaman increased MeitY's total funding, the breakdown of this allocation clearly prioritizes emerging and strategic technologies.
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The Budget 2026 documents reveal that Rs.17,768.55 crore of the total will be dedicated to central sector schemes and projects, with substantial additional funds designated for semiconductor manufacturing, the IndiaAI Mission, and the production of electronics components.
The allocation for the Modified Semiconductor and Display Manufacturing Programme has almost doubled, reaching Rs.8,000 crore from Rs.4,300 crore last year, underscoring the government's commitment to developing domestic capabilities in chip fabrication and display technologies.
The IndiaAI Mission has been allocated Rs.1,000 crore, reinforcing the central government's dedication to expanding AI infrastructure and applications.
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Similarly, the Electronics Components Manufacturing Scheme has seen a significant increase in funding, rising to Rs.1,500 crore, a measure intended to bolster domestic supply chains for essential hardware and lessen reliance on imports.
Conversely, expenditure on large-scale electronics manufacturing under the Production Linked Incentive (PLI) scheme has been reduced, suggesting a reassessment of priorities within the overall strategy for electronics manufacturing.
The Digital India program has also received a larger budget, primarily due to increased funding for cybersecurity efforts and projects focused on building capacity.
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In her Budget address, Sitharaman unveiled the India Semiconductor Mission (ISM) 2.0, signaling the subsequent phase of the government's semiconductor strategy. She stated that this new phase would build upon the achievements of ISM 1.0, which concentrated on establishing chip fabrication and assembly capabilities.