Cabinet Approves Mega ₹1.9 Lakh Crore Electronics and Semiconductor Manufacturing Package

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved two massive manufacturing initiatives with a total outlay of ₹1.9 lakh crore. The India Semiconductor Mission (ISM) 2.0 has been granted ₹1.27 lakh crore to expand domestic chip design, manufacturing, and R&D capabilities over the next twelve years. This second phase builds upon the initial program that saw 12 units approved and aims to attract approximately ₹4 lakh crore in total investment, helping establish a comprehensive domestic supply chain for semiconductors.

The cabinet also greenlit a new Mobile Phone Manufacturing Scheme (MPMS) with a ₹62,500 crore allocation over five years. Replacing the previous Production Linked Incentive scheme, which ended on March 31, 2026, the new plan offers incentives ranging from 2.25% to 5% on eligible sales. It specifically targets supply chain resilience and local component sourcing, with a goal to reach a cumulative mobile production value of ₹39 lakh crore and create 60,000 direct jobs by 2031. These measures are designed to strengthen India's status as a global electronics manufacturing hub.

Beyond technology, the cabinet's broader investment package includes infrastructure projects like highway development in Varanasi and new gas-based urea plants. Simultaneously, industrial players are consolidating to improve efficiency; Dalmia Bharat has acquired cement and power assets from Jaiprakash Associates Ltd in a ₹2,850 crore deal. This addition of 5.2 MTPA of cement capacity helps Dalmia Bharat approach its target of 66.7 million tonnes by 2029, showcasing a wider trend of capacity expansion across India's industrial sectors alongside the government's push for high-tech self-reliance.