New Delhi: Finance Minister Nirmala Sitharaman on Sunday announced that the government plans to increase the outlay for electronics manufacturing to Rs 40,000 crore in the 2026-27 fiscal year.

Presenting the Union Budget for 2026-27, Sitharaman said that high-tech tool rooms will be established at two locations to give a push to capital goods manufacturing.

She also proposed a scheme for container manufacturing aimed at creating a globally competitive ecosystem. “Three dedicated chemical parks will also be set up to enhance domestic production and reduce import dependency,” she added.

The announcement comes amid a massive government push to scale up electronics manufacturing in India. The mobile manufacturing segment has seen a remarkable rise, with production value increasing nearly 30-fold — from Rs 18,000 crore in FY15 to Rs 5.45 lakh crore in FY25.

iPhone exports from India reached Rs 2.03 lakh crore in 2025, almost double the Rs 1.1 lakh crore exported by Apple in 2024. Mobile phone production in the country is projected to reach about Rs 6.76 lakh crore, including exports exceeding USD 30 billion (around Rs 2.7 lakh crore) by the end of the current fiscal year.

As of August 2025, 10 semiconductor manufacturing and packaging projects have been approved across six states, with a cumulative investment of around Rs 1.6 lakh crore, reflecting the government’s commitment to boosting electronics and semiconductor production.