Chapter 9 · Topic 9.3 · Prelims + Mains3 of 3
Information Technology: Digital India and semiconductors
Key points
- Digital India: 2015, 10 years on 1 July 2025.
- Internet: 25.15 crore (2014) to 96.96 crore (2024).
- DigiLocker: 53.92 crore users. BharatNet: 2.18 lakh GPs.
- ISM: Rs 76,000 crore. Fab: Tata-PSMC, Dholera.
- HCL-Foxconn JV: Jewar, UP. SiCSem: Odisha.
3 PYQs 2016–2026
Prelims box: facts and traps
- Micron's Sanand ATMP unit (approved June 2023, about Rs 22,516 crore) assembles and tests DRAM and NAND memory.
- Trap (Prelims 2018): building internet giants like China and a big-data-centre policy were not Digital India aims.
- Trap (Prelims 2026): HCL-Foxconn is in Uttar Pradesh, not Madhya Pradesh.
Digital India
Digital India was launched in 2015 to use technology to make life easier for every Indian. It marked 10 years on 1 July 2025 (PIB, 30 Jun 2025). PIB reports these gains:
- internet connections rose from 25.15 crore in 2014 to 96.96 crore in 2024,
- 4.74 lakh 5G towers cover 99.6% of districts,
- UPI (the instant phone-to-phone payment system) handled 1,867.7 crore transactions worth Rs 24.77 lakh crore in April 2025,
- BharatNet has connected 2.18 lakh gram panchayats with high-speed internet.
| Indicator | Value | Status |
|---|---|---|
| Internet connections | 25.15 crore (2014) to 96.96 crore (2024) | measured |
| 5G towers | 4.74 lakh; 99.6% of districts | measured |
| UPI, April 2025 | 1,867.7 crore transactions; Rs 24.77 lakh crore | measured |
| DigiLocker users | 53.92 crore | measured |
| UMANG | 2,300 services in 23 languages | measured |
| Digital economy share of GDP | 11.74% (2022-23); 13.42% (2024-25) | measured; projection |
Source: PIB, 30 Jun 2025. The 2024-25 GDP share is a projection.
DigiLocker is a digital locker system offered by the Government under the Digital India Programme. It lets you access your e-documents, such as your marksheet or driving licence, irrespective of your physical location (Prelims 2016: answer (c)). PIB counts 53.92 crore DigiLocker users (PIB, 2025).
Regarding ‘DigiLocker’, sometimes seen in the news, which of the following statements is/are correct? 1. It is a digital locker system offered by the Government under Digital India Programme. 2. It allows you to access your e-documents irrespective of your physical location. Select the correct answer using the code given below.
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Show answer
Answer: (c) · UPSC official key
Which was an aim of the Digital India plan? UPSC’s key: only to connect many of our villages to the internet and bring Wi-Fi to schools, public places and major tourist centres. Building India’s own internet giants “like China” and the data-centre policy were not listed aims (Prelims 2018: answer (b), 3 only).
Which of the following is/are the aim/aims of ‘Digital India’ Plan of the Government of India ? 1. Formation of India’s own Internet companies like China did. 2. Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centres within our national geographical boundaries. 3. Connect many of our villages to the Internet and bring Wi-Fi to many of our schools, public places and major tourist centres. Select the correct answer using the code given below :
- 1 and 2 only
- 3 only
- 2 and 3 only
- 1, 2 and 3
Show answer
Answer: (b) · UPSC official key
Mains 2015 asked how the Digital India programme can help farmers improve farm productivity and income. Points: weather and price information on phones, online markets, soil and crop advisories, direct benefit transfers (money sent straight to bank accounts) and digital payments, all resting on rural broadband such as BharatNet.
How can the ‘Digital India’ programme help farmers to improve farm productivity and income? What steps has the Government taken in this regard?
