India’s ISM 2.0 Unveiled: Rs 1.27 Lakh Crore for Chip Manufacturing Over Six Years
GS3Economy · S&T · Environment · Security· Industry, investment & MSMEs· Prelims + Mains·
Why in news
The Union Cabinet approved India's Semiconductor Mission (ISM 2.0) with a ₹1.27 lakh crore outlay to bolster domestic chip manufacturing and supply chains.
Background
The ISM 2.0 initiative allocates ₹1.27 lakh crore over six years to subsidize chip manufacturing, equipment, materials, and design tools. It aims to achieve domestic production capability for 70-75% of applications by 2029.
Facts for Prelims
- SchemeISM 2.0: India's Semiconductor Mission second iteration focusing on chip manufacturing supply chains.
- FactISM 2.0 Outlay: ₹1.27 lakh crore over a period of six years.
- FactTarget: Achieve domestic chip production for 70-75% of applications by 2029.
For Mains
Q. Discuss the significance of the Semiconductor Mission 2.0 in achieving India's goal of becoming a global hub for electronics manufacturing and technological sovereignty.
Dimensions to cover in your answer
- Strategic autonomy in electronics
- Supply chain resilience
- Skill development and R&D
- Fiscal implications of subsidies
Keywords: Strategic Autonomy · Supply Chain Resilience · Technological Sovereignty · Incentivization · Import Substitution
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