India has launched the India Semiconductor Mission (ISM) 2.0, aimed at strengthening the country’s semiconductor ecosystem and moving beyond assembly into high-value segments such as semiconductor intellectual property (IP) and raw materials. The mission builds on ISM 1.0 and focuses on producing equipment and materials, developing full-stack Indian IP, reinforcing supply chains, and establishing industry-led research and training centers to foster technological innovation and a skilled workforce.
Alongside ISM 2.0, the government announced customs duty exemptions to support related industries. TV equipment, cameras, and other instruments imported by foreign film or TV units for shooting will be exempt from April 1. Similarly, parts used in video game manufacturing will also receive a duty waiver.
The Electronics Components Manufacturing Scheme, initially launched in April 2025 with a ₹22,919 crore outlay, will now be expanded to ₹40,000 crore to capitalize on growing investor interest. Ten semiconductor manufacturing and packaging projects have been approved across six states, representing a total investment of about ₹1.6 lakh crore. Three dedicated chemical parks will also be established to enhance domestic production and reduce import dependence.
Industry leaders welcomed the initiatives. Avneet Singh Marwah, CEO of SPPL, said the measures provide a strong platform to accelerate India’s semiconductor and electronics ecosystem, emphasizing the need for design-linked incentives, deeper component localization, and strengthened supply chains. Arijeet Talapatra, CEO of TECNO India, highlighted the potential for large-scale, future-ready employment for engineers, technicians, and skilled workers, and noted that ISM 2.0 will enable deeper local innovation and globally competitive products.
These steps reflect a strategic push to enhance electronics manufacturing, strengthen supply chains, and position India as a hub for high-value semiconductor production, while supporting industry growth and job creation across the sector.
