This post was originally published on The Economic Times
The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on Sunday, characterises cutting-edge technologies as vital “force multipliers” designed to fulfil the aspirations of a youthful India. By transitioning from foundational missions toward an application-oriented and infrastructure-led roadmap, the government is signalling a shift toward a private-led innovation cycle aimed at securing technological sovereignty.
The evolution of the India Semiconductor Mission (ISM) 2.0
A cornerstone of this Budget is the launch of ISM 2.0, which moves beyond initial assembly to focus on the high-value segments of the global value chain, including the production of equipment, materials, and the creation of “full-stack Indian Intellectual Property”. This strategic pivot is reinforced by a massive increase in the Electronic Component Scheme outlay to Rs 40,000 crore, reflecting a clear inference that the government seeks to own the physical layer of the digital economy. By incentivising the domestic manufacturing of hardware and critical minerals, India is positioning itself to insulate its AI and data industries from volatile global supply chain disruptions.
Cloud sovereignty and the 2047 data centre roadmap
To catalyse massive capital investment in digital infrastructure, the Budget proposes a landmark tax holiday until 2047 for foreign companies providing
— Read the rest of this post, which was originally published on The Economic Times.
