India approves Rs 1.27 lakh crore Semicon 2.0 semiconductor mission and related manufacturing schemes

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the second edition of the India Semiconductor Mission (Semicon 2.0) with an outlay of Rs 1.27 lakh crore. The programme covers the full chip value chain – design, fab, packaging, equipment, materials, R&D and talent development – and is expected to attract about Rs 4 lakh crore of fresh investment, generate Rs 2 lakh crore of semiconductor production and create up to 2‑3 lakh high‑skill jobs.

In the same meeting the Cabinet cleared the Mobile Phone Manufacturing Scheme (MPMS) with a budget of Rs 62,500 crore. Over a five‑year period the scheme aims to produce mobile phones worth roughly Rs 39 lakh crore, boost exports and generate around 60,000 direct jobs, with incentives ranging from 2.25 % to 5 % on eligible sales and additional bonuses for domestic sourcing and design.

The government also approved the National Investment Policy for Urea‑2026, targeting an additional 10 million tonnes of domestic urea capacity through new gas‑based plants and offering a guaranteed 12‑16 % return‑on‑equity band to attract investment.

Infrastructure projects were included as well, notably two elevated corridors in Varanasi – a 43 km Varuna River link (Rs 10,998 crore) and a 46 km Ganga River link (Rs 14,448 crore) – intended to de‑congest the holy city and improve pilgrim access.