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The Union Cabinet has approved India Semiconductor Mission

ICICIdirect Research 16 Jul 2026 DISCLAIMER

News: The Union Cabinet has approved India Semiconductor Mission (ISM) 2.0 with an outlay of ₹1.27 trillion to strengthen India's semiconductor ecosystem. The scheme expands incentives across chip design, semiconductor materials, equipment, specialty chemicals, fabrication, packaging, and R&D, with incentive support ranging from 30–40% for manufacturing and up to 75% for R&D and talent development.

View: ISM 2.0 materially strengthens the long-term growth outlook for CG Power by improving policy support, reducing funding constraints, and accelerating the commercialization of its semiconductor business. Larger incentives under ISM 2.0 can lower project costs and improve returns on its semiconductor investment. While the financial contribution is expected to remain modest in the near term, the initiative enhances the company's long-term earnings. 

Impact: Positive

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