India weighs VC co-investment under ISM 2.0 to deepen electronics supply chain

The government is considering co-investing with venture capital funds under India Semiconductor Mission 2.0, alongside support for chip design, manufacturing, materials, R&D and talent. The ₹1.27 lakh crore programme could strengthen domestic electronics supply resilience for consumer-device brands.

— Filed Mon, 3 Aug, 2026, 16:01 IST · Source ET Small Business · Updated

India plans ISM 2.0 co-investment with venture capital funds to expand semiconductor design, manufacturing, materials, R&D and talent. The programme broadens eligibility to domestic companies, India-based foreign entities and OCI cardholders, supporting local electronics supply-chain resilience.

Why this matters

No related recent signals are provided. The proposed VC co-investment model broadens ISM 2.0 beyond direct semiconductor support toward earlier-stage supply-chain investment.

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