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Module 4 • High-Tech Industrial Policy2026-07-2416 min read

National Manufacturing Mission, Semiconductor Mission 2.0 & Biopharma SHAKTI (2025–26): High-Tech Industrial Architecture

Target Exam: UPSC & State PSCs National Current Affairs•Official Sources: India National State Gazettes, Budget & Official ReleasesUnion Budget, PIB, Economic Survey & National Official Releases

1. National Manufacturing Mission: Strategic Pillars

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Policy Genesis: Announced to propel manufacturing value added from ~15% to 25% of GDP and integrate Indian enterprises into global value chains (GVCs).
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Enterprise Coverage: Explicitly encompasses micro, small, medium, and large industrial enterprises across tier-1 to tier-3 manufacturing belts.
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Five Focus Areas:
1.
Ease and Cost of Doing Business: Regulatory rationalization, power tariff rationalization, and single-window industrial clearances.
2.
Future Frontier Sectors: Clean energy technologies, semiconductor hardware, advanced robotics, precision polymers, and advanced materials.
3.
Industrial Clean Energy Transition: Decarbonizing industrial heat, circular economy, and adoption of green hydrogen in steel and chemicals.
4.
MSME Integration into Global Value Chains: Quality upgradation, Zero Defect Zero Effect (ZED) certifications, and supplier development programs.
5.
R&D, Innovation & High Standards: Industry-academia joint laboratories, testing infrastructure, and alignment with BIS and ISO global standards.

2. India Semiconductor Mission (ISM) 2.0: Deepening the Ecosystem

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Evolution beyond ISM 1.0: While ISM 1.0 (₹76,000 crore outlay) catalyzed commercial chip foundries and ATMP/OSAT plants, ISM 2.0 expands horizontal and vertical depth:
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Core Verticals: Semiconductor manufacturing equipment, specialty chemicals, ultra-pure gases, silicon wafers, and fabless chip design.
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Design-Linked Incentive (DLI): Financial incentives and Electronic Design Automation (EDA) tool access to domestic startups and MSMEs.
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Anchor Commercial Projects (Approved & Operationalising):
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Tata Electronics & PSMC: Commercial fab at Dholera, Gujarat (₹91,000 crore; 28nm, 50nm, 55nm nodes).
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Tata Semiconductor Assembly and Test (TSAT): OSAT facility at Jagiroad, Morigaon (Assam) (₹27,000 crore).
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Micron Technology: Advanced ATMP unit at Sanand, Gujarat (US$2.75 billion).
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CG Power & Renesas: OSAT plant at Sanand, Gujarat (₹7,600 crore).
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Kaynes Semicon: Advanced OSAT facility at Sanand, Gujarat (₹3,307 crore).

3. Electronics Component Manufacturing Scheme & Domestic Containers

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Electronics Component Scheme (₹40,000 Crore):
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Formulated to bridge the critical supply deficit in active/passive electronic components, multi-layer PCBs, display assemblies, and camera modules.
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Counterbalances component import dependence (over 65% historically sourced from East Asia) to build resilient domestic supply networks.
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Domestic Cargo Container Manufacturing Scheme (₹10,000 Crore):
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Eliminates international container shortages that periodically destabilized Indian engineering and agricultural exports.
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Focuses on major maritime clusters like Bhavnagar (Gujarat) and Paradip (Odisha), incentivizing Corten steel fabrication and container certification.

4. Biopharma SHAKTI: Next-Generation Therapeutics

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Total Outlay & Tenure: ₹10,000 crore allocated over 5 years to establish India as a global biopharmaceutical hub.
•
Core Technological Verticals:
1.
Biotherapeutics & Biosimilars: Scaling complex biological drugs, monoclonal antibodies, and therapeutic proteins.
2.
Cell & Gene Therapies (CGT): Indigenizing CAR-T cell manufacturing and targeted mRNA platforms.
3.
Critical APIs & Key Starting Materials (KSMs): Strategic de-risking of active pharmaceutical ingredient supply chains.
4.
Regulatory & Clinical Infrastructure: Advanced CDSCO testing labs, bio-foundries, and accredited clinical trial networks.
Key Examination Takeaways:
  • National Manufacturing Mission focuses on 5 core pillars spanning MSMEs to heavy industry to raise manufacturing GDP share.
  • Semiconductor Mission 2.0 moves up the value chain to specialized equipment, gases, chemicals, and fabless IP design.
  • Tata Fab at Dholera (Gujarat) and OSAT at Morigaon (Assam) mark historic geopolitical milestones in domestic microelectronics.
  • Biopharma SHAKTI provides ₹10,000 Cr over 5 years for biosimilars, cell & gene therapies, and critical API de-risking.
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Q1

What is the total financial outlay approved for the Biopharma SHAKTI initiative over a period of 5 years?

