Cabinet clears Rs 1.9 lakh crore push for chips and mobile manufacturing
Semicon 2.0 and a new Rs 62,500-crore mobile phone scheme target Rs 4 lakh crore of investment
7/16/2026
The Union Cabinet has approved two electronics sector schemes worth a combined Rs 1.9 lakh crore: Semicon 2.0, with an outlay of Rs 1.27 lakh crore for semiconductor design and manufacturing, and the Rs 62,500-crore Mobile Phone Manufacturing Scheme (MPMS).
MPMS succeeds the Production Linked Incentive scheme that concluded on 31 March. Electronics and Information Technology Minister Ashwini Vaishnaw said the two schemes together aim to attract about Rs 4 lakh crore of investment and broaden the components ecosystem that supports handset assembly.
Reading the design
The new structure links support to sustained value addition rather than assembly volume alone, encouraging investment in displays, camera modules, batteries and precision components — the layers where India has historically imported the most.
