India Semiconductor Mission 2.0: EFC Approves ₹1.25 Lakh Crore Outlay to Boost Domestic Chip Ecosystem

In a major boost to India's high-tech manufacturing ambitions, the Expenditure Finance Committee (EFC) under the Union Finance Ministry has cleared a massive ₹1.25 lakh crore outlay for the India Semiconductor Mission (ISM) 2.0. This represents a significant expansion from the ₹76,000 crore allocated under the initial phase (ISM 1.0), reflecting the government's strategic commitment to establishing India as a global hub for electronics manufacturing and design. While ISM 1.0 focused primarily on attracting mega-fabs and establishing foundational joint ventures, ISM 2.0 adopts a more holistic, ecosystem-wide approach. The enhanced funding will support not only chip fabrication and design but also micro, small, and medium enterprises (MSMEs) and critical ancillary suppliers. This includes domestic production of specialty chemicals, gases, and capital equipment, which are vital for semiconductor manufacturing but have historically been heavily import-dependent. By strengthening these upstream and downstream linkages, the government aims to fulfill up to 75% of India's domestic semiconductor demand locally by 2030.