India Approves 1.9 Trillion Rupee Semiconductor and Mobile Push

The Union Cabinet of India approved a massive manufacturing package on July 15, 2026, allocating approximately 1.9 lakh crore rupees ($22 billion) to strengthen the national electronics ecosystem. The center-piece is the Semicon 2.0 programme, which receives 1.27 lakh crore rupees to transition India from a manufacturing destination to a global hub for semiconductor innovation. This initiative focuses on six pillars: chip design IP, machines and materials, fabrication plants, advanced packaging, research and development, and talent development.

Complementing the chip strategy is the 62,500 crore rupee Mobile Phone Manufacturing Scheme (MPMS), running from FY 2026-27 to FY 2030-31. The MPMS succeeds the previous PLI-LSEM scheme and aims to increase India's share of global mobile manufacturing from 15-17% to over 30%, while driving cumulative domestic production to 39 lakh crore rupees. The government is offering incentives of 2.25% to 5% on eligible sales, with additional bonuses for domestic sourcing and R&D to help Indian brands compete with Chinese rivals.

The broader package of seven cabinet decisions totaled 2.19 lakh crore rupees and included the National Investment Policy for Urea-2026 and several infrastructure projects. These included railway multitracking in Odisha and Jharkhand, as well as highway projects in Uttar Pradesh and elevated corridors in Varanasi to improve access to the Kashi Vishwanath Temple.