Aiming to cut imports, the Indian government might soon roll out a $4 billion boost for chip and electronics design, sparking innovation in its ESDM ecosystem.
India is reportedly preparing to launch a design-linked incentive (DLI) scheme worth up to $4 billion. According to a Reuters report, the initiative aims to strengthen the country’s electronics and semiconductor design ecosystem over the coming years.
The scheme will support companies across 30 semiconductor and 30 electronics product categories. These include modems, Wi-Fi chips, NFC chips, geolocation chips, 5G radio frequency receivers, power electronics for electric vehicles (EVs), smart meters, inverters, home gateways, and industrial control systems.
Beneficiary firms will be rewarded based on their capital investment and turnover. The broader goal is to enhance domestic value addition (DVA) in manufacturing, aiming to raise it to 60 per cent. India currently relies heavily on imports in these sectors.
This scheme is part of a larger push by the government to promote domestic semiconductor development. It follows the first phase of the India Semiconductor Mission, approved in 2021 with a budget of ₹760 billion.
More recently, the Union Budget 2025 also saw increased funding for semiconductor initiatives and production-linked incentive (PLI) schemes. The semiconductor project budget rose to ₹24.99 billion, while the overall electronics and IT ministry allocation grew by 48 per cent to ₹260.26 billion.
To support manufacturing, the government has allocated land and funding to both Indian and international firms for chip fabrication plants. Last year, Prime Minister Narendra Modi inaugurated three such plants involving CG Power, Tata, Renesas, and PSMC.
Additionally, the government approved the disbursement process for Micron under its $10 billion PLI scheme. Global tech giants, including Samsung, Intel, and Cyient, have shown growing interest in India’s semiconductor industry.
Investment in the sector has surged, with funding reaching $28 million in 2024, up from $5 million in 2023.