Semiconductors: the India Semiconductor Mission
A semiconductor chip is a tiny slice of silicon that acts as the brain of electronics. Chips power phones, cars, defence and medical devices. India launched the India Semiconductor Mission with an outlay of Rs 76,000 crore to build fabrication (fab) plants, where chips are made, and assembly-and-testing (ATMP/OSAT) plants, where chips are packed and checked (PIB Factsheet, 15 Aug 2025).
| Approved | Company | Location | Type / capacity |
|---|---|---|---|
| Jun 2023 | Micron Technology | Sanand, Gujarat | ATMP |
| Feb 2024 | Tata Electronics with PSMC (Taiwan) | Dholera, Gujarat | Fab; 50,000 wafers/month |
| Feb 2024 | CG Power with Renesas and Stars | Sanand, Gujarat | 15 million chips/day |
| Feb 2024 | Tata Semiconductor Assembly and Test (TSAT) | Morigaon, Assam | 48 million chips/day |
| Sep 2024 | Kaynes Semicon | Sanand, Gujarat | 6.33 million chips/day |
| May 2025 | HCL-Foxconn JV | Jewar, Uttar Pradesh | 20,000 wafers/month |
| Aug 2025 | SiCSem; 3D Glass Solutions | Bhubaneswar, Odisha | SiC wafers; glass panels |
| Aug 2025 | CDIL; ASIP | Mohali, Punjab; Andhra Pradesh | Discrete devices; packaging |
Source: PIB Factsheet, 15 Aug 2025. Capacities are planned, not output.
So in 2026 the wrong pair was HCL-Foxconn Joint Venture India Chip Ltd with Madhya Pradesh. PIB places the HCL-Foxconn JV at Jewar, Uttar Pradesh. CG Power (Gujarat), Tata’s assembly plant (Assam) and SiCSem (Odisha) were correctly matched (Prelims 2026: answer (c)).
Which one of the following pairs of semiconductor plants in India and their locations is not correctly matched ?
- CG Power and Industrial Solutions Pvt. Ltd. in partnership with Renesas Electronics and STARS Microelectronics : Gujarat
- Tata Semiconductor Assembly and Test Pvt. Ltd. : Assam
- HCL-Foxconn Joint Venture India Chip Ltd. : Madhya Pradesh
- SicSem Pvt. Ltd. : Odisha
Show answer
Answer: (c) · UPSC provisional key (final key awaited)
Mains 2025 noted that India aims to become a semiconductor manufacturing hub and asked about the challenges. Points:
- huge capital cost,
- need for pure water, steady power and chemicals,
- a thin supplier base,
- skills. PIB notes an AICTE curriculum for VLSI (chip design) and chip making, and a plan to develop 85,000 skilled workers.
India aims to become a semiconductor manufacturing hub. What are the challenges faced by the semiconductor industry in India? Mention the salient features of the India Semiconductor Mission.
What UPSC asks: Prelims: Digital India 2015, ISM Rs 76,000 crore, HCL-Foxconn at Jewar. Mains: DigiLocker, BharatNet.
Mains box: analysis and answer points
- Digital India for farmers: information, markets, payments.
- Chip hub: challenges and skills plan.
Practice
Practice MCQs (8)
With reference to SEMICON India, consider the following statements:
1. It is organised by the India Semiconductor Mission in partnership with SEMI, the global industry association of the semiconductor and electronics supply chain.
2. Its 2025 edition was held at Yashobhoomi in New Delhi.
3. Its first edition was held at Gandhinagar in 2023.
Which of the statements given above is/are correct?
Answer (d) & explanation
Statements 1 and 2 are correct. SEMICON India is co-hosted by ISM and SEMI (Semiconductor Equipment and Materials International), the global body of equipment, materials and manufacturing companies that runs SEMICON shows worldwide. Editions have been held in Bengaluru (2022), Gandhinagar (2023), Greater Noida (2024) and New Delhi (Yashobhoomi, 2-4 September 2025), where the first set of made-in-India chips, including ISRO-SCL's VIKRAM3201, was presented to the Prime Minister. Statement 3 is wrong because the first edition was in Bengaluru in 2022.
The Design Linked Incentive (DLI) Scheme under the Semicon India Programme mainly supports
Answer (b) & explanation
The DLI Scheme, with an outlay of about Rs 1,000 crore, supports domestic companies, especially start-ups and MSMEs, at each stage of semiconductor design: integrated circuits, chipsets, systems-on-chip, systems and IP cores. It reimburses part of design expenditure (up to Rs 15 crore per company), offers deployment-linked incentives on sales, and gives access to EDA tools and design infrastructure. Large fabs are covered by the separate fab scheme, not by DLI.
