Finance Minister Nirmala Sitharaman launched India Semiconductor Mission (ISM) 2.0 during her Union Budget 2026 presentation, backed by a substantial ₹40,000 crore outlay to capitalize on ISM 1.0’s success in expanding domestic semiconductor capabilities.
Advanced Manufacturing and IP Focus
ISM 2.0 targets production of critical equipment and materials, full-stack chip design with indigenous Indian IP, and fortified supply chains to reduce import vulnerabilities. This evolution moves beyond fabrication units toward a complete ecosystem, positioning India as a global semiconductor contender.
Industry-Led Innovation Hubs
Industry-led research and training centers will drive technology advancement and skilled workforce development, bridging academia-industry gaps for cutting-edge chip innovation. These hubs promise high-value jobs and accelerated R&D in AI, electronics, and strategic technologies.
Complementary Ecosystem Boosts
The Electronics Components Manufacturing Scheme outlay doubles to ₹40,000 crore, building on investment commitments exceeding initial targets. Related initiatives like the ₹10,000 crore Biopharma Shakti Mission and rare earth corridors in mineral-rich states further strengthen the high-tech manufacturing foundation
