India Accelerates Industrial Strategy Across Semiconductors, Electronics, Space And EVs

New Delhi, Jul 31 (KNN) India is accelerating its industrial strategy across semiconductors, electronics, commercial space, green mobility, rare earths, shipbuilding and coal gasification to reduce import dependence, strengthen domestic manufacturing and build resilient supply chains, according to the July Monthly Economic Review.

The review said strategic manufacturing initiatives gained momentum during the month through new policy measures, project launches and developments across key sectors.

Semiconductor Manufacturing Gets Major Push

Commercial production has commenced at the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, established under the India Semiconductor Mission.

The facility will produce chips for automotive, telecom, artificial intelligence and consumer electronics sectors, including for export markets, reported ANI.

The Union Cabinet also approved Semicon 2.0 with an outlay of Rs 1.27 lakh crore and a new Mobile Phone Manufacturing Scheme worth Rs 62,500 crore.

The semiconductor programme covers chip design, fabrication, packaging, equipment, research and workforce development, while the mobile phone scheme provides production-linked incentives and additional support for domestic sourcing and R&D.

Sectoral Growths

In the commercial space sector, Skyroot Aerospace's Vikram-1 became the first privately developed Indian rocket to reach orbit, marking progress in India's commercial space and high-technology manufacturing capabilities.

The government is also promoting domestic production of sintered rare earth permanent magnets to reduce import dependence and strengthen supply chains for electric vehicles, renewable energy, electronics, aerospace and defence.

In shipbuilding, India achieved the Maritime India Vision 2030 ship-recycling target five years ahead of schedule. Implementation is also progressing on the Rs 69,725 crore shipbuilding package aimed at expanding domestic capacity and increasing value addition.

The government has further advanced coal gasification with the foundation stone laid for India's first commercial-scale coal-to-ammonium nitrate project in Odisha. Implementation of the coal and lignite gasification promotion scheme is also underway.

India's clean mobility push gained momentum with the introduction of the country's first hydrogen fuel cell-powered train on the Jind-Sonipat route in Haryana. The indigenously developed train uses hydrogen fuel cells and lithium iron phosphate batteries and emits only water vapour.

Regulatory Reforms To Support Industrial Growth

The review said regulatory reforms, including easier compliance for manufacturers operating in Special Economic Zones and a risk-based quality control framework, are complementing the industrial initiatives.

Together, these measures are aimed at strengthening domestic manufacturing capabilities, improving supply-chain resilience and reducing India's dependence on concentrated import sources across strategic sectors.

(KNN Bureau)