With reference to the India Semiconductor Mission (ISM), consider the following statements:
1. The Union Cabinet approved the Semicon India Programme, with an outlay of Rs 76,000 crore, in December 2021.
2. ISM functions as a specialised and independent business division within the Digital India Corporation.
3. Under the scheme for semiconductor fabs, the Centre offers fiscal support of up to 75 percent of the project cost.
Which of the statements given above is/are correct?
Answer (c) & explanation
Statements 1 and 2 are correct. The Semicon India Programme (Programme for Development of Semiconductors and Display Manufacturing Ecosystem) was approved in December 2021 with Rs 76,000 crore; ISM, its nodal agency, is a specialised, independent business division within the Digital India Corporation under MeitY. Statement 3 is wrong: the fab and display-fab schemes offer support of up to 50 percent of project cost on a pari-passu basis (and the compound/ATMP/OSAT scheme up to 50 percent of capital expenditure). States usually add their own incentives on top.
With reference to the announcements on electronics and semiconductors in the Union Budget 2026-27, consider the following statements:
1. India Semiconductor Mission 2.0 will focus on producing semiconductor equipment and materials, designing full-stack Indian IP and strengthening supply chains.
2. A provision of Rs 1,000 crore was made for ISM 2.0 for the year 2026-27.
3. The Electronics Components Manufacturing Scheme (ECMS), launched in April 2025, provides fiscal support for logic-chip fabs below 28 nm.
Which of the statements given above is/are correct?
Answer (b) & explanation
Statements 1 and 2 are correct. The Union Budget 2026-27 announced ISM 2.0 to produce equipment and materials, design full-stack Indian intellectual property and fortify supply chains, with a focus on industry-led research and training centres, and made a provision of Rs 1,000 crore for 2026-27. Statement 3 is wrong: the ECMS (Rs 22,919 crore, launched April 2025, outlay proposed to rise to Rs 40,000 crore) supports electronic components and sub-assemblies such as passive components, PCBs, camera and display modules; chip fabs are supported under the Semicon India Programme.
Consider the following States:
1. Uttar Pradesh
2. Punjab
3. Karnataka
4. Tamil Nadu As per the projects approved under the India Semiconductor Mission up to the Cabinet decision of 5 May 2026, how many of the above States host an approved semiconductor manufacturing or packaging unit?
Answer (b) & explanation
Two of them. By 5 May 2026 the 12 approved ISM projects were in six States: Gujarat (Micron, Tata-PSMC, CG Power, Kaynes, Crystal Matrix, Suchi Semicon), Assam (Tata TSAT), Uttar Pradesh (HCL-Foxconn, Jewar), Odisha (SiCSem, 3D Glass Solutions), Punjab (CDIL, Mohali) and Andhra Pradesh (ASIP). Karnataka and Tamil Nadu host large chip-design centres and electronics assembly, but no ISM-approved fab or packaging unit in that list.
India's first commercial semiconductor fab, approved in February 2024 and being built by Tata Electronics at Dholera in Gujarat, has as its technology partner
Answer (a) & explanation
On 29 February 2024 the Cabinet approved the Tata Electronics-PSMC fab at Dholera, with an investment of about Rs 91,000 crore and a capacity of 50,000 wafer starts per month, for mature nodes of 28 nm and above (logic for automotive, power and display uses). Its partner is Powerchip (PSMC) of Taiwan, not TSMC. On the same day the Cabinet approved Tata's assembly and test unit at Jagiroad, Morigaon (Assam) and the CG Power- Renesas-Stars OSAT unit at Sanand; Renesas is a partner of CG Power, and Micron runs its own ATMP plant at Sanand.
Consider the following pairs of units approved under the India Semiconductor Mission and what they will make: Unit — Main output
1. Micron Technology, Sanand — Assembly and test of memory chips
2. SiCSem, Bhubaneswar — Silicon carbide compound semiconductor devices
3. Continental Device India (CDIL), Mohali — Display driver chips for smartphones
4. 3D Glass Solutions, Bhubaneswar — LCD television panels
How many of the pairs given above are correctly matched?
