Finance Minister Nirmala Sitharaman on Sunday proposed to increase the outlay on electronics manufacturing to Rs 40,000 crore in the 2026-27 fiscal year.
Presenting the Union Budget for 2026-27, she said high-tech tool rooms will be established at two locations to give push to capital goods manufacturing.
Sitharaman also proposed a scheme for container manufacturing to create globally competitive ecosystem. Three dedicated chemical parks will also be set up to enhance domestic production, reduce import dependency, she added.
The move comes amid a massive thrust by the government on increasing electronics manufacturing in the country. The mobile manufacturing segment witnessed a nearly 30-fold increase in production value, rising from Rs 18,000 crore in FY15 to Rs 5.45 lakh crore in FY25.
iPhone exports from India have hit Rs 2.03 lakh crore in 2025, which is almost double that of Rs 1.1 lakh crore Apple exported in the calendar year 2024. Mobile phone production in the country is expected to reach about Rs 6.76 lakh crore, comprising exports over USD 30 billion, or about Rs 2.7 lakh crore, by the end of the current fiscal year.
As of August 2025, 10 semiconductor manufacturing and packaging projects have been approved in the country with a cumulative investment of around Rs 1.6 lakh crore in six states.