India Allocates ₹1.25 Lakh Crore for Semiconductor Mission 2.0
India Allocates ₹1.25 Lakh Crore for Semiconductor Mission 2.0
IN · Published Jul 1, 2026
The Finance Ministry's Expenditure Finance Committee has approved a significant budget allocation of ₹1.25 lakh crore for India Semiconductor Mission (ISM) 2.
This initiative, announced in the Union Budget 2026-27, aims to bolster India's semiconductor manufacturing ecosystem, including chip design, fabrication, and packaging. The allocation marks a substantial increase from the ₹76,000 crore allocated under ISM 1.

Impact & Risks

The initiative is expected to significantly reduce India's reliance on semiconductor imports, meeting up to 75% of domestic demand by 2030. It will also position India as a global hub for electronics manufacturing, creating jobs and fostering innovation. However, challenges such as global competition, supply chain dependencies, and the need for skilled talent could pose risks to the mission's success.

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