Finance Ministry Clears ₹1.25 Lakh Crore for ISM 2.0 — Cabinet Approval Next
The Expenditure Finance Committee cleared a ₹1.25 lakh crore outlay for India Semiconductor Mission 2.0 on July 1 — 65% larger than ISM 1.0's ₹76,000 crore. The proposal now goes to Cabinet for final approval.
The Finance Ministry's Expenditure Finance Committee (EFC) approved the ISM 2.0 spending proposal on July 1, 2026. The cleared outlay of ₹1.25 lakh crore (USD 13.21 billion) is substantially larger than the ₹76,000 crore ISM 1.0 corpus — a 65% increase. The proposal now awaits Union Cabinet approval before the scheme formally launches.
ISM 2.0 covers semiconductor equipment manufacturing, specialty materials and chemicals, indigenous chip design IP, industry-led training centres, and supply chain resilience — the ecosystem depth that ISM 1.0's facility-creation focus left unaddressed. The FY 2026-27 allocation specifically earmarks ₹1,000 crore for industry-led research and training centres, with a target of expanding C2S from 315 to 500 enrolled institutions.
ISM CEO Amitesh Kumar Sinha confirmed at a July 8 online event that ISM 2.0 will "broaden the eligibility criteria and enhance the incentive system" for chip design startups and the broader ecosystem. With EFC clearance done, the scheme is in its final bureaucratic step before applications open.
Cabinet approval of ISM 2.0 is the direct trigger for the ₹1,000 crore training centre grant scheme to open for applications. An announcement at Semicon India 2026 (September 17–19) is widely anticipated — the event is the most visible platform for a policy launch of this scale. Institutions that have already started a programme, registered on the ISM Investors Support Portal, and signed a facility MoU will be in a categorically different position when applications open than those that have not. The gap between an early applicant and a late one compounds quickly in a first-come, milestone-linked disbursement scheme.