In a major push towards strengthening India’s technology and infrastructure capabilities, the Union Cabinet has approved projects worth ₹18,500 crore focused on semiconductor manufacturing and critical infrastructure upgrades.
According to official statements, a significant portion of the funding will be directed towards advancing India’s semiconductor fabrication and assembly ecosystem. The move aims to reduce import dependence, enhance domestic chip production, and support the country’s ambition to become a global hub for electronics manufacturing. The government is expected to extend fiscal incentives, infrastructure support, and research grants to encourage both domestic and international companies to set up facilities in India.
The remaining allocation will be invested in key infrastructure projects, including logistics hubs, industrial corridors, and modernisation of power and transport systems. These initiatives are designed to improve ease of doing business, attract foreign investment, and accelerate industrial growth.
Industry experts believe the Cabinet’s decision will have a dual impact—strengthening India’s strategic position in the global semiconductor supply chain while creating thousands of jobs through large-scale infrastructure development.
The projects will be implemented in phases, with regular progress reviews to ensure timely execution.
