ISM 2.0 to catalyse investments, boost self-reliance: NITI Aayog's Abhay Karandikar
- IBEF
- October 13, 2026
India Semiconductor Mission 2.0 is expected to strengthen domestic semiconductor capabilities, attract investments and advance technological self-reliance by expanding the country’s role across the semiconductor value chain. Launched under the Union Budget 2026-27, the second phase focuses on manufacturing semiconductor equipment and materials in India, alongside designing indigenous, full-stack semiconductor intellectual property (IP). The initiative aims to enable companies to develop semiconductor technologies and fabricate chips domestically, strengthening India’s technological sovereignty and reducing dependence on external supply chains. The government has earmarked an initial outlay of Rs. 1,000 crore (US$ 105.21 million) for FY2026-27. Dr. Abhay Karandikar, Member of NITI Aayog, highlighted that the programme could catalyse substantial investments and help complete the domestic semiconductor value chain. The initiative also aligns with India’s broader ambition to become a developed economy by 2047 through science, technology and innovation. As semiconductors become increasingly critical to digital infrastructure and industrial ecosystems, expanding domestic design and fabrication capabilities is expected to strengthen supply-chain resilience and create opportunities for technology development and advanced manufacturing.
The mission forms part of a broader government push to strengthen research, development and innovation across strategic technology sectors. The Rs. 1 lakh crore (US$ 10.52 billion) Research, Development and Innovation Scheme, approved by the Union Cabinet, aims to catalyse private-sector investment in research and development over six years, including Rs. 20,000 crore (US$ 2.10 billion) allocated for FY2025-26. Other initiatives include the Anusandhan National Research Foundation, National Quantum Mission, India AI Mission, National Green Hydrogen Mission and National Mission on Interdisciplinary Cyber-Physical Systems. Together, these programmes are intended to expand domestic research capabilities, strengthen industry partnerships and accelerate the commercialisation of emerging technologies. The cyber-physical systems mission also supports translational research and the wider adoption of validated technologies through industry collaboration. By integrating semiconductor design, equipment and materials manufacturing with research and innovation programmes, India aims to build a more comprehensive technology ecosystem, encourage private investment, improve domestic capabilities and strengthen its participation in global technology supply chains.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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