The Ministry of Electronics and Information Technology (MeitY) has been allocated Rs 21,632.96 crore in the Union Budget for 2026–27, with semiconductor manufacturing, components, and fabrication infrastructure emerging as the clear fiscal priority, according to budget documents tabled in Parliament.
The allocation represents an increase of about Rs 1,400 crore over the revised estimates for 2025–26. However, the ministry’s expenditure profile remains overwhelmingly revenue-driven, with capital outlay limited to Rs 398.81 crore, underscoring the government’s continued reliance on incentive-led programmes rather than direct public asset creation.
More than 82 percent of MeitY’s total allocation, Rs 17,768.55 crore, has been earmarked for central sector schemes and projects. This reinforces the ministry’s role as an industrial policy and digital governance arm, with spending concentrated on targeted incentives, missionmode programmes, and regulatory institutions.
The largest share of funding is directed at building India’s semiconductor and electronics manufacturing ecosystem. The Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India has been allocated Rs 8,000 crore in 2026–27, up sharply from Rs 4,300 crore in the revised estimates of the previous year. In addition, the newly introduced India Semiconductor Mission 2.0 has received Rs 1,000 crore, while the Electronics Components Manufacturing Scheme, notified in April 2025, has been allocated Rs 1,500 crore.
