The Union Budget 2026 introduces a series of transformative measures aimed at positioning India as a global hub for manufacturing, services, and deeptech innovation. Finance Minister Nirmala Sitharaman’s 90-minute long address did not specifically call out Indian startups as a key focus area (mentioned just twice), but there was a clear emphasis on AI, data centre economy and manufacturing, which will undoubtedly have a ripple effect on the Indian startup ecosystem. From massive tax holidays for cloud infrastructure to strategic pushes in semiconductor and AI domains, here is the complete list of key takeaways for the Indian tech and startup ecosystem from the Union Budget 2026. India Semiconductor Mission (ISM) 2.0 Takes Flight The Union Budget 2026-27 has proposed expanding the India Semiconductor Mission, with a bigger focus on the hardware manufacturing ecosystem and a transition to the next phase with bigger allocation. The FM proposed to increase the outlay of the existing Electronics Component Manufacturing Scheme (ECMS) to INR 40,000 Cr. What This Means: Accelerated funding and infrastructure support for domestic fabless startups and outsourced semiconductor assembly and test (OSAT) units. Encourages domestic design and manufacturing, reducing reliance on global supply chain fluctuations. The proposed ISM 2.0 plans delve… Read MoreInc42 Media
