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Cabinet Approves ₹1.27 Lakh Crore India Semiconductor Mission 2.0 for Chip Supply Chain

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains HighStatic GK Link
16 Jul 2026
~2 min
Source: Indian Express
Key Data:₹1.27 lakh croreISM 2.0 6-year duration40% subsidy silicon fabs35% subsidy other fabs35% advanced packaging subsidyIndia-UK CETA 99% Indian goods duty-free
Bodies:NPCILCERT-InReliance InfrastructureYottaWorld Leaks ransomware groupUnion CabinetIndia Semiconductor MissionPLA NavyIAEA
Practice MCQs from today's news ▸
What This Article Covers

1.NPCIL confirms Kudankulam data breach (14.3 GB, 19,000+ files) is limited to conventional Balance of Plant systems; critical nuclear networks remain air-gapped. CERT-In investigating.

2.Cabinet approves India Semiconductor Mission 2.0 with ₹1.27 lakh crore outlay over 6 years, focusing on supply chain subsidies (gases, chemicals), R&D, and talent development.

3.India-UK CETA kicks in: 99% of Indian goods enter UK duty-free or with reduced tariffs; UK car tariffs drop from 110% to 30% in year one; whisky tariff falls from 150% to 75% initially.

The Big Picture
Prelims · HighMains · High

A single edition of UPSC Key covers four high-impact stories: NPCIL confirms Kudankulam data breach is limited to non-critical Balance of Plant systems; Cabinet approves ISM 2.0 with ₹1.27 lakh crore outlay to deepen semiconductor supply chain; India-UK CETA comes into force with major tariff cuts on cars and whisky; China tests its first submarine-launched ICBM in international waters, raising concerns for the Indo-Pacific.

Exam Lens

Quick Exam Facts From News

Kudankulam Units6 units of VVER (Pressurised Water Reactors). Units 1 & 2 operational; Units 3 & 4 due by 2027.
Data Breach Size14.3 GB, 19,000+ files, published by World Leaks ransomware group on dark web.
ISM 2.0 Outlay₹1.27 lakh crore over 6 years. FY 2026-27 Budget: ₹1,000 crore.
ISM 2.0 Subsidy CutsSilicon fabs: 40% (was 50%); other fabs: 35%; advanced packaging: 35%; conventional packaging: 25%.
India-UK CETA TariffsUK cars: 110%→30% in year 1, 10% by year 5. Quota: 20,000→37,000 cars. Scotch whisky: 150%→75% initially, 40% by year 10.
India-UK Trade VolumeMerchandise: $25.1 bn (2025-26); Services: $35.4 bn (2024). Target to double ~£48 bn trade by 2030.
China ICBM TestSubmarine-launched (Type 094 SSBN, Jin-class). Warhead travelled 7,300 km. Possible JL-2 (8,000-9,000 km range) or JL-3 (>9,000 km range).

1-Minute Revision

  • ›Kudankulam Units: 6 units of VVER (Pressurised Water Reactors). Units 1 & 2 operational; Units 3 & 4 due by 2027.
  • ›Data Breach Size: 14.3 GB, 19,000+ files, published by World Leaks ransomware group on dark web.
  • ›Target this Data: Kudankulam data breach - 14.3 GB, 19,000+ files, World Leaks ransomware, Yotta server, Reliance Infrastructure EPC contract (2018)
  • ›Target this Nodal Body: NPCIL (Nuclear Power Corporation of India Limited) under Department of Atomic Energy
  • ›Target this Scheme: India Semiconductor Mission 2.0 - ₹1.27 lakh crore outlay, 6-year duration, 40% subsidy for silicon fabs, 35% for advanced packaging
  • ›Target this Legal Point: India-UK CETA includes Double Contribution Convention (DCC) for social security - 60-month exemption for Indian professionals

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which organisation is primarily responsible for the operation and maintenance of nuclear power plants in India, including the Kudankulam Nuclear Power Plant?

Q2Statement-basedHard

Consider the following statements regarding the India-UK Comprehensive Economic and Trade Agreement (CETA):

1. Under CETA, 99% of Indian goods entering the UK will either be duty-free or attract reduced tariffs.

2. The agreement reduces tariffs on imported British cars from up to 110% to 30% in year one, with a quota of 20,000 vehicles.

3. Agriculture and dairy products are fully included in the tariff reduction commitments.

Which of the statements given above is/are correct?

Q3Data-centricMedium

What is the total outlay approved by the Union Cabinet for the India Semiconductor Mission (ISM) 2.0?

Q4Application/ImpactMedium

What is the primary objective behind reducing the uniform 50% capex subsidy in ISM 1.0 to differential subsidies (40% for silicon fabs, 35% for others) in ISM 2.0?

All 25 MCQs ▸
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