Q2

India's first commercial semiconductor fabrication plant by Tata Electronics in partnership with PSMC is being established at which location?

Q3

At which location in Assam is Tata Semiconductor Assembly and Test (TSAT) establishing its ₹27,000-crore greenfield OSAT facility?

Q4

What is the budgetary outlay approved for the Scheme for Promotion of Manufacturing of Electronic Components in India?

Q5

Which industrial city in Gujarat has been developed as India's premier manufacturing hub for domestic cargo containers under the ₹10,000-crore scheme?

Q6

How many core focus areas are defined under the National Manufacturing Mission announced in Union Budget 2025–26?

Q7

What is the primary technological focus of the India Semiconductor Mission (ISM) 2.0 compared to ISM 1.0?

Q8

Given below are two statements, one labeled as Assertion (A) and the other as Reason (R): Assertion (A): The India Semiconductor Mission (ISM) 2.0 expands financial incentives to semiconductor manufacturing equipment and fabless design. Reason (R): Sustainable technological sovereignty in microelectronics requires robust backward linkages beyond packaging and assembly (OSAT). In the context of the above statements, which one of the following is correct?

Q9

Consider the following statements regarding the National Manufacturing Mission: 1. It exclusively targets Micro, Small, and Medium Enterprises (MSMEs) and excludes heavy industries. 2. One of its five primary focus areas is facilitating the integration of domestic MSMEs into Global Value Chains (GVCs). 3. It incorporates regulatory rationalization and the lowering of power tariffs to enhance competitiveness. Which of the statements given above are correct?

Q10

With reference to the India Semiconductor Mission (ISM) projects, consider the following pairs: 1. Tata Electronics Commercial Fab — Dholera, Gujarat 2. TSAT OSAT Packaging Unit — Jagiroad, Assam 3. CG Power & Renesas OSAT — Sanand, Gujarat How many of the above pairs are correctly matched?

Q11

Consider the following statements regarding the Biopharma SHAKTI scheme: 1. It has been approved with a budgetary allocation of ₹10,000 crore spread over five years. 2. Its focus areas include indigenizing Cell and Gene Therapies (CGT) and scaling biosimilars. 3. It aims to eliminate supply-chain vulnerabilities in Key Starting Materials (KSMs) and Active Pharmaceutical Ingredients (APIs). Which of the statements given above are correct?

Q12

Consider the following statements regarding India's domestic Cargo Container Manufacturing Scheme: 1. A dedicated financial outlay of ₹10,000 crore has been sanctioned to support domestic container fabrication. 2. The scheme aims to mitigate severe shipping container deficits that escalate freight rates for Indian exporters. 3. Paradip in Odisha and Bhavnagar in Gujarat have been designated as key maritime production centers. Which of the statements given above are correct?

Q13

Which of the following is/are among the policy incentives provided under the Design-Linked Incentive (DLI) scheme of India Semiconductor Mission? 1. Financial reimbursement of up to 50% of eligible expenditure for semiconductor design. 2. Free access to advanced Electronic Design Automation (EDA) tools through a national portal. 3. Mandatory 100% equity transfer to the Central Government upon commercialization. Select the correct answer using the code given below:

Q14

Consider the following statements regarding the Scheme for Promotion of Manufacturing of Electronic Components (₹40,000 Cr): 1. It seeks to reduce India's import dependence on multi-layer PCBs and passive surface-mount components. 2. It replaces the Production Linked Incentive (PLI) scheme for Large Scale Electronics. 3. The scheme addresses the inverted duty structure historically prevalent in electronic hardware manufacturing. Which of the statements given above is/are correct?

Q15

Match List-I (Industrial Scheme / Facility) with List-II (Core Mandate / Location): List-I: (a) Tata Electronics Fab (b) TSAT Greenfield OSAT (c) Biopharma SHAKTI (d) Container Scheme Hub List-II: 1. Jagiroad, Morigaon (Assam) 2. Dholera (Gujarat) 3. Bhavnagar (Gujarat) 4. Biosimilars & CAR-T Therapy Select the correct code: (a) (b) (c) (d)

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