India dials back subsidies in ISM 2.0, aims for semiconductor supremacy by 2035
GS3Economy · S&T · Environment · Security· Industry, investment & MSMEs· Prelims + Mains·
Why in news
The Union Cabinet approved India Semiconductor Mission (ISM) 2.0 to pivot from infrastructure subsidies to manufacturing and design incentives to achieve semiconductor supremacy by 2035.
Background
The ISM 2.0 was approved on July 17, 2026, with a total outlay of Rs 1.27 lakh crore. It marks a policy shift by removing subsidies for land acquisition and technology transfer costs, focusing instead on chip design and supply chain development.
Facts for Prelims
- SchemeISM 2.0: India Semiconductor Mission's second phase approved in July 2026
- FactISM 2.0 total outlay: Rs 1.27 lakh crore
- FactTarget year for semiconductor supremacy: 2035
- FactISM 2.0 removes subsidies for land acquisition and technology transfer costs
For Mains
Q. Analyze the shift in India's semiconductor policy from infrastructure-led subsidies to manufacturing-centric incentives under ISM 2.0 to achieve global supply chain resilience.
Dimensions to cover in your answer
- Fiscal discipline: Transition from capital-intensive land subsidies to operational incentives for chip design and manufacturing
- Supply chain resilience: Reducing import dependency on high-end electronics by fostering domestic fabrication and assembly
- Global competitiveness: Aligning domestic incentives with international standards to attract high-tech FDI and technology transfers
Keywords: Supply chain resilience · Fiscal discipline · Technology transfer · Semiconductor ecosystem · Manufacturing incentives
More Economy notes
- Adani Power Eyes Nuclear Leap at Thermal Sites in Madhya Pradesh · 24 July 2026
- Russian oil discounts vanish as BPCL finance chief warns of West Asia conflict impact · 23 July 2026
- E20 Petrol Safe for Engines, Government Achieves Target Five Years Early · 23 July 2026
- Railways completes 203-km Kazipet-Balharshah third line, eases north-south traffic at Rs 3,000 crore · 23 July 2026
- India Reduces Undernourished Population by 42%, But 520 Million Still Can't Afford Healthy Diet · 23 July 2026
- 200% US tariffs threaten Indian pharma, Nifty Pharma drops 1.3% · 23 July 2026
Something wrong, or something missing?
Spotted a mistake in a note, or want a topic, format or PDF that would help your preparation? Write to us. We read every mail and fix errors fast.
Report a mistake →Ask for something →thesatyadheesh@gmail.com
This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.