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1 September 2026

Government notifies India Semiconductor Mission (ISM 2.0)

The India Semiconductor Mission is a flagship national policy aimed at critical technology indigenization and economic growth, making it a highly probable topic for direct questions in GS3 and GS2.

1 min read Day 10 of 10 2 questions 2 prelims

Notes

  • The Ministry of Electronics and Information Technology has notified the second phase of the India Semiconductor Mission (ISM 2.0).
  • ISM 2.0 has a total financial outlay of ₹1.28 lakh crore.
  • The scheme features six pillars: design, machines and materials, fabs, packaging and testing, research and development (R&D), and talent development.
  • Capital subsidies for setting up fabs have been adjusted to 40% in ISM 2.0, down from 50% in ISM 1.0, due to increased industry interest and state-level support.
  • Packaging and testing facilities are eligible for capital subsidies.
  • R&D projects and talent development initiatives are eligible for subsidies of up to 75% of the project cost.
  • The six pillars of the scheme are fungible, allowing for flexibility in the allocation of investments.
  • The policy aims to enhance India's position in the global electronics supply chain by fostering indigenous production, design, and industry dependence.

Part of a longer story

This is day 10 of 10 in India Semiconductor Mission implementation, which has been running since 1 July 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

Questions

  1. Discuss the significance of the India Semiconductor Mission (ISM 2.0) in strengthening India's position within the global electronics supply chain. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. The transition from ISM 1.0 to ISM 2.0 reflects a strategic shift in incentivizing the semiconductor ecosystem. Analyze the role of the six pillars of ISM 2.0 in promoting self-reliance and technological sovereignty in India's electronics manufacturing sector. 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. Which of the following is NOT one of the six pillars of the India Semiconductor Mission (ISM 2.0)?

  2. What is the maximum subsidy percentage provided for R&D projects under the India Semiconductor Mission (ISM 2.0)?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-09-01/government-notifies-india-semiconductor-mission-ism-2-0