India Semiconductor Mission (ISM) 2.0 MCQ - Practice Questions with Answers

Both statements are correct. The Union Cabinet approved ISM 1.0 on 15 December 2021 with a ₹76,000 crore incentive outlay. Later, the Union Budget 2026-27 announced ISM 2.0 and made a separate ₹1,000 crore provision for it in FY 2026-27.

The four components divide the value chain clearly: semiconductor fabs support silicon wafer fabrication; display fabs support advanced displays; the compound-semiconductor scheme covers sensors and assembly/testing/packaging; and the Design Linked Incentive supports semiconductor design and deployment.

ISM 2.0 deepens the ecosystem created under the first phase. Its stated focus is domestic production of semiconductor equipment and materials, full-stack Indian intellectual property, stronger domestic and global supply chains, and industry-led research and training centres.

The India Semiconductor Mission is a central-sector umbrella programme administered by the Ministry of Electronics and Information Technology. Its nodal implementing body is the India Semiconductor Mission, an independent business division of Digital India Corporation.

Under the Design Linked Incentive Scheme, the product-design incentive can cover up to 50% of eligible expenditure, subject to a ceiling of ₹15 crore for each application. This is distinct from the separate deployment-linked incentive of 4-6% of net sales over 5 years.