India Approves ₹1.28 Lakh Crore Semiconductor Push, Expands Mobile Manufacturing Incentives
India’s Union Cabinet has approved a major expansion of the country’s semiconductor programme, allocating ₹1.28 trillion ($13.3 billion) to strengthen chip manufacturing, research and development, intellectual property creation, and semiconductor design. The investment will also support the establishment of additional fabrication plants as India accelerates its ambition to become a global electronics manufacturing hub.
The announcement builds on the $10 billion semiconductor incentive scheme launched in 2021, under which the government has already approved 12 semiconductor manufacturing units and 24 chip design projects. The expanded funding aims to deepen India’s domestic semiconductor ecosystem and reduce dependence on imports.
The Cabinet also approved ₹625 billion for a five-year mobile phone manufacturing programme. The scheme offers production-linked incentives ranging from 2.25% to 5% on eligible sales, along with an additional incentive of up to 1.5% for manufacturers sourcing key components domestically. The government expects the initiative to create around 60,000 direct jobs while further strengthening India’s position as a global smartphone manufacturing and export hub.
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