VOL XXVII, ISSUE 03

15 February 2026

Budget 2026: Semiconductor push deepens as Centre doubles outlay to Rs 8,000 crore

Moneycontrol | 01 February 2026

The government has sharply increased semiconductor and electronics funding in FY2026–27, signalling a strategic shift in industrial priorities. Allocation for the Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem has risen to ₹8,000 crore from ₹4,300 crore. Funding for compound semiconductors, OSAT facilities, and silicon photonics has increased, while fab support has doubled to ₹2,000 crore. The Semiconductor Laboratory in Mohali received a major boost, alongside ₹1,000 crore for India Semiconductor Mission 2.0. Meanwhile, electronics component manufacturing has gained traction, even as large-scale electronics PLI funding was reduced.

Read More

Union Budget 2026-27: To cut China reliance, support for rare earths, critical minerals

The Indian Express | 02 February 2026

Union Budget FY27 signalled a stronger push to build India’s critical minerals ecosystem through policy and fiscal measures. Key proposals include establishing dedicated rare earth corridors across coastal states – Odisha, Kerala, Andhra Pradesh and Tamil Nadu – to promote mining, processing, research and manufacturing, and exempting basic customs duty on capital goods used for mineral processing. These steps align with the government’s strategy to secure the full supply chain amid China’s dominance and recent export curbs, which have prompted India and others to diversify sources.

Read More

Zetwerk invests ₹100 crore to set up defence electronics facility in Bengaluru, to employ 1,200

The Hindu Business Line | 07 February 2026

Zetwerk has established a defence electronics manufacturing facility in Devanahalli, Bengaluru, with an investment of ₹100 crore. Spread across 100,000 sq ft, the plant is equipped with state-of-the-art Surface Mount Technology (SMT) and Final Assembly, Testing and Packaging (FATP) lines to serve defence and automotive sectors. The facility is expected to generate employment for around 1,200 people. It was inaugurated by Union Minister Ashwini Vaishnaw along with Karnataka Industries Minister MB Patil.

Read More

Memory Chip Supply Squeeze Disrupts Consumer Tech – Worsening Outlook

The Wall Street Journal | 12 February 2026

A surge in memory-chip prices is forcing major electronics manufacturers to consider raising consumer prices, absorbing higher costs, or altering product specifications. The disruption stems from the rapid global expansion of artificial intelligence, which has intensified demand for data centers equipped with memory-heavy servers. As AI infrastructure consumes vast chip supplies, manufacturers of smartphones, PCs, gaming consoles, and other devices are facing shortages. The imbalance has led to an unprecedented spike in memory-chip prices since early last year, exceeding any previous increase.

Read More

  POLICY SCAN                                                                              

BIS Aluminium Standards Corrigendum

BIS Corrigendum amends the January notification by adding IS Wrought Aluminium and Aluminium Alloys – Extruded Round Tube and Hollow Sections for General Engineering Purposes (Fourth Revision) to the schedule after IS Wrought Aluminium and Aluminium Alloy Bars, Rods and Sections (For General Engineering Purposes) (Third Revision) in the first entry, correcting the aluminium products standards list for manufacturers. 

Read More

Bureau of Indian Standards (Department of Consumer Affairs) | CG-DL-E-03022026-269797 | 03 February 2026

BIS Standards Amendments Notified

The notification establishes amendments to 7 Indian Standards including automotive-relevant IS 11877:2019 (vehicle max speed evaluation, Amdt 1), IS 17270:2019 (reverse parking alert systems RPAS, Amdt 1), plus ring slugging wrenches (IS 4509:2024), textiles packaging/sacks, cotton bales, wool blankets, and polyester yarns – effective Jan 20, 2026, with old versions valid until July 19, 2026.

