Modi Cabinet Approves $19.7 Billion for Chips and Smartphones as India Targets 100-Plus Imports
Updated
Updated · Moneycontrol · Jul 16
Modi Cabinet Approves $19.7 Billion for Chips and Smartphones as India Targets 100-Plus Imports
3 articles · Updated · Moneycontrol · Jul 16
Summary
$19.7 billion in new support for chip and smartphone production was approved by Modi’s cabinet, expanding India’s push to build domestic manufacturing capacity.
The move is part of a broader import-substitution plan covering more than 100 products, with ministries weighing subsidies and other incentives to replace heavily imported goods.
India’s urgency has risen after the Iran war exposed supply vulnerabilities, driving energy shortages, swelling import bills and pressuring the rupee to record lows.
China remains a key weak point: India imported nearly $775 billion of goods in the year through March, with almost one-fifth coming from China alone.
Officials are also targeting a 30% cut in fertilizer imports over three years, underscoring Modi’s wider goal of narrowing the trade deficit and positioning India as a manufacturing alternative to China.
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.