Budget 2026: Semiconductor Industry Demands Policy Continuity, Timely Incentives

• India's semiconductor and electronics manufacturing industry seeks policy continuity and timely incentive payments in the Union Budget 2026-27.
• Industry leaders emphasize the need for increased budgetary allocation for already approved projects and continuation of India Semiconductor Mission 2.0 and Design Linked Incentive Scheme.
• Ashok Chandak, President of IESA, highlighted that timely incentive payments are crucial for capital-intensive semiconductor fabs and OSAT facilities to manage cash flow.
• The industry demands tax and depreciation relief, along with an amendment to the 15% concessional manufacturing tax regime to include semiconductor fabs and extend eligibility.
• A shift towards domestic value addition, linking export promotion to value added in India, and strengthening localization through PLI benefits are also key demands.

Why It Matters: Semiconductor industry urges Budget 2026 for policy continuity, timely incentives, and focus on domestic value addition.