The Union government has approved a massive financial package that will make India a global electronics manufacturing hub. The Modi Government has cleared ₹1.28 trillion (₹1.28 lakh crore) for the semiconductor sector and more expenditure of ₹625 billion (₹62,500 crore) to promote mobile phone manufacturing in India.
The decision is one of India’s largest investments in the electronics and semiconductor ecosystem and is in line with the long-term government’s goal of making the country self-reliant in critical technologies and less dependent on imports.
The semiconductor package will accelerate the development of chip fabrication plants, assembly and testing facilities, and semiconductor design capabilities. It will also offer financial incentives and policy support to global chipmakers to invest in India.
Semiconductors are the main building block of every technology nowadays: smartphones and laptops, medical equipment, artificial intelligence software, and defence technology. With increasing demand for chips worldwide, India is situated in the semiconductor supply chain.
Besides the semiconductor initiative, the government has approved ₹625 billion to promote domestic smartphone manufacturing. Incentives for Indian and international companies to expand production facilities, increase exports, and create large-scale employment opportunities.
India has become one of the world’s leading smartphone manufacturing hubs with global brands manufacturing devices in India under the Production Linked Incentive (PLI) scheme. This new financial support will reinforce this by boosting investment in advanced manufacturing technologies and local component production.
VIDEO | Delhi: Addressing union cabinet briefing, Union Minister Ashwini Vaishnaw (@AshwiniVaishnaw) says, “Now I come to today's third decision, Semicon 2.0. Today, the Prime Minister approved the Semicon 2.0 programme worth Rs 1,27,500 crore. We all know that the semiconductor… pic.twitter.com/2b93LQCYuk
— Press Trust of India (@PTI_News) July 15, 2026
Industry experts say that the combined package will help in making India competitive in electronics production and build a holistic value chain—from semiconductor fabrication to finished electronic products. It will also assist in research and development, innovation and skill development in the high-tech sector.
The investment comes at a time when countries around the world are increasing their support for semiconductor production to secure supply chains following the COVID-19 pandemic. India’s policy aims to leverage this global shift by attracting multinational companies looking to diversify manufacturing bases.
We expect thousands of high-skilled jobs in engineering, chip design, fabrication, packaging and electronics manufacturing to be created in this program. It will also encourage the growth of startups in semiconductor design, embedded systems and advanced electronics.
The government has consistently highlighted electronics manufacturing as a high priority sector under the Make in India and Atmanirbhar Bharat strategy that has been central to its wider Make in India and Atmanirbhar Bharat approach. These new approvals build on previous incentive schemes that have made India a major exporter of smartphones and electronic goods.
As competition in the global semiconductor market is increasing, the record investment by the Modi government shows India’s commitment to a technology-driven manufacturing economy. If implemented effectively, it would enhance India’s position in the value chain of electronics and increase exports, attract foreign investors and create healthy employment in the future decade.
