FM Sitharaman Unveils Rs 40,000-Crore Semiconductor Push, Rare Earth Corridors

• Finance Minister Nirmala Sitharaman announced a Rs 40,000-crore allocation for the 'India Semiconductor Mission 2.0' in the Budget 2026.
• ISM 2.0 aims to boost domestic semiconductor production, design, IP development, and fortify supply chains, alongside industry-led research and training.
• Support will be provided to Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to establish dedicated rare earth corridors for mining, processing, research, and manufacturing.
• A new scheme will support states in creating three dedicated chemical parks through a challenge route, promoting domestic chemical production and reducing import dependency.
• Sitharaman presented her ninth consecutive Budget, focusing on growth, fiscal discipline, and reforms amidst global trade challenges.

Why It Matters: FM Sitharaman's Budget 2026 prioritizes self-reliance in semiconductors and rare earths with significant investments.