Cabinet Clears ₹2.19 Lakh Crore Package, With Semicon 2.0 at Its Core

The Union Cabinet approved seven big-ticket decisions on 15 July 2026, led by a fresh semiconductor mission and a new mobile phone manufacturing scheme.

What the Cabinet Approved

On 15 July 2026, the Union Cabinet signed off on seven decisions with a combined outlay of about ₹2,19,353 crore. Information and Broadcasting Minister Ashwini Vaishnaw briefed reporters on the package.

It pairs two high-tech manufacturing pushes with infrastructure works and a farm-sector policy, spreading spending across chips, electronics, roads, railways and fertiliser.

“Seven major decisions were taken today.”
— Union Minister Ashwini Vaishnaw

Semicon 2.0 and a Mobile Manufacturing Boost

The centrepiece is Semicon 2.0, a ₹1,27,500 crore programme that builds on the first Semiconductor Mission. It follows a six-pillar plan spanning chip design, fabs, materials, R&D and skilling. Alongside it, the Cabinet cleared a Mobile Phone Manufacturing Scheme worth ₹62,500 crore.

Officials noted that the earlier phase had already backed 12 manufacturing units, with the wider ecosystem now counting startups, university programmes and tens of thousands of trained students. The first fab is expected to be commissioned by 2028.

Beyond Chips: Roads, Rail and Urea

The rest of the package reached across regions. Two elevated corridors in Varanasi were approved — along the Varuna river (₹10,998 crore) and the Ganga (₹14,448 crore) — plus two eastern railway works.

A new National Investment Policy for Urea-2026 rounds out the list, aimed at moving India closer to self-reliance in fertiliser production.

Key points

• Total outlay of roughly ₹2,19,353 crore across seven Cabinet decisions, approved on 15 July 2026.
• Semicon 2.0 gets ₹1,27,500 crore under a six-pillar plan, with the first fab targeted for 2028.
• A new Mobile Phone Manufacturing Scheme is backed with ₹62,500 crore.
• Varanasi gains two elevated corridors (₹10,998 crore and ₹14,448 crore); two eastern rail projects were also cleared.
• A National Investment Policy for Urea-2026 targets greater fertiliser self-reliance.

Sources: Free Press Journal · Republic World · Sentinel Assam