India has approved a sweeping ₹1.9 lakh crore, or roughly $23 billion, package to strengthen domestic semiconductor production and accelerate mobile phone manufacturing. The decision marks one of the country’s largest industrial policy commitments and reinforces its ambition to become a major global electronics manufacturing hub amid shifting supply chains.
The package allocates ₹1.27 lakh crore to the India Semiconductor Mission 2.0 while setting aside ₹62,500 crore for a new Mobile Phone Manufacturing Scheme. Together, the initiatives aim to deepen India’s electronics ecosystem, attract fresh investment, boost exports, and reduce dependence on imported components.
Semiconductor Expansion
The semiconductor allocation will support the next phase of India’s chip manufacturing strategy through a broader ecosystem that includes fabrication, advanced packaging, design, research, infrastructure, and supply chain development. The government plans to build on progress made under its earlier semiconductor program, which helped secure multiple fabrication and packaging projects across the country.
Officials expect the expanded incentives to encourage both domestic and international chipmakers to increase investments in India. As geopolitical tensions continue to reshape global semiconductor supply chains, India is positioning itself as an alternative manufacturing destination alongside established Asian production centers.
Boosting Mobile Phone Production
The ₹62,500 crore Mobile Phone Manufacturing Scheme is designed to strengthen India’s position as one of the world’s largest smartphone manufacturing bases. The program seeks to increase exports, create skilled jobs, and encourage higher local value addition by expanding component manufacturing alongside final device assembly.
Key objectives include:
- Attracting new domestic and foreign investment.
- Expanding manufacturing capacity for smartphones and components.
- Increasing exports and employment.
- Strengthening integration into global electronics supply chains.
The announcement aligns with India’s broader “Make in India” strategy, which has already helped transform the country into a leading mobile phone producer over the past decade. By combining significant incentives for semiconductor manufacturing with continued support for mobile production, the government aims to establish a more complete electronics value chain that spans chip design, fabrication, packaging, component manufacturing, and finished devices.