Read More

Bureau of Indian Standards (Department of Consumer Affairs) | CG-DL-E-10022026-270023 | 04 February 2026

Startup Definition Revamped

The notification supersedes 2019 guidelines, expanding Startup eligibility to include private ltd companies, partnerships, LLPs, cooperative societies (10-year age limit, ≤₹200cr turnover) working on innovation/scalability, plus new "Deep Tech Startup" category (20 years, ≤₹300cr) with high R&D/IP focus; simplifies DPIIT recognition/certification under IT Act s80-IAC via online portal and Inter-Ministerial Board, imposes fund deployment restrictions, enables revocation for misuse.

Read More

Ministry of Commerce and Industry (Department for Promotion of Industry and Internal Trade) | CG-DL-E-05022026-269843 | 04 February 2026

RoDTEP Return Deadline Extended

DGFT Public Notice No. 46/2025-26 extends the Annual RoDTEP Return filing deadline for FY 2023-24 from Nov 30, 2025 to March 31, 2026, with a ₹15,000 composition fee, allowing exporters to secure incentives while avoiding scrip denial or benefit suspension under HBP para 4.94. 

Read More

Ministry of Commerce and Industry (Department of Commerce) (Directorate General of Foreign Trade) | PUBLIC NOTICE No. 46/2025-2026 (CG-DL-E-12022026-270083) | 05 February 2026

Platinum Articles Import Restricted

The notification revises ITC(HS) 71141920 (platinum articles) from "Free" to "Restricted" import policy with immediate effect, allowing only re-imports of Indian-origin goods for exhibitions/export promotion, rejected/unsold returns, or repairs under new Policy Condition 6 of Chapter 71.

Read More

Ministry of Commerce and Industry (Department of Commerce) (Directorate General of Foreign Trade) | NOTIFICATION No. 58 / 2025-26 (CG-DL-E-07022026-269873) | 05 February 2026

TRAI Broadcasting Audit Framework Amended

The regulations streamlines annual audits for broadcasters and DPOs – shifting to FY basis with reports due Sep 30, clarifying infrastructure sharing requirements (separate SMS/CAS instances, network watermarking), and addressing stakeholder concerns on repetitive audits to enhance broadcasting sector efficiency (effective Apr 1, 2026).

Read More

Telecom Regulatory Authority of India | NOTIFICATION, 2026 (1 of 2026) (CG-DL-E-05022026-269853) | 05 February 2026

BIS Amendments for Automotive Components

The notification presents amendments to four Indian Standards relevant to automotive electronics and components – electric horns (IS 1884:1993, Amendment 4), pneumatic passenger car tyres (IS 15633:2022, Amendment 2), horn installation (IS 15796:2008, Amendment 4), and windscreen wiping/washing systems for M1 vehicles (IS 15804:2008, Amendment 3) – effective Feb 6, 2026, with prior versions valid until Aug 5, 2026.

Read More

Bureau of Indian Standards (Department of Consumer Affairs) | CG-DL-E-12022026-270085 | 10 February 2026

IT Intermediary Rules Amended for AI Content

MeitY's Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2026 (effective Feb 20) define "synthetically generated information" (SGI) – AI-created audio/visual content mimicking reality – and mandate intermediaries (esp. those enabling SGI tools) to label it prominently with metadata, deploy automated detection/removal for illegal SGI (e.g., CSAM, deepfakes, explosives), shorten takedown timelines to 3 hours/2 hours, require SSMIs to verify user declarations on uploads, and clarify safe harbour protections, impacting electronics firms in AI hardware/software compliance.

Read More

Ministry of Electronics and Information Technology | CG-DL-E-10022026-269993 | 10 February 2026

IRC Amendment Bill Passed

The Industrial Relations Code (Amendment) Bill 2026, introduced in Lok Sabha on February 11 and swiftly passed by both houses, substitutes section 104(1) to explicitly repeal the Trade Unions Act 1926, Industrial Employment (Standing Orders) Act 1946, and Industrial Disputes Act 1947 effective November 21, 2025, removing legal ambiguities from the 2020 Code's rollout for managing workforce transitions, strikes, and standing orders under unified labour framework.

