Under the Aatmanirbhar Bharat Vision, the Union Cabinet chaired by Prime Minister Narendra Modi has approved Production Linked Incentives (PLIs) for the development of the semiconductors and display ecosystem in the country. The programme will usher in a new era in electronics manufacturing by providing a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design.
The programme aims to incentivise companies that are engaged in Semiconductor wafers. With the approval of the programme by the government for the development of the semiconductors and display manufacturing ecosystem in India with an outlay of Rs.76,000 crore. The government of India has also announced incentives for the supply chains including electronic components, sub-assemblies, and finished goods. Incentive support to the tune of Rs.55,392 crore has been approved under PLI for Larges Scale Electronics Manufacturing, PLI for IT Hardware, SPECS Scheme and Modified Electronics Manufacturing Clusters Scheme.
In addition, PLI incentives to the quantum of Rs.98,000 crore are approved for allied sectors comprising of ACC battery, auto components, telecom & networking products, solar PV modules and white goods.
In total. the government of India has committed support of Rs 2,30,000 crore roughly (USD 30 billion) to position India as the next global leader for electronics manufacturing with semiconductors.
The programme will promote electronics manufacturing and will certainly contribute significantly to achieving a USD 1 trillion digital economy and a USD 5 trillion economy by 2025.