Union Budget Pushes Research in Semiconductors and Rare Earths

Visakhapatnam: The Union Budget has placed research, technology, and innovation at the centre of India’s development agenda with regard to semiconductors, rare earths and advanced manufacturing.

Finance minister Nirmala Sitharaman announced the launch of India Semiconductor Mission (ISM) 2.0, building on the gains of ISM 1.0. The new phase will focus on producing equipment and materials, designing full-stack Indian IP, and fortifying supply chains.

Industry-led research and training centres are planned to develop cutting-edge technology and a skilled workforce, positioning India as a competitive player in the global semiconductor ecosystem.

The budget proposes the creation of Rare Earth Corridors in mineral-rich states, including Andhra Pradesh, Odisha, Kerala, and Tamil Nadu. Following the launch of the Rare Earth Permanent Magnets scheme in November 2025, the corridors will promote mining, processing, research, and manufacturing; tapping into India’s strategic mineral reserves to support high-tech industries.

In addition, the budget has announced a dedicated initiative for sports goods manufacturing, aimed at making India a hub for affordable, high-quality equipment. The scheme will encourage research and innovation in equipment design and material sciences, boosting exports and supporting domestic industry.

Underscoring the role of technology in inclusive growth, Sitharaman highlighted its benefits for diverse groups, from farmers in the field to women in STEM, youth seeking to upskill, and Divyangjan accessing new opportunities.

The budget reaffirms support for flagship programmes, such as the AI Mission, National Quantum Mission, Anusandhan National Research Fund, and the Research, Development and Innovation Fund.