Read More

Lok Sabha | Bill No. 33 of 2026 (CG-DL-E-11022026-270061) | 11 February 2026

MSME QCO Exemption Expanded

Recent amendments exempt micro and small enterprises (investment ≤ ₹1 crore in plant/machinery, turnover ≤ ₹5 crore last FY, Udyam-registered, CA-certified) from BIS Quality Control Orders on electronics-relevant items like electric ceiling fans, air coolers/filters, laboratory glassware, plus lighters, potable water bottles, welding rods/electrodes, insulated flasks/bottles/containers, and furniture.

Read More

Ministry of Commerce and Industry (Department for Promotion of Industry and Internal Trade) | CG-DL-E-13022026-270118 | 12 February 2026

QCO Import Grace Period Extended

The order exempts imports of goods under 26 Quality Control Orders (QCOs) – spanning electronics essentials like aluminium alloys, copper products, electrical appliances (fans, kitchen, washing, heating, skin/hair care), vending/dispensing machines, flashlights, electric fences, air coolers/filters, water coolers/dispensers, V-belts, water meters, and electrical accessories – from BIS requirements if purchase orders predate each QCO's implementation and Bill of Lading/Entry occurs within 180 days.

Read More

Ministry of Commerce and Industry (Department for Promotion of Industry and Internal Trade) | CG-DL-E-13022026-270119 | 12 February 2026

TOP

        INDUSTRY  SCAN                                                                             

General

Budget 2026 silent on Mobile PLI 2.0 as incentives taper, policy focus shifts to electronics components

CNBC TV18 | 01 February 2026

With the Mobile Production Linked Incentive (PLI) scheme set to end in March 2026, Budget 2026 offered no indication of an extension or Mobile PLI 2.0, despite industry demands. This signals a pullback in incentives, reflected in MeitY-led PLI allocations falling sharply to ₹1,527 crore in BE FY27 from ₹9,000 crore in FY26. While the government stayed silent on mobiles and IT hardware, it sharply raised support for the Electronics Component Manufacturing Scheme, indicating a policy shift toward deeper value-chain integration.

Read More

In a turbulent world, India and Europe provide an anchor

The Indian Express | 03 February 2026

It is difficult to overstate the significance of the recent breakthroughs between the European Union and India. The two sides have simultaneously concluded a long-pending free trade agreement, finalised a Security and Defence Partnership, agreed on a Comprehensive Framework for Cooperation on Mobility, and adopted a Strategic Agenda for 2030. In a period of global geopolitical uncertainty, these decisions provide stability beyond bilateral ties. Despite deep differences on agriculture, autos, labour, environment, and market access, both partners demonstrated flexibility and political will to reach a balanced, mutually acceptable agreement.

Read More

Why electronics component sector emerges as big winner in Budget 2026

The Economic Times - Manufacturing | 03 February 2026

According to Meity data, the Electronics Components Manufacturing Scheme (ECMS) attracted investment commitments of ₹1,15,351 crore in its first year – nearly double the original target. Responding to this momentum, the government increased the scheme’s outlay by 74% to ₹40,000 crore in Budget 2026–27. Launched in April 2025 as a six-year incentive programme, ECMS aims to strengthen domestic electronics component manufacturing, raise value addition, and integrate Indian firms into global value chains, covering critical components such as PCBs, camera modules, connectors, and enclosures.

Read More

Kerala gets electronics manufacturing boost as major investments take off

The Hindu Business Line | 05 February 2026

Kerala is set to strengthen its electrical and electronics manufacturing ecosystem with major investments becoming operational at KINFRA industrial parks, led by V-Guard’s Innovation Campus in Kakkanad. Spread across three acres at the KINFRA Electronics Manufacturing Cluster, the first phase features an 11-storey, 1.10 lakh sq ft facility designed as a combined R&D and learning hub. With an initial investment of ₹115 crore, the project has created 400 jobs, with a second phase planned to expand capacity and employment.

