Science & Technology★ Must Know

Finance Ministry Panel Clears Rs 1.25 Lakh Crore Outlay for India Semiconductor Mission 2.0

By TestNeeti Editorial TeamPublished Tuesday, 30 June 2026 2 min readSource: The Times of IndiaArticle 2 of 5

On 30 June 2026, the Expenditure Finance Committee (EFC) under the Finance Ministry cleared a proposal for a Rs 1.25 lakh crore outlay for India Semiconductor Mission (ISM) 2.0, the second phase of India's push to build a domestic chip-manufacturing ecosystem, according to sources. The clearance, taken in a meeting held the previous week, paves the way for the proposal to be taken up by the Union Cabinet for final approval. ISM 2.0 aims to advance India's global chip-making ambitions and cement its position as a semiconductor destination, building on the first phase of the India Semiconductor Mission (launched in 2021 with a ~Rs 76,000 crore outlay). The new phase is expected to deepen incentives across fabs, packaging, materials and the broader supply chain.

Key Facts & Details

9 points

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The Finance Ministry's Expenditure Finance Committee (EFC) cleared a Rs 1.25 lakh crore outlay for India Semiconductor Mission (ISM) 2.0 (reported 30 June 2026).
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The proposal now goes to the Union Cabinet for final approval.
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ISM 2.0 is the second phase of India's domestic chip-manufacturing push.
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It aims to strengthen India as a global semiconductor manufacturing destination.
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It builds on the first India Semiconductor Mission (launched 2021, ~Rs 76,000 crore outlay).
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The new phase is expected to widen support across fabs, packaging, materials and the supply chain.

Deep Dive

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The Expenditure Finance Committee vets large Budget/scheme proposals before Cabinet approval.
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India's first semiconductor-mission phase anchored projects like the Micron (Sanand) assembly plant and Tata-PSMC fab (Dholera).
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Chip self-reliance is a strategic priority given global supply-chain concentration and export controls.

Exam Focus

What outlay did the Finance Ministry's EFC clear for India Semiconductor Mission 2.0 in June 2026, and what is the next approval step?

Exam Relevance & Angle

Semiconductor policy is a recurring economy/S&T current-affairs theme. Examiners test the mission name (ISM 2.0), the Rs 1.25 lakh crore outlay, the approving body (EFC/Finance Ministry) and the link to self-reliant chip manufacturing — all directly testable here.

Target Exams

SBI POSBI ClerkIBPS POIBPS ClerkIBPS RRB OfficerIBPS RRB AssistantRBI Grade BRBI AssistantNABARD Grade ASSC CGLSSC CHSLRRB NTPCLIC AAOUPSC CSEState PCS

Background & Context

The India Semiconductor Mission (ISM) was launched in 2021 under the Ministry of Electronics and IT (MeitY) with an initial outlay of about Rs 76,000 crore to build a domestic semiconductor and display-manufacturing ecosystem through incentives for fabs, assembly/testing/packaging (ATMP/OSAT) and design. The Expenditure Finance Committee (EFC) is a Finance Ministry body that appraises and approves the financial outlay of major government schemes/projects before they go to the Union Cabinet. A robust domestic chip industry is treated as strategically vital because semiconductors underpin electronics, defence, automobiles and AI, and global supply is concentrated in a few countries.