FM Sitharaman Announces Rs 40,000-Crore Semi-Conductor Push, Rare Earth Corridors In 4 States

Last Updated:February 01, 2026, 11:44 IST

Finance Minister Nirmala Sitharaman announced the 'India Semiconductor Mission 2.0' to “capitalise on the momentum of the semiconductor mission”

Nirmala Sitharaman created history on Sunday by becoming the first woman finance minister to present nine consecutive Union Budgets. (Photo Credit: X)

Finance Minister Nirmala Sitharaman announced a Rs 40,000-crore push for the semiconductor mission and rare earth corridors for four states as she presented the Budget on Sunday.

The Finance Minister announced the ‘India Semiconductor Mission 2.0’ to “capitalise on the momentum of the semiconductor mission". “We will launch ISM 2.0 to produce equipment and materials, design full stack, Indian IP and fortify supply chains. We will also focus on industry led research and training centers to develop technology and skilled workforce," the FM said.

She further said, “A scheme for rare earth permanent magnets was launched in November 2025. We now propose to support the mineral rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated rare earth corridors to promote mining, processing, research and manufacturing."

“To enhance domestic chemical production and reduction in import dependency, we will launch a scheme to support states in establishing three dedicated chemical arks through challenge route on a cluster-based plug-and-play model, the FM added.

Ahead of presenting her ninth consecutive Budget, Finance Minister Nirmala Sitharaman on Sunday called on President Droupadi Murmu.

As per established tradition, the finance minister met the President at the Rashtrapati Bhavan before heading to Parliament.

Sitharaman posed with her Budget team in front of her office at Kartavya Bhavan. Wearing a magenta-coloured Tamil Nadu’s Kanchivaram saree, she was holding a tablet in a red pouch with the national emblem, along with the Minister of State and all six secretaries in her ministry.

“Union Minister for Finance and Corporate Affairs Smt Nirmala Sitharaman, along with Minister of State for Finance Shri Pankaj Chaudhary and senior officials of the Ministry of Finance, called on President Droupadi Murmu at Rashtrapati Bhavan before presenting the Union Budget. The President extended her best wishes to the Union Finance Minister and her team for the presentation of Budget," President of India office said in a post on X.

President Murmu offered ‘dahi-chini’ (curd-sugar), considered auspicious, to Sitharaman before she left for Parliament to present the Union Budget.

Following the meeting, she headed for a Cabinet meeting that formally approved the Budget for 2026-27.

Sitharaman continues with the tradition she set in 2019, carrying the budget speech in a ‘bahi-khata’, which she used after dropping the briefcase tradition.

The Finance Minister presented her ninth straight Budget, unveiling measures to sustain growth momentum, maintain fiscal discipline, and announce reforms that could buffer the economy from global trade frictions, including US tariffs.

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