Read More

India battery demand to surge to 700 GWh by 2045

The Hindu Business Line | 05 February 2026

India’s demand for Advanced Chemistry Cell (ACC) batteries is projected to rise sharply from 28 GWh in 2025 to over 700 GWh by the mid-2040s, according to a report by the India Energy Storage Alliance (IESA). Released at the India Battery Manufacturing and Supply Chain Summit 2026, the report highlights electric mobility and large-scale energy storage as critical to India’s climate goals and Viksit Bharat Vision 2047. Lithium Iron Phosphate (LFP) batteries are expected to dominate, accounting for over 60 per cent of demand due to cost efficiency, thermal stability, and safety.

Read More

IT Ministry mandates label for AI-generated content, reduces takedown timeline to 2–3 hours

The Hindu | 10 February 2026

The Union Government has notified amendments under the Information Technology Act, 2021, mandating prominent labelling of photorealistic AI-generated content and significantly tightening deadlines for removing unlawful material. Effective February 20, 2026, social media platforms must take down content declared illegal by a court or appropriate government within three hours, and remove sensitive material such as non-consensual nudity and deepfakes within two hours. Non-compliance could result in the loss of safe harbour protections, increasing regulatory pressure on platforms.

Read More

Electronics exporters can grab a greater share of the US, EU markets: Niti Aayog report

The Hindu Business Line | 13 February 2026

India’s electronics sector is poised for a significant export boost to the US and the European Union, driven by favourable trade conditions, according to Niti Aayog’s Trade Watch quarterly report. The proposed India–EU Free Trade Agreement and comparatively lower reciprocal tariffs imposed by the US on Indian goods, versus those from China, Vietnam, Mexico and Thailand, create a strategic opening. Together, the US and EU represent a $1.6 trillion electronics market – about one-third of global demand – underscoring their importance to India’s export ambitions.

Read More

TOP

Information Technology

India-US trade deal brings glimmer of hope for beleaguered IT services cos

Business Standard | 03 February 2026

The India–US trade deal has provided relief to India’s IT industry amid prolonged global uncertainty and weak client spending. Analysts say the agreement has reduced fears of IT services being caught in trade disputes, reaffirming the stability of offshore delivery models. This clarity is expected to improve decision-making among US clients, where deal closures had slowed due to tariff concerns and rising AI adoption. Markets reacted positively, with IT stocks rising sharply, led by midcap firms with greater exposure to the US market.

Read More

AI Tools Won't Bypass Indian IT: NASSCOM After Anthropic Jolt

NDTV Profit | 05 February 2026

Artificial intelligence tools will not bypass the services provided by Indian IT companies but will instead reshape and enhance their role, according to Nasscom. Addressing concerns triggered by tools such as Anthropic’s Claude Cowork, the industry body said fears of large-scale disruption are misplaced. Nasscom noted that global enterprises operate complex, fragmented technology environments where AI adoption requires human oversight, domain expertise, and workflow understanding. Indian IT firms are already adapting by strengthening data and AI capabilities through investments, partnerships, upskilling, and acquisitions.

Read More

Over 2,000 GCCs signal India's rising clout in AI and technology services: Union Minister Ashwini Vaishnaw

Mint | 07 February 2026

Union Minister Ashwini Vaishnaw said India’s IT sector is shifting from a traditional services model to an AI-led approach, positioning the country as a global hub for next-generation digital services. Speaking in Bengaluru, he highlighted the role of data centres, global capability centres and updated academic curricula in supporting this transition. Vaishnaw said close collaboration between government, industry and academia is guiding the shift, enabling India to prepare its workforce and infrastructure for what he described as an AI-driven industrial revolution.

Read More

India’s top firms suffer a ₹12,000 crore labour code blow in Q3

Mint | 13 February 2026

The IT sector has been hit hardest by the new labour laws, which raise social security contributions and retirement benefit payouts. Consulting firms warn that wage bills will climb at a time when corporate margins are already strained by macroeconomic and global uncertainties. Among 25 companies assessed, four IT majors – Tata Consultancy Services, Infosys, HCL Technologies and Tech Mahindra – accounted for 39% of the total impact. BFSI firms contributed 19%, with TCS alone recognizing a ₹2,128-crore hit in the December quarter.

