New Delhi : The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved a series of landmark decisions aimed at strengthening India’s semiconductor ecosystem, expanding domestic manufacturing, promoting self-reliance in fertiliser production, and accelerating infrastructure development across the country.
Briefing the media after the Cabinet meeting, Union Minister for Electronics & Information Technology, Railways and Information & Broadcasting Shri Ashwini Vaishnaw outlined the key decisions approved by the government.
India’s Semiconductor Mission Gets Major Boost with Semicon 2.0
In a major step towards establishing India as a global semiconductor hub, the Cabinet approved Semicon 2.0, a comprehensive initiative focused on developing the country’s semiconductor design and manufacturing ecosystem.
The programme has received a total budgetary allocation of ₹1,27,500 crore, aimed at strengthening semiconductor capabilities, encouraging advanced technology investments, and creating a robust ecosystem for chip manufacturing and innovation within India.
The initiative is expected to support India’s vision of becoming self-reliant in critical technologies and reducing dependence on global supply chains.
Mobile Phone Manufacturing Scheme to Strengthen Electronics Manufacturing
The Union Cabinet also approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore.
The scheme will be implemented from Financial Year 2026–27 to 2030–31 and is aimed at further expanding India’s mobile manufacturing capabilities, promoting domestic production, attracting investments, and strengthening the electronics manufacturing sector.
The initiative aligns with the government’s vision of Atmanirbhar Bharat and positioning India as a major global manufacturing destination.
National Investment Policy for Urea Sector Approved
To enhance self-sufficiency in fertiliser production, the Cabinet approved the National Investment Policy for Urea-2026 (NIPU-2026).
The policy aims to encourage fresh investments in the urea sector and facilitate the establishment of gas-based urea manufacturing units across the country.
The move is expected to reduce dependence on imported urea, ensure greater availability of fertilisers for farmers, and contribute towards the goal of achieving self-reliance in the agriculture sector.
Major Road Infrastructure Projects Approved in Varanasi
The Cabinet also approved significant road infrastructure projects aimed at improving urban mobility and reducing congestion in Varanasi, Uttar Pradesh.
A 43.2-kilometre, 6/4-lane Elevated Corridor connecting NH-31 and Varanasi Ring Road along the River Varuna has been approved at a cost of ₹10,998.32 crore.
The project will help decongest Varanasi city, improve traffic movement, and provide better connectivity for commuters and businesses.
Additionally, the Cabinet approved a 6-lane Greenfield Elevated Corridor between NH-19 and Varanasi Ring Road at an estimated cost of ₹14,447.64 crore.
The project will be developed under the Hybrid Annuity Model (HAM) and is expected to significantly enhance urban transport infrastructure and connectivity in the region.
Railway Network Expansion in Odisha and Jharkhand
The Cabinet also approved two multitracking railway projects with a total investment of ₹3,907 crore.
These projects will cover four districts across Odisha and Jharkhand and will expand the Indian Railways network by approximately 145 kilometres.
The railway expansion will improve connectivity, enhance freight and passenger movement, support regional economic growth, and strengthen the overall transportation network in eastern India.
Government’s Focus on Technology, Self-Reliance and Infrastructure Growth
The latest Cabinet decisions reflect the government’s continued focus on building a strong domestic manufacturing ecosystem, promoting advanced technologies, achieving self-reliance in critical sectors, and improving infrastructure connectivity.
Through initiatives spanning semiconductors, electronics manufacturing, fertiliser production, highways, and railways, the government aims to accelerate economic growth and strengthen India’s position as a globally competitive economy.
