- India clears Semiconductor Mission 2.0 with Rs 1.28 lakh crore outlay and 12-year term
- New Mobile Manufacturing Scheme approved with Rs 62,500 crore funding
- Urea sector gets new investment policy and subsidy continuation for FY26
The Union Cabinet has cleared India Semiconductor Mission 2.0 with an outlay of Rs 1.28 lakh crore on Wednesday, extending the mission's term from five to 12 years.
The move is expected to strengthen India's push to build a robust domestic semiconductor ecosystem, with the extended timeline aimed at giving greater policy stability to investors in chip design, fabrication and packaging units.
The Cabinet has also cleared a new Mobile Manufacturing Scheme, with an outlay of Rs 62,500 crore
The Cabinet also approved a new investment policy for the urea sector, along with the continuation of the urea subsidy for FY26.
The decisions are aimed at boosting domestic urea production capacity while ensuring farmers continue to receive fertiliser at subsidised rates through the ongoing financial year.
The outlay for ISM 2.0 marks a sharp increase from the Rs 76,000 crore allocated under the first phase of the mission, approved by the Cabinet in December 2021.
Under ISM 1.0, the government had approved 12 semiconductor manufacturing projects with a combined investment pipeline of around Rs 1.64 lakh crore, spanning one semiconductor fabrication unit, two compound semiconductor fabrication units and nine packaging facilities.
ISM 2.0, first announced in the Union Budget for 2026-27, is expected to focus on the entire semiconductor value chain, spanning chip design, fabrication and packaging, while also promoting domestic production of semiconductor equipment, materials and homegrown intellectual property.
The extended 12-year mission timeline is aimed at giving long-term policy certainty to global and domestic investors as India seeks to strengthen its position in the global chip supply chain, sources said.
On the fertiliser front, the new urea investment policy is aimed at reducing India's dependence on imports, which currently account for a significant share of domestic consumption amid a production shortfall of nearly 10 million tonnes annually.
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