Finance Ministry Committee Approves ₹1.25 Lakh Crore for India Semiconductor Mission 2.0; Cabinet Approval Pending

India’s initiative to enhance domestic semiconductor manufacturing has gained momentum with the Expenditure Finance Committee approving an allocation of ₹1.25 lakh crore for the India Semiconductor Mission 2.0. This comprehensive program, which is pending final approval from the Union Cabinet, is designed to strengthen the countrys capabilities in chip design and production while also developing the entire semiconductor value chain.

The India Semiconductor Mission 2.0 represents a significant scaling up from the previous phase, reflecting the government’s commitment to reducing dependency on foreign chip imports and fostering self-reliance in the technology sector. As the global demand for semiconductors continues to surge—driven by industries such as consumer electronics, automotive, and telecommunications—India seeks to position itself as a key player in the semiconductor supply chain.

In addition to financial backing, the initiative is expected to support research and development, incentivize investments in chip manufacturing facilities, and cultivate local talent through educational and vocational training programs. The broader vision aligns with Indias National Policy on Electronics, which aims to achieve a sustainable domestic electronics manufacturing ecosystem and create a competitive advantage in the global market.