CURRENT AFFAIRS | 1 APRIL 2026
CLAT GK + ECONOMIC POLICY & INDUSTRIAL LAW
– PLI (Production Linked Incentive) scheme for electronics
– SEZ Act 2005 (Special Economic Zones)
– India Semiconductor Mission under MeitY
– Make in India initiative and FDI policy (100% in electronics)
– Supply chain disruption due to geopolitical conflicts
What Happened: India’s Second Semiconductor Facility Goes Live
Prime Minister Narendra Modi on 31 March 2026 inaugurated the Rs 3,300 crore semiconductor facility of Kaynes Semicon at Sanand GIDC, Ahmedabad, Gujarat. Speaking at the event, PM Modi said the “biggest victim of conflicts is the global supply chain” and urged building a full-stack Indian chip ecosystem.
Key highlights of the facility:
- Type: OSAT (Outsourced Semiconductor Assembly and Test) facility
- Investment: Rs 3,300 crore (~$400 million)
- Capacity: 6 million chips per day (6.3 million at full scale)
- Products: Intelligent Power Modules (IPMs) used in EVs, industrial systems, energy-efficient appliances
- First Client: Already shipping to Alpha and Omega Semiconductor (California, US)
- Significance: India’s second operational semiconductor facility after Micron Technology
PLI Scheme: The Production Linked Incentive scheme provides financial incentives (4-6% of incremental sales) to boost domestic manufacturing and attract large investments in key sectors including electronics and semiconductors.
SEZ Act, 2005: Provides the framework for creating Special Economic Zones to promote exports and attract investment. SEZs offer tax holidays, duty-free imports, and simplified regulations. Sanand is part of Gujarat’s industrial zone ecosystem.
India Semiconductor Mission (ISM): Launched under MeitY (Ministry of Electronics and Information Technology) with an outlay of Rs 76,000 crore to build a complete semiconductor ecosystem in India.
FDI Policy: India allows 100% FDI under the automatic route in electronics manufacturing, including semiconductors — no government approval needed.
Make in India (2014): The overarching initiative encouraging companies to manufacture in India with simplified regulations and infrastructure support.
India’s Semiconductor Roadmap
India’s semiconductor market is currently valued at approximately Rs 4.5 lakh crore, with ambitious targets of building a $400 billion electronics market and a $103 billion semiconductor market by 2030.
| Facility | Kaynes Semicon OSAT, Sanand, Gujarat |
| Investment | Rs 3,300 crore (~$400M) |
| Capacity | 6 million chips/day |
| India Semiconductor Market | Rs 4.5 lakh crore |
| Target by 2030 | $103 billion semiconductor market |
| Gujarat Semiconductor Plants | 4 (3 in Sanand, 1 in Dholera) |
| First Fab (Dholera) | Expected by 2028 |
| Pax Silica | India joined (critical mineral supply chains) |
Supply Chain and Geopolitical Context
PM Modi’s emphasis on self-reliance in semiconductors comes amid:
- The ongoing Iran-US war disrupting global supply chains through the Strait of Hormuz
- US-China tech competition with chip export controls
- The global push for semiconductor sovereignty (US CHIPS Act, EU Chips Act)
- India joining Pax Silica — an initiative to secure critical mineral supply chains for chip manufacturing
Under Semicon 2.0, PM Modi has directed that the entire ecosystem — machines, gases, and chemicals — should be available in India. The target: top 6 semiconductor nations by 2032, top 3 by 2047.
– GK Section: PLI scheme, India Semiconductor Mission, Kaynes Semicon, Sanand, OSAT
– Legal Knowledge: SEZ Act 2005, FDI policy (100% automatic route), Make in India
– Economic Policy: Import substitution, supply chain resilience, critical minerals
– Geopolitics: US CHIPS Act, Pax Silica, semiconductor sovereignty
– Previous CLAT pattern: Questions on government schemes, FDI limits, and industrial policy
C — Critical minerals (Pax Silica)
H — Hundred percent FDI (automatic route)
I — India Semiconductor Mission (Rs 76,000 cr)
P — PLI scheme (production incentives)
S — SEZ Act 2005 (tax holidays, duty-free)
Source: Business Today, DD News, Techlusive, Swarajya, India Briefing — 31 March 2026
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