New Delhi, February 1: Union Minister Ashwini Vaishnaw praised the tremendous growth of India's electronics and digital sectors, highlighting that the industry has expanded significantly over the past decade and will play a critical role in shaping the nation's economic future. The Union Budget announcements, Vaishnaw said, "The electronics manufacturing sector now employs approximately 25 lakh people. This represents a massive leap in the past 10 years. Over this period, the sector's growth has been sixfold, with electronics exports increasing eightfold."
To further accelerate the growth of electronics manufacturing, Vaishnaw pointed out that Finance Minister Nirmala Sitharaman's budget includes Rs 40,000 crore for the electronics component manufacturing scheme, along with the launch of Semicon 2.0. He emphasized that the semiconductor sector, crucial to the advancement of Artificial Intelligence (AI), will contribute significantly to economic growth. "Semiconductors are central to the future of AI, and the development of this sector will provide a major economic boost," Vaishnaw remarked. He also noted the importance of data centers, which he described as the backbone of the AI-driven fifth industrial revolution.
Vaishnaw further underscored the significance of robust digital infrastructure, saying, "With today's policy announcements, India is poised to become one of the world's largest data center hubs. The tax holiday for data centers will last 20 years, marking a transformative shift in the sector." He added that the budget's initiatives will lead to the creation of 20 lakh new jobs in the creative economy, facilitated by the Indian Institute of Creative Technologies (IICT), which will connect 15,000 high schools and 500 colleges through creator labs.
The minister also acknowledged the substantial boost the budget will provide to the manufacturing and IT sectors, stating, "This budget will greatly benefit the IT-based economy, IT services, electronics manufacturing, and the orange economy, as well as high-speed corridors and freight infrastructure." He expressed his gratitude to the Finance Minister and the Prime Minister for laying the foundation for a developed India, or "Viksit Bharat."
Earlier in the day, Finance Minister Nirmala Sitharaman unveiled the India Semiconductor Mission (ISM) 2.0, with a Rs 40,000 crore investment aimed at advancing the country’s semiconductor ecosystem. This initiative focuses on producing advanced semiconductor equipment and materials, developing homegrown intellectual property, and enhancing supply chains. Sitharaman emphasized that the new mission would foster industry-led research and establish training centers to cultivate technology expertise and a skilled workforce.
Additionally, Sitharaman highlighted the success of the Electronics Components Manufacturing Scheme, launched in April 2025 with an initial budget of Rs 22,919 crore. The scheme has already exceeded its investment target, with commitments twice as high as expected. "India's Semiconductor Mission 1.0 was pivotal in enhancing the country's semiconductor capabilities. With ISM 2.0, we aim to further develop Indian IP, strengthen supply chains, and enhance production capabilities. We also plan to increase the outlay for the Electronics Components Manufacturing Scheme to Rs 40,000 crore to maintain this momentum," she concluded.
