India Supports Electronics Manufacturing with Semicon 2.0

The Government of India has approved the second phase of the India Semiconductor Mission (ISM 2.0), allocating approximately ₹1.27 lakh crore to strengthen the country's semiconductor ecosystem. Alongside this, a ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) has also been approved, supporting India's efforts to expand domestic electronics manufacturing and strengthen its position in global technology supply chains.

The expanded programme seeks to support semiconductor fabrication, assembly, testing, packaging, design capabilities, manufacturing equipment, specialty materials, and the broader electronics value chain. The initiative is expected to encourage investments across multiple segments of the domestic manufacturing ecosystem while aiming to reduce import dependence over the long term.

The announcement reflects the Government's continued focus on developing strategic manufacturing capabilities and strengthening India's position in advanced electronics. As the semiconductor ecosystem expands, allied industries such as electronic manufacturing services (EMS), industrial automation, electrical equipment, precision engineering, and technology hardware may benefit from increased localisation and capacity creation.

As a house, we maintain exposure to companies operating across India's electronics manufacturing, industrial technology, and semiconductor ecosystem through our actively managed mutual fund portfolios.

Source: Reuters. Data as on: 15 July 2026

*Portfolio allocation as on 30th June 2026. Allocations are subject to change based on portfolio positioning, investment decisions, and market conditions.

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