“By launching India Semiconductor Mission (ISM) 2.0 with a fortified ₹40,000 crore outlay for electronics manufacturing, the government has transitioned our ecosystem from assembly-led growth to high-value, full-stack IP and component sovereignty.” Warren Harris, CEO & MD, Tata Technologies Ltd.
The Union Budget 2026 is a masterclass in structural reform, decisively positioning India as the world’s preferred engine for advanced manufacturing, digital engineering, and sustainable innovation. The government’s focus on rare earth permanent magnet corridors will significantly strengthen domestic supply chains critical for EVs, aerospace and advanced electronics sectors, which rely on deep engineering expertise.
By launching India Semiconductor Mission (ISM) 2.0 with a fortified ₹40,000 crore outlay for electronics manufacturing, the government has transitioned our ecosystem from assembly-led growth to high-value, full-stack IP and component sovereignty. The strong push on STEM education, AI integration and large-scale youth skilling is equally impactful. Initiatives to embed AI-enabled learning systems and expand research infrastructure reflect a clear commitment to building future-ready talent for Industry 4.0.
At Tata Technologies, we welcome this Budget as a strong enabler of the Viksit Bharat vision, reinforcing India’s ambition to emerge as a global leader in digital engineering and R&D. Enhanced support for electronics manufacturing, including the expansion of component incentives to ₹40,000 crore along with streamlined IT services frameworks and higher safe harbour thresholds of ₹2,000 crore will further strengthen India’s innovation ecosystem. Incentives for aviation manufacturing and MRO will accelerate high-value engineering opportunities across mobility and aerospace. Overall, this Budget creates a robust platform for innovation-driven growth, advanced manufacturing and global technology leadership.”
The author is Warren Harris, CEO & MD, Tata Technologies Ltd.
