The Cabinet Committee on Economic Affairs has approved a large policy package covering semiconductor manufacturing, mobile phone production, highways, and fertiliser investment. The package combines ₹1.27 lakh crore for Semicon 2.0, ₹62,500 crore for a mobile phone manufacturing scheme, ₹25,400 crore for two highway projects in Varanasi, and a new National Investment Policy for Urea.

The package matters because it addresses four linked policy goals: strengthening domestic manufacturing, encouraging research and development, easing urban congestion through roads, and reducing dependence on imported fertilisers. For UPSC, the development sits squarely in GS3 under the themes of industrial policy, infrastructure, supply chains, and agricultural inputs.

What the Cabinet approved

The Cabinet approved four components:

₹1.27 lakh crore for a second India Semiconductor Mission, described as Semicon 2.0.₹62,500 crore for a mobile phone manufacturing scheme.Two highway projects in Varanasi with a combined cost of ₹25,400 crore.A new National Investment Policy for Urea.

Background and earlier position