According to MeitY Secretary, India Semiconductor Mission 2.0 will guarantee long-term policy stability

Government Plans ISM 2.0 to Sustain India’s Semiconductor Push, Says MeitY Secretary

The Government of India is preparing to launch the India Semiconductor Mission (ISM) 2.0 to sustain and accelerate the country’s growing domestic chip manufacturing ecosystem, a senior official said on Thursday.

“The announcement on the India Semiconductor Mission 2.0 is very timely and significant, and will ensure that the momentum we built through ISM 1.0 continues for another five to six years,” said S Krishnan, Secretary, Ministry of Electronics and Information Technology (MeitY).

Speaking to the media, Krishnan said the second phase will build on the progress of the initial programme and reflects the government’s long-term, steady policy support for the semiconductor sector.

‘Tech budget’ focus

Calling the current fiscal roadmap a “tech budget,” Krishnan highlighted several measures aimed at strengthening India’s electronics and digital infrastructure.

A key announcement includes nearly doubling the outlay for electronic component manufacturing to ₹40,000 crore, a move expected to boost local production and attract global investments.

The government also sees India emerging as a global data centre hub, backed by new tax clarity for foreign companies.

“There is an announcement that foreign entities can use data centres in India for international operations. These firms store data here and process it abroad. Taxation rules have now been clarified,” Krishnan said.

Internet governance and AI push

On digital policy, the Secretary stressed the importance of a multi-stakeholder approach to internet governance, noting India’s scale.

“India has around 100 crore internet users, while globally there are about 500 crore. Managing and administering the internet responsibly is critical,” he said.

Meanwhile, preparations are underway for the India AI Summit, which has already drawn strong interest.

• Registrations exceed 70,000

• Expected to cross 1 lakh participants

• Interest coming from both domestic and global stakeholders

Investment momentum continues

Krishnan added that recent reforms and investments are making it easier for global capability centres and electronics manufacturing companies to set up operations in India.

“The preparation is going well,” he said, referring to upcoming technology missions and summits.

With ISM 2.0 on the horizon, the government aims to maintain policy continuity and deepen India’s role in the global semiconductor and electronics supply chain, positioning the country as a long-term manufacturing and technology hub.