UPSC Prelims Practice Questions — Budget 2026-27 announces the launch of India Semiconductor Mission (ISM) 2.0

Q1. The India Semiconductor Mission (ISM) 2.0, announced in the Union Budget 2026-27, is operationalised under which one of the following Union ministries?

  • A. Ministry of Electronics and Information Technology
  • B. Ministry of Heavy Industries
  • C. Ministry of Science and Technology
  • D. Ministry of Commerce and Industry

Q2. Which one of the following best describes the primary new thrust of ISM 2.0 that distinguishes it from the original 2021 mission?

  • A. Developing indigenous semiconductor equipment and materials and full-stack Indian IP
  • B. Attracting foreign silicon wafer fabrication (fab) units through 50% fiscal support
  • C. Establishing display fabrication units for LCD and OLED panels
  • D. Setting up Assembly, Testing, Marking and Packaging (ATMP/OSAT) facilities

Q3. Under the original Semicon India Programme (2021), the day-to-day implementation of the semiconductor and display schemes is carried out by the India Semiconductor Mission, which functions as a division of which one of the following?

  • A. Digital India Corporation
  • B. Centre for Development of Advanced Computing (C-DAC)
  • C. Software Technology Parks of India (STPI)
  • D. Semiconductor Complex Limited

Q4. In the categories of fiscal support offered under the Semicon India Programme, the term 'ATMP' most precisely refers to which one of the following?

  • A. Assembly, Testing, Marking and Packaging
  • B. Advanced Technology Manufacturing Programme
  • C. Automated Testing and Materials Processing
  • D. Assembly, Testing, Modification and Production

Q5. Which one of the following statements most accurately describes the institutional status of the India Semiconductor Mission (ISM)?

  • A. An independent business division within Digital India Corporation under MeitY
  • B. A statutory authority created by an Act of Parliament
  • C. A public sector undertaking wholly owned by MeitY
  • D. A constitutional body attached to the NITI Aayog

Q6. Consider the following schemes: 1. Semiconductor Fabs Scheme 2. Display Fabs Scheme 3. Design Linked Incentive (DLI) Scheme 4. Electronics Components Manufacturing Scheme (ECMS) Which of the above are correctly identified as component schemes forming part of the Semicon India Programme?

  1. Semiconductor Fabs Scheme
  2. Display Fabs Scheme
  3. Design Linked Incentive (DLI) Scheme
  4. Electronics Components Manufacturing Scheme (ECMS)
  • A. 1, 2 and 3
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1, 3 and 4

Q7. The Electronics Components Manufacturing Scheme (ECMS), whose outlay was raised in the Union Budget 2026-27, is implemented by which one of the following ministries?

  • A. Ministry of Electronics and Information Technology
  • B. Department for Promotion of Industry and Internal Trade
  • C. Ministry of Heavy Industries
  • D. Ministry of Micro, Small and Medium Enterprises

Q8. Consider the following statements regarding announcements made in the Union Budget 2026-27: 1. A provision of ₹1,000 crore was made for ISM 2.0 for FY 2026-27. 2. The outlay of the Electronics Components Manufacturing Scheme was raised to ₹40,000 crore. 3. ISM 2.0 focuses on producing semiconductor equipment and materials within India. 4. ISM 2.0 was given a fresh total outlay of ₹76,000 crore. Which of the statements given above are correct?

  1. A provision of ₹1,000 crore was made for ISM 2.0 for FY 2026-27.
  2. The outlay of the Electronics Components Manufacturing Scheme was raised to ₹40,000 crore.
  3. ISM 2.0 focuses on producing semiconductor equipment and materials within India.
  4. ISM 2.0 was given a fresh total outlay of ₹76,000 crore.
  • A. 1, 2 and 3
  • B. 1, 3 and 4
  • C. 2, 3 and 4
  • D. 1, 2 and 4

Q9. Among the units approved under the India Semiconductor Mission, which one is India's first commercial silicon wafer fabrication (fab) plant and the largest by committed investment?

  • A. Tata Electronics' fab at Dholera, Gujarat (in partnership with PSMC, Taiwan)
  • B. Micron's unit at Sanand, Gujarat
  • C. CG Power–Renesas unit at Sanand, Gujarat
  • D. Kaynes Semicon unit at Sanand, Gujarat

Q10. As of December 2025, how many semiconductor projects had been approved under the India Semiconductor Mission?

  • A. 6
  • B. 8
  • C. 10
  • D. 12

Q11. According to World Economic Forum–Kearney estimates cited in 2025-26, which one of the following has announced the LARGEST government support package for the semiconductor sector?

  • A. China
  • B. United States (CHIPS Act)
  • C. European Union
  • D. India (Semicon India Programme)