India Launches Semiconductor Mission 2.0, Boosts Electronics Manufacturing

India's Finance Minister Nirmala Sitharaman announced the launch of India Semiconductor Mission (ISM) 2.0 and a significant increase in the outlay for the Electronics Components Manufacturing Scheme (ECMS) to Rs 40,000 crore. ISM 2.0 aims to promote a comprehensive chip manufacturing ecosystem in India, covering equipment, materials, indigenous designs, and supply chain resilience, building on the success of ISM 1.0. The expanded ECMS, which has already attracted investments double its initial target, seeks to deepen local value chains and reduce import dependence, particularly from East Asian supply chains. These initiatives are part of India's broader strategy to become a global electronics manufacturing hub, fostering indigenous technology creation, developing a skilled workforce, and attracting major technology firms to set up fabrication units in the country. The government's policy measures have already led to substantial growth in India's electronics manufacturing sector, with mobile manufacturing experiencing a nearly 30-fold increase in production value.