India is set to go big on semiconductors in the upcoming Budget, with the government preparing to roll out the India Semiconductor Mission (ISM) 2.0 by March-end. The Ministry of Electronics and IT (MeitY) has completed industry consultations, and inter-ministerial discussions are in the final stages. Approvals for new proposals under ISM are expected by February 2026. The next phase will broaden the mission’s scope, providing incentives for both mature and advanced process nodes, alongside separate quotas for manufacturing categories. While the incentive support could be marginally trimmed compared to ISM 1.0, the aim is to shift from confidence-building to creating a more sustainable ecosystem. Two additional proposals are likely to be cleared as part of ISM 2.0. The delay in announcing the new phase stemmed from tighter scrutiny and extended consultations, signalling a more calibrated yet ambitious semiconductor push in the upcoming fiscal.