India Semiconductor Mission 2.0 gets Cabinet approval
India Semiconductor Mission 2.0 received Union Cabinet approval on July 15, with an outlay of ₹1.27 lakh crore. The government also approved a ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) to strengthen India’s electronics manufacturing ecosystem.
The decision is part of the government’s long-term strategy to make India a global hub for semiconductor production and reduce dependence on imported chips.
What is India Semiconductor Mission 2.0?
India Semiconductor Mission (ISM) 2.0 is the second phase of the country’s semiconductor programme. It aims to expand support beyond chip fabrication by encouraging investments across the semiconductor value chain, including design, packaging, advanced materials and manufacturing infrastructure.
₹62,500 crore for mobile manufacturing
Along with the semiconductor package, the Cabinet approved ₹62,500 crore for the Mobile Phone Manufacturing Scheme.
The new scheme is expected to:
Increase domestic smartphone production.
Attract global electronics companies.
Boost exports.
Create thousands of new jobs.
Strengthen India’s supply chain.
Why this matters
Semiconductors power smartphones, computers, cars, medical devices and defence equipment. India currently imports a large share of its chip requirements.
The new investment aims to:
Reduce import dependence.
Increase domestic manufacturing.
Attract global semiconductor companies.
Promote innovation and research.
Make India a trusted electronics manufacturing destination.
Government’s vision
The Cabinet’s approval is one of the biggest investments in India’s electronics sector. It builds on the existing India Semiconductor Mission and supports the country’s Make in India and Atmanirbhar Bharat initiatives.
Industry experts believe the programme could help India become a major player in the global semiconductor supply chain over the coming years.
Visit: The Economic Times
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