Read More

TOP

Consumer Electronics

Budget 2026: Two more years of easier duty on key inputs for electronics

The Economic Times | 02 February 2026

The Union Budget has eased pricing pressure on televisions, microwaves, and other consumer electronics by extending concessional or zero customs duty on key imported components for another two years. According to the Finance Bill, 2026 memorandum, the move removes the risk of near-term price hikes that manufacturers had feared if exemptions expired in March. Industry executives noted that critical inputs such as open cell panels, which form a major share of TV production costs, will continue to be imported at lower duty, supporting Make in India competitiveness and price stability.

Read More

New lead-free device offers better performance for consumer electronics and security systems

The Tribune | 04 February 2026

Scientists in India have developed a novel, lead-free and eco-friendly photo-detector that offers strong, stable performance with self-powered operation. Created by researchers at ARCI and IIT, the device uses perovskite crystal material to address toxicity and durability issues associated with lead-based photo-detectors. Fabricated entirely at room temperature using a simple one-step coating process and low-cost carbon electrodes, the design eliminates complex manufacturing steps while enabling efficient charge separation without external power, expanding potential applications across electronics, monitoring, and biomedical imaging.

Read More

TOP

Telecom

Government proposes 38% higher outlay for telecom to ₹73,990 crore, BSNL gets ₹28,473 crore

The Hindu | 01 February 2026

India’s Union Budget 2026–27 proposes a sharply higher outlay for the Telecom Ministry at ₹73,990 crore, around 38–40% above last year’s revised estimate. A key highlight is a ₹28,473 crore capital infusion for BSNL – over four times the previous year’s support – to accelerate its revival. The funds will meet BSNL’s capex needs, including spectrum costs and 4G/5G rollout, while supporting BharatNet rural broadband expansion, as the government pushes to make BSNL competitive and sustainably profitable and strengthen nationwide digital connectivity across India today.

Read More

India's telecom exports to gain competitive advantage from US trade deal

Business Standard | 03 February 2026

India’s telecom equipment exports are set to become more competitive after the India–US trade deal cut tariffs from 50 per cent to 18 per cent with immediate effect. The reduction improves India’s cost advantage over rivals such as China, Vietnam, Mexico and Malaysia, and strengthens its appeal as a lower-risk sourcing base amid global supply chain diversification. Products earlier facing high duties, including switching and routing equipment, modems and multiplexers, will benefit directly. Industry executives said the move will reduce costs for optical fibre, cables and set-top boxes.

Read More

India adds 72.38 lakh mobile users in December: TRAI

CNBC TV18 | 11 February 2026

India’s mobile subscriber base rose sharply in December, with net additions of 72.38 lakh users, up from 20.07 lakh in November, according to the Telecom Regulatory Authority of India. Bharti Airtel led growth with 54.28 lakh new users, while Reliance Jio added 29.60 lakh subscribers, both showing improved momentum. Vodafone Idea continued to lose users, reporting a net loss of 9.40 lakh, though the pace of decline moderated compared with November.

Read More

Supreme Court says spectrum of bankrupt telecom operators can't be sold to repay lenders

Mint | 13 February 2026

The Supreme Court has ruled that telecom spectrum is a “material resource of the community” and cannot be treated as a tradable asset under the Insolvency and Bankruptcy Code (IBC). In insolvency proceedings involving Aircel and Reliance Communications, lenders had sought to monetise spectrum to recover dues. The Court held that spectrum belongs to the people of India, with the government as trustee, and that the IBC cannot override the statutory framework governing its allocation and use as a public resource.

Read More

 TOP

EV’s & Auto Electronics

Budget 2026: PLI Auto allocation doubled to Rs 5,940 crore; battery scheme sees steep cut

Business Today | 01 February 2026

Union Budget 2026 delivered contrasting signals across PLI schemes, sharply increasing support for automobiles while cutting allocations for battery cells. The PLI scheme for Auto and Auto Components was doubled to ₹5,940 crore for FY27, reflecting continued focus on advanced automotive technologies such as EVs and hydrogen vehicles. In contrast, the Advanced Chemistry Cells (ACC) PLI saw a 44% cut to ₹86 crore, reflecting slow progress in battery cell localisation, with only limited capacity commissioned so far, largely by Ola Electric.

