Cabinet Approves Major Initiatives to Boost India's Manufacturing and Infrastructure

In a meeting chaired by Prime Minister Narendra Modi, the Union Cabinet and the Cabinet Committee on Economic Affairs (CCEA) approved several key initiatives aimed at enhancing the country's manufacturing capabilities, infrastructure, agriculture, transportation, and maritime sectors. Union Minister for Information and Broadcasting Ashwini Vaishnaw shared insights on these decisions, emphasizing the government's ambition to establish India as a self-reliant, technologically advanced global manufacturing hub.

The Cabinet has sanctioned the Mobile Phone Manufacturing Scheme (MPMS) with a budget allocation of ₹62,500 crores. This initiative, effective from FY 2026-27 to 2030-31, will provide incentives ranging from 2.25% to 5% for mobile phone production in India. Additionally, there will be an extra 1.5% incentive for purchasing major components domestically and a 3% incentive for research and development (R&D) conducted by Indian brands. The government anticipates that this scheme will generate approximately ₹39 lakh crores in mobile production, significantly boost exports, and create around 60,000 direct jobs, further solidifying India's position as a global mobile manufacturing center following the PLI scheme.

To further accelerate the electronics sector, the government has also approved Semicon 2.0 with a budget of ₹1.27 lakh crores. This program will focus on six key pillars: chip design, manufacturing machinery and raw materials, establishing new fabs, expanding ATMP/OSAT units, R&D, and talent development. The aim is to position India as a leader in the global semiconductor design and manufacturing landscape. So far, 12 manufacturing units have been approved under Semicon 1.0, with 105 startups actively engaged in chip design.

The Cabinet has also approved two ambitious projects for Varanasi, Prime Minister Modi's parliamentary constituency. The first project involves constructing a 46.04-kilometer six-lane elevated corridor parallel to the Ganges from NH-19 to the Varanasi Ring Road, with an estimated cost of ₹14,447.64 crores. The second project will create a 43.22-kilometer elevated corridor from NH-31 to the Varanasi Ring Road along the Varuna River, costing ₹10,998.32 crores. These projects are expected to significantly reduce traffic congestion in the city, halve travel time, and improve connectivity to key locations such as Kashi Vishwanath Dham, BHU, railway stations, airports, and major logistics hubs, aligning with the PM Gati Shakti National Master Plan for enhanced multimodal connectivity.

In the railway sector, the Cabinet has approved two multi-tracking projects in Odisha and Jharkhand, with a combined cost of approximately ₹3,907 crores. These include the doubling of the Paradip-Haridaspur rail section and the construction of a fourth line on the Rajkharsawan-Dangoaposi section. These initiatives will expand the Indian Railways network by about 145 kilometers, improve rail connectivity for 1,526 villages and nearly 14 lakh people, and expedite the transportation of coal, iron ore, limestone, and other minerals. Additionally, it will develop an extra 44 million tons of freight capacity annually, reducing logistics costs and promoting environmental sustainability.

To enhance self-sufficiency in agriculture, the Cabinet has approved the National Urea Investment Policy-2026 (NIPU-2026). This policy will encourage the establishment of new gas-based urea plants in the country. According to the government, the new policy includes provisions for transparent cost determination, a return on equity of 12% to 16%, and measures to mitigate foreign exchange risks. It is estimated that each new plant will save over ₹250 crores and reduce dependency on imports.

Furthermore, the government has granted in-principle approval for two strategic maritime projects. A greenfield shipbuilding cluster will be developed over approximately 2,000 acres in Porbandar, Gujarat, while a state-of-the-art ship repair facility will be established in Vadinar at a cost of ₹1,570 crores. These projects are expected to significantly enhance India's shipbuilding and repair capabilities, reduce reliance on foreign repairs for large commercial vessels, and create new employment and investment opportunities.

Overall, these decisions by the Union Cabinet are seen as steps forward in promoting the visions of 'Make in India', 'Self-Reliant India', 'PM Gati Shakti', and 'Developed India'. Spanning high-tech sectors like mobile and semiconductors to infrastructure in railways, roads, fertilizers, and maritime, these initiatives aim to boost manufacturing capacity, create jobs, lower logistics costs, encourage exports, and further empower India as a global economic powerhouse.