In spite of the government’s effort, the semiconductor PLI scheme seems to be lagging behind.
The Indian government has earmarked $10 billion for semiconductor production under the production-linked incentive (PLI) scheme, of which $8 billion remains unused, according to a senior official from the Industry Ministry. On Tuesday, Department for Promotion of Industry and Internal Trade Secretary Rajesh Kumar Singh called on Korean investors to capitalize on this opportunity.
Korean firms have already invested $5.6 billion in India since April 2000, and now they are being encouraged to partake in the semiconductor PLI and the emerging prospects in battery storage solutions. During his address at the India-Korea Business Partnership Forum, organized by the Confederation of Indian Industry and the Korea International Trade Association, Mr. Singh urged for a joint effort to boost bilateral trade to $50 billion by 2030.
He highlighted India’s ambition to bolster its manufacturing sector with the aid of initiatives like the PLI, which offers over $26 billion across 14 economic sectors. Singh pointed out that there is a significant opportunity for Korean companies to engage in India’s high-tech sectors, particularly since a large portion of the funds designated for the Semiconductor Mission has not been claimed.
He also drew attention to the forthcoming bid for over 20 gigawatt hours of capacity for storage and mobility batteries in India, another sector ripe for investment. Additionally, Mr. Singh acknowledged the suggestion to enhance the Comprehensive Economic Partnership Agreement (CEPA) between India and Korea to further strengthen their economic relationship.