Read More

EV industry has crossed early adoption level, but infra remain problematic

Forbes India | 10 February 2026

India’s electric vehicle (EV) transition has moved beyond early adoption, with the focus now on scaling the ecosystem sustainably. Industry leaders and policymakers say expanding charging infrastructure, strengthening domestic manufacturing and improving policy coordination remain critical challenges. The conversation has shifted from whether EV adoption will happen to how quickly it can expand nationwide. India also aims to position itself as a globally competitive manufacturing and export hub for EVs and components, with scale seen as essential to reduce costs and improve affordability.

Read More

Crash course: How India is strengthening the four pillars of the car testing world

Mint | 11 February 2026

The Government is strengthening four key testing agencies responsible for vehicle standards, crash tests, and technology research to keep pace with evolving automotive technologies. Led by the Union heavy industries ministry, the initiative aims to accelerate vehicle certification and build expertise in connectivity, cybersecurity, alternate fuels, and electric and hybrid vehicles. By enhancing testing and R&D capabilities, the upgrade will speed up vehicle launches and provide clearer performance data, improving investor confidence and enabling better access to capital in India’s growing new-age mobility sector.

Read More

  TOP

Defence & Solar

Why Union Budget 2026 is a fillip to energy transition plans

Business Today | 01 February 2026

Aligned with India’s energy transition roadmap, the Union Budget prioritised strengthening battery ecosystems, securing critical minerals, boosting green manufacturing, coal gasification, and domestic solar manufacturing. Allocations for the Ministry of New and Renewable Energy rose 23% in FY26–27, with nearly 29% higher funding for the PM Surya Ghar Muft Bijli Yojana. The Budget also provided a ₹3,500 crore boost for coal gasification and announced duty exemptions on key solar and battery inputs, improving supply chain resilience and accelerating energy storage adoption.

Read More

‘Strategic imperative’: India hikes defence budget by 15% to ₹7.85 lakh crore

Hindustan Times | 01 February 2026

In Budget 2026, the defence ministry announced a 15% increase in defence spending, allocating ₹7.85 lakh crore for 2026-27 amid the geopolitical backdrop of Operation Sindoor. The capital outlay stands at ₹2.19 lakh crore, nearly 22% higher than last year’s budget estimate, to strengthen armed forces capabilities. Funds will support acquisition of fighter aircraft, warships, submarines, artillery, missiles and unmanned systems. The enhanced allocation addresses increased military requirements following Operation Sindoor.

Read More

Budget 2026: Solar manufacturing and carbon capture measures key to strengthening grid stability, say industry

The Economic Times | 02 February 2026

Industry players said the Union Budget’s proposals for solar manufacturing and carbon capture, utilisation and storage (CCUS) will strengthen grid stability and support India’s decarbonisation goals while preserving industrial competitiveness and energy security. Presenting the FY27 Budget, Finance Minister Nirmala Sitharaman announced multiple measures for solar manufacturing and nuclear projects, along with a ₹20,000 crore allocation for CCUS. Industry leaders said CCUS is critical for reducing emissions in hard-to-abate sectors such as steel and cement, while protecting investment, jobs, and economic growth.

Read More

India-US trade deal to boost renewable exports, strengthen supply chains

The Economic Times - Energy | 05 February 2026

The India–US trade deal has been welcomed by domestic renewable energy players as a step toward restoring stability and predictability in global trade. The improved tariff environment is expected to boost export competitiveness for Indian businesses, particularly in the solar sector. Industry representatives said the rationalisation of tariffs to 18 per cent enhances price competitiveness and provides clearer access to the US market. This clarity will help companies reassess export strategies, scale operations, and strengthen long-term supply chain linkages between India and the United States.

