The Union Cabinet has approved a ₹1.9 lakh crore incentive package to strengthen India’s semiconductor and mobile phone manufacturing ecosystem, marking a major step towards making the country a global electronics hub.
The package includes ₹1.27 lakh crore for Semicon 2.0 and ₹62,500 crore for a new Mobile Phone Manufacturing Scheme (MPMS). Together, the schemes are expected to attract fresh investments, expand domestic production, create jobs and increase exports.
Semicon 2.0 builds on the India Semiconductor Mission launched in 2021. The new programme focuses on developing the entire semiconductor value chain, including chip design, fabrication, packaging, materials, equipment, research and skilled workforce development. The government hopes this will reduce import dependence and strengthen India’s position in the global chip supply chain.
The Cabinet also approved the new mobile manufacturing scheme, which will replace the existing Production Linked Incentive (PLI) programme. The scheme will encourage companies to increase local value addition, source more components from India and boost exports.
According to the government, India has become the world’s second-largest mobile phone manufacturer by volume, with smartphones emerging as the country’s largest export category. Officials believe the new schemes will help sustain this growth and attract nearly ₹4 lakh crore in investments over the coming years.
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