New Delhi: The Union Cabinet on Wednesday approved a series of major decisions to strengthen India’s manufacturing sector, improve infrastructure and boost self-reliance.
The approvals include a new mobile phone manufacturing scheme, Semicon 2.0, a fresh urea investment policy, and two major road projects in Varanasi, according to an official statement.
The Cabinet, chaired by Prime Minister Narendra Modi, approved the Mobile Phone Manufacturing Scheme with a budget outlay of Rs 62,500 crore. The scheme will run from FY2026-27 to FY2030-31 and offer incentives for mobile phone production, domestic sourcing of key components, and product design and research. The government expects the initiative to generate nearly Rs 39 lakh crore worth of mobile phone production and create around 60,000 direct jobs.
The Cabinet also cleared Semicon 2.0 with a budget outlay of Rs 1.27 lakh crore. The programme aims to strengthen India’s semiconductor ecosystem by supporting chip design, manufacturing, packaging, research, materials and talent development.
It builds on the progress made under Semicon 1.0, under which 12 semiconductor manufacturing projects have already been approved.
Another key decision was the approval of the National Investment Policy for Urea-2026. The policy seeks to attract investment in new gas-based urea plants and increase domestic fertiliser production. It introduces a revised return on equity framework, improves cost transparency, and includes measures to reduce foreign exchange risks.
The government estimates savings of more than Rs 250 crore for every new plant established under the policy compared with the previous investment framework.
The Cabinet Committee on Economic Affairs (CCEA) also approved a 46.039-km Ganga Link Corridor in Varanasi at a cost of Rs 14,447.64 crore. The elevated corridor will connect NH-19 with the Varanasi Ring Road. It is expected to ease congestion, improve travel time and strengthen connectivity to major transport hubs and religious landmarks, including the Kashi Vishwanath Temple.
In another infrastructure boost, the CCEA approved a 43.218-km Varuna Link Corridor connecting NH-31 with the Varanasi Ring Road at a cost of Rs 10,998.32 crore. The project aims to improve urban mobility, reduce travel time, enhance logistics and support economic growth across eastern Uttar Pradesh.
The latest Cabinet decisions reflect the Centre’s continued focus on expanding advanced manufacturing, strengthening domestic supply chains, improving transport infrastructure and supporting long-term economic growth across key sectors.