Read More

India, Malaysia sign 11 agreements, boost semicon and defence ties

Business Standard | 08 February 2026

India and Malaysia signed 11 agreements during Prime Minister Narendra Modi’s two-day visit to Kuala Lumpur, strengthening cooperation in areas including semiconductors and disaster management. The two countries agreed to expand bilateral trade beyond $18.6 billion, boost investments, and enhance collaboration in defence, healthcare, and tourism. Emphasising shared commitment to peace and stability in the Indo-Pacific, both sides also agreed to deepen partnerships in AI, digital technologies, health, and food security, alongside promoting local currency settlement and cross-border digital payments.

Read More

Defence council clears procurement of 114 Rafales; mega contract set to become ‘mother of all defence deals’

The Times of India | 13 February 2026

The Defence Acquisition Council (DAC), led by Defence Minister Rajnath Singh, has approved the procurement of 114 Rafale fighter jets from France in a government-to-government deal estimated at ₹3.25 lakh crore. The aircraft, built by Dassault Aviation, will partly be manufactured in India in collaboration with HAL, marking the first such production outside France. The DAC also cleared purchases of P-8I Poseidon aircraft, combat missiles and a high-altitude pseudo satellite.

Read More

TOP

MSME

Union Budget 2026: Govt proposes to top up Self Reliant India Fund with Rs 4,000 crore in FY27 to support MSMEs

The Indian Express | 01 February 2026

In the Union Budget 2026, Finance Minister Nirmala Sitharaman proposed the creation of a cadre of “corporate mitras” in Tier-II and Tier-III cities to support business development. She also announced a Rs 4,000 crore top-up in FY27 for the Self Reliance India Fund to strengthen MSMEs. Launched in 2023 to provide Rs 50,000 crore in equity funding to scalable MSMEs, the fund aims to help them grow into larger enterprises. Additionally, TReDS will be made mandatory for CPSE purchases from MSMEs.

Read More

Centre plans revival of 200 legacy industrial clusters to boost MSME competitiveness

The Economic Times - Manufacturing | 03 February 2026

India has pursued industrial cluster development for decades through initiatives such as the 1997 Industrial Park Scheme, the 2005 SEZ Act, the National Industrial Corridor Development Programme, and sector-specific clusters in electronics, textiles, and software. The Economic Survey noted that the Centre now plans to review clusters across sectors including manufacturing, textiles, and agro-processing. The objective is to formulate a strategy to revive legacy industrial clusters by upgrading equipment, improving infrastructure, and strengthening skills to enhance their competitiveness and productivity.

Read More

  TOP

Union Budget 2026-27: Key Announcements and What They Mean for the Electronics Industry

The Union Budget 2026–27 signals a decisive shift from assembly-led growth to deep manufacturing, component self-reliance and ecosystem building. With a ₹40,000 crore Electronics Components Manufacturing Scheme (ECMS), ISM 2.0 expansion, rare-earth prioritisation, and refined PLI incentives, the government is clearly aligning fiscal, trade and tax policy with long-term electronics competitiveness.

Strategic Manufacturing Push

The Budget strengthens domestic capacity in PCBs, display modules, camera modules, connectors, MEMS sensors and semiconductor packaging. ISM 2.0 broadens support beyond fabs to design IP, ATMP, compound semiconductors and skilling. PLI 2.0 shifts focus from output volume to deeper localisation and value addition.

Rare Earth & Critical Minerals Strategy

Zero-duty access to monazite and rare-earth compounds, tariff certainty for tellurium, silicon, selenium and other critical minerals, and dedicated rare-earth corridors reinforce supply-chain security for EVs, semiconductors, power electronics and advanced manufacturing.

Customs Policy Recalibrated

Customs policy reflects a deliberate move away from broad-based exemptions toward targeted, manufacturing-linked concessions. Select components – such as specific microwave oven parts – have been granted time-bound Nil duty to deepen local value addition. At the same time, several long-standing Chapter 85 exemptions have been allowed to sunset, resulting in higher basic customs duty on items such as radio trunking terminal parts and recorded media. Alongside this rationalisation, deferred customs duty payment mechanisms have been expanded and simplified, easing working-capital pressure for fabs, EMS players and component manufacturers that rely on high-frequency imports.