Answer (b) & explanation
Two pairs are correct. Micron's Sanand ATMP unit (approved June 2023, about Rs 22,516 crore) assembles and tests DRAM and NAND memory. SiCSem (with Clas-SiC, UK; approved 12 August 2025) will be India's first commercial compound fab, making silicon carbide devices. Pair 3 is wrong: CDIL is expanding its Mohali plant for discrete power devices (MOSFETs, IGBTs, Schottky diodes, transistors); display driver chips are the output of the HCL- Foxconn unit at Jewar, Uttar Pradesh. Pair 4 is wrong: 3D Glass Solutions will make glass substrates and advanced packaging modules, not display panels.
With reference to the semiconductor projects approved by the Union Cabinet on 5 May 2026, consider the following statements:
1. Crystal Matrix Limited will set up the country's first commercial Mini/Micro-LED display facility based on gallium nitride technology at Dholera.
2. Suchi Semicon will set up an outsourced semiconductor assembly and test (OSAT) facility for discrete semiconductors at Surat.
3. Both units will be located in Odisha, alongside the compound semiconductor fab approved in August 2025.
Which of the statements given above is/are correct?
Answer (a) & explanation
Statements 1 and 2 are correct. On 5 May 2026 the Cabinet approved two more ISM projects worth about Rs 3,936 crore, both in Gujarat: Crystal Matrix at Dholera, an integrated compound semiconductor fab and ATMP unit for GaN-based Mini/Micro-LED display modules (also offering GaN epitaxy foundry services on 6-inch wafers), described as the first commercial facility of its kind; and Suchi Semicon at Surat, an OSAT unit for discrete semiconductors. PIB stated that the total number of approved ISM projects then reached 12, with about Rs 1.64 lakh crore of investment. The Odisha units (SiCSem, 3D Glass Solutions) were approved earlier, on 12 August 2025.
0 / 0 correct
Prelims PYQs on this topic (2)
Which of the following is/are the aim/aims of ‘Digital India’ Plan of the Government of India ?
- 1. Formation of India’s own Internet companies like China did.
- 2. Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centres within our national geographical boundaries.
- 3. Connect many of our villages to the Internet and bring Wi-Fi to many of our schools, public places and major tourist centres.
Select the correct answer using the code given below :
Answer (b) & explanation
Only statement 3 is correct (b). Digital India, launched in July 2015, has three vision areas: digital infrastructure as a basic utility for every citizen, governance and services on demand, and digital empowerment of citizens. Connecting villages through BharatNet broadband and bringing public Wi-Fi to schools, public places and tourist spots fits the first area (3). Creating Chinese-style national internet giants (1) and forcing foreign firms to localise their data centres (2) were not among its stated aims.
Its nine pillars include broadband highways, universal mobile access, e-Kranti and electronics manufacturing. Notice where data localisation came in later: the RBI's 2018 rule on payment data and the DPDP Act, 2023, which allows cross-border transfers except to blacklisted countries.
Answer as per the official UPSC answer key.
Regarding ‘DigiLocker’, sometimes seen in the news, which of the following statements is/are correct?
- 1. It is a digital locker system offered by the Government under Digital India Programme.
- 2. It allows you to access your e-documents irrespective of your physical location.
Select the correct answer using the code given below.
Answer (c) & explanation
Both statements are correct (c). DigiLocker, launched by MeitY in 2015 under the Digital India programme (1), is a cloud-based document wallet linked to Aadhaar. Agencies such as transport departments, CBSE, universities and UIDAI issue documents into it directly, and users can open them from anywhere (2). Under the IT Rules (2016 amendment), documents in DigiLocker are legally valid like physical originals. Police can accept a digital driving licence and registration certificate under the Motor Vehicles rules.
Today it has hundreds of millions of users and links to ABHA health records and the Academic Bank of Credits. Notice that it is part of India's Digital Public Infrastructure stack, alongside Aadhaar, UPI and e-Sign.
Answer as per the official UPSC answer key.
Mains PYQs on this topic (1)
Write an answer
In 150 words, explain the significance of Information Technology with one recent example.
Flashcards (5)
DigiLocker users (2025)?
53.92 crore.
Gram panchayats connected by BharatNet?
2.18 lakh.
India Semiconductor Mission outlay?
Rs 76,000 crore.
Where is the HCL-Foxconn chip JV?
Jewar, Uttar Pradesh.
Where is the Tata-PSMC fab?
Dholera, Gujarat.
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