Budget 2026: Finance Minister Nirmala Sitharaman presented her ninth consecutive budget speech on Sunday.
Nirmala Sitharaman announced the India Semiconductor Mission 2.0 to focus on research and training
Photo Credit: YouTube/Narendra Modi
Budget 2026: On Sunday, Finance Minister Nirmala Sitharaman presented the Union Budget 2026. This is the minister's ninth consecutive budget speech, and the first budget to be presented on a Sunday. Unlike experts' forecasts, this year's Budget did not include any major consumer electronics announcements. However, the Finance Minister announced the India Semiconductor Mission 2.0 as well as a tax holiday for any foreign companies providing cloud services, setting up data centres in India. Here are the five tech announcements from today's Budget.
During the budget session, Sitharaman announced the India Semiconductor Mission (ISM) 2.0. Building on the initial version of the mission focused on developing the country's semiconductor industry, the ISM 2.0 will build industry-led research and training centres for semiconductors.
While the Finance Minister did not specify the timeline for launching ISM 2.0, she revealed that as part of the mission, Electronics Components Manufacturing Scheme outlay will be increased to Rs. 40,000 crore. Notably, the ISM 1.0 was launched in 2021 with an initial outlay of Rs. 76,000 crore.
Apart from this, the minister also announced dedicated Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu, which will also bolster the semiconductor industry.
India's Animation, Visual Effects, Gaming and Comics (AVGC) sector received a massive boost during the Union Budget 2026. Sitharaman called it a growing industry which is projected to require two million professionals by 2030. To support the growing creative industry, the Finance Minister announced the Indian Institute of Creative Technologies. It will be founded in Mumbai and facilitate the setting up of AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges.
In a move that will be a massive boost for global cloud providers, such as Amazon, Google, and Microsoft, Sitharaman announced a tax holiday for any foreign company that provides cloud services in India by setting up a local data centre. Additionally, the Government proposed a safe harbour of 15 percent on cost in case the co-providing data services from India is a related entity.
Sitharaman is also digitally empowering farmers with new and emerging technology. During the Budget session, she announced that farmers and those associated with the agriculture industry will be empowered with a multilingual artificial intelligence (AI) chatbot that will empower farmers in farming activities.
Several consumer technology and commercial products witnessed exemptions on customs duty. The Finance Minister proposed to exempt basic customs duty on specified parts for microwave ovens, raw materials for the manufacture of aviation parts, imports of goods for nuclear power projects (until 2035), and sodium antimonate for use in the manufacture of solar glass.
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