New Delhi, July 15 -- The Union cabinet on Wednesday unveiled a new phase of India's manufacturing strategy, approving incentive programmes for semiconductors, mobile phones and fertilizers that shift policy focus from simply attracting factories to building domestic technology, brands and value addition.

At the centre of the package is Semicon 2.0, a Rs.1.27 trillion programme aimed at helping Indian companies design chips, generate patents and develop local research capabilities. The cabinet also cleared a Rs.62,500 crore mobile phone manufacturing scheme that rewards companies for sourcing more components locally and gives Indian brands additional incentives to invest in product design and R&D.

Separately, the cabinet approved a new ...