The Finance Ministry's Expenditure Finance Committee (EFC) has approved an outlay of Rs 1.25 lakh crore for the India Semiconductor Mission (ISM) 2.0, paving the way for the next phase of the country's semiconductor manufacturing push, sources told NDTV Profit.
The proposal was cleared by the EFC last week and will now be placed before the Union Cabinet for final approval.
The proposed outlay marks a significant increase from the Rs 76,000 crore allocated under ISM 1.0, under which the government approved 10 semiconductor facilities across chip fabrication, assembly and design.
The expanded scheme is expected to support the wider ecosystem, including industrial gases, specialty chemicals, capital equipment, MSMEs and ancillary suppliers, with the aim of strengthening India's semiconductor supply chain.
The government expects the enhanced programme to help India meet up to 75% of its domestic semiconductor demand by 2030, reducing import dependence and supporting the country's ambitions of becoming a global electronics manufacturing hub.
NDTV Profit had first reported on April 21 that the government was preparing to launch an expanded semiconductor incentive scheme with an outlay of Rs 1 lakh crore to Rs 1.2 lakh crore. At the time, inter-ministerial consultations were underway, with the Ministry of Electronics and Information Technology awaiting the Finance Ministry's clearance.
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