The Union Cabinet of India approved two schemes for semiconductor and mobile-phone manufacturing with a combined outlay of approximately ₹1.9 lakh crore [1].
This initiative aims to transform India into a global electronics hub by deepening domestic value addition and reducing the country's reliance on imported technology. By incentivizing local production, the government seeks to secure critical supply chains for the digital economy.
The approved package includes the Semicon 2.0 initiative and a dedicated push for mobile-phone manufacturing [1]. While one source reported a combined outlay of ₹1.27 lakh crore [5], other reports state the figure is ₹1.9 lakh crore [1].
Government officials said the goal is to attract roughly ₹4 lakh crore in semiconductor investments [1]. These investments are expected to build the infrastructure necessary for high-tech chip fabrication within India.
In addition to chip production, the government expects the mobile-phone manufacturing push to generate about ₹39 lakh crore of production [1]. This effort focuses on moving beyond simple assembly to more complex component manufacturing.
The move comes as India seeks to strengthen its industrial base and create high-skilled employment. The government said the schemes are designed to make the country a competitive destination for global electronics firms.
“The Union Cabinet of India approved two schemes for semiconductor and mobile-phone manufacturing with a combined outlay of approximately ₹1.9 lakh crore.”
This massive financial commitment signals India's intent to move up the value chain from being a consumer of electronics to a primary manufacturer. By targeting both the foundational semiconductor layer and the end-product mobile market, India is attempting to create a vertically integrated ecosystem that reduces vulnerability to global supply shocks.
