India Clears Rs 1.9 Trillion Manufacturing Push, Targeting 100-Plus Imports
Updated
Updated · Swarajya · Jul 16
India Clears Rs 1.9 Trillion Manufacturing Push, Targeting 100-Plus Imports
3 articles · Updated · Swarajya · Jul 16
Summary
Rs 1.9 trillion in new support was cleared for chip and smartphone manufacturing, alongside a policy push to raise domestic fertiliser output after Hormuz-linked shortages.
More than 100 goods categories are being mapped for import substitution, with ministries weighing subsidies and other incentives across electronics, chemicals, drugs, autos, machinery and semiconductors.
A Modi office taskforce led by Principal Secretary Shaktikanta Das is preparing the blueprint as India tries to shield supply chains, curb reliance on Chinese inputs and ease pressure on the rupee.
Fertilisers are an early target: the government aims to cut imports 30% in three years by reviving idle domestic plants, reflecting wider concern that war and export controls could choke critical supplies.
Is India's manufacturing investment truly about self-sufficiency or a direct challenge to China's global dominance?
With massive subsidies on offer, can India overcome its infamous red tape to become the next manufacturing hub?
As India builds advanced chip factories, does it have the skilled talent required to operate them successfully?
India’s $19.7 Billion Electronics & Semiconductor Push: Inside the 2026 Modi Cabinet Initiative to Build a Global Manufacturing Powerhouse
Overview
In July 2026, the Modi Cabinet approved a landmark $19.7 billion initiative to boost India’s ambition of becoming a global hub for electronics and semiconductor manufacturing. This major investment is anchored by the Semicon 2.0 and Mobile Phone Manufacturing Scheme, aiming to deepen domestic value addition, foster local component manufacturing, and cultivate indigenous smartphone brands. The initiative targets production worth ₹39 lakh crore, exports of ₹15 lakh crore, and the creation of 60,000 direct jobs. Together, these efforts mark a strategic shift in India’s industrial landscape, strengthening its position in the global electronics and semiconductor industry.