Compliance Tightening & Grey-Channel Control

New notifications strengthen end-use monitoring, tighten baggage imports of electronics, and enforce stricter classification and documentation norms. The policy direction is clear: encourage domestic manufacturing while reducing informal import channels.

GST Reforms for Liquidity & Clarity

On the GST front, the Budget introduces amendments aimed at improving commercial flexibility and liquidity. The treatment of post-sale discounts has been broadened, allowing greater alignment between GST valuation and commercial rebate practices. Refund processes under inverted duty structures are set to become faster through provisional refund provisions, easing credit accumulation pressures common in electronics supply chains. The removal of minimum thresholds for export refund claims expands access for smaller exporters, while revised place-of-supply rules for intermediary services bring clarity to cross-border technology and digital facilitation arrangements.

Energy, Infrastructure & Export Competitiveness

Support for renewable energy inputs, nuclear components, wind equipment and solar supply chains improves long-term power stability – critical for fabs, data centres and EMS clusters. Enhanced RoDTEP and rationalised QCOs further strengthen export competitiveness.

The real impact will unfold over time as these aligned measures translate into stronger domestic value addition, supply-chain resilience and global competitiveness. Click here to read the complete Union Budget analysis.

ELCINA Publications

https://elcina.com/roadmap-for-developing-pcb-eco-system-in-india	Roadmap For Developing PCB Eco-System in India Key Findings Indian PCB market and industry size in terms of domestic production, exports, and imports Growth drivers and challenges (needs & gaps) in the Indian PCB industry Growth potential of PCB manufacturing in India and identify enablers for creating & strengthening the domestic value chain Key inputs required viz. investments, technology, and infra eco-system Details of key PCB value chain players – global and domestic, who can be invited to invest to establish a strong PCB industry
https://elcina.com/ems-task-force-report-on-market-industry-analysis-of-ems-sector-in-india	EMS Task Force Report Key Findings Currently EMS Industry (Contract Manufacturing Services) are valued 832 Bn $ and are projected to grow 1055 Bn by 2025. Domestic electronics manufacturing is estimated at USD 75 Bn of which 39 Bn constitutes EMS value. This is divided into 23.5 Bn domestic Mfg. and USD 15.5 Bn PCBS/Sub-Assembly imports. Further USD 53.5 Bn is finished Electronic Goods imports of which USD 17 Bn is EMS value. Thus total EMS opportunity loss is US$ 32.5 Bn (15.5 +17). The report estimates that EMS production can grow realistically from USD 23.5 Bn today to USD 152 Bn by 2025 at CAGR of 45%. This will meet 75% of the countries EMS requirement of US$ 203 Bn by 2025 against a total estimated market of 400 Bn.
https://elcina.com/elcina-task-force-report-on-electronic-components	ELCINA Task Force Report on Electronic Components Key Findings Current status of component manufacturing in India – Areas of competence vs Gaps and inadequacies Components which urgently require investments and growth in domestic manufacturing Emerging technology and new components for upcoming opportunities Constraints and bottlenecks to be addressed Overcoming Policy constraints, WTO (ITA-1) deadlock and Zero Duty issue Strategy for overcoming these constraints Eco-System requirements- Role of Central and State Governments
https://elcina.com/elcina-directory-of-indian-electronics-industry	ELCINA Directory of Indian Electronics Industry 2025-26 Description ELCINA Directory of Indian Electronics Industry – includes the updates on Indian Electronics Industry and a host of additional improved features covering business environment, statistical industry scan, company databases plus various projections. This handy compendium with its easy-to-read format attracts the attention of a growing number of users (within India and abroad) Apart from electronics industry, the users of this Directory range from financial institutions, commercial banks, FIIs, Consultancy organizations as well as industry promotion institutes across the world….

TOP

FORTHCOMING EVENTS &  GENERAL INFORMATION 

TOP