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India Cabinet approves ₹1.27 lakh crore for Semiconductor Mission 2.0
The program is aimed at expanding India’s chip equipment, materials, and IP, with the domestic semiconductor market projected to reach $100 to $110 billion by 2030.
India’s Union Cabinet has approved the second edition of the India Semiconductor Mission, known as ISM 2.0, with a total outlay of ₹1.27 lakh crore, according to LiveMint Markets. The initiative was outlined by Union IT Minister Ashwini Vaishnaw on 15 July, following an announcement in Finance Minister Nirmala Sitharaman’s Union Budget 2026 to 2027 speech on 1 February.
LiveMint Markets reports that ISM 2.0 focuses on producing semiconductor equipment and materials in India, designing full-stack Indian semiconductor intellectual property, and strengthening domestic and global supply chains. It also broadens the scope beyond fabrication into areas such as chip design, advanced packaging, and research, tying policy support to a wider ecosystem buildout.
Industry estimates cited by LiveMint Markets put the Indian semiconductor market at about $45 to $50 billion in 2024 to 2025, with expectations it could grow to $100 to $110 billion by 2030. The story notes that semiconductors underpin not just computing and mobile technology, but also electronics, telecommunications, automotive systems, and defence.
While experts are constructive on the theme, LiveMint Markets includes caution that it should not be treated like a short-cycle, quick-return investment. Harshal Dasani, Business Head at INVAsset PMS, said semiconductors require more technological depth, specialized talent, large capital commitments, and years of execution before policy support translates into sustainable profitability.