INDUSTRY
Govt nod for Rs 1.9-lakh crore chip, mobile production schemes to spur electronics ecosystem
- IBJ Bureau
- Jul 16, 2026
The Union Cabinet has approved two major manufacturing initiatives with a combined outlay of nearly Rs 1.9 lakh crore.
The two schemes will expand the country’s semiconductor ecosystem, scale up mobile phone production and strengthen its position as a global electronics manufacturing hub.
The first initiative, Semicon 2.0, has been allotted Rs 1.27 lakh crore to accelerate semiconductor design and manufacturing capabilities.
The semiconductor programme builds on the first phase of the India Semiconductor Mission (ISM) and will focus on six key areas – chip design, semiconductor equipment and materials, fabrication facilities, advanced packaging and testing, research and development and talent development.
Semicon 2.0 will provide support to companies involved in manufacturing semiconductor machinery, materials, chemicals and gases, while seeking to attract additional fabrication plants to India.
The other initiative, the Rs 62,500-crore Mobile Phone Manufacturing Scheme (MPMS), aims at increasing domestic production, boosting exports and deepening local value addition in the mobile phone industry.
The MPMS will provide production-linked incentives to manufacturers over five years from 2026-27 to 2030-31.
Incentives will range from 2.25 to 5 per cent on eligible mobile phone sales, with additional support for domestic sourcing of key components and for Indian companies investing in product design and research.
The government expects the mobile phone scheme to drive cumulative production of around Rs 39 lakh crore during its tenure, significantly increase exports and generate about 60,000 direct jobs.
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