Summary:

The Indian government intends to launch a design-linked incentive (DLI) scheme worth Rs. 34,228 crore (US$ 4 billion) to enhance electronics design capabilities and reduce import dependency. The scheme will offer incentives based on capital investment and company turnover across 30 semiconductor and 30 electronics sectors. The initiative, expected to receive cabinet approval soon, aims to drive innovation, increase revenue, and protect global supply chains from disruptions.

The proposed strategy seeks to reduce India's reliance on imports while fostering the growth of world-class technology companies. Building on Meity's 2021 DLI initiative under the India Semiconductor Mission, the new effort will incentivize product design, fabless chipmakers, ODMs, and OEMs. Products include modems, Wi-Fi chips, 5G receivers, and EV power electronics. The goal is to strengthen domestic brands, mitigate geopolitical risks, and boost exports.

Source: IBEF

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