India approves Rs 1.9 lakh crore semiconductor, mobile schemes
Analysis based on 6 articles · First reported Jul 15, 2026 · Last updated Jul 16, 2026
The initiatives are expected to significantly boost India's electronics manufacturing sector, attracting large investments and creating jobs. Positive sentiment for semiconductor and mobile phone supply chain companies, though near-term impact may be limited as benefits accrue over several years.
The Union Cabinet of India approved two major manufacturing initiatives with a combined outlay of nearly Rs 1.9 lakh crore (USD 22 billion) on July 15, 2026. The Rs 1.27 lakh crore Semicon 2.0 programme aims to accelerate semiconductor design and manufacturing capabilities, focusing on chip design, equipment, fabrication, packaging, R&D, and talent development. The Rs 62,500 crore Mobile Phone Manufacturing Scheme (MPMS) provides production-linked incentives over five years (FY2026-27 to FY2030-31) to boost domestic production and exports. The government expects Semicon 2.0 to attract Rs 4 lakh crore in investments and yield Rs 2 lakh crore in production, while MPMS targets cumulative production of Rs 39 lakh crore and 60,000 direct jobs. India has become the world's second-largest mobile phone manufacturer, with 99.2% of domestic phones made locally. The first semiconductor fabrication unit is expected to begin operations in 2028. Additionally, the Cabinet approved two highway projects for Varanasi (Rs 25,500 crore), two railway projects in Odisha and Jharkhand (Rs 3,907 crore), and a National Investment Policy for Urea (NIPU-2026) to add 10 million tonnes of capacity.
Set up alerts, explore entity relationships, search across thousands of events, and build custom intelligence feeds.
Open Dashboard