Match the following categories under the India Semiconductor Mission (ISM) 2.0 with their proposed capital expenditure subsidy rates: List I (Category) List II (Subsidy Rate) A. Silicon fabs 1. 25% B. Other fabs and advanced packaging 2. 35% C. Conventional packaging 3. 40% How many of the above pairs are correctly matched?
Economy · 18 Jul 2026
ISM 2.0 tiered subsidy structure
About this question
Why in news
The Union Cabinet approved ISM 2.0 with an outlay of ₹1.27 lakh crore, replacing the flat 50% capital subsidy under ISM 1.0 with a tiered structure and removing central subsidies for land acquisition and technology transfer.
Why for UPSC
UPSC's Match-the-Pairs format often deliberately shuffles closely-spaced numerical values to test precise recall rather than approximate understanding - exactly the discipline required here between the 40%, 35% and 25% tiers.
Prelims summary
ISM 2.0 replaces the uniform 50% capex subsidy with a tiered structure: 40% for silicon fabs, 35% for other fabs/advanced packaging and 25% for conventional packaging.
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